Vietnam nowadays is one of the leading countries in exporting rice in the global market. Many people might wonder how to import rice from Vietnam and gain profit from trading Vietnamese rice.
- 1 How to import rice from Vietnam: An overview
- 2 How to import rice from Vietnam: Popular types
- 3 How to import rice from Vietnam: Competitive advantages of Vietnamese rice
- 4 How to import rice from Vietnam: Factors affecting the prices of Vietnamese rice
- 5 How to import rice from Vietnam: Aspects to consider to find reliable suppliers
- 6 How to import rice from Vietnam: Most important requirements
- 7 How to import rice from Vietnam: Top 5 suppliers to trade with
How to import rice from Vietnam: An overview
Before finding the answer to the question: How to import rice from Vietnam, traders should consider the development of the Vietnamese rice market.
Impressive figures of Vietnamese rice exports
From a small country producing rice to supplying domestic consumers, Vietnam has become a leading rice exporter in the global market. Vietnamese rice export has achieved many successes.
- In the last ten years, the quantity of Vietnamese rice to export has constantly stood at over 4 million tons/year.
- In 2012, Vietnam even exported 8 million tons of rice.
- In 2020, Vietnam exported 6,25 million tons of rice equivalent to 3.12 billion USD, decreasing by 1.8% in quantity but increasing by 11.2% in value.
- In the first 9 months of 2021, Vietnam exported 530 thousand tons of rice equivalent to 261 million dollars.
Overall, although the export quantity of Vietnamese rice fluctuates among different years, the trend of the Vietnamese rice market is decreasing in quantity but increasing in value and exporting high-value rice. This is because Vietnam has diminished the scale of rice production and focused on cultivating high-value rice varieties.
Major importers of Vietnamese rice
Three major Vietnamese rice consumers are the Philippines, China, and Ivory Coast. The reasonable prices and short distances to transport rice are two appealing features making Vietnamese rice popular among traders from these three countries.
- In the first 9 months of 2021, the Philippines imported 1,83 million tons of rice, equivalent to 935,91 million USD, increasing 3.2% in quantity.
- The Vietnamese rice export to China increased significantly by 46.7% in volume, reaching 845,571 tons, gaining 423,9 million USD.
- Ivory Coast imported 281,361 tons, equivalent to 144,22 million USD, and decreased by 22.2% in volume compared to the same period in 2020.
Main growing areas
Mekong Delta is always the leading area in cultivating Vietnamese rice to export. The popular rice varieties from this region are Jasmine, Japonica, ST rice, etc. In 2020, rice from the Mekong Delta accounted for 90% of Vietnam’s rice exports.
The process of rice for export at K-Agriculture company
The reasons behind this impressive figure:
- The region’s growing areas are estimated at approximately 3963 thousand hectares, accounting for 54.4% of the total rice growing areas in Vietnam.
- The impressive rice production at over 29 thousand tons of rice.
- Many popular rice varieties such as Jasmine, Japonica, ST rice are cultivated in this region.
- There are many factories, exporting companies located in the Mekong Delta.
How to import rice from Vietnam: Popular types
Before finding the answer to the question: How to import rice from Vietnam, traders should decide which type they are going to import. These are some famous Vietnamese rice varieties that are frequently traded in the global market. These are some Vietnamese rice varieties which are popular among rice traders.
High-quality delicacies are the types of Vietnamese rice with the highest value. Owing to the special flavor and aroma, this type of rice is now consumed by many markets like China, Malaysia, Australia, etc. The most famous high-quality delicacies are ST rice and Japonica. Currently, the average price of this type of rice stands at FOB 470-670 USD/MT.
Normal aromatic rice
Having more affordable prices than the high-quality delicacies and long-lasting fragrance, normal aromatic rice is now preferred by many markets like China, Africa, the Middle East, and the Philippines. Jasmine, OM18, Nang Hoa, DT8-Dai Thom are popular normal aromatic rice to traders, in which the wholesale Vietnamese jasmine rice is widely distributed to the EU. The average price of this type of rice is FOB 450-650 USD/MT.
Normal long grain rice
Normal long-grain rice has a tender texture, light aroma, and affordable price that appeals to developing markets such as the Philippines, Africa, and Malaysia. OM5451, IR 504 are the two most well-known normal long-grain rice varieties. The average price to trade this type of rice is FOB 480-540 USD/MT.
Vietnamese sticky rice (also known as glutinous rice from Vietnam) is the main ingredient in making many Asian traditional dishes, hence it is adored by many Asians, especially Chinese customers. The average price of sticky rice from Vietnam is FOB 470-530 USD/MT.
How to import rice from Vietnam: Competitive advantages of Vietnamese rice
Vietnamese rice has several competitive advantages compared to rice from other countries.
- Vietnamese rice has decent quality and also affordable prices. In particular, the price of Thai Hom Mali rice is 743 USD/MT while the price of Vietnamese Jasmine rice is more reasonable, at 680 USD/MT.
- Vietnam has a wide range of rice products ranging from high-quality rice like ST line, Jasmine to normal ones like OM545, IR504, etc. Thus, traders have more choices to invest in.
- Vietnam has mass rice production owing to the wide growing area which is estimated at 1.5 million hectares. Vietnamese rice production has always had impressive figures in the last few years.
The data of rice production and export volume in the past 3 years has indicated that though fluctuating among different years, the production of Vietnamese rice always exceeds the export volume. That means Vietnam can not only meet the demand of domestic consumers but also has sufficient rice to export.
- Vietnam also has many policies to support the export of Vietnamese rice. Vietnam has signed several trade agreements such as EVFTA, VKFTA, CPTPP, UK FTA. In particular, according to EVFTA, the European Council has set the import volume of Vietnamese rice to the EU at 80.000 tons, with 20.000 tons of unmilled rice, 30.000 tons of milled rice and 30.000 tons of aromatic rice.
How to import rice from Vietnam: Factors affecting the prices of Vietnamese rice
To learn how to import rice from Vietnam, traders should understand the major factors contributing to the export of Vietnamese rice.
The production has a direct effect on the supply of Vietnamese rice to export, hence indirectly affecting the prices.
The statistics of the export volume and the price of Vietnamese 5% broken rice from 2018 to 2020 indicates that as the export volume rises then the price decreases and vice versa . Between 2018 and 2020, because the export volume increased from 6,12 million tons to 6,34 million tons, the price decreased from 411,8 USD/MT to 340,2 USD/MT. On the other hand, between 2019 and 2020, as the export of Vietnamese rice decreased from 6.34 million tons to 6.35 million tons, the price increased from 340.2 USD/MT to 439.6 USD/MT.
Demand is another factor affecting the price of Vietnamese rice in the global market. If the demand for Vietnamese rice increases, the price will rise and vice versa. In particular,compared to the same period in 2020, the export volume of Vietnamese rice to the Philippines in the first 9 months of 2021 increased by 11%, from 1.6 million tons to over 1.83 million tons. Hence, the price of Vietnamese rice to the Philippines increased from 480 USD/MT in 2020 to 512.6 USD/MT in 2021.
The cost for each container to transport rice from Vietnam has increased dramatically, approximately fourfold compared to that before the pandemic. The rising cost of containers has increased the CIF price of Vietnamese rice significantly. In particular, before the pandemic, 5% broken Vietnamese rice was sold at CIF 340.2 USD/MT but after the pandemic it reached CIF 439.6 USD/MT. The cost of each container is also predicted to reach a peak at the end of 2021, thus increasing the CIF price of Vietnamese rice.
To remain the position of a leading country in exporting rice, Vietnam had many supporting policies to boost this market. Vietnam also signed trade agreements like EVFTA, VKFTA, CPTPP, UK FTA, etc. In particular, Vietnamese aromatic rice is taxed 0% in the UK according to UKFTA. Hence, the price of Vietnamese rice to the UK is more affordable compared to rice from other countries.
How to import rice from Vietnam: Aspects to consider to find reliable suppliers
These are some aspects to consider to find a trustworthy exporter of Vietnamese rice.
Features of a reliable Vietnamese rice supplier
The supplier must possess the following characteristics
- Clear location and business license
The supplier must have factories, offices, showrooms with clear locations. Traders should consider paying a visit to the supplier’s office. Most importantly, the suppliers of Vietnamese rice must be certified by local authorities so importers should ask them to provide the legal business licenses and other certificates.
- Certified products
No traders want to buy low-quality Vietnamese rice so the suppliers’ products need to be qualified by standard certifications like VN-STAMEQ, USDA Organic, FDA, FFL, Organic, Global Gap, TCVN, Viet Gap.
- Feedbacks from former buyers
The prestige of the Vietnamese rice suppliers can be indicated from the prior businesses with former traders. Hence, traders can also ask to check feedback from these importers to evaluate the suppliers’ products and services.
How to identify a scamming Vietnamese rice supplier
An exchange of Vietnamese rice can cost thousands of dollars so no traders want to be deceived by scammers. To prevent scamming suppliers, traders should take into account the following aspects.
- Offering the rice at too low a price
Although the price of Vietnamese rice can fluctuate over time and be varied among different suppliers, traders should be careful when suppliers offer products at an exceptionally low price. To deal with this problem, traders can contact different traders to find the most reasonable prices.
- Vague information
Another sign of unreliable Vietnamese exporters is vague information about location, products, certifications. Traders should thoroughly check all the aspects before trading with any suppliers.
- Urging payment
The payment of exchange must necessarily be divided into at least two times, one before the delivery and one after traders receive the products. However, if the suppliers urge traders to pay before receiving, then there must be some problems with the Vietnamese rice they provide.
Where to find reliable Vietnamese rice suppliers
The first step to know how to import rice from Vietnam successfully is finding the best Vietnamese rice suppliers. Here are some ways to find a reliable Vietnamese rice supplier.
With the expansion of the Internet, traders now have many platforms to find reliable suppliers of Vietnamese rice by searching the keyword “Vietnamese rice suppliers”. Joining trading groups on social media or surfing e-commerce platforms like Alibaba, ec21, go4world are some common ways to find rice suppliers from Vietnam. However, traders should be careful to prevent scammers on the Internet.
Attending agriculture trade fairs like Vietnam Expo, Agriculture Trade Shows in Vietnam can help traders find a suitable and prestigious supplier of Vietnamese rice. Nevertheless, due to the quarantine, many trade fairs were canceled so traders can consider joining online trade fairs on the Internet.
Another way to find reliable Vietnamese suppliers is by consulting brokers. They will help traders find trustworthy rice suppliers with high-quality products and reasonable prices. However, it costs money to pay the brokers to find suitable rice suppliers.
How to import rice from Vietnam: Most important requirements
Different countries will require different documents and certificates to import Vietnamese rice. This is one of the most important factors to answer the question: How to import rice from Vietnam so traders should prepare them carefully before importing the products.
In particular, the Philippines, as the major exporting market of Vietnamese rice requires importers to possess the following documents:
- Letter of Intent (Prescribed Format)
- Application Form
- Affidavit of Undertaking
- Suppliers Pro-forma Invoice
- 52017 Audited Financial Statement received stamped by BIR
All of these documents were stated in the NFA General Guidelines and prescribed by DTI (Department of Trade and Industry Philippines)
On the other hand, Vietnamese rice suppliers must meet some important requirements to export rice.
- Having at least one standard warehouse to store the rice
- Having at least one standard milling factory
- Approval to export rice from the Vietnamese Government
- Bill of lading
- Cargo insurance
- Packing list
- Some optional documents like Certificate of quality, Certificate of origin, Phytosanitary certificate,etc.
How to import rice from Vietnam: Top 5 suppliers to trade with
These are some reliable Vietnamese rice suppliers that traders are recommended to trade with.
Quoc Te Gia company
Established in 2008, having 13 years working in the rice market, Quoc Te Gia International Joint Stock Company has now become one of the leading suppliers of Vietnamese rice. The annual export volume of Vietnamese rice from Quoc Te Gia is approximately 300,000 tons. Certified with ISO 22000 – 2005 and HACCP on food safety and hygiene management, Quoc Te Gia’s rice is consumed in more than 30 markets around the world.
Having over 25 years of development, K-Agriculture Factory has become one of the top exporters in supplying Vietnamese rice. K-Agriculture Factory possesses a milling capacity of 2500 MT/day and a storage capacity of 400000 MT. To bring Vietnamese rice to the world, K-Agriculture Factory now provides ST rice, jasmine rice, glutinous rice to many foreign traders around the world.
Contact K-Agriculture Factory via:
Angimex is one of the leading Vietnamese rice suppliers that traders should know. Located in An Giang province, Angimex possesses a system of modern factories with a capacity of 100 thousand tons. The company always offers Vietnamese rice at the most affordable price. Angimex’ rice products are now consumed by either premium or traditional markets, from Europe to Africa.
Sunrise Inc Group
Established in 2012, Sunrise Ins Group has a large distribution system in both the domestic and global markets. Vietnamese rice like KDM, Japonica is the major product that they are providing to many markets around the world. With high-quality products, good services, and reasonable prices, Sunrise is now well trusted by many rice traders.
In conclusion, as Vietnam has become the major rice supplier in the global rice market, it is much easier for traders to import rice from this country. However, to gain profits, traders should consider carefully before investing in this market.