Rice exports soar to new record in 2023

The total rice output in the country increased by 1.9 percent to 43.5 million tons, said the ministry. 

Export prices averaged US$663 per ton as a result of high demand, it added.

Big surge from strong downturn in global supply

Looking back to 2023, geo-political fluctuations strongly impacted the rice market with disrupted food and input material supply.

In addition, the El Nino phenomenon, which posed a risk of contraction in food production, triggered some countries’ concern over supply for domestic demand.

The suspension of grain export by countries such as India, the UAE, and Russia also caused big supply pressure, thus mounting concern in the global food market.

However, as a leading exporter of farm produce, particularly rice, Viet Nam still managed to guarantee national food security and export growth.

Given the complex developments in the rice market, on August 5, 2023, Prime Minister Pham Minh Chinh issued a directive ordering national food security to be firmly ensured and sustainable rice production and export promoted.

The Ministry of Industry and Trade was tasked to work with relevant agencies to carry out rice trade promotion programs appropriate to the new situation to improve Viet Nam's rice’s value.

They were also asked to capitalize on preferential treatments under the free trade agreements to which Viet Nam is a party to diversify markets and better the competitiveness of the Vietnamese grain.

Under the strategy on developing rice export markets through 2030, agricultural authorities requested localities and key rice farming zones to conduct restructuring to produce more quality grain for export and raise the added value.

The quality of Vietnamese rice in the global market was affirmed after the ST25 variety once again obtained the “World’s Best Rice” title recently.

Positive forecast for 2024

Rice exporters said as global supply is still low, demand for Vietnamese rice will surge in 2024, especially from the Philippines and China.

Price hikes help businesses export much and earn big as India, the world’s biggest rice exporter, is suspending overseas shipments of the grain. 

Businesses hoped that rice prices in the winter - spring crop will stay high to benefit farmers. Meanwhile, export prices in the further future may decline but are unlikely to fall sharply, possibly to about US$600 per ton.

The global rice market is predicted to be short of 5 million tons in 2024, and global rice inventories have fallen to over 160 million tons.

The Philippines, Indonesia, China, and African nations will be the largest importers of Viet Nam’s rice this year.

Viet Nam is home to 7.1 hectares of rice cultivation with an anticipated output of 43-43.5 million tons./.