2023-07-22 09:30:00
Rice exports in the last six months of the year are promising. However, in order to seize market opportunities, this sector needs more support to continue to develop.
>> The price of exported Vietnamese rice is the highest in the world
>> Rice export prices on the rise
>> Many opportunities for Vietnamese rice exports
Harvesting rice in Thai Binh province (North). Photo: VNA/CVN
Rice production for export comes mainly from localities in the Mekong Delta, and that in other regions is mainly for domestic consumption. According to the Department of Quality, Processing and Market Development of the Ministry of Agriculture and Rural Development, the total quantity of rice for export from the Mekong Delta in 2023 is estimated at around 6.6 million tons (4.1 million tons for the first half and 2.5 million tons for the second).
Currently, rice exports are favorable, especially at the end of the year because major markets such as China, the Philippines, Malaysia… are still buying strongly. This will drive up rice prices in other countries. We can thus see that not many places to increase the production of rice intended for export. Improving the rice value chain, increasing the processing into multi-value rice are the prerequisites for increasing the export turnover.
Many difficulties to overcome
According to a representative of the Lôc Troi group, for Vietnamese rice to have a higher value, attention must be paid to four elements: seeds, cultivation, processing and export. Vietnamese rice has also lost a lot of added value. Countries have a strong demand for processing, but Vietnamese companies do not have enough capital to invest in this process. In addition, traceability is not yet done, so the price of rice is not high.
Another question: the brand. Loc Troi rice with a retail brand in the EU market costs up to USD 4,000/ton, while normal rice exports are only around USD 800-900/ton.
In addition, Vietnamese companies still lack market information.
Packing rice for export in Vinh Phat sarl, Long Xuyên town, An Giang province (south). Photo: VNA/CVN
Truong Sy Ba, Chairman of the Board of Tan Long Group, said the Mekong Delta still faces the logistics problem. Logistics is important to reduce post-harvest losses.
Companies in the rice industry are also facing difficulties due to a shortage of capital. As a representative of the Loc Troi group shared, to obtain a loan, one must have a guarantee, but the companies have only capital while their assets are very limited.
Green production linked to the market
Currently, the Ministry of Agriculture and Rural Development is accelerating the project “Sustainably developing one million hectares in high-quality rice cultivation in association with green growth in the Mekong Delta”. According to Le Thanh Tung, deputy head of the Plant Production Department, Vietnam will be the first country in the world to produce rice in association with green growth.
The agriculture sector plans to implement this project from the 2022-2023 winter-spring harvest. The World Bank is ready to provide credit to meet infrastructure and agricultural technology needs.
Truong Sy Ba said the aim of the project is to improve the competitiveness of Vietnam’s rice exports. Competition is the difference in gaining market share in the international market. “The project is extremely important, it will improve the productivity and quality of rice with the most competitive price,” he said.
VNA/CVN
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