Vietnam’s rice prices lead world, further surges expected

Data from the Vietnam Food Association (VFA) on Saturday shows that five-percent broken rice is priced at US$399 per metric ton; 25-percent broken rice at $368; and 100-percent broken rice at $339. 

Vietnam’s rice export prices are moving against the trend compared to competitors like Thailand, India, and Pakistan. 

Prices are expected to continue their strong upward momentum, potentially bringing more surprises, noted a VFA representative.

According to the General Department of Vietnam Customs, as of August 15, Vietnam had exported nearly 5.88 million metric tons of rice, generating over $3 billion in revenue.

The average export price reached nearly $512 per metric ton.

In comparison, Thailand’s rice exports have dropped to $354 per metric ton, India’s to $376, and Pakistan’s to $355.

Despite weakening global demand, especially with the Philippines, the world’s top rice importer, halting rice imports for 60 days starting September 1 and competitors slashing prices, Vietnamese rice remains strong in the global race.

Businesses attribute this to a shift in focus from volume to value.

Nguyen Van Phuoc, a rice exporter based in Ho Chi Minh City, explained that Vietnam now mainly exports high-quality rice.

“I have a partner who used to buy both Vietnamese and Thai rice," Phuoc said.

"In previous years, Vietnamese rice companies were seen as much smaller players. 

"But now, Vietnamese rice is recognized for its quality and value.

“Our partners are seeking out Vietnamese suppliers more than ever. 

"If this momentum continues, Vietnamese rice could bring even more positive surprises in terms of pricing."

Economists agreed that this shift from quantity to quality is giving Vietnam a strong competitive edge.

In the long term, a sustainable path for Vietnamese rice exports requires the inclusion of organic rice, traceability systems, and the development of a national brand.

In line with this strategy, the Government Office recently conveyed Prime Minister Pham Minh Chinh’s directive assigning the Ministry of Agriculture and Environment to urgently collaborate with relevant agencies to accelerate the export of high-quality rice.

The directive also emphasizes seizing market opportunities and fast-tracking the export of premium rice, especially organic varieties, linked to traceability systems and the development of a national rice brand to increase added value.

In addition, the government is pushing forward the implementation of a plan to sustainably develop one million hectares of specialized high-quality, low-emission rice cultivation in the Mekong Delta by 2030, aligned with green growth objectives.