Opportunities for Vietnamese rice
With competitive prices and export prices rising sharply again after removing the quotas, Vietnam has a great opportunity to surpass Thailand in global rice exports this year.
According to the Ministry of Industry and Trade, in contrast to the downtrend of most agricultural products, the export of rice has increased sharply after the Government resumed normal rice export from May 1.
It is estimated that Vietnam's rice export in May 2020 increased sharply by 47% in volume and 55.3% in value compared to April 2020, and increased by 11.7% in volume and 35.7% in value over the same period in 2019, reaching 750 thousand tons, worth USD 395 million.
Remarkably, Vietnam's rice export price in May 2020 also increased to the highest level in many years with an average price of USD 527/ton, an increase of 5.6% compared to April 2020 and an increase of 21.4% compared to the same period in 2019. In the first five months of 2020, Vietnam's rice export price has increased by 13% over the same period in 2019, reaching an average of USD 485/ton.
With competitive prices and export prices rising sharply again after removing the quotas, Vietnam has a great opportunity to surpass Thailand in global rice exports this year. President of Thai Rice Exporters Association said that according to Customs Department data, Thailand exported 2,111,606 tonnes of rice worth Bt43.046 billion (USD1.387 billion), down 32.1 per cent in volume and 15.7 in value per cent year on year respectively during the first four months.
Rice exports are having great opportunities when the EU-Vietnam Free Trade Agreement (EVFTA) is about to take effect. According to rice exporters, EVFTA may not cause a sharp increase in rice export turnover, but it will be a great opportunity to diversify the export market for rice. Being in one of the world's most demanding markets is also an opportunity for Vietnam’s rice to promote its brand and gain access to many other markets.
Along with EVFTA, in 2020, a number of other advantages also come to Vietnamese rice when within the framework of bilateral consultations with the Republic of Korea on the imposition of tariffs on rice products under the WTO’s mechanism, Vietnam has signed with the Republic of Korea two documents related to the allocation of tariff quotas. Accordingly, starting from January 1, 2020, besides allocating 20 thousand tons of rice to all WTO members, South Korea will give Vietnam its own quota of 55,112 tons of rice. The amount of quotas allocated to Vietnam includes all rice varieties that Vietnam can grow and export.
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