Vietnam is in the top 3 largest rice exporters in the world, meeting the quality and quantity standards of global customers. If you are also looking for the best rice factories in Vietnam, this article will help you a lot with a variety of knowledge of Vietnamese rice.
Overview of rice factories in Vietnam
Vietnam is the 2nd largest rice exporter in the world, with high product quality, meeting world standards at reasonable prices. If you are looking for products from rice factories in Vietnam, here are the basics that you need to know.
Export situation in rice factories in Vietnam
Statistics of the General Department of Customs show that in the first 7 months of 2022, the rice factories in Vietnam exports reached nearly 4.08 million tons, equivalent to over 1.99 billion USD, up 17.3% in volume, up 6% in turnover over the same period, the average export price reached 488.9 USD/ton, down 9.6%.
The Philippines still ranks first in Vietnam’s rice consumption, accounting for 48.6% of total exports and accounting for 46.4% of the country’s total rice exports, reaching 1.98 million tons, equivalent to 924.88 million USD, up nearly 67% in volume, up 40% in turnover but down 10.9% in price.
In 2021, the Philippines imports 3 main rice items from rice factories in Vietnam: Fully or preliminarily rubbed rice, grain or lake polished rice (HS 100630), broken rice (HS 100640), and paddy (HS 100610). Products with HS 100630 ranked first in terms of turnover, reaching 931.23 million USD, accounting for 86% of the total rice imports of the Philippines.
Followed by the Chinese market accounting for over 11.4% of the total volume and accounting for 12.2% of the total turnover, reaching 466,225 tons, equivalent to 242.74 million USD, down 28% in both volume and turnover; the price’s rice factories in Vietnam decreased slightly by 1% over the same period in 2021.
Currently, Vietnam is the largest exporter of glutinous sticks to China and at the same time, this is also the No. 1 glutinous consumption market of Vietnam accounting for more than 60% of the proportion. However, the positive thing is that China has sharply increased imports of fragrant rice, especially ST21 and ST24 from rice factories in Vietnam. Vietnam’s aromatic rice exports to China in 7 months increased by 58.6% to 188,459 tons. In addition, exporting Japonica and white rice factories in Vietnam to China also increased sharply in the first months of this year.
Types of products from rice factories in Vietnam
The variety of rice available from rice factories in Vietnam sources astonishes traders. The four primary types of rice that rice factories in Vietnam concentrate on are glutinous rice, normal long-grain rice, normal aromatic rice, and high-quality delicate rice.
- Glutinous rice: It is the most well-known variety in this group. Although it is the same milky white hue as regular long grain rice, this rice from rice factories in Vietnam has a rounder shape. Vietnamese glutinous rice is most frequently imported from China. It costs between 470 and 530 (USD/MT) FOB.
- Normal aromatic rice: Common varieties of normal aromatic rice include Nang Hoa, DT08, and OM18. Normal aromatic rice from rice factories in Vietnam is distinguished by its chewiness, tenderness, and enduring smell. The primary import markets for this group, like the high-quality delicacy group, are China, Africa, the Middle East, and the Philippines. This group’s FOB price ranges from 480 to 680 (USD/MT).
- Normal long-grain rice: It is available from rice factories in Vietnam in two well-known varieties: OM5451 and IR 504. The typical color of long-grain rice is a creamy white. China, the Philippines, and Africa are the main importers and consumers of regular long-grain products from rice factories in Vietnam. This group’s FOB prices range from 480 to 540 (USD/MT) on average.
- The ST rice: known as the sweetest rice in the world (ST05, ST20, ST21, ST24, ST25) and Japonica in rice factories in Vietnam are included in the category of high-quality delicacy rice.
The distinguishing characteristics of this group include chewiness and pandan-leaf smell when cooked. China, Malaysia, Cambodia, Australia, and the Middle East are the principal import markets for rice factories in Vietnam. This group’s FOB price ranges from 470 to 670 (USD/MT).
Major rice-growing regions for rice factories in Vietnam
Since Vietnam is one of the nations leading in rice production, the nation is home to numerous rice-growing regions. The Mekong and Red River Deltas are in charge of rice factories in Vietnam, though, which produce rice for export. In both regions, rice growing area accounts for about 68%, and output accounts for over 70% compared to the whole country.
Due to their significant amounts of fertile land and enormous production volume, these are the main sources of rice factories in Vietnam.
- Large arable land: With 3.967 thousand ha of arable land, or 54.5% of the country’s total arable land, the Mekong Delta is the greatest rice-growing region in Vietnam. The Red River Delta had 484 thousand acres of arable land.
- High rice volume: Due to their enormous rice production, the Mekong and Red River Deltas supply the majority of the rice that is imported from Vietnam. The Mekong Delta produced 23.8 million tons of rice in 2021, or 50% of all the products from the rice factories in Vietnam and 90% of its rice exports. Red River Delta produced 2.74 million tons in the meantime.
Advantages of the rice factories in Vietnam
Rice factories from Vietnam are consistently reliable partners for many global wholesalers thanks to reasonable prices and high-quality products, even the quality of rice factories in Vietnam is higher than in other countries.
- Competitive price: When compared to Thai rice, Vietnamese rice is substantially more affordable. Specifically, 5% of broken rice from rice factories in Vietnam cost between 353 – 357 USD/MT in 2021, and 5% of broken rice from Thailand cost between 415 and 419 USD/MT. Jasmine rice from rice factories in Vietnam costs between 528 – 532 USD/MT, and Thai jasmine rice costs between 1148 – 1152 USD/MT. Price-sensitive markets like China and the Philippines choose rice factories in Vietnam because of their affordable prices.
- Standardized quality: Although products from rice factories in Vietnam are reasonably priced, it still meets international standards like Global GAP, FDA, etc. For instance, despite its rigorous market, Europe is a significant importer of Jasmine from rice factories in Vietnam due to the fact that several European standards, such as HACCP, MRL, contamination control, etc.
- Government support: For decades, rice has been a key crop in Vietnam for ensuring the country’s food security. Increases in productivity of the rice factories in Vietnam have long been actively encouraged by the government, first for the internal market and then for export markets.
Since 2008, the government has implemented a wide range of policies to support agricultural production, including the sale of rice factories in Vietnam, through initiatives like paying farmers’ input costs in the event of disasters and diseases and promoting the development of high-yield rice varieties.
Main factors affect the price of the rice factories in Vietnam
While rice factories in Vietnam strive to provide clients with products at fair prices, many aspects are either beyond their control or change based on the season or time of year.
Specifications of products from rice factories in Vietnam:
- Exported rice is evaluated by the following criteria. The more factors are met, the higher the rice price will be:
- Broken ratio: specified is grains less than 3/4 of the total length of whole rice grains, with common ratios of 5%, 15%, and 25% – the less the better
- Humidity: usually 14% – the less the better
- Belly silver granules: error seeds during milling: 3 – 8 % – as little as possible
- Red seeds/red stripes: 0.5% – 5% – as little as possible
- Excess seeds – the less the better
- Gold seeds – the less the better
- Paddy – the less the better
- Impurities – the less the better
- Milling: grinding, milling, polishable or non-polishable
The crop’s success or failure determines the export price of Vietnamese rice. Farmers from rice factories in Vietnam will benefit if there is a season when export prices rise since, in general, they are gradually lowering the production of common white rice with low selling prices and converting it to high-grade rice at high prices. The utilization of premium rice cultivars has increased to over 77% of the total rice output in the rice factories in Vietnam. The percentage of high-quality rice makes up more than 89% of the rice exported, which helped to increase the average export price of rice factories in Vietnam from 499 USD/ton in 2020 to more than 526.9 USD/ton in 2021.
The demand for rice has a direct impact on the price of rice factories in Vietnam. For example, at the end of the year, Vietnam has many holidays. Therefore, the demand for Vietnamese rice will increase, which will increase the price of rice factories in Vietnam by about 5% compared to the average price.
With a share of 35.6%, the Philippines is the country that imports the most products from rice factories in Vietnam. However, in the first nine months of 2021, the amount of rice exported from rice factories in Vietnam to this market fell by 20.7%. As a result, the value of Vietnam’s rice exports to the Philippines decreased by 4.9% when compared to the same time in 2020.
China, the world’s second-largest consumer of rice factories in Vietnam, received a major gain in volume of 36.9%, an increase in turnover of 18.7%, but a fall in export price of 13.3% over the same period in 2020; it reached 733.862 USD/MT or 376.14 million USD.
The world situation affects the export price of rice factories in Vietnam. For example, the world has just experienced a fierce war between Russia and Ukraine. Global food prices have skyrocketed in the past few months. This is a consequence of various factors, including the sharp increase in fertilizer and gasoline prices over the past 1 year and the impact of the Russian-Ukrainian war.
The ban on food exports and serious supply disruptions from some countries such as India (banning wheat exports), Ukraine (wheat, oats, sugar…), and Indonesia (palm oil) made the price increase even more accelerated. From here, we tend to switch to rice more. The Food and Agriculture Organization of the United Nations (FAO) has shown that world rice prices quietly increased for 5 consecutive months, reaching a 12-month high.
Ways to find the best rice factories in Vietnam
The following techniques will help buyers find reliable rice factories in Vietnam:
The best method to succeed is to meet in person after doing extensive research on rice factories in Vietnam. It is the chance to have a conversation, check false information, or bargain for a deal. Although this procedure requires the attention of two parties, it is challenging to complete swiftly.
Take part in trade fairs
Participating in trade exhibitions gives buyers numerous opportunities to connect with rice factories in Vietnam to promote their rice products. You can speak with the top rice producers directly. You only need to register to participate in accordance with the instructions and keep up-to-date information about the exposition events of the rice factories in Vietnam.
You might hire a middleman if you are a new buyer and lack knowledge in picking and working with the best rice suppliers in Vietnam. This approach has the benefit of decreasing risk and lack of time. Additionally, you must be careful when selecting your middleman to avoid dealing with scammers, pick middlemen who are dependable, high-quality, or recommended by friends.
Online retailers like Alibaba, Tradewheel, and others are more common. This is a quick and easy way for buyers to identify reputable rice suppliers in Vietnam and conduct a comparative analysis among them. Finding suppliers online, however, comes with a number of dangers, such as scams and poor standards of products. Therefore, you have to handle information that you find very carefully.
How to import products from rice factories in Vietnam
Following the 6 steps listed below will help you find wholesale rice companies and place a successful order for rice in Vietnam:
- Step 1: The importer informs suppliers of the requirements for rice factories in Vietnam via a Letter Of Intent (LOI).
- Step 2: The Final Corporate Offer (FCO) will be sent to the rice factories in Vietnam if they are able to satisfy the importer’s LOI.
- Step 3: In order to give importers a better understanding of the products from rice factories in Vietnam and to increase their trust with their customers, the rice factories in Vietnam will send samples.
- Step 4: Under the laws of both parties, signing a contract is a legally binding commitment. Since it serves as the foundation for the two sides to finish their cooperation, this is the most crucial of the six steps.
- Step 5: To ensure that the order process proceeds smoothly, two parties must work together to track the preparation of the items and ship them.
- Step 6: Acquire the items and provide comments.
Top 5 rice factories in Vietnam you have to know
Here are the top 5 rice factories in Vietnam to take into account if you want to purchase rice. They accomplish a variety of noteworthy achievements and have widespread customer loyalty.
More than 80% of the rice factories in Vietnam are exported by Tigifood to overseas markets like Singapore, the Philippines, Iran, Malaysia, Indonesia, and Hong Kong. Producing, trading, and processing rice for domestic and international markets, Tigifood continuously adds value and promotes the long-term growth of rice factories in Vietnam.
Vilaconic is one of the best rice factories in Vietnam exporting to the Middle East and the United States. The high-quality rice from Vilaconic, which is recognized by numerous certificates like HALAL, HACCP, etc., consistently receives positive feedback from foreign traders.
Among the many factories in Vietnam, K-Agriculture Factory is an agriculture pioneer and has the potential for rapid expansion. More than 80 nations throughout the world receive rice from K-Agriculture, including Jasmine rice, ST rice, long-grain rice, and Japonica rice. Customers choose this company because of its high-quality products, reasonable pricing, attractive packaging, and careful cargo management. K-Agriculture Factory also held ISO and HACCP certifications.
The Sunrise Ins Group is a well-known manufacturer and exporter of premium goods from rice factories in Vietnam and other countries.
The company has steadily strengthened its market position and customer confidence over the course of many years of expertise. The country’s extensive distribution network allows the corporation to currently distribute its goods to a number of other countries and territories.
Phat tai Co.Ltd
In order to promote domestic consumption and export to any country in the world, Phat Tai, one of the biggest rice factories in Vietnam, was established and developed over time with efforts to establish Vietnam’s strong agricultural products, especially rice.