Since May this year, Vietnam’s rice export activities have returned to normal, with the month recording the highest rice export price seen in recent years and paving the way for the country to outpace Thailand in global rice exports in 2020.
A report on the industry and trade performance in May and in the first five months of the year released by the Ministry of Industry and Trade on June 2 stated that Vietnam’s agro-forestry-aquatic exports declined over the last five months against the year-ago period. However, the country saw rice exports surge in May.
Vietnam’s rice export volume and value in the last month soared by 47% and 55.3% month-on-month, respectively.
Rice export prices in May shot up to the highest level over the past few years, with the average price recorded at US$527 per ton, up 21.4% year-on-year.
Between January and May, the average price of Vietnamese rice rose by 13% year-on-year at US$485 per ton.
Data from the General Statistics Office indicated that over the first five months of 2020, Vietnam’s revenue from rice exports amounted to US$1.4 billion, increasing by 17.2% year-on-year.
Meanwhile, Thailand exported 2.11 million tons of rice worth US$1.38 billion from January to April, dipping by 32.1% in volume and 15.7% in value year-on-year, according to Thailand’s Ministry of Commerce.
As such, the Vietnamese Ministry of Industry and Trade forecast that the country is likely to surpass Thailand in terms of rice exports this year.
From March 24 to April, Vietnam halted rice exports to ensure food security amid the spreading Covid-19 infection, affecting local rice exporters and export activities. SGT
After a year letting the private sector import rice on a “tax-based mechanism” instead of a quota-based mechanism in line with the G2G regime, the Philippine side is considering a comeback to the previous regime to import 300,000 tons of rice.
Confronted with food security risks as Covid-19 spreads, the Prime Minister decided on March 25, 2020 to suspend rice export and then regulate it using quotas.