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The Philippines and Indonesia plan to increase rice imports, an opportunity for Vietnam

14 December 2023

Indonesia, the Philippines, and Malaysia are expected to increase rice imports before the Christmas season and before Ramadan. This will be an opportunity for Vietnamese rice exports.

At the international conference "Global rice market and future trends" jointly organized by the Ministry of Agriculture and Rural Development and Hau Giang Provincial People's Committee on December 13, Mr. Aziz Arya, expert in charge South-South Cooperation and Triangular Cooperation, FAO Regional Office for Asia and the Pacific - commented that: Rice is the main food source for more than 3.5 billion people/half of the world's population and provides provides about 20% of the energy supply in the global diet. "In the Asian region, rice consumption can account for up to 70% of daily calorie intake" - Mr. Arya said.

Delegates attending the conference

However, according to Mr. Arya, currently the rice value chain is facing certain challenges such as the double burden of demographic change leading to the demand for more, more diverse, and higher quality food. . In addition, climate change also impacts water quantity and quality, land degradation, conversion of agricultural land to other uses, and increased frequency and severity of natural disasters and pests.

In addition to this opinion, Mr. Subramanian from SSRESOURCE MEDIA Company (Singapore) - said that the rice market is a combination of the political situation and climate.

According to Mr. Subramanian, in terms of supply, India's restriction on rice exports will cause the market in 2024 to respond favorably to Vietnamese rice.

However, businesses must firmly grasp market information. Accordingly, to update information, Vietnam can obtain other information from many open sources on the internet, through which it is possible to understand the supply-demand relationship in the coming time, and understand the price trend of rice .

For example, right now, amid shrinking supplies, the pre-Christmas and pre-Ramadan markets will boost demand for rice in Asian countries. Meanwhile, Asia's demand mainly comes from Indonesia, the Philippines and Malaysia.

With stable supply, Vietnam's rice exports are forecast to reach 8 million tons in 2023. Photo: Tan Long

In fact, since India issued a ban on exporting common white rice, Vietnamese rice businesses have quickly taken advantage of this opportunity. Data from the General Department of Customs shows that in the first 11 months of 2023, rice exports reached 7.638 million tons, with a turnover of 4.33 billion USD, compared to the same period last year, an increase of 14.5% in volume and an increase of 34,000 USD. 1% in turnover. The average export price of rice in 11 months is estimated at 568 USD/ton, up 17.3% over the same period.

Notably, Vietnam's rice exports to all three markets, the Philippines, Indonesia, and Malaysia, increased sharply. Of which, exports to Indonesia in 11 months reached 1,123,357 tons, with a turnover of 614.676 million USD, an increase of 16.32 times compared to the same period in 2022 and an increase of 18.07 times in turnover. For the Malaysian market, 11 months reached 391,209 tons, worth 201.599 million USD, compared to the same period in 2022, down 6.26% in volume and up 6.28% in turnover.

The Philippine market alone remains the main rice export market of Vietnam, accounting for 37.62% in volume and 36.28% in turnover. According to forecasts, in 2023 this country will import more than 2.8 million tons of rice, of which 90% will be imported from Vietnam.

Source : congthuong