A tonne of Vietnamese 5% broken rice was offered at US$663 on December 4 transactions, up US$13 from the previous day, according to the Vietnam Food Association.

This is the highest price the Vietnamese rice has recorded over the past more than 10 years, except for 2008 when a tonne of the 5% broken rice was traded for US$1,000.

Meanwhile, the Thai 5% broken rice also rose by 8% to US$625 per tonne, while the similar rice of Pakistan was also sold for US$600 per tonne, US$50 more than the price on offer several days ago.

Export traders attributed the rise in the Vietnamese rice price to the high purchasing power in the global market and a limited supply of rice domestically.

In addition, the price of rice in the domestic market remains high, forcing businesses to offer high prices to make a profit.

Fitch Solutions, a leading provider of insights, data and analytics, recently said trade restrictions and risks from early El Nino phenomenon caused importing countries to increase rice reserves, further fueling export prices.

Pham Quang Dieu, chief economist of Agro Monitor, Vietnam Market Analysis and Forecasting Joint Stock Company, warned that rice businesses should be cautious about a long delivery contract in 2024 because of a limited supply and difficulty in credit capital.

In mid-2023, the Ministry of Agriculture and Rural Development said Vietnam is likely to export between 7.5 and 8 million tonnes of rice this year.

Statistics show Vietnamese businesses shipped abroad 7.75 million tonnes of rice in the first 11 months of the year for US$4.4 billion, up 36% in value year on year.

Source: VOV