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Vietnamese long grain rice: Factors to consider before investing

As one of the leading exporters of agricultural products in the global market, Vietnam has supplied a wide variety of rice to many countries. Hence, Vietnamese long grain rice with high quality and reasonable prices has become more prevalent than ever.

Vietnamese long grain rice: An overview

Vietnamese long grain rice is nowadays a worldwide popular product in the global market. Investing in this type of rice is considered to be beneficial. However, there are certain factors to consider before trading this type of rice.

Vietnamese long grain rice: A promising market

As the Vietnamese have made a lot of effort in inventing new types of Vietnamese long grain rice and promoting them in the global market, the export of Vietnamese long grain rice has achieved a lot of success.

Vietnam is currently considered the second-largest exporter of rice in the world. In 2020, Vietnam exported 6.25 million tons of rice with an export value of 3.12 billion USD. The export value increased by 11.2% while the export amount decreased by 1.8%.

In total export value, the Vietnamese long grain rice accounts for 32.9%, making it one of the most important types of Vietnamese rice for traders. Nowadays, Vietnamese long grain rice is not only exported to traditional markets like Malaysia, China, Africa, but also consumed in premium markets like the EU and the USA.

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The proportion of sticky rice, long grain rice, and other white rice in the total export value

Vietnamese long grain rice: Origin

Most Vietnamese long grain rice originates from the Mekong Delta Region in the South of Vietnam. This is the growing area for many types of exported rice in Vietnam. Vietnamese long grain rice there is cultivated in three seasons which are Winter-Spring, Summer-Autumn, and Autumn-Winter.

The Mekong Delta region possesses many advantages in planting Vietnamese long grain rice:

  • Favorable weather conditions like rain, river systems, and alluvial soil.
  • The long history of growing rice is believed to be over 4000 years old.
  • The experienced farmers and new cultivation techniques like transplantation, irrigation help boost the production of rice.
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The Mekong Delta region possesses many advantages in planting Vietnamese long grain rice

With these favorable factors, the Mekong Delta region nowadays is the leading area in cultivating Vietnamese long grain rice. Making up only 30% of the total growing areas but this region contributes to over 50% of the total rice production in Vietnam annually. In 2020, the Mekong Delta region produced approximately 29,5 million tons of rice in total 42,69 million tons of rice production in Vietnam. Hence, this region is regarded as the main growing area of Vietnamese long rice to export in Vietnam.

Vietnamese long grain rice: Characteristics

Vietnamese long grain rice has some special features that distinguish them from others.

Shape: Vietnamese long grain rice is a type of rice with long, slender, thin, and hard grains.

Aroma: Different types of long grain rice have different scents. Whatever the fragrance is, most Vietnamese long grain rice has appetizing aromas that can appeal to any customer.

Flavor: After being cooked, most Vietnamese long grain rice has a sweet, aromatic flavor. Exceptionally, in comparison with other types of rice, Vietnamese long grain rice is not hard but still tender to eat even after cooled. 

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Vietnamese long grain rice’s characteristics

With these special features, nowadays, Vietnamese long grain rice is well trusted by importers from many foreign markets, especially premium ones like the EU, US.

Read more: Long grain rice is different from short grain rice

Vietnamese long grain rice: Popular types 

Vietnam possesses a wide variety of rice from short, medium to long grain rice with different shapes, colors, and characteristics. However, when it comes to Vietnamese long grain rice, there are some prevalent types that are popular for traders.

Long-grain delicacy rice

This is the most valuable type of Vietnamese long grain rice. They are usually 7.5 to 8.5 mm in length and 0,8-1mm in width. This type of rice is long, slender, and translucent. When cooked, the rice has the pandan-leave aroma and sweet, tender flavor. The most frequently traded varieties are ST05, ST20, ST24, and ST25.

In addition, in 2019, ST25 – Vietnamese long grain rice won the first prize in the World’s Best Rice contest. With exceptional features, nowadays, this rice is not only preferred by domestic consumers but also by foreign markets, especially China. The average price of this rice fluctuates between 630-670 USD/MT (FOB).

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Long-grain delicacy rice

Normal long grain aromatic rice 

This type of Vietnamese long grain rice has a special taste and aroma but is sold at more reasonable prices than the delicacy one. The average length of normal aromatic rice is between 6.5mm to 7mm. They are usually long, delightfully chewy, and have a long-lasting fragrance after being cooked.

The most popular varieties are jasmine, OM18, Nang Hoa, and DT8 Dai Thom

Nowadays, with reasonable prices, this Vietnamese long grain rice is consumed mostly in developing markets like Africa, China, the Philippines, etc. The average price is between 480-680 USD/MT (FOB).

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Normal long grain aromatic rice

Normal long grain rice

This is considered to be the most reasonable type of Vietnamese long grain rice. They are slender, long, and milky white grains with tender flavor when cooked. The most popular type is OM5451, which is nowadays consumed by many developing markets. The Philippines is the dominating market for OM5451 since it accounts for 60% of the market share. Besides the Philippines, African countries and Cuba also frequently import this type of Vietnamese long grain rice. It is usually imported in big orders and by governments. The frequently traded price is between 480-530 USD/MT (FOB).

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Normal long grain rice

Vietnamese long grain rice: Factors affecting the export

There are many factors that can have a great influence on the market of Vietnamese long grain rice.

Production of Vietnamese long grain rice

The production of Vietnamese long grain rice has a direct impact on its export. The exceeded rice production becomes the source of much long grain rice in Vietnam. In 2020, Vietnam produced 42.69 million tons of rice. Vietnam not only met the demand of domestic consumers but also exported 6.25 million tons of rice, gaining 3.12 billion USD.

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Production of Vietnamese long grain rice

Weather

The weather is one of the most favorable conditions of Vietnam in cultivating Vietnamese long grain rice. With humid and rainy climates, Vietnam has a wide range of river systems to support the irrigation and production of long grain rice. 

However, natural disasters in Vietnam like floods, saltwater intrusion happened more frequently in the last few years. These negative weather conditions have destroyed many growing areas and hence reduced the total production of Vietnamese long grain rice.

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Weather factors

The increasing price of fertilizers

The fact that Vietnamese long grain rice production nowadays depends heavily on imported fertilizers has an adverse impact on production. As the price of fertilizers rises, the volume of long grain rice decreases since the farmers need to balance between the input and output of the producing process.

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The increasing price of fertilizers

Transportation of Vietnamese long grain rice

Vietnam has the geographical advantage of a country with an expanded coast which is favorable for the transportation of rice to many foreign markets. However, the transportation of Vietnamese long grain rice is now facing certain problems. 

The outbreak of Covid-19 not only impeded the production but also had adverse effects in the transportation of Vietnamese long grain rice. Due to the lockdown of major markets like China, the Philippines, etc, long grain rice from Vietnamese rice suppliers was prevented from entering these markets easily.

In addition, rising shipping costs, as well as the lack of shipping containers, are now an obstacle for the export of Vietnamese long grain rice. The latest reports have shown that the cost to export each container from Vietnam has increased fourfold in comparison with the period before the pandemic. Moreover, it is also expected to reach a peak at the end of 2021 due to the higher demand for transportation.

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Transportation of Vietnamese long grain rice

 Supporting policies from Government for Vietnamese long grain rice

The Vietnamese Government has made great efforts in boosting the production of Vietnamese long grain rice since it is one of the leading products to export in the global market. Eliminating regulations about warehouse sizes, encouraging traders to invest in the production and export of high-quality and high-value rice products are some typical policies to encourage the production of Vietnamese long grain rice.

In addition, Vietnam also signed many trading agreements such as EVFTA, EEC, UKFTA to help this type of rice penetrate into more markets and to promote the position of Vietnamese long grain rice in the global market. In particular, in EVFTA, the European Council set the limit for Vietnamese white rice at 80.000 tons with 30.000 tons of milled rice, 30.000 tons of aromatic rice, and 20.000 tons of unmilled rice.

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Supporting policies from Government for Vietnamese long grain rice

Demand for Vietnamese long grain rice

Low prices used to be the biggest advantage of Vietnamese long grain rice among other types in the market. The affordable price helps Vietnamese long grain rice enter developing markets like Africa, Malaysia, Philippines.

However, this is no longer the case since the price of long grain rice rose significantly in the last few years and reduced the consumption of this type of rice in the global market.

Read more: The development of Vietnamese rice export

Moreover, the low-grade Vietnamese long grain rice is no longer preferred in the global markets, even in developing ones like Africa, Malaysia, and the Philippines. The foreign customers now preferred more aromatic rice, which is the dominating product of Thailand. In 2020, Vietnam exported 1.94 million tons of rice to the Philippines. In comparison with 2019, the amount of Vietnamese rice to export to this market decreased by 1,7% due to the rising prices.

The rise of new exporters like Myanmar, Indonesia, especially Cambodia with the aim to build the image of a sustainable rice manufacturer, are posing threats to the demand for Vietnamese long grain rice. The foreign customers now have a wider range of alternative products besides rice from Vietnam to choose from.  Hence, the demand is adversely affected.

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Demand for Vietnamese long grain rice

Vietnamese long grain rice: Top 5 suppliers

Below are some exporters of Vietnamese long grain rice to trade with.

Quoc Te Gia Company-Leading Vietnamese long grain rice exporters

Founded in 2008,  with 13 years of development, Gia International Joint Stock Company has now become one of the largest Vietnamese long grain rice exporters. The total annual export of Vietnamese rice from Quoc Te Gia is estimated at 300,000 tons.  Vietnamese long grain rice from Quoc Te Gia is exported to more than 30 countries and markets around the world.

The company’s rice processing plant is now certified with ISO 22000 – 2005 and HACCP on food safety and hygiene management.

With the motto “Quality – Prestige – Efficiency”, Quoc Te Gia has been making efforts to keep up with the increasing requirements. of the market, contributing to enhancing the brand value of Vietnamese long grain rice in the world.

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Quoc Te Gia Company-Leading Vietnamese long grain rice exporters

 

K-Agriculture Factory- Leading Vietnamese long grain rice exporter

In the 25 years of development, K-Agriculture Factory has developed from a small business to become the leading exporter of Vietnamese rice, coffee, cashew, and spices. The factory is supported by the Ministry of Industry and Trade with the vision to bring Vietnamese agricultural products, especially Vietnamese long grain rice to the world.

Having an advanced milling and polishing chain with a capacity of 15000 tons/month, along with a 21500-ton storage capacity, K-Agriculture Factory has exported its products to over 80 countries around the world.

To trade with K-agriculture Factory, contact via:

Email: info@k-agriculture.com

WhatsApp: +84855555694

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K-Agriculture Factory- Leading Vietnamese long grain rice exporter

Vietnam Intimex Joint stock corporation-Reliable Vietnamese long grain rice exporter

Vietnam Intimex Joint Stock Corporation is regarded as the leading Vietnamese long grain rice supplier in the market.

In 2020, Vietnam Intimex Joint Stock Corporation exported  497,000 tons of rice. With well-trained, experienced staff, a well-based selling network, Intimex has proven to be a reliable partner by Vietnamese and international traders of Vietnamese long grain rice. 

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Vietnam Intimex Joint stock corporation-Reliable Vietnamese long grain rice exporter

Angimex – Prestigious Vietnamese long grain rice exporter

Angimex is one of the top Vietnamese long grain rice suppliers. Located in An Giang province, Angimex has a system of factories with a capacity of 100 thousand tons. Hence, the company saves transportation costs from raw material areas to the factory. The company always offers Vietnamese long grain rice at the most affordable price. Angimex’s long grain rice is now consumed by either premium or popular markets, from Europe to Africa.

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Angimex – Prestigious Vietnamese long grain rice exporter

Sunrise Ins Group – Top Vietnamese long grain rice supplier

Founded in 2012, Sunrise Ins Group possesses a wide distribution system in both the domestic and global markets. Vietnamese long grain rice is one of the leading products of Sunrise Ins Group. In addition, this exporter also supplies other rice types such as KDM, Japonica, and medium-grain rice.

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Sunrise Ins Group

In conclusion, Vietnamese long grain rice creates a competitive market for all rice traders around the world. To gain profits from these types of rice, rice importers and exporters should have sufficient knowledge and consideration before investing.

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