Potential Vietnam Rice Market That Will Gain Huge Profits

By understanding the Vietnam rice market, rice importers can make informed decisions and capitalize on the potential opportunities it offers. This article will provide a comprehensive overview of Vietnam rice market, including its trends, price and opportunities.

1. Overview of Vietnam rice market

Vietnam rice market is attractive for rice importers seeking to diversify their supply sources for commercial purposes, with growing demand for rice in bulk quantities from commercial buyers and wholesalers.

1.1. Recent trend of Vietnam rice market

The rice market in Vietnam has remained stable with positive trends in recent years, despite challenges such as weather conditions and the COVID-19 pandemic. Rice production in 2022 and early 2023 was estimated at around 43 million metric tons, slightly higher than the previous year, with steady rice exports of around 6 million metric tons, generating significant revenue for the country (source: Ministry of Agriculture and Rural Development of Vietnam).

There are several factors that contribute to the stability of Vietnam’s rice market:

• Strong export Vietnam rice market: Vietnam is one of the major rice exporting countries in the world, with an established and diverse export market. The demand for Vietnamese rice from key markets such as China, the Philippines, Malaysia, and Africa has remained consistent, providing a stable source of revenue for the country.
• Diversification of rice varieties: Vietnam has been successful in diversifying its rice production, offering a range of rice varieties to meet different market demands. This includes fragrant rice (such as Jasmine rice), glutinous rice, and other specialty rice varieties, which fetch higher prices in the international market. This diversification helps to mitigate risks associated with relying solely on a single type of rice.
• Investments in modern processing facilities and farming practices: Vietnam rice market has made significant investments in modernizing its rice processing facilities and adopting improved farming practices. This has helped to enhance the quality and competitiveness of Vietnamese rice in the global market, ensuring consistent demand from international buyers.
• Resilience to challenges: Despite facing challenges such as unfavorable weather conditions, labor shortages, and disruptions due to the COVID-19 pandemic, Vietnam’s rice market has demonstrated resilience and adaptability. The country has been able to navigate through these challenges and maintain its position as a major rice exporting country.

1.2. Future trend of Vietnam rice market

Considering the current trajectory of rising population and limited rice supply, it is evident that the future outlook for rice imports in the Vietnamese rice market is showing an upward trend:

• Increasing population leads to greater demand for rice. As the global population continues to grow, particularly in developing countries, the demand for rice as a staple food is expected to rise. Additionally, as incomes increase in Vietnam and other similar regions, consumers may also seek higher-quality rice or specialty rice varieties, which could further drive the demand for rice in the Vietnam rice market.
• The taste preferences in the rice market have been gradually evolving in recent years. As increasing disposable incomes, growing middle class, expanding export markets, and cultural culinary preferences. One notable trend is the increasing popularity of aromatic and specialty rice varieties, such as Jasmine rice, a typical rice and widely grown in Vietnam rice market. This trend is expected to continue in the future, as consumers in Vietnam and other countries continue to appreciate the unique characteristics of jasmine rice.

2. The main market that import rice from Vietnam rice market

Currently, Vietnamese rice has been exported to over 100 countries around the world. However, the tastes of each market are clearly divided into four market clusters as follows:

• Americas market: high quality fragrant rice (ST rice, Jasmine and processed rice (504 or Ham Chau).
• Chinese market: The most popular premium long grain rice is the rice with similar qualities to the fragrant Dai thom 8 rice.
• European market: mainly fragrant rice such as Dai Thom 8 and Jasmine. Currently, there are 9 types of rice being exported to Europe that are exempt from and preferential tariffs: Jasmine, ST5, ST20, Nang Hoa, VD20, RVT, OM4900, OM 5451.
• Other markets: focus on popular rice such as 5451 and 504

3. Reasons why importers should choose Vietnam rice market as a potential maket

The demand for rice in the rice market in Vietnam has been increasing in recent years, particularly in the global market. Vietnam is known for its high-quality rice, including fragrant and glutinous rice, which is popular in many countries.

3.1. Financial benefits of Vietnamese rice market to cinnamon importers

There are several reasons why importing from the rice market in Vietnam can lead to significant profits such as the competitive pricing, well-established quality control and efficient supply chain that make Vietnam an attractive rice market for importers, with the potential for significant profits:

• Competitive pricing: Rice in Vietnamese is priced competitively, making it an affordable option for rice importers looking to purchase high-quality rice at a reasonable price. This means that importers can potentially sell Vietnamese rice at a higher price in their local market, resulting in significant profit margins.
• Quality control: The Vietnam rice market has established a rigorous quality control system for rice production and export, including inspections and certifications, to ensure that the rice meets international standards. This can provide importers with assurance of the quality and safety of the rice they are importing, which can help to build trust and a positive reputation in their local markets.
• Long-standing reputation: Vietnam has established itself as a leading global rice exporter, with a long-standing presence in the international rice trade. The Vietnam rice market is known for its diverse range of high-quality rice varieties that are in demand both domestically and internationally. Additionally, Vietnam has developed efficient supply chains, storage facilities, and logistics networks to ensure prompt and reliable delivery of rice to customers worldwide.

3.2. Favorable conditions for importing from Vietnam rice market

Efficient transportation, low tax and favorable trade agreements are factors that make importing Vietnamese rice favorable:

• Efficient transportation: Vietnam rice market has a well-developed transportation infrastructure, including a network of ports, highways, and railways, making it easy to transport rice from the production areas to the ports for export. This efficient transportation system can ensure that the rice arrives at its destination in a timely and cost-effective manner.
• Low tax: Vietnamese rice is subject to low or no import taxes in many countries due to various trade agreements and treaties that Vietnam has signed with these countries. This can result in cost savings for rice importers, allowing them to sell Vietnamese rice at a competitive price in their local markets.
• Favorable trade agreements: Vietnam rice market has established favorable trade agreements with many countries, such as the ASEAN Free Trade Area and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which can reduce import duties and other trade barriers for rice importers, resulting in cost savings and increased profits.

4. The referral average prices in Vietnam rice market

	Wholesale price	Retail price	Export price
Jasmine Rice	400-500 USD per ton	1500-2500 USD per ton	600-800 USD per ton
Glutinous Rice	550-650 USD per ton	2500-3500 USD per ton	750-900 USD per ton
ST Rice	400-500 USD per ton	1000-3000 USD per ton	600-800 USD per ton

Vietnamese rice is usually sold at wholesale prices, lower than retail prices because wholesalers buy rice from Vietnam rice market in bulk and sell to retailers, who then sell to consumers. Export prices may differ due to additional expenses like tariffs, shipping fees, and customs fees. Jasmine and glutinous rice are pricier due to popularity and cultivation process, while ST rice is priced competitively owing to the favorable weather conditions, rich soil, and ample availability of skilled labor in the cultivation regions.

However, the Vietnam rice price wholesale market is affected by several factors that influence the cost of purchasing Vietnamese rice, including the quality of rice, distance to the importing country, production costs in Vietnam, government regulations, and weather and climate conditions.

5. How to find potential suppliers in Vietnam rice market

It is crucial for any business planning to trade Vietnamese rice to have a thorough understanding of suppliers in the rice market in Vietnam. In order to assist you, we have compiled information about both trustworthy and unscrupulous suppliers that you may find helpful.

5.1. How to find reliable suppliers in Vietnam rice market 

To find a reliable Vietnam rice supplier, you can consider the following approaches:

• Trade shows and exhibitions: Attend rice industry trade shows and exhibitions in Vietnam like Vietnam Foodexpo, Vietnam Foodtech, and AgroViet to connect with reliable suppliers, learn about products, and establish business relationships.
• Online directories and marketplaces: In the Vietnam rice market, you can utilize online directories and marketplaces like Vietrade, Alibaba.com, and GlobalSources.com to connect with Vietnamese rice suppliers. These platforms provide verified supplier profiles, reviews, and ratings for reliable assessment.
• Industry associations and trade organizations: Join industry associations and trade organizations like VFA, VINAFOOD, and VAFIE related to the rice industry in Vietnam. These organizations offer valuable information, recommendations, and a network of reliable Vietnamese rice suppliers.

5.2. Signs of supplier scams in Vietnam rice market 

Unfortunately, there have been cases of Vietnamese rice supplier scams, involving lack of certifications, inconsistent product quality, unverified claims, lack of transparency, and limited payment options. To avoid scams, importers should verify certifications, demand consistent quality, verify claims, insist on transparency, and use secure payment options when dealing with Vietnamese rice suppliers. Vigilance and thorough verification are essential to prevent falling victim to scams in the Vietnam rice market.

5.3. Some famous Vietnamese rice suppliers

Below are the top 3 leading suppliers in the rice market in Vietnam that you can refer to.

• Viet Agri Wholesale: Viet Agri Wholesale, a reputable Vietnamese rice supplier, is known for its extensive exports worldwide. They offer a wide range of high-quality rice varieties and have invested in research and development to cater to diverse buyer demands, positioning themselves as a reliable player in the Vietnam rice market.
• Vinafood: Vinafood, a state-owned enterprise and prominent rice supplier in Vietnam, exports a diverse range of rice products, including fragrant and glutinous rice, to over 80 countries. Being known for top-quality, competitive pricing, and reliable service, Vinafood also prioritizes sustainability and engages in other segments of the food industry.
• Tan Long Group: Tan Long Group, a private company in the Vietnam rice market, exports different types of white rice worldwide, including long grain, medium grain, and short grain rice. Known for high-quality products, competitive pricing, and reliable service, the company has a global export presence. Tan Long Group also prioritizes sustainability and promotes environmentally-friendly and socially responsible farming practices in its operations.