The average export price of Vietnam’s rice remains high. However, the Philippines has spent nearly one billion USD buying 1.49 million tons of rice from Vietnam in the last 4 months alone.
According to the General Department of Customs, in April 2024, Vietnam exported over one million tons of rice, worth nearly 620 million USD.
In the first four months of 2024, Vietnam exported about 3.17 million tons of rice, worth nearly 2.04 billion USD. Compared to the same period last year, rice exports only increased by 9.5% in volume, but the value increased sharply by 33.6%.
Rice exports to the Philippines increased sharply in the first four months of the year.
The average export price of this item in the first 4 months of this year reached 644 USD/ton, up 22.2% over the same period last year. This is the main reason for the sharp increase in Vietnam’s rice export turnover recently.
Notably, while the price of rice remained high, the Philippines, a traditional customer of Vietnamese rice, suddenly bought a large amount of rice from Vietnam. Specifically, in April, this Southeast Asian country spent 286.8 million USD buying 478,700 tons of rice. Compared to the same month last year, the figure was up 21% in volume and 45% in value.
Overall, in the first four months of 2024, the Philippines imported 1.49 million tons of rice from Vietnam, worth 935.6 million USD. Compared to the same period last year, the country’s rice imports from Vietnam only increased by 15.5%, but the value increased by 44.5%. Accordingly, the Philippine market accounted for nearly 47% of the rice export value of Vietnam in the first four months of 2024.
Since 2019, Vietnam has surpassed Thailand to become an important supplier and hold the leading position in exporting rice to the Philippines. Currently, the Philippines is Vietnam’s largest rice export market.
The Philippines’ rice imports are expected to grow even higher next year as consumption continues to grow. Import volumes will reach record highs thanks to “increased population and tourism.” Meanwhile, this country’s domestic rice production in the first quarter of the year decreased.
Currently, the Philippines is Vietnam’s largest rice export market.
According to the USDA, the Philippines will become the world’s top rice importer. The country’s rice imports this year could reach 4.1 million tons, up 5.1% from 3.9 million tons last year.
Regarding the Philippine market, Mr. Phung Van Thanh, the Vietnam Trade Counselor in the Philippines, said that Vietnam has a lot of potential to export to this market because many Vietnamese rice exporters have built long-standing relationships with Philippine importers. Along with that, Vietnam’s rice with competitive prices can meet the diverse needs of Filipino consumers, from middle- and low-income people to the wealthy classes.
In particular, Vietnam’s rice is stable in supply and price, which can satisfy the annual import demand of the Philippines. This is also an advantage when exporting to the Philippines, the world’s leading rice importer.
Recently, two committees of the Philippine House of Representatives approved a new rice tariff law (RTL) and restored the role of the National Food Authority (NFA).
Under the new draft policy, the NFA will be reinstated to the function of regulating the market. The agency will be granted money and the right to buy domestic rice as well as import it directly if necessary to ensure sufficient rice reserves and domestic consumption and stabilize rice prices.
Rice exporters and experts said that if this draft policy is adopted at the end of May as expected, Vietnam’s exports will face many difficulties./.