Vietnam is among the world’s leading rice exporters. Besides the high quality and the competitive price, the rice manufacturers in Vietnam contributed a lot to this success. Let’s check how to choose the best rice factories that can work with you in a long term in this article.
- 1 Rice manufacturers in Vietnam: reasons to choose
- 2 The main location of rice manufacturers in Vietnam
- 3 Outstanding products of rice manufacturers in Vietnam and wholesale prices
- 4 Components affecting the prices of rice manufactures in Vietnam
- 5 How to find reputable rice manufacturers in Vietnam
- 6 Top 5 leading rice manufacturers in Vietnam
Rice manufacturers in Vietnam: reasons to choose
Rice manufacturers in Vietnam are companies that directly produce rice in large numbers for sale. They are responsible for the whole rice process from milling to packaging. Then, rice manufacturers will provide their products to other suppliers, wholesalers, and retailers.
Many wholesalers prefer working with rice manufactures in Vietnam due to 4 main reasons:
- Various products: Being in charge of rice processing from A to Z, rice manufacturers are able to produce not only standardized rice meeting the international rice export requirements, but also customized rice based on buyers’ needs.
- Reasonable price: One of the key factors that make the rice prices from manufacturers in Vietnam more competitive than other manufacturers is sustainable rice production. In 2019, the FOB price of Vietnamese 5% broken rice is 353–357 USD/MT, which is less than Thai 5% broken rice (415-419 USD/MT) and Indian 5% broken rice (358-362 USD/MT).
- Stable supply: Located in a major rice-producing and exporting country, rice manufacturers in Vietnam can satisfy the global rice demand. With an average rice production of 43 million tons per year, Vietnamese rice manufacturers export 5-6 million tons per year.
- Supporting policies from the government: Rice is one of the core exporting agricultural products of Vietnam. Therefore, the Vietnamese government’s policies are favorable for rice manufacturers in Vietnam to develop. Many Free Trade Agreements between Vietnam and other countries in the world have been assigned such as the EVFTA agreement, the CPTPP agreement, etc.
The main location of rice manufacturers in Vietnam
Rice manufacturers in Vietnam choose major rice-growing areas for their location because:
- Major rice-growing areas can provide sufficient input for rice manufacturers in Vietnam. Therefore, they can ensure stable output volume to their distribution.
- Located near rice-growing areas helps rice manufacturers in Vietnam save a significant amount of transportation costs.
Vietnam has 4 large rice-growing areas including the Mekong Delta, the Red River Delta, the Northern Midlands and Mountains, the Central Coast, and the South. However, the Mekong Delta has the most rice manufacturers in Vietnam thanks to some advantages.
- The Mekong Delta is the largest and most fertile delta in not only Vietnam but also Southeast Asia, with over 3,2 million hectares of land currently used for rice growing, which accounts for over 50% of total rice-growing land in Vietnam. Moreover, most of the delta area is deposited with alluvium every year by large rivers along with an interlaced network of rivers and canals, helping annual Vietnam’s rice production reach about 9 million tons.
- Thanks to the application of technical advances, the rice manufacturers in the Mekong Delta have produced various rice varieties that have a high value for export.
Outstanding products of rice manufacturers in Vietnam and wholesale prices
Wholesalers are impressed by the diversity in the product line of rice manufacturers in Vietnam. Having advantages in arable land and weather conditions, rice manufacturers offer a wide product list for their customers.
Vietnamese white rice
Accounting for 32.5% of the total national turnover, white rice is a leading product of rice manufacturers in Vietnam.
- The Philippines is the largest customer of rice manufacturers in Vietnam in terms of white rice, making up for 53.7% of the total Vietnamese white rice export volume. Following is Cuba with 23.5% and Korea with 7.7%.
- Rice manufacturers in Vietnam provide white rice at the price of 347.3 – 439.6 USD/MT (FAO).
Vietnamese jasmine rice and fragrant rice
Recently, Vietnamese jasmine rice has recorded significant growth in the export volume, being responsible for 32.9% of the total national turnover in 2020. Therefore, rice manufacturers in Vietnam also focus on milling jasmine rice and fragrant rice.
- 31.8% of the total jasmine rice from rice manufacturers in Vietnam is exported to Ivory Coast, 12.8% to Ghana, and 11.3% to the Philippines.
- Normal Vietnamese fragrant rice costs 446.5 – 491.1 USD/MT. In addition, rice manufacturers in Vietnam provide jasmine rice at 528 – 532 USD/MT.
Vietnamese glutinous rice
Rice manufacturers in Vietnam have many strengths in the wholesale glutinous trade since this rice type is native to Vietnam. In 2020, the value of the glutinous rice export accounted for 29.6% of the total national turnover.
- The three main importers of Vietnamese glutinous rice are China (87.9%), Indonesia (2.8%), and the Philippines (2.8%). This shows that the market of Vietnam rice export to China is more and more developing.
- The wholesale price of glutinous rice offered by rice manufacturers in Vietnam ranges from 501.1 USD/MT to 570 USD/MT (FAO).
Vietnamese japonica rice
Japonica rice accounted for 4.8% of the total national turnover in 2020. This rice is popular in Asia, therefore, rice manufacturers in Vietnam also provide japonica rice.
- Papua New Guinea, Solomon, and China are the major export market of Vietnamese japonica rice, making up 16.7%, 9.2%, and 8.1% respectively.
- In the wholesale rice market now, rice manufacturers in Vietnam distribute japonica rice at 580 – 660 USD/MT (FAO).
Components affecting the prices of rice manufactures in Vietnam
Supply chains, demand, and logistic charges are the main elements contributing to changes in the prices of rice manufacturers in Vietnam.
Rice supply chains
The wholesale rice price heavily depends on the supply capacity of rice manufacturers in Vietnam. In particular, 5% broken rice from Vietnam witnessed an increase in its price, to 537USD/MT in 2019 because the output volume of rice manufactures was down 133 thousand tons, reaching only 20,47 million tons.
Demand for Vietnamese rice
The prices of rice manufacturers in Vietnam also fluctuate due to changes in demands of major importing countries such as China, the Philippines, Ghana, etc. For example, in half of 2021, the Philippines increased the Vietnamese rice import quantities, making the wholesale rice price up 11.4% compared to the same period in 2020, reaching 517.2 USD/MT.
Transportation charges will directly affect the prices of rice manufacturers in Vietnam. In fact, because the freight is too high, therefore when deciding to work with rice manufacturers in Vietnam, customers are very hesitant, making Vietnamese rice less competitive than Thai or Indian rice.
Currently, Vietnam’s 5% broken white rice in normal packaging is trading at $415 – 420 USD/ton. This price is quite high compared to Thai, Indian and Pakistani rice. Specifically, Thai 5% broken rice from 399-403 USD/ton, Indian 5% broken rice from 368-372 USD/ton, unchanged. Pakistan 5% broken rice 363 – 367 USD/ton.
How to find reputable rice manufacturers in Vietnam
Many rice manufacturers have been founded in Vietnam for rice export. However, finding respectable rice companies in Vietnam is difficult if you don’t have any idea about the difference between a real rice manufacturer and a scammer and how to find more information about them.
Signs of reliable rice manufacturers in Vietnam
If a rice manufacturer in Vietnam is reputable, it will have the following characteristics.
- Reputable rice manufacturers in Vietnam is certified business and has international certificates.
If the rice manufacturers in Vietnam are reputable and trustworthy, you will easily find their basic information such as an address, business profile, website, and other social channels on the Internet.
One of the most important things that can certify a reliable rice manufacturer in Vietnam is business licenses. If you can find it on their website, you should require some basic documents such as HACCP, quality certification, Sanitary and Phytosanitary of plant industry, Fumigation, and Certificate of Origin.
- A reputable rice manufacturer gets good feedback from customers
Past performance is also an important sign you can consider when seeking a rice manufacturer in Vietnam. From the feedback, you can analyze and learn about the rice quality and sales services of rice manufacturers in reality.
Channels you can use to find out more about rice manufacturers in Vietnam
The simplest way to find out more about rice manufacturers in Vietnam is to search for the keyword “rice manufacturers in Vietnam” on Google. After having a list of recommended rice manufacturers, you can access their websites to learn more. Another way is by joining rice trade forums or groups. You can also go to e-commerce platforms such as Alibaba and EC21, where you can find online stores for rice manufacturers in Vietnam.
Top 5 leading rice manufacturers in Vietnam
If you are planning to purchase rice from manufacturers in Vietnam, here are the top 3 leading rice manufacturers in Vietnam that you should not miss to get the best quality rice at the most competitive price.
Read more: A useful guide to work with rice companies in Vietnam
Vilaconic Joint Stock Company
When it comes to top rice manufacturers in Vietnam, Vilaconic is the first name to call. With 11 years of development, Vilaconic Joint Stock Company has an annual rice export value of more than $50 million. Rice manufacturing factories are located in Tien Giang province and Can Tho province. The main markets are the Middle East and Africa, with the major rice varieties being ST rice and aromatic rice. The reputable international certificates that Vilaconic Joint Stock Company received are SCG, HALAL, etc.
K-Agriculture Factory was established in 1996 as a small rice export business. However, thanks to the continuous efforts of the leadership team and the support of the Vietnam Ministry of Industry and Trade, K-Agriculture Factory has developed strongly and become one of the leading wholesale companies in Vietnam. Every month, the manufacturing factory system of K-Agriculture Factory can produce 15 thousand tons of rice, with a storage capacity of 21 thousand tons. The main products of the company are ST rice, Jasmine rice, Japonica, OM5451, IR504, and sticky rice, which are exported to over 80 countries around the world, concentrated most in Asia (China, Philippines, Malaysia, etc.), EU, and countries in Africa. The reputable international certificates that K-Agriculture Factory received are HACCP, HALAL, and FDA.
To purchase rice in bulk that guarantees the best quality at the most reasonable price, contact K-Agriculture Factory via:
WhatsApp: +84855555694 (Ms. Evelyn – Sales Manager)
Khanh Tam Company
Khanh Tam is the third name you should consider to choose a rice manufacturer in Vietnam as a trusted partner. Established in 1975, Khanh Tam Company has a rice manufacturing system built in the Mekong Delta region, including two facilities generating 1.2 thousand tons per day. If you are seeking the highest quality rice, Khanh Tam Company will be the best choice because their rice can satisfy even the most difficult markets, such as the United States and the European Union. The main rice varieties of Khanh Tam Company are Jasmine rice, ST rice, and KDM rice.
Song Hau Company
During 22 years of development, Song Hau Company has gained many achievements such as being a member of Vietnam Food Association. Song Hau’s rice manufacturers in Vietnam can mill 240 tons/day. Hence, the company can supply 1600 tons/day to other national and international suppliers.
Loc Troi Group
Loc Troi Group has many rice manufacturers in Vietnam, mainly located in the Mekong Delta. Their rice manufactures apply an advanced milling chain to ensure the output quality. Therefore, rice labeled by Loc Troi Group is widely favored in picky markets such as the EU and Singapore. Hence, the trade of Vietnam rice to Singapore expands considerably, opening huge opportunities for rice manufacturers in Vietnam such as Song Hau Group to develop.
Due to its excellent quality and reasonable cost, Vietnamese rice is highly regarded in the global market. If you are seeking a reliable rice exporter, rice manufacturers in Vietnam are the best choice you should consider.