Vietnam, a country that takes pride in its rice exports, accounting for a large proportion of 48.8% of total exports, equivalent to 3.43 million tons, has witnessed significant strides in rice exports during the first eight months of 2023. As a key player in the global rice market, Vietnam's rice export activities have not only grown in terms of volume but also in value, thanks to numerous strategies aimed at product diversification and quality improvement. This article aims to provide a comprehensive overview of the rice export situation in Vietnam, discussing key indicators such as volume, value, prices, and target markets.
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The Volume and Value of Rice Exports
According to the Ministry of Agriculture and Rural Development, quoted by Nhan Dan, “Vietnam’s rice exports reached 2.95 million tonnes with a turnover of 1.56 billion USD, in the first four months of 2023, up 43.6% in volume and 54.5% in value, over the same period in 2022. Vietnam exported a staggering 5 million metric tons of rice from January to August 2023, showcasing a 12% increase compared to the same period last year. This growth can be attributed to various factors, including increased global demand, favorable weather conditions for rice farming, and innovative agricultural practices.
The exports fetched $2.8 billion in value, marking a 16% rise from last year. The increase in value outpacing the rise in volume indicates an uptick in the average unit price, underlining the enhanced quality of Vietnamese rice on the global stage.
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Rice Prices Since the Beginning of the Year 2023
The average price per metric ton of rice from Vietnam has steadily increased since the beginning of the year, from $530 in January to $560 in August. Several factors have contributed to this hike in prices:
- Global Supply Chains: Disruptions in global supply chains since late 2020 have yet to be recovered. Although global supply chains have been steadily going back to its full capacity, the disruptions are still causing a general price escalation across commodities, including rice.
- Quality Improvement: With the steady improvement of Vietnam’s economy and their proactiveness to invest in important local industries, the investment in improving rice quality has allowed them to command better prices.
- Demand from High-Value Markets: Entering high-value markets like Europe and the United States has enabled Vietnam to negotiate better prices for its premium rice variants.
Vietnam and other countries' rice export statistics between 2022 and 2023
Photo: https://www.statista.com/
The Rice Export Market in ASEAN
The ASEAN countries, China, and Africa continue to lead Vietnamese rice importers. However, 2023 has seen a shift in market dynamics:
- New Entrants: Markets such as Mexico and Canada have shown interest in Vietnamese rice varieties, precisely the Jasmine and Japonica types.
- High-Value Markets: The share of exports to European countries and the United States has increased, accounting for approximately 20% of the total exports during this period. This is a significant jump from last year's 15%.
- Quality Over Quantity: Vietnam has been focusing on exporting high-quality specialty rice to attract high-value markets. Organic and aromatic rice types are gaining traction in Western markets.
VICO Logistics' role in exports
Much like any other industry, the way VICO Logistics supports export by providing a one-stop-shop solution that helps businesses accelerate their logistics process. VICO Logistics’ history in Vietnam allowed us to constantly develop the most befitting solutions for each business, as everyone has different needs.
If you are a business in the rice industry and require further consultation or logistics assistance, please do not hesitate to contact us via email or the online chat at the bottom right corner!
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Conclusion
Vietnam's rice export sector has shown remarkable resilience and growth in the first 8 months of 2023. With increased volume and value and a steadily rising price chart, Vietnam continues establishing itself as a formidable competitor in the global rice market. Additionally, the diversification of export markets is a strategic move that helps in risk mitigation and provides opportunities for higher value capture.
As the world continues to experience economic and climatic shifts, Vietnam's rice export story remains one to watch, serving as a case study in market adaptability, quality improvement, and global reach. And as VICO Logistics grows together with Vietnam’s economy, our capacity increases and is ready to set sail, whenever you are as well!
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