Vietnamese Rice Firmly Leads in Southeast Asia

Southeast Asian Market

In the major rice-importing countries of Southeast Asia like the Philippines, Indonesia, and Singapore, Thai rice cannot compete with Vietnamese rice, which holds 70-85% of the import volume in these countries.

Rice Exports in July 2024

According to Vietnam's Ministry of Agriculture and Rural Development, in July 2024, Vietnam exported nearly 500,000 tons of rice, earning $290 million. Cumulatively for the first 7 months, Vietnam has exported 5.18 million tons of rice, with a revenue of $3.27 billion, marking an increase of 5.8% in volume and 25.1% in value compared to the same period in 2023. The average export price reached $632 per ton, up by 18.2% from the previous year.

Vietnam Wins Rice Export Bid to Indonesia

According to the rice market specialty site Ssricenews, Indonesia's National Logistics Agency (Bulog) announced the results of a rice tender for July 2024 for 320,000 tons. Rice companies from Vietnam, Thailand, and Myanmar participated, but Vietnam won with 185,000 tons, with VINAFOOD 1 securing the largest portion at 104,000 tons. The winning bid price between Vietnamese and Myanmar companies was $563 per ton, higher than Vietnam's current  rice 5% broken price of $559 per ton.

Rice Exports to Southeast Asian Countries

Philippines: Exported 1.98 million tons of rice, accounting for 38.2% of Vietnam's total rice exports.

Indonesia: Exported 830,000 tons, an increase of 44.6% in volume and 82.1% in value compared to the same period in 2023, making up 16% of Vietnam's total rice exports.

Singapore: Vietnam is the largest rice exporter to Singapore, holding 32.69% of the market share, with a value of SGD 73.40 million (over $54.6 million), an increase of 54.67% from the previous year.

Global Rice Market Situation

Vietnam: rice 5% broken was offered at $560 per ton on August 1.

- India: the price for 5% broken parboiled rice was between $543-$551 per ton, down from the previous week.

- Thailand: rice 5% broken  was priced at $570-$575 per ton on August 1.

Insights from Nikkei Asia

Vietnamese rice exporters are fiercely competing with Thailand to capture a larger market share in Southeast Asia. The Philippines and Indonesia are increasing their rice imports from neighboring countries due to reduced domestic supply. The Philippines is expected to import 4.1 million tons of rice this year, up from 3.2 million tons in 2023.

Vietnam currently dominates 70-85% of the rice import market share in the Philippines and Indonesia, whereas Thailand holds only 10-20% of the market share.

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