Vietnamese rice miracle

VGP – Despite the difficulties caused by the COVID-19 pandemic, rice exports reached more than US$3 billion in 2020, representing a year-on-year increase of over 10%.

January 05, 2021 5:13 PM GMT+7

With this result, 2021 is expected to see the continuing growth of the Vietnamese rice industry thanks to the positive impacts from the market and the effects from new-generation free trade agreements (FTAs) coming into force.

Spectacular breakthrough

At the beginning of 2020, no one thought that the rice industry would produce such a miracle because at that time, the exports of rice to the Chinese market was heavily affected by the pandemic, with many orders having been cancelled.

However, with the spirit of “Fire proves gold, adversity proves men”, rice exporting companies quickly made appropriate shifts to find new markets and make the most of the advantages from FTAs that Viet Nam has signed.

As a result, by the end of 2020, Viet Nam’s rice export revenue was estimated to reach over US$3 billion, up more than 10% compared to the previous year.

More joyfully, the export value of Viet Nam's 5% broken rice increased to US$500 per ton last year, a record high since December 2011. Other types of rice such as ST20 and Jasmine also reported good prices from US$600 to US$1,000 per ton.

Vice Chairman of the Viet Nam Food Association (VFA) Do Ha Nam hailed 2020 as a successful year for Viet Nam’s rice exports. Such success was partly attributed to the surging food demand triggered by COVID-19 in many countries. It was also thanks to Viet Nam’s prompt conversion of rice varieties from white rice to fragrant rice which is more competitive.

Bright prospects in 2021

According to the VFA forecast, prospects for Viet Nam’s rice exports in 2021 remain good as some major export markets such as the Philippines and Africa continue to sign contracts to purchase Vietnamese rice.

In addition, many countries have a great demand for fragrant rice and sticky rice which are Viet Nam’s advantageous products.

Not to mention that Viet Nam will have more opportunities to export its rice to several other markets with which it has recently signed an FTA.

To continue supporting rice export businesses, the Ministry of Industry and Trade will promptly provide information on market demand to enterprises, while conducting trade promotion activities to assist them in accessing markets and customers.

Particularly, the ministry will supply specific information about regulations and barriers according to commitments of FTAs so that businesses can apply appropriate approaches.

By Vien Nhu