Rice exports continue to increase in 2024

According to the Ministry of Agriculture and Rural Development, the country's rice production in 2023 reached 43.5 million tons, an increase of 1.9%. The increase was due to a 10,600-hectare expansion (0.1% increase), and a yield of 61 tons per hectare, which represents a 1-ton-per-hectare increase (1.7% increase).

Additionally, rice exports in 2023 reached a high record of 8.3 million tons, generating nearly USD 4.8 billion in revenue, with an increase of 38.4% compared to the previous year.

ASEAN and China remain the two biggest Vietnamese rice markets, accounting for a significant portion of the country's rice exports. Particularly, rice exports to the ASEAN saw a significant increase of 25.6% compared to the same period in the previous year, while rice exports to China increased by 10.9%. These two markets combined accounted for 72% of the country's total rice exports.

These figures indicate a positive trend for the rice industry in Vietnam, as demand for rice continues to grow in the region.

However, Vietcombank Securities Company (VCBS) believes that the price of Vietnamese rice will not increase sharply due to its already high price. In addition, Vietnam has exported about 7.75 million tons of rice in the first 11 months of 2023, which significantly reduced its domestic supply.

"Rice exports are expected to remain positive in 2024 due to a global rice shortage of 5 million tons of rice and continued export restrictions in India. Indonesia is predicted to increase its rice imports by around 600,000 tons", VCBS said.

The US Department of Agriculture forecasts global rice consumption in the 2023-2024 crop year at a record level of 522.1 million tons. This is down 2.95 million tons compared to the previous forecast, but up nearly 1.7 million tons compared to the 2022 crop year. The output is expected to slightly exceed the output of 8.6 million tons.