Statistics of the General Department of Customs show that Vietnam earned 4.6 billion USD from rice exports last year, increasing in both volume and turnover. That was a successful year for the rice sector.
In the first quarter of this year, Vietnam's rice exports reached an impressive 2.2 million tons, worth 1.4 billion USD at an average price of 653 USD a ton, a 17% year-on-year rise in volume and a 45% rise in turnover. Vietnam continues to dominate key markets.
Vietnamese rice exporters have made the most of new-generation free trade agreements to enter demanding markets such as Europe.
Le Thanh Tung, Deputy Director of the Department of Cultivation at the Ministry of Agriculture and Rural Development, named another reason Vietnamese rice exports have increased in value: 80% of its quality and specialty varieties have met export requirements.
Vietnam produces rice not just for export, but for national food security. The Mekong Delta, Vietnam’s biggest rice production hub, produces rice using sustainable farming methods adapted to climate change.
Tung said that more than 80% of Vietnam’s quality and specialty rice varieties meet export requirements.
“In expanding its export markets, Vietnam faces stricter international standards and must adapt its production to meet these standards. The Ministry is coordinating with localities to set up raw material areas to meet the needs of rice exporters,” said Tung.
Tran Truong Tan Tai, Director General of the Vietnam Rice Company, said the company has exported to 13 European countries at a minimum price of 980 USD per ton.
To enter the European market and sell at high prices, Vietnamese businesses must pay attention to branding, technology investment, human resources, connectivity, and the role of associations in the rice value chain.
Connectivity to create stable raw material areas will help build a sustainable rice brand, according to Tan Tai.
He added, “To create a chain, local authorities and businesses must be involved in expanding raw material areas. If we work together, I think these raw material areas will take shape soon. People and cooperatives must understand and sympathize with the localities and businesses for the difficulties they face, especially when prices fluctuate a lot.”
The Ministry of Agriculture and Rural Development said rice production is concentrated in the Mekong Delta region, which is estimated to turn out about 7.3 million tons and contribute more than 90% of Vietnam's rice exports.
Deputy Minister Tran Thanh Nam said Vietnam's rice output can fully meet this year’s target, adding that Vietnam expects to export 7.3 million tons this year.
“In the first half, we hope to export 4.3 million tons. The Ministry insists that will ensure our planned export volume,” said Nam.