Vietnamese white rice is one of the most well-known types of rice in the world. In 2020, Vietnam produced 42,69 million tons of rice and exported 6,25 million tons of Vietnamese white rice, thus is regarded as the second-largest exporter of rice in the world.
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Vietnamese white rice: An overview
With the long history of cultivating rice, Vietnam nowadays has been the leading manufacturer and exporter of white rice. Vietnamese white rice became a worldwide popular brand.
Vietnamese white rice: A booming market
Vietnamese white rice with high quality and reasonable price is now exported to many countries around the world.
Since 2009, Vietnam has always exported over 4 million tons/year of white rice, especially 8 million tons/year in 2012. In 2020, Vietnam exported 6,25 million tons of rice with an export value of 3.12 billion USD, decreasing by 1,8% in quantity but increasing by 11,2% in value
Export value of Vietnamese white rice 2011-2020
The trend of Vietnamese rice export is decreasing in volume but increasing in value and exporting high-value rice. In 2021, Vietnam is expected to produce 41,5 million tons of white rice, decreasing by 2,8% compared to 2020.
Types of Vietnamese white rice and wholesale prices
Below are the most popular types of Vietnamese white rice with their notable features, average prices, and major markets that any traders should know
Types of Vietnamese white rice
The premium markets usually require the finest Vietnamese white rice so there are more specifications the suppliers need to fulfill. Overall, the higher the quality of the product is, the higher the price it is.
Vietnamese white rice: Main cultivation areas
Vietnamese white rice has three major growing seasons: Winter-Spring, Summer-Autumn,
Autumn-Winter.
The four main cultivation areas of Vietnamese white rice are the Mekong delta region, Red River delta region, Central Coast, Northern mountainous regions. Each region with distinctive features has contributed to the success of the Vietnamese white rice market.
Production of Vietnamese white rice cultivation areas
- Red River delta region
Farmers in this area majorly grow DT52, sticky rice. Most rice from these regions is domestically consumed while the remaining will be Vietnamese white rice exported to China.
Red River delta region
- Northern mountainous regions
Farmers in this area majorly grow sticky rice. This region is an important area for Vietnamese white rice markets to China.
Northern mountainous regions
- Central coast
This is not a major growing area for export since most of the Vietnamese rice produced is consumed by domestic customers.
Central coast
- Mekong Delta region
90% of Vietnamese white rice to export is from this area so this is the most important area for the export of Vietnamese white rice.
Mekong Delta region
There are some advantages of these areas in cultivating Vietnamese white rice.
- These areas have a long history of cultivating rice from 3500 BC till now so the farmers possess more experience.
- Favorable weather conditions like rich alluvial soils, rain, rivers.
- The development in cultivation techniques like transplantation method, drilling method, and irrigation has boosted the production of each region.
Vietnamese white rice: Factors affecting the export of Vietnamese white rice
There are many factors affecting the market of Vietnamese white rice to export that traders should consider before investing.
Production of Vietnamese white rice
In the last few years, the production of Vietnamese white rice always exceeded domestic consumption and became a great source to export. In 2018, Vietnam produced 31,7 million tons and exported 6,12 million tons of white rice while in 2019, Vietnam yielded 43,45 million tons and exported 6,34 million tons of white rice. Likewise, in 2020, Vietnam produced 42,69 million tons of rice. With this amount of rice, Vietnam not only meets the demand of domestic consumers but also exports 6,25 million tons of Vietnamese white rice, gaining 3,12 billion USD.
Production of Vietnamese white rice
Supporting policies for Vietnamese white rice
Vietnam has some agreements to export rice like EVFTA, EEC, UKFTA, etc. In particular, in EVFTA, the European Council set the limit for Vietnamese white rice at 80.000 tons with 30.000 tons of processed rice, 30.000 tons of aromatic rice, and 20.000 tons of non-processed rice.
There are many policies from the government, the Ministry of Industry and Trade to support the production and export of Vietnamese white rice such as eliminating regulations about warehouse sizes, and encouraging traders to invest in the production and export of high-quality and high-value rice products.
Supporting policies for Vietnamese white rice
Demand for Vietnamese white rice
The demand for Vietnamese white rice is a factor with great effects on the export of this type of rice.
Increasing price
The reasonable price is no longer the advantage of Vietnamese white rice since domestic rice production heavily depends on imported inputs. The Increasing price of fertilizers, chemicals from other countries has boosted the price of Vietnamese rice.
Read more: Vietnam rice export price and its positive changes
In comparison with other leading exporters, currently, the price of 5% broken Vietnamese white rice is sold at 433 USD/ton while the prices of 5% broken rice from India and Thailand are 367 USD/ton and 383 USD/ton respectively. The higher price of Vietnamese white rice has reduced the demand for this rice in the global market. Hence, the export of Vietnamese white rice in the last few years usually rises in value but decreases in amount.
Demand for Vietnamese white rice
Decreasing demand for low-grade rice
The low-grade Vietnamese white rice is no longer preferred in the global markets, even in traditional ones like Africa, Malaysia, etc… In particular, from 2019 to 2020, the export of Vietnamese rice will decrease by 1,8%, from 6,36 million tons to 6,25 million tons. This is because most developing markets now prefer aromatic rice- the dominating type of rice exported from Thailand. Coping with these problems, Vietnam nowadays produces and exports more high-quality Vietnamese white rice such as the ST rice line.
Read more: Vietnam rice export to China: Developing market with many benefits
Competitors
The major competitors of Vietnamese white rice like India and Thailand are dealing with some obstacles in the production and export of rice products. The Covid-19 pandemic has impeded the logistics and increased the price of Indian rice though the Indian government has opened the stored rice to aid the people in need. Vietnamese white rice can take this opportunity to get into the major markets of these leading exporters and hence expand the markets to export.
However, new exporting countries like Cambodia, Myanmar are posing threats to the demand for Vietnamese white rice in the global market, especially Cambodia with the aim to build the image of a sustainable rice manufacturer. In 2020, Cambodian rice reached 690,829 tonnes, valued at nearly $539 million, increasing significantly by 11.40 percent compared to 2019.
In addition, the Philippines has eliminated the tax gap among rice imported from countries in ASEAN, outside ASEAN, and MFN (Most Favoured Nation) in order to boost the export of cheap rice from India, Pakistan. That means every other country can now export rice to the Philippines with a tax of 35%, like Vietnam. The reduced tax to other exporters can decrease the competitiveness of Vietnamese white rice.
Vietnamese white rice and many opportunities to gain profits
Vietnamese white rice exporters
As a major rice exporting country, there are many rice exporters from Vietnam. Below are some prominent Vietnamese white rice exporters to trade with.
Vietnam Intimex Joint-stock corporation-Famous Vietnamese rice exporter
Vietnam Intimex Joint Stock Corporation is indicated as the leading Vietnamese white rice exporter in the market.
In 2020, Vietnam Intimex Joint Stock Corporation exported 497,000 tons of Vietnamese white 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 white rice.
Vietnam Intimex Joint stock corporation
K-Agriculture Factory – Leading Vietnamese white rice exporter
Having over 25 years in the market, 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 white 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
Quoc Te Gia Company-Leading Vietnamese white rice exporters
Established in 2008, with 13 years of development, Gia International Joint Stock Company has now become one of the leading Vietnamese white rice exporters. The total annual export of Vietnamese white 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. 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 white rice in the world.
