Vietnam’s three largest rice export markets are all located in Asia, including the Philippines, China, and Indonesia. Notably, the exports to Indonesia grew very strongly with many optimistic signals.
Rice exports to Indonesia have increased by 4 figures.
THREE MAJOR MARKETS ACCOUNTED FOR 65.4% OF RICE EXPORTS
According to preliminary statistics of the General Department of Customs, in September 2023, Vietnam exported 605,410 tons of rice. The turnover reached 377.78 million USD and the average value was 624 USD/ton, down 34.3% in volume and 30.9% in turnover but up 5.2% in average value compared to the previous month.
Compared to the same period last year, rice exports increased by 4.3% in volume, 37.8% in turnover, and 32.2% in average value.
Accumulated by the end of September, the country exported nearly 6.42 million tons of rice with a turnover of 3.54 billion USD. The average value reached 551.5 USD/ton which was up 19.5%. This result was up 35.9% in volume and 13.7% in average value over the same period in 2022.
In terms of market, the three leading names are all in Asia including The Philippines, China, and Indonesia.
In particular, the Philippines remains Vietnam’s largest rice export market. By the end of September, rice exports to The Philippines reached more than 2.44 million tons with a turnover of 1.29 billion USD, which was down 1.1% in volume but up 12.8% in turnover over the same period last year. This Southeast Asian country alone accounts for 38% of the volume and 36.5% of rice export turnover.
China ranked second with 858,848 tons and a turnover of 495.78 million USD, which was up 37.2% in volume and 55.2% in turnover. This country accounted for 13.3% iof the volume and 14% of the rice export turnover of Vietnam.
Next is Indonesia with 884,177 tons and a turnover of 462.61 million USD, a sharp increase of 1,667% in volume and 1,794% in turnover over the same period last year, accounting for 13.8% in volume and 13% in rice export turnover.
With a total output of about 4.2 million tons, the above three Asian markets alone accounted for 65.4% of the total rice exports of Vietnam in the past 9 months.
Vietnam’s three largest rice export markets are all located in Asia.
BIG OPPORTUNITY IN INDONESIA MARKET
Regarding rice exports to the “country of thousands of islands”, recently, the Vietnam Trade Office in Indonesia said that after the announcement of Indonesian President Joko Widodo (October 8, 2023) that this country will need about 1.5 million tons of rice to the national reserve from now until the end of 2023, this is considered a great opportunity for Vietnam’s key agricultural exports.
After the announcement of Indonesian President, Mr. Arief Prasetyo Adi, Indonesia’s acting Minister of Agriculture confirmed to the press that Vietnam and Thailand will be the two main rice suppliers for the next purchase of 1.5 million tons.
The leader of Indonesia’s National Logistics Agency designated by Indonesia as the rice importer added that all the necessary permits for the import of 1.5 million tons of rice have been issued by the relevant Indonesian authorities and the import will be carried out as early as the end of October 2023.
Indonesia’s choice of Vietnam as the main rice supplier has further confirmed the position and reputation of Vietnamese rice.
According to the Vietnam Trade Office in Indonesia, Vietnamese rice has always been reputable, winning the trust of the Indonesian Government and consumers in the context that this country is facing a shortage in domestic food production due to the El Nino phenomenon.
To make the most of this opportunity, the Vietnam Trade Office in Indonesia recommends that Vietnamese rice exporters pay attention to the previous guidance of the Ministry of Industry and Trade on rice exports to the Indonesian market.
Accordingly, rice exporters need to actively monitor the market situation, fully assess opportunities as well as risks to develop transaction plans, sign appropriate contracts, ensure export efficiency, and contribute to consuming all rice for farmers at beneficial prices.
In addition, traders need to be aware of how to prevent price, payment, and delivery risks in the context of the world trade situation being affected./.