Vietnamese rice records new price peak

The prices of Vietnamese rice has reached a new record of US$567 per tonne, whilst continuing to exceed regional peers such as Thailand, India, and Pakistan, according to figures released by the Ministry of Agriculture and Rural Development.

This comes following the Vietnam Food Association (VFA) unveiling on March 7 that local rice export prices reached between US$513 and US$517 per tonne for 5% broken rice and between US$488 and US$492 per tonne for 25% broken rice.

Other types of rice such as Jasmine fluctuated from US$ 563 to US$567 per tonne, whilst 100% broken rice is being sold at between US$438 and US$442 per tonne.

With regard to the same type of rice, the price of Vietnamese rice is being traded at US$5 to US$7 per tonne higher than that from Thailand, and is far exceeding that of both India and Pakistan.

In comparison to regional peers, the price of 5% broken rice in Thailand is currently being put on sale at between US$508 and US$512 per tonne, while Indian and Pakistani rice is being traded at US$398 to US$402 per tonne and US$438 to US$442 per tonne, respectively.

The VFA believe that free trade agreements (FTAs) has served to open doors to boost Vietnamese rice exports.

During the opening days of the year, several companies won a large bid from the European market and other locations participating in the Regional Comprehensive Economic Partnership (RCEP).

Nguyen Nhu Cuong, director of the Department of Crop Production, said the nation exported over 608,768 tonnes of rice of all types worth US$336.1 million during the opening two months of the year, representing a decline of roughly 34% in volume and a rise of 22% in turnover.

Vietnamese rice has so far failed to achieve such a high price due to its high value and improved quality, Cuong noted.

Assoc. Prof. Dr. Dao The Anh, deputy director of the Vietnam Academy of Agriculture Sciences, said this year is likely to witness rice exports continue to enjoy impressive growth in value and outstrip other countries, including Thailand.

Furthermore, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) is anticipated to help the country make further inroads into the European market.

Dr. Anh therefore advised Vietnamese enterprises to seize upon opportunities to dominate this market amid regional rivals facing an array of difficulties.

He also underlined the need to focus on overall product quality and form close linkages between enterprises and farmers as a means of establishing a stable material zone.