Rice exports to RCEP markets achieve impressive growth

Vietnam exported more than 5.81 million tonnes of rice worth US$3.16 billion in the first eight months of 2023

Statistics from the General Department of Vietnam Customs show that in August, Vietnam exported 921,443 tonnes of rice worth US$546 million, an increase of 28.8 percent in volume and 61.7 percent in value compared to the same period last year. This took the total to more than 5.81 million tonnes worth US$3.16 billion in the first eight months of 2023, up 21.4 percent in volume and 35.7 percent in value from the same period last year. The average rice export price was US$544 million/tonne in the eight months, up 11.8 percent from the same period of 2022.

4.24 of the 5.81 million tonnes of rice (worth US$2.25 billion) were sold to RCEP markets, up 31.4 percent in volume and 46.3 percent in value. The Philippines was the biggest importer of Vietnamese rice, accounting for 40.3 and 38.8 percent of the country’s total rice export volume and value, respectively, followed by China with 786,000 tonnes worth US$452.08 million (representing 13.5 and 14.3 percent of the total, and up 51 and 67.9 percent, respectively), and Indonesia with 718,000 tonnes worth US$361.25 million (up 1.459 percent in volume and 1.506 percent in value). Meanwhile, rice exports to CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) markets reached 399,994 tonnes worth US$212.54 million, up six percent in volume and 14.8 percent in value.

In the first eight months of 2023, Chile imported 7,123 tonnes of rice worth US$3.3 million from Vietnam, (up 4.114 percent in volume and 2.708 percent plus in value from the same period in 2022) at an average price of US$462/tonne, down 33.4 percent compared to the same period last year. Chile is increasingly interested in Vietnamese rice, especially in the context that many world leading rice exporters, including India, are strengthening the ban of rice exports. Vietnam and Chile signed a bilateral free trade agreement, while both countries are members of the CPTPP. This has helped increased the bilateral trade value in recent years.

According to the Ministry of Agriculture and Rural Development, in 2023, Vietnam is expected to reach a rice production output of over 43 million tonnes and can export more than 7.5 million tonnes of rice while at the same time ensuring its national food security and raw materials for processing, breeding and animal husbandry.

Since the end of August, the rice market has experienced unpredictable fluctuations after India – the world’s largest rice exporter – applied a 20 percent export duty on parboiled non-basmati rice (PNB) to ensure a stable domestic supply and curb rising local prices.

The Ministry of Industry and Trade is working with ministries, sectors, business associations and localities to prepare plans for balancing rice supply and demand, contributing to rice price stabilization and food security assurance in accordance with the Government’s guidelines.