Opportunities and challenges for Vietnamese rice in current context

Rice exports are expected to reach over 7 million tonnes this year

According to the latest report from the Ministry of Agriculture and Rural Development, as of the end of July, Vietnam’s rice exports reached 4.84 million tonnes, worth a total of 2.58 billion USD, a year-on-year increase of 29.6%. In recent days, rising rice prices have pushed up rice prices in the Mekong Delta. Specifically, the price of IR50404 rice increased to 6,500 VND per kilogramme, OM 5451 rice increased to 6,800 VND per kilogramme and Dai Thom rice to 6,950 VND per kilogramme. 

Nguyen Nhu Cuong, Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, said the increase in world rice prices in recent days is an opportunity for Vietnam to boost rice exports. It is also essential to take advantage to increase income for rice growers, otherwise, they will miss this opportunity.

According to Cuong, as planned, the whole country will plant 7.1 million hectares this year and the output is expected to reach over 43 million tonnes of rice. This goal is completely achievable as according to current calculations, rice production can reach 43.1 - 43.2 million tonnes. There are even higher scenarios.

To take advantage and seize the opportunity to boost rice exports, the Department of Crop Production has increased the rice growing area for the autumn-winter crop in the Mekong Delta to 700,000 hectares, higher than the plan of about 650,000 hectares, announced at the beginning of the year. 

Cuong also emphasised that Vietnam’s rice output was over 42 million tonnes in 2022, of which 7.13 tonnes were exported. Meanwhile, the country expects to produce over 43 million tonnes of rice (maybe even more) this year. As a result, it is possible to export rice to exceed the record of 2022. It is expected that Vietnam will export over 7 million tonnes of rice this year. The businesses are promoting rice exports. 

Taking advantage of opportunities to make breakthroughs for rice exports

Analysing the reasons why some markets stop exporting rice, agricultural expert Hoang Trong Thuy Viec stressed the main reasons including climate change, weather, and the prolonged El Nino situation. The supply of rice has been reduced. Specifically, Russia and the UAE have also stopped exports. India alone has exported 22 million tonnes but is currently short of about 25%. This fact has forced countries to reserve rice. 

“This year, in the context of normal weather, Vietnam can reach an output of about 43.2 million tonnes of rice, which still ensures the supply for exports of about 7.2 million tonnes. This is also a higher number than the previous year”, said Hoang Trong Thuy.

According to agricultural expert Hoang Trong Thuy, in addition to advantages, there are still challenges because rice cultivation depends on weather conditions, climate, rainstorms and floods. However, with the increase of 50 hectares of rice growing area in the Mekong Delta (from 650,000 hectares previously to 700,000 hectares), Vietnam can still secure the supply for rice exports.

“On the other hand, we still have the winter-spring rice crop. Therefore, with the forecast of rice exports reaching from 7.2 to 7.5 million tonnes of rice, this is a relatively safe forecast”, Thuy affirmed.

Commenting on the opportunities and challenges of Vietnamese rice in the current context, Deputy Minister of Agriculture and Rural Development Phung Duc Tien noted, that the issuance of a ban on rice exports by India, Russia and the UAE, is an opportunity for Vietnamese rice and rice growers, especially in the Mekong Delta. The Ministry of Agriculture and Rural Development has also submitted to the Prime Minister, to issue a Directive on strengthening rice exports in the new situation.

“I think many opinions from businesses are very reasonable. When it is difficult to sell goods, the business community must have a certain share, so that the rice market can be developed sustainably. The rice price of Vietnam is now higher than Thailand and India, which is a huge value. It is expected that this year, rice exports will reach over 7 million tonnes with a total value of 4.1 billion USD”, Deputy Minister Phung Duc Tien affirmed.

Over the past year, Vietnam has ensured food security in the country, contributing to food security in the region and the world. With the current market situation, it is essential to seize opportunities, ensure growth and value, and promote sharing with the regional and international community.

Source: Nhân Dân