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A view at the conference |
The annual conference named “Solutions to Improve the Efficiency of Vietnam’s Rice Value Chain” with the participation of Chairman of the Vietnam Food Association (VFA) Nguyen Ngoc Nam, Director of the Department of Quality, Processing and Market Development under the Ministry of Agriculture and Rural Development (MARD) Nguyen Nhu Tiep along with rice providers and exporters in the Mekong Delta region.
At the conference, delegates spent a lot of time discussing cost optimization, increasing the profitability of the rice value chain and the access to effective capital sources for the rice industry.
An estimation of the Ministry of Industry and Trade showed that Vietnam exported approximately 7.1 million tons of rice, getting a turnover of nearly US$4 billion in the first ten months of 2023, up 17 percent in volume and 35 percent in value compared to the same period in 2022.
The Vietnam Food Association updated that by November 1, the price of Vietnamese rice remained highest among rice-exporting countries.
In particular, Vietnam took the lead with five percent broken rice traded at US$653 per ton and the price of 25 percent broken rice reaching US$638 per ton, followed by Thailand and Pakistan.
The soaring price of rice is under the impact of parties involved in the supply chain so export enterprises have been facing difficulties in shipments while contracts required a delivery time of at least one to three months.
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Delegates visit a booth displaying equipment serving agricultural production. |
According to Vice President of VFA Do Ha Nam, some rice businesses had to cancel contracts as they lost money amid the soaring price of Vietnamese rice. As for big enterprises, they have to keep their reputation by accepting to buy rice at high prices for delivery according to contracts.
Besides, the soaring price of rice was due to the impact of providers. Whenever the rice price surges, the providers also increase the price which will further lift up the rice price.
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Farmers in the Mekong Delta have planted high-quality rice varieties to contribute to increasing the value of Vietnamese rice. |
According to Vice President of VFA Do Ha Nam, the high rice price is not always good as it is possible that customers will find another market with the same rice quality, such as Thailand.
At the conference, experts and representatives of enterprises also discussed technology solutions and capital for the rice sector. According to rice experts, export of Vietnamese rice in 2023 could hit a new record high reaching eight million tonnes.
In order to well perform the export of rice in 2024, enterprises have to be patient in signing long-term contracts due to the lack of rice supply and difficulties in credit packages.
