Vietnam’s rice exports soar towards 178 billion baht milestone

Vietnam’s rice sector is projected for a remarkable milestone of US$5 billion (approximately 178 billion baht) in turnover.

Anticipating a rollercoaster ride in the global rice market, experts emphasise the pivotal role of innovation and adaptable export strategies in propelling Vietnam towards its ambitious growth targets.

The Ministry of Agriculture and Rural Development underscores the industry’s resilience despite a shrinking cultivation area, aiming to maintain a steady 7.1 million hectares under rice cultivation. Forecasts predict an output exceeding 43 million tonnes, with approximately 8 million tonnes earmarked for export. However, looming challenges such as elevated input costs, potential crop diseases, and El Nino-induced droughts cast a shadow over these aspirations.

In response, agricultural authorities are mobilising localities to tweak production plans and cultivate high-quality rice varieties tailored for export markets. Innovations in production techniques and sustainable farming solutions are gaining traction, with enterprises spearheading efforts to bolster crop yields and quality.

Recent market dynamics have seen Vietnam’s 5% broken rice outstripping its Thai counterpart by US$10 per tonne, with export prices expected to surge further amidst heightened global demand. With India’s continued restrictions on rice exports, Vietnam emerges as a key player in meeting escalating international rice requirements, reported The Nation.

However, amidst projections of a looming global rice shortage, industry players are urged to remain vigilant. Nguyen Viet Anh, General Director of ORIENT Rice Co Ltd, stresses the imperative of adaptability in navigating market uncertainties, highlighting the dynamic nature of the sector.

In related news, the Indonesian government affirmed on February 12 that there is no shortage in the country’s rice stocks, despite increasing restrictions on sales in mini markets and supermarkets that have been in place since the close of 2023.

Arief Prasetyo Adi, the Head of the National Food Agency (NFA), made this assurance following a coordination meeting with the president. He also highlighted the government’s plans to expedite the availability of rice for modern retail outlets.