Vietnam has always been an exciting export market as it ranks second in export and production. Therefore, the Vietnam rice export price has received much attention from importers.
- 1 Vietnam rice export price – an overview
- 2 Comparison between Vietnam rice export price and other countries
- 3 Components of Vietnam rice export price
- 4 Top 3 suppliers with a reasonable Vietnam rice export price
Vietnam rice export price – an overview
During 5 recent years from 2016 to 2020, Vietnam rice export price recorded both increases and decreases. However, in general, there was an upward trend in the Vietnam rice export price.
2020 is a successful year for Vietnamese rice when the export value increases by 9.3% compared to 2019. Specifically, in 2019, Vietnam exported 6.34 million tons of rice, earning 2.79 billion USD. In 2020, although only 6.15 million tons of rice were exported (down 3.5%), the export value reached 3.07 billion USD.
The Vietnam rice export price increased in 2020, especially in February, November, and December.
- In February 2020, 5% broken rice was priced at $380/ton, up 10% compared to the price of 345 USD/MT in January 2020.
- By November, the average Vietnam rice export price was 494 USD/MT, an increase of nearly 13% over the same period last year.
- At the beginning of December, the Vietnam rice export price suddenly dropped from $498/ton to $480/ton because traders emptied their warehouses to welcome a new batch of rice. But by the middle of the month, the Vietnam rice export price increased again, reaching 496.3 USD/MT.
The Vietnam rice export price recorded an increase in each different market. In the Philippines, the average Vietnam rice export price reached 469 USD/MT, helping the export value to increase by 11.8% compared to 2019 ($901.16 million). The Vietnam rice export price also increased in Indonesia and China, corresponding to 541 USD/MT and 574 USD/MT. This lead to a rise in the value of Vietnamese rice in these two markets, equivalent to 91.6%.
These figures show that there are positive changes in Vietnam rice export price and value, and the quality of Vietnamese rice is recognized in the international market.
Read more: Updated list of rice wholesale price
Comparison between Vietnam rice export price and other countries
In terms of rice export, India and Thailand are two competitors to Vietnam. Therefore, Vietnam rice export price is always compared to Indian and Thai rice export prices. In 2019, the Vietnam rice export price was more affordable than the two counterparts.
However, Vietnam rice export price exceeded that of Thailand and India in October 2021.
- For 5% broken rice, Vietnam rice export price reached 433 – 437 USD/MT, while Thai rice cost 384 – 388 USD/MT, and Indian rice cost 368 – 372 USD/MT.
- For 25% broken rice, Vietnam rice export price hit 403 USD/MT, much higher than Thai rice (373 USD/MT) and Indian rice (338 USD/MT).
The reason for a big gap in the rice export price between Vietnam, Thailand, and India is Thailand’s decreasing rice supply ability due to climate changes and India’s rice export disruption due to the lack of human resources.
Components of Vietnam rice export price
The fluctuation in the Vietnam rice export price is mainly from changes in supply chains, rice demands, transportation costs, and the government’s policies.
Vietnamese rice supply chains
The supply chain is one of the factors that directly affect the Vietnam rice export price. Specifically, in 2020, the rice output of the Mekong Delta reached 8.46 million tons, down 219.1 thousand tons compared to 2019, causing a decrease in the rice supply chains for export. Therefore, the Vietnam rice export price increased to 469 USD/ton.
Another reason for the decrease in rice export supply is the food security policy. Since the government has pushed the amount of rice for food security in the outbreak of Covid-19, the supply for rice export decreases, stimulating an increase in the Vietnam rice export price.
Demands for Vietnamese rice
Another component of the Vietnam rice export price is the Vietnamese rice demand in export markets.
The Philippines – the leading market for Vietnam rice export in the first month of 2021, dropped sharply by 38% in both volume and turnover compared to December 2020. Vietnam rice export to Philippines reached 169,871 tons (equivalent to 91.38 million USD). However, the Vietnam rice export price to the Philippines increased slightly by 2%, reaching an average of 537.9 USD/MT.
After the Philippines is China with 57,849 tons, worth 30.13 million USD, down 1.2% in volume and 3.9% in turnover. The Vietnam rice export price to China reached 520.9 USD/ton, down 2.8%.
The Vietnamese rice demand in Ghana witnesses a very strong increase of 144.8% in volume and 150% in turnover, reaching 39.341 tons, equivalent to 23.2 million USD. However, the Vietnam rice export price increased slightly by 2.1%, reaching 589.6 USD/MT.
Notably, in January 2021, Vietnamese rice export to Ivory Coast increased sharply by 274% in quantity and 252.7% in turnover compared to December 2020, reaching 11.387 tons, equivalent to 6.63 million USD. Even though the demand rose, the Vietnam rice export price to Ivory Coast decreased by 5.7%, reaching 582.6 USD/MT.
Since Vietnamese rice is imported in large quantities and transported in containers through sea freight, the logistics price will directly affect the CIF Vietnam rice export price.
In 2020, the freight to the EU was usually stable at 800-1,200 USD for 1 40-foot container, but now it has increased over 11,000 USD, which is 12-13 times higher than the price at the beginning of 2020. The shipping cost to the US was from $2,000-3,000 for a 40-foot container from the beginning of 2020, now it has increased to $13,500, which is an increase of 5-6 times.
Export policies to boost Vietnam rice export price
Rice has always been Vietnam’s main export product, so the government always has supportive policies to increase the Vietnam rice export price.
The shift in production structure to prioritize high-quality rice varieties is an important driving force for the improvement of Vietnam rice export price. Wholesale Vietnamese jasmine rice is sold at a high price, 600 USD/MT. Therefore, in 2020, jasmine rice and Vietnamese fragrant rice have increased in value, accounting for 32.9% of the total turnover of the country.
The free trade agreement between Vietnam and the EU has paved the way for Vietnamese rice to access this difficult market at high prices. Before the agreement was signed, the price of Vietnamese rice exported to European countries was only 520 USD/MT for jasmine rice. After that, the export price of Vietnamese jasmine rice increased to 600 USD/ton, thanks to the 0% tax policy.
Top 3 suppliers with a reasonable Vietnam rice export price
Here are the 3 reputable suppliers from Vietnam with a high-quality source and a competitive Vietnam rice export price.
Angimex – a supplier with a competitive Vietnamese rice export price
Angimex is one of the leading Vietnamese rice suppliers. The company always offers affordable Vietnamese rice export price, so Angimex’s products can reach both high-end and popular markets, from Europe to Africa.
Angimex has a system of factories with a capacity of 100 thousand tons, located in An Giang province. Therefore, the company saves transportation costs from raw material areas to the factory. Therefore, Angimex’s Vietnam rice export price is reasonable.
K-Agriculture Factory – a supplier with a competitive Vietnamese rice export price
The Vietnam rice export price of K-Agriculture Factory is affordable when the company has a stable supply chain thanks to an advanced milling and polishing system, producing 500 tons per day. Despite the reasonable Vietnam rice export price, the product quality of K-Agriculture Factory is highly rated in many markets such as the EU, the USA, and Africa, receiving many certificates. Therefore, K-Agriculture Factory is considered the best Vietnamese agricultural product supplier.
To get special discounts and free consultation, contact us now.
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Vinafood II – a supplier with a competitive Vietnamese rice export price
Vinafood II is a large supplier offering good Vietnam rice export price since it has a wide factory system from Da Nang to Ca Mau, ensuring 3 million tons for export to countries in Aisa, the EU, the Middle East, and Africa.
The reasonable Vietnam rice export price is one of the main factors promoting the significant development of Vietnamese rice export recently. However, the Vietnam rice export price will fluctuate due to changes in rice production, demands, logistics settings, and export regulations.