Vietnam rice export to China has been one of the leading markets of Vietnamese rice in the last few years. With the advantage of the neighboring country of China, Vietnam has made a lot of efforts to boost the export of Vietnamese rice to this market
Vietnam rice export to China: An overview
Being the two neighboring countries, Vietnam and China have a long history of over 2000 years of trading with each other. Overcoming many conflicts in the past, nowadays, Vietnam and China are two important partners in exchanging many goods. Likewise, Vietnam rice export to China has developed significantly in the last few years.
Vietnam rice export to China: Impressive figures
Due to the booming population leading to the growing consumption of rice, nowadays, China is the biggest producer and consumer in the global rice market. Annually, China imports 2.5 to 5 million tons of rice, majorly from Asia countries. China imports rice for many purposes including domestic consumption, feeding cattle, and producing goods.
In the last few years, the Vietnam rice export to China witnessed impressive development.
In 2020, Vietnam rice export to China reached 752.3 thousand tons in quantity and 431.7 million USD in value, increasing by 91.6%. This year, China is also a major market for Vietnamese sticky rice and Japonica rice.
In the first 9 months of 2021, Vietnam rice export to China reached 845.571 tons, equivalent to 423.9 million USD, increasing by 25.3% compared to 2020. In addition, Vietnam rice export to China accounts for 18% of the total rice export from Vietnam. Recently, the price of 5% broken rice from Vietnam to China has reached 493-497 USD/MT.
Vietnam rice export to China: Leading products
Vietnam rice export to China is categorized in many varieties with different purposes to use. Some to supply the domestic consumers, some to raise cattle, and others to produce merchandise. The high-quality rice is preferred by domestic consumers owing to its delicious flavors and unique aroma. In contrast, broken rice is imported by traders to make animal feed. Hence, the importers of this type of rice prefer the most affordable ones.
Among many types of Vietnam rice export to China, high-quality delicacy is one of the most popular ones. This type of rice is majorly consumed by domestic consumers due to its distinctive flavor and appetizing aroma.
The most popular types are ST rice line ( ST05, ST20, ST21, ST24, ST25) and Japonica. These Vietnam rice export to China have exceptional features like pandan-leave aroma, sticky texture, and flavourful taste. The ST rice line even won the prize of the World’s Best Type of rice. Generally, high-quality delicacy rice is purchased at 470-670 USD/MT (FOB).
Normal aromatic rice
Another type of Vietnam rice export to China is normal aromatic rice. The unique feature that makes them stand out from other rice is the appetizing aroma. Not only has the tasty chewy texture, this type of Vietnam rice export to China possesses a long-lasting fragrance that appeals to any consumer. This type of rice includes wholesale jasmine rice from Vietnam and Nang Hoa rice. In general, their price varies from 600-680 USD/MT (FOB).
Sticky rice is the most famous type of Vietnam rice export to China. Normally, 70% of sticky rice exported from Vietnam is consumed in the China market. The reason that makes this type of Vietnam rice export to China so appealing is the delicious flavor. Vietnamese sticky rice is considered to be aromatic, sweet, and delightfully chewy.
Chinese consumers usually use them to make traditional cakes and serve them with delicacies like Chinese sausages, pork, and chicken. Currently, sticky rice is purchased at 470-530 USD/MT (FOB).
Vietnam rice export to China: Regions producing them
Three major regions that are responsible for Vietnam rice export to China are the Red River Delta, the Mekong Delta, Northern Midlands, and Mountains.
Red River Delta
Being the second-largest rice-growing region in Vietnam, the Red River Delta is an important area in producing Vietnam rice export to China. With approximately 490 thousand hectares of growing areas, every year, this region yields approximately 6000 tons of rice. In addition, this region has a long history of 5000 years of cultivating rice and is the origin of many high-quality rice varieties. In general, most rice from the Red River Delta is consumed by domestic buyers and the other is exported to China. The major rice products to export from this region to China are DT52 and sticky rice.
Northern midlands and mountains
The northern midlands and mountainous region is situated in the north of Vietnam, next to three Chinese provinces which are Guangdong, Guangxi, Yunnan. Although not a major growing area and produces only 3.382 thousand tons of rice annually, this region, with the special location next to the border of China, is one of the most important areas to transport Vietnam rice export to China. The popular rice product from this region is sticky rice which is highly preferred by Chinese domestic consumers.
Located in the South of Vietnam, Mekong Delta Region is a major growing region for Vietnam rice export to China. With a total cultivation area of 1.509 thousand hectares, the annual production of this region stands at 29000 tons of rice. 90% of Vietnamese rice to export originates from the Mekong Delta region. This region with the advantages of a dense river system and the rich alluvial land is the growing area of many high-quality rice varieties to China like Jasmine rice, ST rice.
Vietnam rice export to China: Important factors affecting this market
Certainly, some important factors contribute to the development of the market of Vietnam rice export to China.
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Vietnam rice export to China depends heavily on the production of Vietnamese rice. The exceeding production of rice is the major source for many varieties of Vietnam rice export to China. Currently, Vietnam rice production stands at 42.69 million and the total Vietnamese rice export reaches 6.25 million tons in 2020. The overall trend of Vietnamese rice to export is decreasing in amount and increasing in value. In 2020, the total rice export value reached 3,12 billion tons, increasing by 11,2% while the amount of rice to export reduced by 1,8%. To export high-quality Vietnamese rice to China, Vietnam is boosting its production of varieties like ST rice line, sticky rice, and Jasmine rice.
Although the pandemic has many adverse effects on the demand, Vietnam rice export to China still achieves impressive figures. In the first 9 months of 2021, Vietnam rice export to China reached 845 571 tons, equivalent to 423.9 million USD, increasing significantly by 25.3%.
In addition, though having higher prices than other types of rice in the global market, Vietnamese rice is still the number one choice for Chinese importers. In particular, currently, Vietnamese 5% broken rice stands at 493-497 USD/MT, which is 20 USD/MT higher than the biggest competitor Thai 5% broken rice. The reasons behind this growing demand irrespective of rising prices for Vietnam rice export to China of Chinese importers are the high quality of much Vietnamese rice. In the last few years, Vietnam has concentrated on producing and exporting high-quality rice to China like ST rice.
Due to the outbreak of the Covid-19 pandemic, the transportation of Vietnam rice export to China is facing some obstacles. The close-down of China’s border has impeded the delivery and increased the price to transport Vietnam rice export to China. Lack of laborers, many containers of rice were held in the harbors and borders between Vietnam and China.
In addition, the cost of transportation has increased significantly each time of modification. In particular, the cost of transportation rises 500-1,000 USD/time, and exceptionally 2,000-3,000 USD/time. The rising cost of transportation hence makes the Chinese importers hesitate to trade Vietnamese rice.
To boost the Vietnam rice export to China, the Vietnamese government has created many supporting policies. Exceptionally, in the last few years, the Vietnamese Ministry of Industry and Trade has held many trade promotion programs between China and Vietnam. China is a wide market then Chinese consumers from each province have their preference for Vietnamese rice. To cope with this problem, Vietnam has designed different trade promotion programs in many provinces such as Guangdong, Chongqing, Sichuan, Kunming, Yunnan, Guangxi, Guangzhou to meet the demand of local people. In addition, Vietnam also concentrates on promoting the image of high-quality Vietnam rice export to China and connecting directly to big Chinese corporations and retailers of Vietnamese rice.
To encourage Chinese traders to import Vietnamese rice, the Vietnam Ministry of Foreign Affairs has cooperated with the Chinese Food Association to create a special trade promotion program. Chinese rice traders from Xiamen, Zhejiang, Jiangxi, Guangdong, Zhongshan, etc. were invited to the main growing areas of Vietnam rice export to China like An Giang, Dong Thap in the Mekong Delta Region. During the program, Chinese rice importers can understand more about the cultivation and the quality of Vietnamese rice. At the end of the trade promotion program, two suppliers which are Loc Troi company and Tan Vuong company successfully signed the 5-year Memorandum of Understanding with Chinese rice importers to export 84.000 tons/year.
Vietnam rice export to China: Ways to export Vietnamese rice to China
Taking advantage of the neighboring country of China, there are many ways to transport Vietnam rice export to China.
This is the most popular way to transport Vietnam rice export to China since it has many advantages. Most rice is exported on trucks so they can be transported directly from the suppliers to the importer in China, hence saving the time of delivery. By exporting rice to China in this way, suppliers can save the cost of loading. However, the roads are only suitable for transporting rice in short distances and the quantity is limited. In addition, there are other risks such as congestion, accidents, etc when transporting rice to China on the roads.
Another way to transport Vietnam rice export to China is through railway. Since the railway does not depend on the price of petrol so the cost to transport rice in this way to China is fairly stable and affordable. The railway is also the best choice to export big quantities of rice to China and is not affected by factors like congestion, accidents, etc. However, the setback of the railway is that it requires other vehicles to deliver the goods to the importer in China so it is not suitable for transporting rice quickly.
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Using sea freight to transport Vietnam rice export to China has many advantages. Vietnam has many ports along the country to export rice to China like Hai Phong port, Quang Ninh port, Saigon port, etc. The waterway is wide so it reduces the risk of congestion and accidents. In addition, the cost to transport rice through waterway is reasonable so this is the choice of many Vietnamese rice exporters. Nevertheless, like the railway, transporting rice through the waterway requires other vehicles to deliver rice and also depends on the schedule of the sea freights.
Vietnam rice export to China: Top suppliers
Below are some famous suppliers of Vietnam rice export to China.
Loc Troi Group –Reliable supplier of Vietnam rice export to China
With 28 years working in the rice market, Loc Troi Group has become a leader in supplying Vietnam rice export to China. Vietnamese rice from Loc Troi Group is now consumed in more than 40 countries. The company also received many awards such as “Golden Rice Flower”, Top 3 finalists in the World Best Rice Contest 2015, Top 500 Vietnam leading companies, etc. Loc Troi Group has applied many advanced technologies in the rice process and works with farmers to enhance the quality and production of rice
K-Agriculture Factory- Leading supplier of Vietnam rice export to China
In 25-year development, K-Agriculture Factory is now one of the leading wholesalers in supplying Vietnam rice export to China. K-Agriculture Factory has 2500 MT/day of milling capacity and 400000 MT of storage capacity. Additionally, K-Agriculture Factory has HACCP and ISO certificates to provide rice of the best quality. With the ambition to bring Vietnamese rice to the world, K-Agriculture Factory provides ST rice, jasmine rice, glutinous rice to many foreign traders around the world.
To purchase Vietnam rice export to China at the most reasonable price, contact K-Agriculture Factory via:
Quoc Te Gia Company-Leading exporter of Vietnam rice export to China
Founded in 2008, with 13 years of development, Quoc Te Gia International Joint Stock Company has now become one of the leaders in supplying Vietnam rice export to China. The total annual export of Vietnamese rice from Quoc Te Gia is estimated at 300,000 tons. The company’s rice is exported and consumed in more than 30 countries and markets around the world. Certified with ISO 22000 – 2005 and HACCP on food safety and hygiene management, Quoc Te Gia’s rice is exported and consumed in more than 30 countries and markets around the world. With the motto “Quality – Prestige – Efficiency”, Quoc Te Gia has been making efforts to keep up with the increasing demand and expectation of the market, contributing to the prestige of Vietnamese rice in the global market.
In conclusion, to gain profits from Vietnam rice export to China, traders should consider many factors to find the suitable and reliable Vietnamese rice exporters.