Vietnam's rice exports surpassed Thailand to rank 2nd in the world

Vietnam's rice exports surpassed Thailand to rank 2nd in the world

Although Thailand exports less rice, its turnover is more than USD 1.7 billion compared to USD 1.41 billion of Vietnam. However, this is also a remarkable achievement when Vietnam's rice exports have increased by 5.1% in volume and by 18.9% in value over the same period in 2019.

According to experts, Thailand is likely to fall from 3rd to 5th in the list of global rice exporters in the next decade if it does not develop long-term policies to increase competitiveness for this item.

Data from the Department of Agricultural Product Processing and Market Development (under Ministry of Agriculture and Rural Development of Vietnam) shows that Vietnam's rice export in the first 5 months of this year reached 2.9 million tons (up 5.1%), the value reached 1, $ 41 billion (up 18.9%) over the same period in 2019.

The average export price of rice in the first 5 months of 2020 reached USD 485.1 / ton, up 13.1% over the same period in 2019. The volume of exported rice in the first 6 months of 2020 reached nearly 3.5 million tons and USD 1,71 billion, up 4.4% in volume and 17.9% in value over the same period in 2019.

In the first 5 months of the year, the Philippines ranked first in Vietnam's rice export market with 39.9% market share with a volume of 1.3 million tons and USD 598.6 million, up 23.1%. in volume and up 42.2% in value over the same period in 2019.

Philippines ranked first in Vietnam's rice export market (Photo: Phaata.com)

The Department of Processing and Market Development of Agricultural Products said that in the world market, Thai rice export prices in June 2020 increased slightly compared to May 2020 due to the increase of the exchange rate of Baht and there was a shortage supply due to drought. Rising prices have made Thai rice less competitive than other major exporting countries such as India and Vietnam.

Meanwhile, Indian rice exports fell slightly due to a fall in the exchange rate of Rupee and slowing demand from foreign partners. Besides, unpredictable movements of COVID-19 made it difficult for the Indian government to completely remove the blockade, thus prolonging the shortage of logistics labor.

In Vietnam, the supply from the Summer-Autumn harvest is gradually being introduced to the market, causing a slight decrease in rice prices compared to the previous month. 5% broken rice of Vietnam decreased from a high of USD 475 / ton to USD 450 / ton (FOB Ho Chi Minh City), the lowest level in nearly 2 months.

According to the Department of Agricultural Product Processing and Market Development, Vietnam's rice export prospects are being opened when the Vietnam - European Union Trade Agreement (EVFTA) was approved by the National Assembly. In particular, the EU's specific commitment for Vietnam is a quota of 80,000 tons of rice / year (including 30,000 tons of milled rice; 20,000 tons of unmilled rice and 30,000 tons of fragrant rice) and complete liberalization with broken rice. After 3-5 years, the tax rate for rice products will be 0%.

Phaata (Adapted from Vân Anh / VTV.vn)

READ MORE:

• Top 10 export and import goods between Vietnam - Philippines in the first 5 months of 2020

• Situation of exports - imports of Vietnam in May and the first 5 months of 2020