SELECT MENU

Vietnamese rice export went off with a bang

From a poor country experiencing famine in 1945, Vietnam has gradually risen to become a leading rice exporter in the world. Vietnam’s rice exports continuously increase in volume and value. Behind that resounding success is the resonance of many factors.

Vietnamese rice export updated news

Vietnam ranks second in the list of the world’s largest rice exporting countries, accounting for 15% of the market. Every year, Vietnam rice export reaches to 160 countries, including markets with high requirements such as Europe, Japan, or the US.

vietnamese-rice-export-1

An overview of Vietnamese rice export

In 2020, 6.15 million tons of Vietnamese rice were exported, worth US$3.07 billion. Compared to 2019, the volume of rice exported in 2020 decreased by 3.5% but increased by 9.3% in value.

Vietnamese rice export went off with a bang

Regarding Vietnamese rice export categories, in the first 11 months of 2020, the export value of white rice accounted for 32.5% of the total turnover; jasmine rice and fragrant rice accounted for 32.9%; sticky rice accounted for 29.6%; japonica rice and Japanese rice varieties accounted for 4.8% (the Department of Processing and Agricultural Product Market Development – Ministry of Agriculture and Rural Development).

  • Vietnamese white rice is mainly imported by the Philippines (53.7%), Cuba (23.5%), and South Korea (7.7%).
  • Jasmine rice and fragrant rice are distributed to Ivory Coast (31.8%), Ghana (12.8%), and the Philippines (11.3%).
  • China is the largest importer of Vietnamese glutinous rice, accounting for 87.9%, followed by Indonesia and the Philippines.
  • Three major import markets of japonica rice and Japanese rice are Papua New Guinea (16.7%), Solomon Islands (9.2%), and China (8.1%).
vietnamese-rice-export-3

Vietnamese rice export value in the first 11 months of 2020

Vietnamese rice export standards include:

  • Broken ratio: 5%, 15%, and 25%. 
  • Humidity: 14% 
  • Bellies: 3 – 8% 
  • Red beads/red stripes: 0.5% – 5%
  • Leftover seeds:  the less the better
  • Gold beads: the less the better
  • Mixed rice: the less the better
  • Impurities: the less the better
  • Milling degree: milled, milled, polished, or unpolished
vietnamese-rice-export-3

Standards for Vietnamese rice export

Read more: Choosing wholesale rice flour

Reasons for Vietnamese rice export’s impressive development

In recent years, Vietnamese rice export has made important strides, affirming its position on the world rice export map. That success is partly based on factors of supply, import markets, price advantages, and supportive policies.

Vietnam has a stable source for rice export

  • Vietnam has a great rice civilization

Rice has been cultivated in Vietnam since about 1200 BC and has developed into a wet rice civilization. The Red River Delta is the first place to grow rice due to the alluvial soil deposited by the Red River and Thai Binh River. Since then, Vietnam has constantly developed farming techniques and different varieties of rice, creating diversity in products to meet market demand.

vietnamese-rice-export-4

A great rice civilization in Vietnam

  • Vietnam is one of the top 5 largest rice producers in the world

In 2020, the total rice production in Vietnam will reach 42.69 million tons, the rice yield will be 58.7 quintals/ha. Specifically, the winter-spring crop produced 19.9 million tons of rice, while the summer-autumn rice crop produced 10.74 million tons (the data of the General Statistics Office)

As a large rice producer, Vietnam has 3.760 million ha of the national area for rice cultivation. The Mekong Delta is the largest rice basket in Vietnam with 3,963.7 thousand ha, accounting for 54.5% of the country’s total rice-growing area. It also contributes 90% of Vietnamese rice export. Besides, supply chains for Vietnamese rice export are from the middle South Coastal, South East, and Northern Midlands and Mountains (important areas in the export of rice through quotas to China). 

vietnamese-rice-export-5

Vietnam is one of the largest rice producers

Vietnamese rice export has increased in value

According to the VFA, the price of Vietnam’s 5% broken rice for export on the world market has reached $438-442/ton, an increase of $5/ton. The Vietnamese rice export price of 25% broken rice is also at $413-417/ton, 100% broken rice is at $338-342/ton. Thus, similar to 5% broken rice, other types of rice in Vietnam also increased by about 5 USD/ton. 

Currently, Vietnamese rice export is far from that of Thailand – which is considered a rice exporting country with many overwhelming advantages. The price of Vietnamese rice for export has increased because orders from traditional rice importing countries are in demand again. In particular, the rice supply from India was affected by unfavorable weather.

vietnamese-rice-export-6

The value of Vietnamese rice export has increased

Read more: Recent update to rice wholesale price

The import market of Vietnamese rice has an increasing demand

The sudden increase in demand for rice in import markets has boosted Vietnam’s rice exports.

The Philippines is the major customer of Vietnamese rice export when 84% of this country’s rice imports is accounted for by Vietnam. After that, China is Vietnam’s second-largest rice importer. Compared to the same period in 2020, Vietnamese rice export to China in April 2021 increased sharply by 58.3% in volume and 49.7% in value.

Along with China, the volume of Vietnamese rice export to Cuba increased by 127.5%, the Ivory Coast increased by 121.1%, Saudi Arabia increased by 112%, and Australia increased by 66%. In particular, the amount of rice exported to Cambodia increased by 2.429%, reaching 14.53 thousand tons.

vietnamese-rice-export-7

The demand in import markets of Vietnamese rice export has increased

Vietnamese government establishes supporting policies for rice export.

In recent years, the government has taken important steps in cooperating with rice-demanding countries to create opportunities for the development of Vietnamese rice export. In addition, the state also offers favorable policies for businesses.

  • EU-Vietnam Free Trade Agreement (EVFTA)
vietnamese-rice-export-8

Free trade agreement between Vietnam and EU

The EU gives Vietnam a preferential tax rate of 0% with a quota of 80,000 tons of rice per year (including 30,000 tons of milled rice, 20,000 tons of unmilled rice, and 30,000 tons of fragrant rice). In particular, the EU will completely liberalize broken rice. This commitment helps Vietnamese rice export reaches about 100,000 tons to the EU every year.

  • Vietnam-EAEU free trade agreement

The Eurasian Economic Commission (EEC) has allocated quotas for importing Vietnamese rice to each member of the Eurasian Union (EAEU) in 2021, totaling 10,000 tons. This decision aims to implement the allocation of tariff quotas for Vietnamese rice export as committed in the free trade agreement between Vietnam and the Eurasian economic union.

vietnamese-rice-export-9

The free trade agreement between Vietnam and EAEU

  • Tightening management of specialty rice varieties ST25, ST24

The provincial representative proposed the Ministry of Agriculture and Rural Development to strengthen trade promotion, calling on businesses to consume ST25 and ST24 rice, to avoid spreading fake rice, causing loss of confidence of consumers in Vietnamese rice export. In addition, the province will also strengthen inspection and management of the quality of ST24 and ST25 rice, to prevent the quality of these two types of rice from going down.

vietnamese-rice-expor-10

ST25 and ST24 are Vietnam’s top specialty rice

Vietnamese rice export procedure through sea freight

An order for Vietnamese rice export has to go through many very complicated steps. Therefore, an efficient workflow is required.

  • Step 1: Finding a reputable Vietnamese rice export company

Trustworthy Vietnamese rice exporters play an important role in a successful importing business. They will ensure stable supply chains and the quality of rice for export. 

  • Step 2: Exchanging rice information and negotiating prices

For time-saving, the importer should send a letter of intent describing his/her expected rice types, specifications, quantities, and payment method to the Vietnamese rice export company. After that, both parties will discuss FOB or CIF prices.  

  • Step 3: Signing a contract, depositing money, and producing the goods

After reaching an agreement on the price, payment term, and shipment, the two parties will sign the contract. After that, the importer will make a deposit (usually 30%), and the Vietnamese rice export company will prepare the goods.

  • Step 4: Packaging, loading the goods, and finishing the payment

The Vietnamese rice export company will pack the products and load the goods to the ship. To start the shipment, the importer must complete the remaining amount.

  • Step 5: Keeping track of the order and after-sale services

Both the exporter and importer need to track orders. In case there are unexpected problems, they will discuss them with each other. After the goods have been delivered, the importer will give feedback and the Vietnamese rice export company will have after-sales services. 

vietnamese-rice-export-11

Steps to make a Vietnamese rice export order

No Who Work Days (max)
1 Buyer Send the Letter of Intent (LOI)

In this letter, the buyer will clarify his/her requirements about rice types, the specification, quantity, and payment method.

1
2 Seller Reply with official Full Cooperate Offer (FCO) 2
3 Both Discuss the terms in FCO 2
4 Both Agree with the final FCO 2
5 Seller Send draft contract 1
6 Both Discuss and finish the contract 2
7 Seller (optional) Send a sample for testing 4-5
8 Buyer

(optional)

Visit the buyer’s office and factory (with the host) 7
9 Buyer Payment instrument 5
10 Seller Load goods and send the documents 7
11 Both Track the vessel (sailing duration depends on the destination, normally range from 1-3 weeks) 20
12 Both (optional) Finish remaining payment if any and send commission to all involved partners 5
13 Seller After-sales service
14 Buyer Repeat orders

Top 5 well-known Vietnamese rice export companies

Due to the outstanding development of Vietnamese rice export, many companies have been established. Choosing a reputable and experienced partner in exporting Vietnamese rice is very important. The following are the top 5 most prestigious Vietnamese rice export companies.

Vinafood I – top Vietnamese rice export company

Northern Food Corporation is a special-class state-owned Vietnamese rice export company established on the basis of reorganizing the enterprises of the Central Food Corporation I and the provinces from Thua Thien Hue onwards out.

Currently, the company has 50 rice processing facilities located in the Mekong Delta and Red River Delta, with a capacity of over 1 million tons/year.

vietnamese-rice-export-12

Vietnam Northern Food Corporation

Vinafood II – top Vietnamese rice export company

Currently, Southern Food Corporation – Vinafood II owns a system of large factories and warehouses spreading from Da Nang city to Ca Mau, among which the key is provinces in the Mekong Delta to effectively serve the storage and processing of agricultural products for export.

Every year the Vietnamese rice export company processes about 3 million tons of rice and then distributes it to markets such as Asia, Eastern Europe, the Middle East countries, Africa. 

vietnamese-rice-export-13

Vietnam Southern Food Corporation

K-Agriculture Factory – top Vietnamese rice export company

K-Agriculture Factory is the leading Vietnamese rice export company. The factory has standardized milling and polishing chains, with a total capacity of 500 tons/day. 

With 25 years of development, K-Agriculture Factory has been a trustworthy partner of 80 countries. 

vietnamese-rice-export-14

K-Agriculture Factory

For free consultation and competitive price, please contact us via

email: info@k-agriculture.com

WhatsApp: +84855555694 (Ms.Evelyn)

Sunrise Ins LTD – top Vietnamese rice export company

Established in 2012, Sunrise Ins Group is one of the leading Vietnamese rice export companies. Having experience in rice export, Sunrise Ins Group has gained great trust from customers thanks to its stable product quality and affordable price.

Sunrise Ins Group aims to bring differentiated values to customers, along with improving the lives of farmers and the surrounding environment.

vietnamese-rice-export-15

Sunrise Ins Ltd

Angimex – top Vietnamese rice export company

Established in 1976, Angimex is one of the leading Vietnamese rice export companies. Over 35 years of business experience, Angimex is very proud to have been trusted and accepted by demanding domestic and international customers from Europe, America, Asia.

Angimex can produce the highest 2,200 tons of rice/day, so it is also one of the largest Vietnamese rice export companies in our country. Angimex has a system of food processing factories spread throughout key raw material areas, with convenient transportation, and warehouses with a capacity of up to 100,000 tons.

vietnamese-rice-export-16

Angimex – Vietnamese rice exporter

May So You Like