Rice exports from Vietnam will increase in 2022
According to a report, Vietnamese rice exports have been increasing significantly in the initial months of 2022, signalling a favourable year for the country’s produce. According to data from the General Customs Department, Vietnam exported 974,556 tonnes of rice valued at about US$ 469.26 million in the first two months of the year, an increase of 48.6 per cent and 30.6 per cent, respectively, over the same period last year.Vietnam’s largest rice export market during this period was the Philippines, with exports to the country increasing by 110 percent in volume and 82 percent in value.It was followed by China with 81,880 tonnes.
The Lc Tri Agricultural Products Joint Stock Company, a subsidiary of the LộcTrời Group, recently completed its first deliveries this year, with more than 4,500 tonnes of rice valued at over $3 million among exportsfor the long term partners in Italy, France, Canada, Hong Kong, Singapore, the Philippines and Kuwait.Trung An High-Tech Agriculture Joint Stock Company,in the early days of 2022, also exported more than 11,000 tonnes of rice to Korea. General director of the TrungAncompany,PhạmTháiBình, expected the rice export market in 2022 to be more favourable than in 2021 thanks to increasing demand following the recovery of the supply chains.
Global uncertainties, in addition, including the recent armed conflict between Russia and Ukraine, would also cause people in many countries to pay more attention to food reserves, Bình forecast.Experts predict that both production and consumption of rice in the global market will increase this year.Even they said that in the next one or two weeks, rice export market will be busier. Moreover, when importers increase their purchases, export prices are also expected to rise again.Notably, according to the recently released US Department of Agriculture (USDA) January 2022 report, global rice production is projected to reach 509.9 million tonnes in the 2021-22 crop, up from 2.6 million tonnes in the previous crop.In the meanwhile, global rice consumption is estimated to be 510.3 million tonnes in the period 2021-22, an increase of about 7.8 million tonnes over the previous year.
Instead of focusing on quality, Vietnamese rice exporters are focusing more on quality, capitalizing on the EU-Vietnam Free Trade Agreement (EVFTA) for better access to the European market.Though the country’s rice export volume to the EU last year inched up only 0.8 per cent against the previous year to 53,910 tonnes, the produce’s export value surged 21.6 per cent to $38.07 million, according to the General Department of Customs.The Import-Export Department of the Ministry of Industry and Trade attributed the success of Vietnamese rice exporters to the higher prices in taking advantage of EVFTA.The export value of Vietnamese rice among the top ten rice suppliers to the European Union rose by an average of 20.3 percent to $781 a tonne in the first nine months of 2021.With the increase in exports of Vietnamese high quality and specialty rice varieties such as aromatic rice, ST 24 and ST 25, prices have also increased.Việt Nam’s rice exports this year will continue to better exploit the advantages from the EVFTA to boost shipments to the European market, Experts said.
The European Union currently accounts for only a small portion of Vietnam’s total rice exports, with 1 percent by volume and 1.3 percent by trade.Việt Nam’s rice exports in 2022 to the EU market will be more than 60,000 tonnes because the bloc’s rice importers have had a better assessment about the quality of Vietnamese rice, according to the Vietnam Food Association (VFA). In addition, Vietnamese rice has already gained many traditional customers in Germany, the Netherlands, Italy and Poland.Vietnam hopes to export an estimated 100,000 tonnes of broken rice to the EU every year when the bloc liberalizes imports of broken rice completely.Under the EVFTA, enterprises with large and high standard cultivation areas such as LộcTrời, Tân Long and TrungAn will be the largest beneficiaries, according to experts.The country this year will further focus on improving rice quality while keeping the produce’s volume unchanged against last year at 6-6.3 million tonnes VNS, said VFA.