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According to experts, Vietnam's rice exports are forecast to continue to thrive this year as global rice prices remain high, at least in the short term, due to the high demand for rice stocks due to global economic and political uncertainty.
According to the Vietnam Food Association, as of the middle of last month, Vietnam exported 226,000 tons of rice and earned about US$115 million, up 41 percent in both volume and value over the same period last year, VNA (Vietnam News Agency) reported.
The country exported ST24 and ST25 rice to the Middle East region with a record-high price of US$1,000 per tonne, doubling the price of normal white rice.
Vietnamese rice further penetrated demanding markets like Japan and the EU.
According to experts, more than 80 percent of rice varieties in Vietnam are fragrant high-quality rice, which is an important factor that helps increase Vietnamese rice’s value and accessibility to markets.
This year’s rice prices are forecast to return to their peak in 2019 thanks to periodical factors and increasing demand for rice reserves in countries, including such populous nations as China and India.
Moreover, Vietnamese rice exporters are taking advantage of free trade agreements.
Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Joint Stocks Company, said that before the EU–Vietnam Free Trade Agreement (EVFTA) took effect, Vietnamese rice exported to the EU was taxed at high rates, from 5 percent to 45 percent, depending countries.
As the result, it was difficult for Vietnamese rice to compete with those from Cambodia and Myanmar as the EU has exempted import taxes for those countries.
Meanwhile, although Thailand’s rice is heavily taxed branding is strong and long-lasting, resulting in its high competitiveness, Binh said.
According to analysts from BIDV Securities Company (BSC), unfavorable weather conditions make major rice exporters like India and Pakistan reduce export volumes while major rice importers like China to increase imports.
Vietnam and Thailand are expected to hold negotiations to discuss rising rice prices in the context of increasing prices of input materials.
Last year, Vietnam exported nearly 7.2 tonnes of rice, gaining US$3.49 billion.
Source:
Online/GFMM
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