RICE NEWS, VIETNAM PRODUCTS NEWS

Positive Signals for Vietnam’s Rice Industry

Posted on by content.vinahugo
19
Oct

Vietnam’s Rice Exports Show Strong Growth in Early 2023

In the first quarter of 2023, Vietnam exported over 1.7 million tons of rice, generating more than 900 million USD, an increase of 19% in volume and over 30% in value compared to the same period in 2022.
These figures mark a positive turning point for Vietnam’s rice sector as global demand continues to rise.

A Target of Nearly 7 Million Tons for Export

According to the Ministry of Industry and Trade (MOIT), since the second half of 2022, Vietnam’s rice sector has shown remarkable improvement in international markets.
Higher rice prices, coupled with global inflation and rising food costs, have boosted consumption, making rice a staple for many households worldwide.

The Department of Crop Production under the Ministry of Agriculture and Rural Development (MARD) reported that most of Vietnam’s exportable rice comes from the Mekong Delta, while other regions mainly serve domestic consumption.

Lê Thanh Tùng, Deputy Director of the Department, stated that Mekong Delta rice output in 2023 was expected to reach 24 million tons. Of this, 10.8 million tons were consumed domestically within the Delta and Ho Chi Minh City, while 13.2 million tons were available for export—equivalent to 6.6 million tons of milled rice.

The export structure was as follows:

  • High-quality rice: 3 million tons

  • Fragrant and specialty rice: 2.1 million tons

  • Medium-quality rice: 0.9 million tons

  • Sticky rice (glutinous): 0.6 million tons

Growing Market Demand in Asia and Beyond

The Vietnam Food Association (VFA) highlighted that rice exports in Q1 and Q2 2023 showed many positive signs.
Strong demand from the Philippines, China, and Africa, where governments were stockpiling food ahead of the new year, helped sustain export momentum.

Nguyễn Ngọc Nam, VFA Chairman, predicted that export prospects would remain favorable in the short term.
Global economic and geopolitical instability continues to drive food security concerns, keeping rice prices high and benefiting Vietnamese exporters.

Leveraging EVFTA for the European Market

Under the EU–Vietnam Free Trade Agreement (EVFTA), Vietnam enjoys a quota of 80,000 tons of rice exports to the EU, including:

  • 30,000 tons of white rice

  • 30,000 tons of fragrant rice

  • 20,000 tons of brown rice

These shipments are exempt from import duties up to 175 EUR/ton, providing a major competitive advantage for Vietnamese exporters.
To maximize this opportunity, rice processing enterprises are expanding production and diversifying rice varieties to meet EU preferences.

Addressing Financial Challenges for Exporters

Despite favorable prices and stable export contracts, many Vietnamese rice exporters face capital constraints.
To purchase rice from farmers and maintain smooth export operations, businesses urgently need access to credit.

Industry representatives have called on the State Bank of Vietnam to instruct commercial banks to facilitate credit access for exporters, especially as the Winter–Spring harvest season approaches.

Government Actions to Support Rice Export Financing

Phan Văn Chinh, Director of the Import–Export Department (MOIT), acknowledged that high shipping costs, input prices, and global conflicts are putting pressure on food prices and supply chains.

To address these challenges, MOIT continues to:

  • Closely monitor global market trends,

  • Actively promote trade and market diversification,

  • Provide timely market updates to rice industry associations and exporters.

In response to VFA’s recommendations, the Government and State Bank have introduced several measures to support financing for rice traders and processors.
In late March 2023, the State Bank issued a directive requiring credit institutions and provincial branches in the Mekong Delta to:

  • Ensure adequate and timely lending for rice production, procurement, processing, and export,

  • Simplify loan approval procedures,

  • Diversify credit products,

  • Strengthen customer risk assessment and credit rating.

The directive also encourages loans secured by inventory or future receivables and promotes unsecured lending for qualified, reputable clients in the rice sector.

Building a Sustainable Financial Ecosystem for Rice Production

Commercial banks have been urged to work directly with farmers, cooperatives, and exporters to design tailored financial solutions for rice procurement and export operations.

At the same time, banks must accelerate the implementation of national credit policies such as:

  • Decree 55/2015/NĐ-CP and Decree 116/2018/NĐ-CP on agricultural credit,

  • Circular 10/2015/TT-NHNN and Circular 25/2018/TT-NHNN on export financing,

  • Decree 31/2022/NĐ-CP on interest rate support for key industries, including rice.

With these initiatives, Vietnam’s rice sector—particularly processing and export enterprises—will gain stronger financial support to enhance their competitiveness and expand export markets in 2023 and beyond.