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Vietnamese glutinous rice has recorded a significant growth

Even though the market of Vietnamese glutinous rice is not as active as that of other rice types, it has had many positive changes, especially in 2020. Vietnamese glutinous rice is gradually asserting its position in the export of Vietnamese rice.

Vietnamese glutinous rice’s overview

Vietnam is one of a few glutinous rice exporting countries besides Thailand. Recently, Vietnamese glutinous rice has experienced considerable growth in export volume. In 2015, glutinous rice accounted for only 6.65% of Vietnam’s total rice export. In the same period of 2016, the percentage of Vietnamese glutinous rice increased to 16.65%. In 2017, it was 20% and glutinous rice export volume ranked third following white rice and fragrant rice. 2020 recorded the most impressive development of Vietnamese glutinous rice export, accounting for 29.6% of the total.

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Vietnamese glutinous rice’s overview

Three major importers of Vietnamese glutinous rice are China, Malaysia, and the Philippines. In particular, China is the largest importer accounting for 80% of the total Vietnamese glutinous rice export, with 2 million tons in 2017 and an average price of 480-490 USD/MT. Malaysia and the Philippines account for 7% and 5% respectively.

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Three major importers of Vietnamese glutinous rice are China, Malaysia, and the Philippines.

The price of Vietnamese glutinous rice has been fluctuating for 5 years. The export price of Vietnamese glutinous rice peaked in 2016, 2019, and 2020, with an average of 522 USD/MT. However, due to some significant changes in China’s regulations for Vietnamese glutinous rice import, the price experienced a considerable decline to 460 USD/MT in 2017 and 2018.

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The price of Vietnamese glutinous rice

Read more: Glutinous rice and its impressive characteristics

Main Vietnamese glutinous rice producers

Long An and An Giang are two major Vietnamese glutinous rice producers. In particular, the glutinous rice growing area accounts for 30% of Long An’s total rice-growing area.

In the 2019 summer-autumn crop, Long An had 64 thousand ha for Vietnamese glutinous rice cultivation, producing 183 thousand tons. In An Giang, 27 thousand ha was used to produce 93 thousand tons of Vietnamese glutinous rice.

In the 2019-2020 winter-spring crop, the Vietnamese glutinous rice growing area in Long An increased to 65 thousand ha, producing 258 thousand tons (up 30% compared to the summer-autumn crop in the same year). Meanwhile, with 44-thousand-ha growing area, An Giang produced 195 thousand tons of Vietnamese glutinous rice (up 47% compared to the summer-autumn crop in the same year).

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Long An and An Giang are two major Vietnamese glutinous rice producers.

Factors affecting the Vietnamese glutinous rice market

The Vietnamese glutinous rice market has had ups and downs due to considerable changes in rice production, demand, and governmental policies.

Glutinous rice production

To have stable supply chains for Vietnamese glutinous rice exports, it is important to ensure sustainable rice production at home.

In the 2020-2021 winter-spring crop, the production volume of Vietnamese glutinous rice increased due to the 30% expansion in Long An’s growing area. As a result, the export volume of Vietnamese glutinous rice rose, accounting for 29.6% of the total Vietnamese rice export, up 9.6% compared to 2017.

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Glutinous rice production

Demand for Vietnamese glutinous rice

Although China is a good consumption market in which Vietnamese glutinous rice has few competitors, depending too much on this market is a disadvantage.

In 2017, Vietnamese glutinous rice exports to China slowed down because this country stipulated that glutinous rice importers had to pay 110 USD/MT for a long-grain rice quota and 1% tax. In case companies did not buy the quota, they had to pay 65% import tax.

Previously, a short-grain rice quota was applied for Vietnamese glutinous rice imports, which was only 20 USD/MT and 1% food tax. This current regulation made the export price of Vietnamese glutinous rice decrease from 460 USD/MT to 430 USD/MT.

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Demand for Vietnamese glutinous rice

Policies for Vietnamese glutinous rice exports

On April 3, 2020, the People’s Committee of Long An province sent a written request to the Prime Minister for a mechanism to re-export sticky rice with HS code 1006.30 without limit on quantity. If approved, this will help solve 56,000 tons of glutinous rice in stock at enterprises in Long An and An Giang provinces.

In addition, about 204,570 tons of Vietnamese glutinous rice have not been delivered from the end of 2020 by Long An rice exporters, of which the Chinese market is 44,303 tons will be completed.

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Policies for Vietnamese glutinous rice exports

Top 3 Vietnamese glutinous rice exporting companies

Since Vietnamese glutinous rice is mainly grown in the Mekong Delta provinces, the majority of Vietnamese glutinous rice exporting companies are located there.

Read more: Rice exporters from Vietnam

Van Loi Food – a Vietnamese glutinous rice exporting company

With a total warehouse area of over 25,000 m2, including a milling plant with a capacity of 500 tons of rice/day, 10 systems of rice drying ovens with a capacity of 500 tons of rice/day, with 13 rice polishing lines, with a capacity of 1,700 tons of finished rice products including Vietnamese glutinous rice. Van Loi Food has 03 color sorting machine systems with a capacity of 300 tons/day.

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Van Loi Food – a Vietnamese glutinous rice exporting company

Long An Food – a Vietnamese glutinous rice exporting company

Long An Food Company was established in 1984, a member of Southern Food Corporation (Vinafood II). Vietnamese glutinous rice of Long An Food is highly appreciated in the international market. The company has a total warehouse area of 85,000 m2 with a capacity of 155,000 tons. With 3 rice milling systems with a capacity of 475 tons/day, Long An Food has sold 250.00 tons/year, including Vietnamese glutinous rice.

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Long An Food

Mecofood – a Vietnamese glutinous rice exporting company

Mecofood is one of the leading Vietnamese glutinous rice exporting companies. Mecofood owns a system of warehouses and factories to serve the business, storage, and processing of food. The total storage capacity is 20,000 tons with a capacity of 100,000 tons/year. Mecofood’s Vietnamese glutinous rice products reach most domestic and foreign markets.

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Mecofood – a Vietnamese glutinous rice exporting company

K-Agriculture Factory is well-known as a pioneer in supplying wholesale Vietnamese rice to 80 countries around the globe. In addition, K-Agriculture Factory is supported by the Ministry of Industry and Trade. We are proud of our high product quality, competitive prices, and professional employees.

For special discounts and free consultation, contact us now.

WhatsApp: +84855555694 (Ms. Evelyn – Sales Manager at K-Agriculture Factory)

Email: info@k-agriculture.com

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