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In 2024, rice exports reached a record in both volume and value. The average export price of rice also reached an all-time high of over 600 USD/ton.

Rice exports hit record highs in both volume and value

Dong Thap – one of the rice granaries of the Mekong Delta, in 2024, rice exports are estimated to reach 1.366 million tons, an increase of 157.59% compared to 2023, reaching 227.67% of the 2024 plan; export turnover reached 865 million USD. This is the year that Dong Thap has quite impressive growth in exporting rice abroad.

The province currently has about 174 enterprises operating in the field of rice milling and polishing. It is estimated that the output of rice milling and polishing in 2024 will reach 2.1 million tons, an increase of 17.25% compared to 2023. The main rice export market is Asia, accounting for the highest proportion, followed by Oceania, and the rest are other continents.

Ms. Vo Phuong Thuy – Director of the Department of Industry and Trade of Dong Thap province – said that India’s continued measures to restrict rice exports to stabilize the domestic market, along with the decrease in supply in some rice exporting countries due to El Nino, have pushed up demand and world rice prices . Rice exporting enterprises in Dong Thap province have taken advantage of this opportunity to increase rice exports and increase farmers’ income.

According to a report by the Ministry of Agriculture and Rural Development, in 2024, Vietnam achieved a record in both output and export value, about 9 million tons with 5.7 billion USD. The average rice export price also reached an all-time high of over 600 USD/ton. The average rice export price of Vietnam in the past three years has had an impressive growth journey, increasing by over 28%, leading to double-digit growth in export turnover.

In 2024, Vietnam will rank third in the world in rice exports after India with 17 million tons and Thailand with 10 million tons. Mr. Do Ha Nam – Chairman of the Board of Directors, General Director of Intimex Group – assessed that Vietnam is building a rice industry with a different direction, focusing on fragrant rice and high-quality rice, gradually reducing low-quality rice. In 2024, rice exports will set a record of 9 million tons in 2024 thanks to production and business according to market demand. In terms of production, Vietnamese farmers are focusing on producing high-quality rice varieties, favored by the international market such as Dai Thom 8, OM 18, ST varieties, etc., which sell for good prices and have high economic efficiency.

Vietnam also imports a lot of cheap rice from India, Pakistan, etc. to serve processing and consumption for the low-income segment. In addition, there is also a source of rice from Cambodia to serve both consumption and export because this country does not have good processing infrastructure like Vietnam.

Exports in 2025 are expected to face difficulties.

The year 2024 is gradually coming to an end with positive export results of many key agricultural products, rice stands out with an export value of about 5.7 billion USD, this is also the highest level ever. And this is also the time when many businesses have started to offer and sign rice sales contracts for 2025.

Mr. Nguyen Ngoc Nam – Chairman of the Vietnam Food Association (VFA) – commented that rice exports in 2025 are expected to face many difficulties such as the return of India, which is forecast to export 22 million tons, an increase of 5 million tons compared to 2024. Regarding the import market, Indonesia, the world’s largest rice importer, is expected to reduce imports. In addition, China has sharply reduced rice imports in 2024, which is also noteworthy. Mr. Nguyen Ngoc Nam suggested that banks pay attention to the issue of loans and requested the tax sector to promptly refund value-added tax to support exporting enterprises.

Regarding this, Mr. Duong Duc Quang – Deputy General Director of Vietnam Commodity Exchange (MXV) Vietnam Commodity Exchange also commented that next year, rice exports of many countries, including Vietnam, will face more challenges than in 2024 because the world’s rice supply will become more abundant.

Many rice exporting countries in the world are trying to increase food supplies, besides India has also reopened supplies. Perhaps, for the above reasons, the average export price of rice may fall below 600 USD/ton.

From a rather optimistic perspective, export enterprises believe that export rice prices may decrease slightly when supply recovers, but opportunities for Vietnamese rice still exist because the quality of Vietnamese rice is increasingly focused on to ensure the increasingly strict standards of import markets. And this will be the main competitive advantage of Vietnamese rice in the coming time.

Accompanying businesses in rice export activities next year, Ms. Nguyen Thi Thu Huong – Deputy Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) – said, we will conduct research on which areas are suitable for growing high-quality, high-yield rice. Inefficient rice areas that still maintain a part of high quality, converting the structure to grow rice with crabs, rice with fish, and rice with shrimp is also a good way to build a brand for the Vietnamese rice industry.

On the part of the Ministry of Industry and Trade, in the coming time, the Ministry will focus on trade promotion activities, effectively exploiting the incentives of Free Trade Agreements (FTAs); support businesses to promote new markets and potential markets; regularly participate in trade promotion conferences with the Vietnamese trade office system abroad. At the same time, improve forecasting capacity, market information, promptly inform industry associations and businesses about developments in export markets so that businesses can grasp, have appropriate production plans, and orient to seek orders from markets. Closely monitor the situation, market developments, import and export policies of countries to promptly inform businesses.

According to experts, more abundant supply, more competitive prices and stable demand are expected to benefit consumers and contribute to global food security. However, this is also a signal that competition is increasing in the global rice market, forcing businesses to be flexible in their export strategies.

Published Date: December 24, 2024