Vietnam aims to be world's top exporter of quality rice

In August 2020, when the Vietnam - EU Free Trade Agreement (EVFTA) took effect, Trung An High-tech Agriculture JSC exported about 150 tons of rice to the European Union. 

In particular, ST25 rice was sold for more than $1,000 per ton and Jasmine rice for $600 per ton.

The Vietnam National Seed Group (Vinaseed) has also inked many contracts to export rice to Australia, the Netherlands, and the Czech Republic at high prices.

The first batch of Vietnamese rice exported in 2021 was 1,600 tons of Trung An High-tech Agriculture Joint Stock Company. Its two types of Jasmine rice were sold for $680 and $750 per ton.

Pham Thai Binh, general director of Trung An, told VietNamNet that the company has changed its policy: producing and exporting high quality rice only.

Biến gạo thành hạt ngọc trời” để vươn lên số 1 thế giới-1

Vietnam's rice prices higher than Thailand, India


Vietnam was known for exporting low-grade, low-priced rice for the past 30 years. Now, Vietnamese firms export high-quality rice for high prices. Vietnam is also the producer of ST25, the most delicious rice product in the world.

According to Deputy Minister of Agriculture and Rural Development Le Quoc Doanh, after more than 30 years of conquering the world rice market, Vietnam is no longer inferior to others in terms of the quality and price of its exported rice. The country currently has many valuable rice varieties and the price for Vietnamese rice is sometimes higher than that of Thailand and India.

Doanh said that five to six years ago Vietnam had 35-40% of high-quality rice varieties, but now the ratio is 75-80%. As the quality of rice has increased, the export price has risen very quickly. The rice industry has been successfully restructured in recent years, although the rice cultivation area has been reduced.

Recently, many people were "startled" by the information that Vietnam imported rice from India. But for experts, this is ‘the new normal’ of Vietnamese rice. Vietnam lacks and has to import low-grade rice to process cattle-feed as the proportion of high-grade rice varieties is overwhelming.

The Bangkok Post on January 25 commented that this is "Vietnam's wise rice strategy". Vietnam chose to import Indian rice at lower prices to meet domestic demand, while focusing on producing high-quality rice for export. The production of high-quality rice is on the right track with the world, taking advantage of export opportunities to the EU when the EVFTA went into effect.

Dr. Dang Kim Son, former director of the Institute of Policy and Strategy for Agriculture and Rural Development, acknowledged that rice is the most successful export commodity in recent years. From exporting 1 million tons per year, Vietnam has become the world's leading rice exporter. If in the past, the price for Vietnamese rice was much lower than the world rice price, especially Thai rice, now it is equal or even higher.

Vietnamese rice holds No. 1 position in world

 

In mid-2018, when the price Vietnamese rice surpassed Thailand's, many people called it a "miracle" because, for many years, Vietnamese rice had been inferior to Thai and Indian rice in both quantity and quality.

As a result, the position of Vietnamese rice has changed. In 2020, Vietnam overtook Thailand to become the world's second rice exporting country, with 6.15 million tons, earning $3.07 billion. Notably, the export volume decreased by about 3.5% but turnover increased by 9.3%.

Biến gạo thành hạt ngọc trời” để vươn lên số 1 thế giới-3

Vietnam has shifted from producing low-quality to high-quality rice.

Vietnamese rice has surpassed both Thailand and India to take the number one spot in the world in terms of selling price. In 2020, with an average export price of $499 per ton, an increase of 13.3% compared to 2019, Vietnamese rice farmers earned high profits. It is estimated that with an output of about 7 million tons per hectare, farmers can earn from VND65-VND70 million per hectare, while the cost is only about VND16-VND17 million per hectare. It means a profit of 70%, equivalent to about VND50 million per hectare.

In early 2021, Vietnamese rice maintained its top position in price. On March 25, the price for Vietnam's 5% broken rice increased to $515-520 per ton, compared to $500-$518 per ton for Thai rice and $398-403 per ton for Indian rice of the same kind. In January 2021, Vietnam's rice export price hit $551.7 per ton.

'Heavenly pearls' 

According to the Vietnam Food Association (VFA), rice exports in 2021 will be very positive. The Asian rice market started to heat up again as customers were rushing to buy. Many countries have great demand for fragrant rice and sticky rice, which are an advantageous commodity of Vietnam. Vietnam's export outlook is wide open thanks to opportunities from a number of markets that have signed free trade agreements (FTA) with Vietnam. In particular, under the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam has a quota of 80,000 tons of rice per year with 0% tax.

However, Pham Thai Binh said that to ensure a stable future for Vietnam’s rice export, it is necessary to strengthen the link between enterprises and farmers to improve quality of rice. Local governments need to find solutions to promote these links. This is a prerequisite for enterprises and farmers to jointly produce rice for export to serve various needs of the international market.

Agricultural expert Hoang Trong Thuy said that rice trading firms should keep shifting the structure of exported rice to high value-added types because if Vietnam produces low-grade rice, it will not be able to compete with India and Pakistan. Investing in the production of high-quality rice will help increase export value and enable Vietnamese rice to enter big markets such as Japan, Korea, and the EU.

Tam An

Surpassing Thailand, Vietnamese rice ranks first in world on price

Surpassing Thailand, Vietnamese rice ranks first in world on price

Overcoming Thailand and India, Vietnamese rice ranked first in the world on average selling price, which in the first quarter was US$547 per ton, up 18.6% year on year.

Vietnamese rice export price reaches record level

Vietnamese rice export price reaches record level

Vietnamese rice prices are on the rise and can compete with other rivals in terms of quality, according to the Ministry of Agriculture and Rural Development (MARD).

 
 

Other News

.
When Party documents mention the concept of 'national governance’
When Party documents mention the concept of 'national governance’
FEATUREicon  19/04/2021 

One of the new features of the documents of the 13th National Party Congress is the emergence of the concept of "national governance".

Buyers of phony ‘mutant orchids' from disreputable sellers lose huge sums of money
Buyers of phony ‘mutant orchids' from disreputable sellers lose huge sums of money
FEATUREicon  18/04/2021 

What are some of the most popular investment channels in Vietnam? Real estate, securities, cryptocurrency and ... mutant orchids.

Special lessons given at border markers to local students
Special lessons given at border markers to local students
FEATUREicon  18/04/2021 

At 5 am, the fog still covered the mountain surrounding the Huong Lap Frontier Post. But the teacher, a border officer, was already correctly dressed in uniform, reviewing the lesson plan in a preparation for his teaching period in the field.

Student overcomes adversity, joins national maths team
Student overcomes adversity, joins national maths team
FEATUREicon  18/04/2021 

Having parents with severe illnesses who could not pay to send their kids to tutoring did not lessen Thong’s eagerness to learn and achieve.

The twins who built a sharing platform for young people
The twins who built a sharing platform for young people
FEATUREicon  17/04/2021 

Having experienced a difficult period of time finding directions for the future, a pair of twin sisters decided to establish an online platform to advise and troubleshoot problems for young people who are struggling to find goals for life.

Digital academy takes shape
Digital academy takes shape
FEATUREicon  17/04/2021 

The initial ecosystem for a digital school is taking shape at the Posts and Telecommunications Institute of Technology (PTIT).

Apartments sales drop, but developers still setting high prices
Apartments sales drop, but developers still setting high prices
FEATUREicon  17/04/2021 

No longer seen as a profitable investment segment, apartments are not selling well as investors have shifted to buy land instead.

From failed college candidate to physics professor in the US
From failed college candidate to physics professor in the US
FEATUREicon  16/04/2021 

Dr. Nguyen Dong Hai spoke with VietNamNet about his path from a student who failed the university entrance exam in Vietnam to a professor of physics at Tennessee Wesleyan University in the US and his thoughts on pedagogical student training.

Fintechs to partner with telecom carriers to offer Mobile Money
Fintechs to partner with telecom carriers to offer Mobile Money
FEATUREicon  16/04/2021 

The pilot program on providing the Mobile Money service is expected to increase non-cash transactions, especially in remote areas. To improve users' experience, fintechs should work with network operators, experts say.

Bach Mai Hospital faces mass resignation of staff
Bach Mai Hospital faces mass resignation of staff
FEATUREicon  16/04/2021 

More than 200 workers at Hanoi-based Bach Mai Hospital, the country’s leading hospital, have resigned from their posts. Some practitioners said they had left because of unreasonable changes in management.

Race for digital transformation: now or never
Race for digital transformation: now or never
FEATUREicon  16/04/2021 

The rules of the game in the future will be "quick fish eats slow fish". Even “giants,” without timely performing digital transformation, may lose ground to “rookies” that are young and agile in the 4.0 technological revolution.

Virtual travel one step ahead of real travel
Virtual travel one step ahead of real travel
FEATUREicon  15/04/2021 

The tourism industry is facing post-pandemic recovery challenges, but "virtual tourism" may be a new direction to open up breakthrough opportunities.

Four questions sparked Quang Ninh's awakening 10 years ago
Four questions sparked Quang Ninh's awakening 10 years ago
FEATUREicon  15/04/2021 

A decade ago, the northern province of Quang Ninh faced bottlenecks in infrastructure development. 

Female scientist with PhD in immunology pursues research on rare diseases
Female scientist with PhD in immunology pursues research on rare diseases
FEATUREicon  14/04/2021 

Tran Nguyen Kim Thi is a postdoc majoring in AI usage in medicine at the Huge Kaul Precision Medicine Institute at the University of Alabama in Birmingham (UAB) in the US.

What’s behind the 'land fever' phenomenon?
What’s behind the 'land fever' phenomenon?
FEATUREicon  14/04/2021 

The market often cools down when periods of "land fever" end, but then new higher price levels reoccur later.

Newly-elected NA Chair faces high expectations to fulfill President Ho Chi Minh's wishes
Newly-elected NA Chair faces high expectations to fulfill President Ho Chi Minh's wishes
FEATUREicon  14/04/2021 

When delivering the closing speech at the NA session, NA Chair Vuong Dinh Hue expressed his belief that newly elected deputies will uphold the spirit of dynamism and creativity, and will dare to think, dare to do, and dare to take responsibility.

Battery technology will determine race for electric cars
Battery technology will determine race for electric cars
FEATUREicon  13/04/2021 

Only when fast-charging batteries along with a nationwide system of charging stations will electric cars become popular in Vietnam.

Vietnam to raise tax on cars with high emissions
Vietnam to raise tax on cars with high emissions
FEATUREicon  13/04/2021 

Experts have suggested imposing high taxes on vehicles and encouraging the use of electric cars.

“I was moved after being appointed the first female Minister of Home Affairs”
“I was moved after being appointed the first female Minister of Home Affairs”
FEATUREicon  13/04/2021 

VietNamNet talked with Pham Thi Thanh Tra soon after she was elected Minister of Home Affairs.

Ministry proposes removing regulation on foreign-ownership ratio in petrol trading firms until PM reviews
Ministry proposes removing regulation on foreign-ownership ratio in petrol trading firms until PM reviews
FEATUREicon  13/04/2021 

The Ministry of Industry and Trade (MOIT) has proposed removing a tentative regulation in a draft decree that says foreign investors can hold up to 35 percent of shares of petroleum trading companies.

 
 
 
Leave your comment on an article

OR QUICK LOGIN