Rice exports of Vietnam witnessed positive results despite being affected by several factors, such as the new variant of COVID-19, the Russia – Ukraine conflict, and the risk of inflation due to rising material prices.
In June 2022, Vietnam’s rice exports reached 726,308 tons, equivalent to 354.42 million USD. That is an increase of 2.2% in volume and 2.1% in turnover over the previous month.
In the first half of 2022, Vietnam exported 3.49 million tons of rice, with a turnover of 1.71 billion USD, up 15.4% in volume and down 3.6% in turnover compared to the same period in 2021.
Vietnam most exported rice to the Philippines, with exports to this market accounting for 53.76% of the total rice export in the first 6 months of 2022.
In June 2022, rice exports to several markets such as the Philippines, Ghana, and Singapore increased compared to May 2022. Exports to China and Indonesia decreased. When compared to June 2021, Vietnam’s rice exports to some major markets increased, except for China, Ghana, and Singapore.
In June 2022, Vietnam exported 355.65 thousand tons of rice to the Philippines, equivalent to a turnover of 170 million USD, up 0.2% in volume and 1.4% in turnover compared to May 2022. Over June 2021, this number is an increase of 135.9% in volume and 115.8% in turnover.
In the first half of 2022, Vietnam’s rice exports to the Philippines reached 1.62 million tons, equivalent to 759.1 million USD, up 48.7% in volume and 30.9% in turnover over the same period in 2021.
Rice exports of Vietnam to China in June 2022 decreased by 45.3% in volume and 48% in turnover compared to May. Compared to June 2021, exports were down 48.9% in volume and 55.2% in turnover.
In the first half of 2022, Vietnam’s rice exports to China were down by 24.5% in volume and 26.1% in turnover over the same period in 2021.
There remains much room for Vietnam to export rice to the EU market. Data showed that Vietnam’s rice exports to the Netherlands in the first 6 months of 2022 reached 6.36 thousand tons, with a turnover of 4.43 million USD, up 19.2% in volume and 23.9% in turnover over the same period in 2021. However, in general, the amount of rice that Vietnam exports to the EU is still low. This market, thereby, is a promising destination for Vietnam’s rice exports in the coming time.
With the advantage of specializing in exporting low-medium-grade rice products, India's rice exports are still holding the top position. The runner-up position is struggling between Vietnamese and Thai rice. However, rice exporters said that Vietnamese rice has stable quality, higher prices are asserting its value, and the Vietnamese rice brand has transformed after a strong restructuring effort of the rice industry. Therefore, the advantage of the 2nd rice export position tends to favor Vietnamese rice.
Regarding the prospect of rice exports in the coming time, Rong Viet Securities Company (VDSC) forecasts that Vietnam's rice export output will continue to increase, when the demand for rice from the Philippines is increasing, along with the demand for imported rice from the Philippines. imported back from China. Moreover, fertilizer prices tend to decrease, which will be a "plus point" to increase the competitive advantage for Vietnamese rice when production costs decrease.
According to the forecast of the Ministry of Industry and Trade, from the beginning of 2022, a global food crisis has taken place as a result of the COVID-19 pandemic, the tension between Russia and Ukraine, and the disruption of the world supply chain. Moreover, the strong increase in wheat prices between June 2020 and May 2022 has led to the trend of using cheaper rice foods to replace wheat. As a result, global rice demand has increased sharply in the first half of 2022. That is an advantage for Vietnam to expand export to many markets.
VDSC expects Vietnam's rice export volume to continue to grow in the last 6 months based on three main reasons:
Firstly, import demand from the Philippines - Vietnam's largest rice importer is forecasted to continue to increase due to higher wheat prices.
Secondly, China - Vietnam's second largest rice importer, is expected to return to importing more rice in the second half of 2022 after a period of restraint by the "Zero COVID" policy.
Finally, rice exports to Europe are expected to increase sharply, thanks to the EVFTA. According to the commitment in the EVFTA, the EU will grant Vietnam an export quota of 80,000 tons of rice per year.
(First 5 months 2022)
Intimex Group Joint Stock Company, Thanh Tin Services and Trading Company Limited, and Vietnam Northern Food Corporation Ltd were Vietnam’s top three rice exporters in the first 5 months of 2022, reaching a total of over 300,000 USD in export turnover.
Source: The Ministry of Industry and Trade, laodong.vn
Compiled by VietnamCredit