Rice companies in Vietnam are famous for their fine quality and professional services. Located in the second-largest rice exporting country, choosing Vietnamese rice companies is a good choice for importers.
Rice companies in Vietnam: an overview
As Vietnam is the second-largest rice exporter, there are many reputable rice companies located in this country.
Leading products of rice companies in Vietnam
With advantages in favorable weather and environment for rice production, there are many rice types provided by rice companies in Vietnam.
- Specialty rice includes ST rice and Japonica rice. While ST rice such as ST25, ST24, ST21, and ST05 is long-grain rice, Japonica rice belongs to short-grain rice. Major importers of Japonica rice are China, the Philippines, Malaysia, and Australia, with a price of 470-570 USD/MT (FOB). Vietnamese ST rice is mainly imported by China, with a FOB price of 700-900 USD/MT.
- Fragrant rice is another strength of rice companies in Vietnam, accounting for 32.9% of the country’s turnover in 2020. Jasmine rice, OM18, Nang Hoa, and DT8 – Dai Thom are the main Vietnamese fragrant rice imported to China, the Philippines, and countries in the Middle East. Vietnamese jasmine rice for wholesale costs 600-800 USD/MT (FOB), while OM18 and DT8 are more affordable, 480-570 USD/MT (FOB).
- OM5451 and IR504 are popular Vietnamese long-grain rice for export, with a FOB price of 480-540 USD/MT.
Glutinous rice of Vietnam accounts for 16.4% of the turnover, with a FOB price of 470-530 USD/MT.
Main export market of rice companies in Vietnam
Regarding the export market in general, China, Indonesia, and the Philippines are three major customers of rice companies in Vietnam. In particular, in 2019, 29% of total Vietnamese rice export is distributed to China, 15% to Indonesia, and 11% to the Philippines.
Recently, the EU is a target export market of rice companies in Vietnam. This area has a high demand for Vietnamese fragrant rice such as Jasmine 85, ST05, OM5451, importing 48.85% of the total Vietnamese rice export to the EU. Besides, white rice and brown rice are strongly distributed by rice companies in Vietnam to the EU.
Regarding the export market of specific rice types, rice companies in Vietnam mainly distribute jasmine rice and fragrant rice to the Philippines (26.8%), Ghana (23%), and Ivory Coast (14%. For white rice, the main customers of rice companies in Vietnam are also the Philippines(59%), Cuba (over 10%), and Bangladesh (5%).
For glutinous rice, the major export market of rice companies in Vietnam is China (over 80%), Malaysia (6%), and the Philippines (6%). With japonica rice and Japanese rice, the Philippines is still at the top, followed by China and Malaysia.
Read more: Vietnamese rice export went off with a bang
Reasons for choosing rice companies in Vietnam
Rice companies in Vietnam are a good choice for foreign wholesalers who want to import Vietnamese rice because they have many advantages in supply chains, export policies, and geography.
Stable supply chains for wholesale rice
Vietnam is a major rice producer in the world besides China, India, and Thailand. In 2019, the total rice production volume of Vietnam was 43.45 million tons. The sufficient rice production volume led to an increase in the export volume of rice companies in Vietnam, which was 6.35 million tons, up 3.9% compared to 2018.
Large quantities of Vietnamese rice production originate from broad growing areas and high productivity. The Mekong Delta and Red River Delta are major growing areas in Vietnam, in which 90% of the national rice export is from the Mekong Delta. Moreover, average productivity is considerably high within 5 recent years, which is 5.76 tons/ha.
Sustainable rice production is one of the main reasons for the reasonable prices offered by rice companies in Vietnam. In 2019, Vietnamese 5% broken rice cost 353 – 357 USD/MT (FOB), lower than Thai 5% broken rice (415-419 USD/MT) and Indian 5% broken rice (358-362 USD/MT).
Supporting policies for Vietnamese rice export
Because rice export is a key industry of Vietnam, so the government has policies to create favorable conditions for rice companies in Vietnam to develop.
In recent years, EU rice imports of rice companies in Vietnam have been increasing thanks to the EVFTA agreement. The EU offers Vietnam a 0% tax incentive with a quota of 80,000 tons of rice per year (including 30,000 tons of milled rice, 20,000 tons of unmilled rice, and 30,000 tons of fragrant rice). In particular, the EU will completely liberalize broken rice, helping rice companies in Vietnam to export about 100,000 tons of broken rice to the EU every year.
Rice companies in Vietnam: notes to find them
Due to many advantages for rice export, many rice companies in Vietnam are established. However, it is not easy to find reputable rice companies in Vietnam. You should know specific signs of reliable companies to distinguish them from scammers. And you should know useful channels to find them.
Characteristics of trustworthy rice companies in Vietnam
If rice companies in Vietnam are reputable ones, they will have the following features.
- Clear basic information: If the rice companies in Vietnam are reputable, you can easily find their information such as an address, business profile, and website on the Internet.
- Required documents include business licenses and export permits. They are necessary for rice companies in Vietnam to export rice. In addition, you should check the certificate profile of rice companies in Vietnam to see whether they are able to satisfy your requirements of rice quality. Essential certificates are HACCP, Sanitary and Phytosanitary of plant industry, component analysis (especially moisture), quality certification, Fumigation, and certificate of origin.
- Past performance is another sign for you to analyze the reputation of rice companies in Vietnam. You can base on previous customers’ feedback on rice quality, sale, and delivery services to see the overall performance of rice companies in Vietnam.
Besides reputable rice companies, the risk of scammers is considerably high in Vietnam. You should be careful if the rice companies in Vietnam offer too low prices, have unprofessional working behaviors, lack basic information, and urge on early payment.
Channels to find rice companies in Vietnam
Rice companies in Vietnam can be found through both online and offline sources.
You can quickly search the keyword “rice companies in Vietnam” on Google and there will be many results. Or you can join agriculture trade forums to find rice companies in Vietnam. Another source is E-commerce platforms such as Alibaba, EC21, etc., in which you can find online stores of rice companies in Vietnam.
For offline channels, you can participate in agricultural fairs or conferences to look for suitable rice companies in Vietnam. This is a great opportunity for you to meet the companies in person. However, due to the Covid-19, it is impossible to hold offline events.
Rice companies in Vietnam: a guideline to work with them
To have a successful order with rice companies in Vietnam, you should follow 6 steps.
- Step 1: Send a Letter of Intent (LOI) to rice companies in Vietnam, describing your requirements about rice types, specifications clearly. In addition, you should introduce yourself and your company profile for the rice companies in Vietnam.
- Step 2: Discuss with the rice companies in Vietnam to have a final FCO.
- Step 3: Negotiate prices, payment terms, packaging, and delivery methods with the rice companies in Vietnam. Then, both sides will discuss signing a contract. Before this step, you can ask for rice samples to check the quality.
- Step 4: Wait for the rice companies in Vietnam to prepare rice. During that time, you should keep track of the process and contact directly with the rice companies to make sure that there is no problem.
- Step 5: Check the delivery, from 1-3 weeks.
- Step 6: Check the quality and quantity of the product arrival, and give feedback to the rice companies in Vietnam.
Top 3 rice companies in Vietnam
If you are looking for reputable rice companies in Vietnam, you should consider the following names.
The first name of the top 3 rice companies in Vietnam is Vilaconic with 11 years of experience. The company has a 30.000-meter rice factory located in the Central of Vietnam. Annually, Vilaconic export Vietnamese rice to the Middle East (40%), Africa (30%), and other regions, worth more them 50 million USD. This rice company focuses on fragrant rice and ST rice, certified by SCG, HALAL, etc.
K-Agriculture Factory is one of the best rice companies in Vietnam. The company has been supplying the finest rice such as ST rice, Jasmine rice, and Japonica rice to 80 countries for 25 years. Every month, K-Agriculture Factory can produce 15 thousand tons of rice, with a storage capacity of 21 thousand tons. HACCP, HALAL, and FDA are outstanding certificates that the company has received.
In 2020, K-Agriculture Factory cooperated with the Vietnam Ministry of Industry and Trade to start a national project, bringing the best Vietnamese rice, coffee, cashew, and spices to the international market.
To get special discounts, contact us now:
WhatsApp: +84855555694 (Ms. Evelyn – Sales Manager)
Khanh Tam company
Having 2 factories in the Mekong Delta producing 1.2 thousand tons/day, Khanh Tam is one of the biggest rice companies in Vietnam. The rice quality is always at the priority of Khanh Tam company, satisfying difficult markets such as The USA, The EU, and other countries. Khanh Tam company distributes Jasmine rice, ST rice, KDM, and other fragrant rice.
Vietnamese rice is highly rated in the international market due to its fine quality and reasonable prices. If you are looking for the best rice for import, contact Ms. Evelyn – Sales Manager at K-Agriculture Factory now.