Specifically, the country’s 5% broken rice is currently being traded at US$575 per tonne, which is US$14 and US$34 higher per tonne than Thailand's and Pakistan’s, respectively. Additionally, the price of Vietnam's 25% broken rice has increased to US$539 per tonne, exceeding those of similar products from the two countries by US$27 and US$22 per tonne, respectively.
Compared to other leading rice-exporting nations, Vietnam's rice now commands the highest prices. This marks a significant recovery and favourable conditions for the country’s related exports, especially against the background that in July, its export prices were lower than those of Thailand, Pakistan, and Myanmar.
According to the VFA, the primary reason behind such an increase is a supply - demand imbalance, with supply failing to meet market demand. Currently, the global demand for rice is surging, while most rice-producing countries have passed their main harvest seasons.
Moreover, the Philippines, a major import market, has reduced its rice import tax from 35% to 15%, encouraging Filipino businesses to boost rice imports.
Vietnam's rice export prices have also risen in markets other than traditional ones. For instance, in Brunei and the US, they have reached US$959 and US$868 per tonne.
The VFA statistics show that Vietnam shipped nearly 5.3 million tonnes of rice overseas for some US$3.34 billion in the first seven months. While the export volume only increased by 8.3%, the value saw a significant surge of 27.7% compared to the same period last year.
The Ministry of Agriculture and Rural Development (MARD) forecasts that in the coming months, the demand for rice will rise across most countries, leading to a vibrant export market towards the end of the year. Indonesia recently announced it might import 4.5 million tonnes of the grain, up from the 3.6 million tonnes initially projected for 2024.
In addition to Indonesia, the world’s largest rice import market, the Philippines – a traditional customer for Vietnamese, has also forecast an increase in imports from 4.2 million tonnes to between 4.5 and 4.7 million tonnes in this year.
MARD projected that Vietnam would export around 7.4 to 8 million tonnes of rice in 2024, with export revenues expected to exceed US$5 billion.
