Vietnam's rice sector looks for 5 billion USD export target: Traders

Vietnam's rice exports are expected to continue their upward trajectory this year, toward a milestone of 5 billion USD in turnover.
Vietnam's rice sector looks for 5 billion USD export target: Traders
Vietnam's rice sector looks for 5 billion USD export target: The output of rice is projected to exceed 43 million tonnes in 2024, with about 8 million tonnes for export. (Photo: VNA)

The year marks a period of anticipated volatility in the global rice market, encompassing fluctuations in production and demand, as well as related policies from leading exporting nations. Hence, innovation in production and flexible export management are crucial conditions for the Vietnamese rice industry to achieve its growth targets.

According to the Ministry of Agriculture and Rural Development, despite a trend of narrowing the rice cultivation area nationwide, the farming sector aims to maintain a stable plantation of 7.1 million hectares in 2024. The output of the grain is projected to exceed 43 million tonnes, with about 8 million tonnes for export.

This year’s forecast also suggests that the prices of agricultural input materials will remain high, with potential risks of crop disease outbreaks as well as El Niño-induced severe droughts and water shortages. Therefore, the agricultural sector is set to instruct localities to adjust production plans and structure suitable crop seasons to stabilise the rice supply, especially high-quality sources serving export. Engaging in innovative production activities, many enterprises are focusing on developing varieties and providing scientifically sustainable farming solutions for farmers.

On the early days of February, Vietnam's 5% broken rice was sold overseas for 638 USD per tonne, surpassing Thai rice of the same grade by 10 USD per tonne. According to the Vietnam Food Association, the export prices are likely to be pushed up in the coming time, as many countries begin to increase imports and India continues to maintain its ban on exporting certain types of rice.

Vietnam's rice sector looks for 5 billion USD export target: Traders
Vietnam's rice sector looks for 5 billion USD export target: Harvesting rice in Thanh Phu commune, Vinh Thanh distict, Can Tho province. (Photo: VNA).

Meanwhile, information from the National Agro-Forestry-Fisheries Quality Assurance Department reveals that the global rice production could near 520 million tonnes this year, while consumption is approaching 525 million tonnes, indicating a potential shortage. Therefore, rice processing and exporting enterprises need to closely monitor the market to efficiently execute existing and new contracts, considering both price and quality.

Nguyen Viet Anh, General Director of the ORIENT Rice Co. Ltd, said he believes that given the market fluctuations, the adaptability index of enterprises is extremely important because each year brings new scenarios and there are no lessons learned from the previous year that can be effectively applied to the next. Rice remains an essential commodity globally as well as in Vietnam, so in the near future, there are significant opportunities for production and business in this field. It is essential for exporting enterprises to enhance their adaptability and flexibility to capitalise on the chances.

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(Source: VNA)