Vietnam - Vietnam loses its global rice ranking

Vietnam has lost its position as the world’s second largest rice exporter.

Nguyen Dinh Bich, a senior rice trade expert from the Ministry of Agriculture and Rural Development’s (MARD) Information Centre for Agriculture and Rural Development, told VIR that Vietnam had become the world’s fourth largest exporter of rice since September, 2011, after India, Thailand and Pakistan.

“The reasons are that while facing harsh competition from these markets, Vietnam has raised export prices too high to compete with Thailand and this has made the country’s rice importers suffer,” Bich said.

According to Food and Agriculture Organization, the price of India’s 25 per cent broken rice was $78, $105, $119 and $80 per tonne lower than that of Vietnam in last year’s remaining four months, respectively. The same situation could also be seen in Pakistan’s rice price.

Meanwhile, Vietnam Food Association (VFA) reported that the average export price difference of Vietnamese and Thai rice was $37 per tonne in 2011’s first eight months [$475 versus $512 per tonne]. In 2011’s September, these two markets’ price race began, with the equal prices recorded in October and the difference was $26 and $21 in November and December.

“The price race prompted importers of both Vietnam and Thailand to procure rice from India and Pakistan,” Bich said.

Thus, rice exports of Vietnam slashed from 480,000 tonnes in 2012’s September and October to 410,000 in November and December, and 400,000 tonnes from January to February 7, 2012.

Meanwhile, the respective figures of India in the same periods were 460,000, 800,000 and 780,000 tonnes. Those of Pakistan were 200,000, 235,000 and 430,000 tonnes.

VFA chairman Truong Thanh Phong said Vietnam’s rice exports in this year’s first quarter were likely to be 1.1 million tonnes, far lower than over 1.8 million tonnes during the same period last year.

The MARD expected to ship nearly seven million tonnes of the grains this year with an expected turnover of $3.5 billion, down from last year’s 7.4 million tonnes and $3.73 billion.

However, Bich said local authorities had gradually reduced export prices to help local exporters to boost their exports, and the country might resume its second rice largest exporter in the world’s market.

“But big competition will continue between India, Thailand and Vietnam until the year’s end, when the volume of rice exports may be equal. Either India or Thailand or even Vietnam would likely become the world’s largest rice exporter,” Bich said.

The FAO recently forecast that the Philippines, which is Vietnam’s largest rice importer, would import 1.5 tonnes of rice this year. Meanwhile, the US Department of Agriculture forecast that this figure might be 1.2 million. Also, the Ministry of Agriculture of Indonesia, which is also Vietnam’s main rice importer, announced that this nation would import two million of rice this year.

“This will give a good opportunity to Vietnam,” Bich said. The VFA reported that local exporters shipped over 627,000 tonnes of rice with total turnover of $332 million within the year’s first two months.

Nguyen Thanh | vir.com.vn

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