Vietnam achieves record-breaking rice export growth in 2024

VIETNUM –  Vietnam’s rice exports have reached unprecedented levels, with the Ministry of Agriculture and Rural Development reporting October shipments of 800,000 tonnes worth US$505 million.

For the first 10 months of 2024, exports totaled nearly 7.8 million tonnes, valued at almost US$4.9 billion. These figures represent a year-on-year increase of over 10% in volume and 23% in value, showcasing the robust growth of Vietnam’s rice sector.

According to the report, the Philippines continues to dominate as Vietnam’s largest rice importer, accounting for over 45% of its market share.

In October alone, rice exports to the Philippines reached 2.9 million tonnes, comprising approximately 80% of the country’s total rice imports of 3.7 million tonnes. Indonesia and Malaysia follow as key markets, with Malaysia exhibiting the strongest growth, recording a more than two-fold increase in export value compared to the previous year.

Vietnam’s Trade Office in the Philippines anticipates continued growth in demand for Vietnamese rice, fueled by increased domestic consumption and weather-induced harvest losses in the Philippines.

The office forecasts the Philippines’ total rice imports for 2024 will exceed four million tonnes, underscoring the country’s reliance on Vietnamese aromatic rice varieties.

Do Ha Nam, vice chairman of the Vietnam Food Association, predicts 2024 will be a record-breaking year, with rice exports surpassing eight million tonnes and exceeding $5 billion in value.

 “Prices could rise by year-end due to limited domestic supply and flood impacts,” Nam noted. He added that while India has re-entered the rice export market, its lower-grade rice is unlikely to replace Vietnam’s high-quality offerings.

Vietnamese exporters continue to focus on producing premium rice varieties, differentiating themselves from competitors such as India and Thailand.

“Vietnam is gradually developing a distinctive rice sector, focusing on aromatic and high-quality rice while reducing lower-grade varieties. This is establishing a unique market position and pricing structure,” Nam said.

Despite India’s participation in Indonesia’s October rice tender, Vietnam secured three contracts totaling 83,500 tonnes, representing 17% of the tender’s 500,000 tonnes.

Additionally, Nam, positively highlighted that although India offered competitive pricing, Indonesian buyers showed a preference for the superior quality of Vietnamese and Thai rice.

Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, emphasized Vietnam’s resilience in maintaining strong export prices for high-quality rice.

“While India’s re-entry into the market has some impact, Vietnam continues to hold a significant advantage in the high-quality rice value chain,” Tien said.

However, Vietnam still remains cautious on challenges and future Opportunities. China, another traditional market for Vietnamese rice, has remained relatively inactive due to pricing challenges. However, officials predict renewed interest during the upcoming winter-spring crop, which could stabilize output and prices.

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