Vietnam earns nearly USD 1.4 billion from rice exports in the first quarter of 2024

Vietnam's rice exports are among the top agricultural products with high growth rates and reached over USD 1 billion in the first 3 months of the year. Vietnam's main rice export markets are the Philippines, Indonesia, China, Ghana, Malaysia, Singapore... Of which, the Philippines accounts for more than 38% of Vietnam's total rice exports.

According to the Ministry of Agriculture and Rural Development, countries increased purchases but were also concerned about dependence on Vietnam, so they planned to diversify supplies. In particular, the Philippines and Indonesia are trying to increase productivity and domestic rice production area this year. In addition to offering high-quality fertilizer and seed support programs, these countries provide additional finance for domestic farmers to speed up cultivation.

The Indonesian government has just decided to increase this year's budget allocation for the fertilizer subsidy program by USD 1.77 billion to about USD 3.41 billion to increase agricultural productivity in the country.

According to many forecasts, rice prices will increase in 2024 due to tight supply. The rice market is expected to continue to tighten at the beginning of the year due to India's ongoing export restrictions. Meanwhile, demand still increases during the Tet holiday. These factors will create momentum for rice prices to increase further.

The onset of El Nino and the potential impact of this weather phenomenon on major rice-growing areas has added to supply concerns.

World rice import/export in 2024 is estimated at 52.1 million tons (milled rice), down 710,000 tons compared to last month's forecast and down 270,000 tons to 2023.

Facing forecasts that rice prices will remain high in 2024, Director of the Department of Crop Production Nguyen Nhu Cuong said that although the rice area tends to decrease, the production plan for 2024, the crop industry still aims to maintain stability. The rice cultivation area reached 7.1 million hectares. Rice output was over 43 million tons; ensure export of 8 million tons of rice or more.

In the African market (Vietnam's traditional rice import area), rice production is also being supported through projects from other countries to be self-sufficient in food. Therefore, the Ministry of Agriculture and Rural Development believes businesses must diversify markets and improve product quality to compete globally.