Vietnam to reduce 10% of rice export to Asian markets by 2030

Vietnam to reduce rice export to Asian rice markets by 2030

Vietnam aims to decrease its rice export to Asian markets from 60% to 50% of total rice exports by 2030. Instead, it hopes to export 25% and 10% of its total rice exports to Africa and the Americas, respectively. Vietnam is also looking to increase its high-quality grain output. Doing these two things will allow the Southeast Asian country to better position itself as a major rice production exporter in the global market and rely less on Asian rice markets.

Vietnam is currently is the third largest rice exporter in the world behind India and Thailand. Its main export markets include China, Indonesia, and the Philippines.

Vietnam rice exports in 2018

Vietnam rice exports in 2018 is forecasted to rise by 26.9% to $3.2-$3.3 billion. Up until September of this year, Vietnam has exported 4.89 million tonnes of rice, or 6.7% more rice than last year. Vietnam rice exports also saw an increase in export revenue by 21.3% to $2.46 billion.

With higher demand of rice in numerous markets worldwide, Vietnam rice exports is expected to continue growing for the rest of 2018. According to the Ministry of Agriculture and Rural Development, countries with higher demand for rice includes China, Indonesia, Iraq, the Philippines, and Southern African nations. For example, the Philippines plans to stabilize its rice price and replenish its rice supply by importing 500,000 to 800,000 tonnes of rice from Vietnam.

Future plans for Vietnam’s rice production industry

To solidify its position in the global rice market, Vietnam is planning to focus on cultivating clean and organic rice and expanding its processed rice products. It’s also planning to reduce export of low-quality rice, boost export of fragrant, Japonica, and specialty rice, and build the Vietnamese rice brand to raise export value of local rice production.

Vietnam economy is expected to exceed Singapore’s in 10 years time. In fact, Vietnam grew by 7.1% last year, the fastest growth rate among ASEAN countries.
Malaysia economy expands above the forecasted growth rate for Q1 2019 at 4.5%. Malaysia is also likely to regain its Asian Tiger status by 2021 as it grows steadily.
Myanmar economy is expected to rebound to 6.5% despite slow growth last year. Reasons for slow growth include weak export demand and a fragile banking sector.
© Copyright AEC Connect 2017