Vietnamese Rice Market Great Potential You Can Not Ignore

Tap into the great potential of the Vietnamese rice market in our comprehensive guide. This article highlights the reasons why this market should not be ignored, as Vietnam stands as one of the world’s leading rice exporters. Dive in and discover the potential of the Vietnamese rice market for your business.

1. The development process of Vietnamese rice

With unremitting efforts, the quality of rice Vietnamese is improved and trusted by many consumers around the world.

1.1. The development history of Vietnamese rice

Rice cultivation has appeared for a long time in Vietnam. In order to make a mark on the world market today, rice of Vietnam has gone through many ups and downs.

• Rice has been present in Vietnam for at least 3,000 years, but rice farming only really changed when the government issued a policy of contracting land and giving farmers autonomy over 20 years ago.
• In 1989: Vietnamese rice was exported for the first time, switching from a country with a shortage of food to having rice for export.
• In 2012: Vietnam exported more than 7 million tons of rice, ranked 2nd in the world in terms of rice exports.
• So far, Vietnam has still been one of the leading countries in exporting rice. By the end of November 2022, the total volume and value of rice exports in the 11 months of 2022 reached 6.69 million tons and 3.24 billion USD, respectively, up 16.3% in volume and up 6.9%. in value over the same period in 2021.

1.2. Achievements of Vietnamese rice

From a country lacking food, having to import rice, Vietnam gradually made a change and increasingly asserted its reputation and position in the international arena.

• Rice production: Vietnam has a raw material area for rice cultivation, so it is obvious that Vietnam’s rice production is enormous. Vietnam is currently ranked 6th in the world in terms of rice production.

• According to the General Statistics Office, Vietnamese rice production tends to continuously increase the rate of using high-quality rice varieties, reaching more than 74% in 2020 (in 2015 this figure is 50%).
• In 2021, rice output increased by 1.1 million tons compared to 2020, continuing to meet domestic consumption demand, ensure food security, serve processing and export.
• Rice yields: Rice of Vietnam gives high yield. In 2020, Vietnam ranks first among countries in Southeast Asia in terms of rice yield. In 2022, rice productivity will continue to increase, despite a decrease in planted area.

• The average rice yield of 4.2 tons/ha in 2000 increased to 5.3 tons/ha in 2010. Vietnamese rice yield is the highest in Southeast Asia at 5.6 tons/ha, nearly double that of Thailand and 1.5 times that of India in 2020. In 2021, rice yield is at a high level of 6.06 tons/ha.
• Currently, the percentage of high – quality Vietnamese rice is nearly 50% of the total rice volume. In 2021, rice exports accounted for more than 89% of high – quality rice, including varieties of fragrant rice, premium rice, glutinous rice, japonica rice…
• One of the largest rice exporters in the world

Country	Rice production (million tonnes)
	2019	2020	2021
India	12,486	19	19,5
Vietnam	6,267	6,3	6,2
Thailand	5,706	5,8	6,1
Pakistan	3,820	4,2	3,9
United States	2,991	2,685	2,85

• Over the years, Vietnamese rice has always been among the top exporting countries in the world which all company who want to buy wholesale rice will think about. The volume of rice exported in 2021 reached to 6.2 million tons with a value of $3.2 billion, accounting for about 12.5% of the world rice export market share. With this amount of rice produced from Vietnam, they are deserved to be the largest countries of rice.
• That rice of Vietnam meets international quality certifications such as USDA Organic, FDA, FFL, Organic, Global Gap, TCVN, Viet Gap and export to strict markets such as EU, America, Japan shows that the quality of rice of Vietnam is getting better.

2. Main types of Vietnamese rice of each region

There are two main rice growing areas in Vietnam, including the Red River Delta in the north side and the Mekong Delta in the south side. Each area grows different varieties of rice due to the different factors.

2.1. Main types Vietnamese rice of the Red River Delta

The Red River Delta consists of two main rice crops: spring rice crop and summer rice crop.

• The spring rice crop: Rice grown in the spring rice crop is able to well adapt to the cold weather. The spring rice crop begins to sow from the end of October, the beginning of November and is harvested at the end of May next year. Rice variety planted in this crop is the ST25.
• The summer rice crop: When growing Vietnamese rice in this crop, the producers need to be flexible in choosing varieties to ensure that the rice plants can grow well under each condition because the weather can change quickly. The season rice crop starts sowing from the end of May and is harvested in mid – November. Some typical rice varieties: OM5451, Japonica.

2.2. Main types Vietnamese rice of the Mekong Delta

For export rice, the harvests in the Mekong Delta are decisive. Thanks to favorable conditions, the Mekong Delta is the largest rice bowl of the country. The three main rice seasons in the Mekong Delta are: winter – spring, summer – autumn, autumn – winter.

• Winter – spring crop: Fragrant, high – quality, short – term rice varieties such as Jasmine, ST, and DT have the highest efficiency in this crop because of the perfect weather conditions. Fragrant rice cultivated in other crops is difficult to achieve the same quality and yield, so the efficiency is not high.
• Summer – autumn crop: is a short-term crop, effective for regular rice varieties, long-grained, not flexible.
• Autumn – winter crop: is an off-season crop, often encounters unfavorable weather conditions, so the cost is high and the yield is poor. The Mekong Delta is planning to limit the cultivation of this rice crop.

3. Feature of each Vietnamese rice

Each type of rice has its own characteristics. There are many ways to classify different varieties of rice. However, the most popular classification method is based on the length.

	Short grain	Medium grain	Long grain
Length	< 5.5 mm	5.51 – 6.6 mm	> 6.61 mm
Shape	slightly round	relatively	thin, long
Feature	rice is not sticky, usually made with rice starch not for exporting	Soft rice common rice Some for exporting	High quality rice for exporting The rice is fragrant with pandan leaves, the rice is sticky, when it is cold, the rice is not hard
Variety	OM2517, OM6976, OM504, Japonica rice	DT08, OM5451, IR504	ST line, Jasmine, OM18, OM 4900, OM5451

• With high-value specialty rice: Their characteristics are fragrant, flexible, currently ST lines are the most popular in the market, forming a separate rice line. The price of this rice line is also higher than other types
• Common long grain fragrant rice: This is the most popular type of rice because its quality is quite high and the price is cheaper than the ST line.
• Short grain rice, not flexible, is not used to make rice in daily meals, but is often used as rice starch.

4. Price of Vietnamese rice for exporting

In terms of rice exporting, rice in Vietnam is divided into 4 main varieties that are Indica rice, Japonica rice, Aromatic rice and Glutinous rice.

• Indica rice that Vietnam mainly exports is 5% broken rice. Currently, Vietnamese rice 5% broken leads the price among largest exporting countries. The reason for this is that India issued a policy to ban the export of broken rice, causing buyers to gradually switch their choice to rice of Vietnam, and at the same time, Vietnam also switched to exporting higher quality rice with less % broken rice. This rice variety is exported mainly to the Philippines, China, and Malaysia.
• Besides 5% broken rice, Japonica rice of Vietnam also has the highest price compared to other countries in the world. Japonica rice of Vietnam is exported to China, EU, Korea
• Aromatic rice including ST line, Jasmine rice, DT8, OM 5451 is a high quality variety. It is not only exported to Asian countries such as China and the Philippines, but also to European regions such as the UK.
• Glutinous rice is the less common rice because of its stickiness. This Vietnamese rice is mainly exported to Asian countries: Philippines, China.

5. Key factors affect Vietnamese rice price

The prices of rice of Vietnam change from day to day. There are many reasons that affect the price of rice Vietnamese country.

• The law of supply and demand affects Vietnamese rice price: It is obvious that the law of supply and demand has an effect on the rice price because the market economy operates based on the law of supply and demand. Factors such as weather, diseases affecting rice cultivation, causing the supply to decrease while the demand is increasing. As a consequence, the price must be increased to make up for the profit of the insufficient amount of rice from the suppliers.
• Different rice varieties affect Vietnamese rice price: High quality rice such as long grain rice, fragrant rice, rice varieties originating from abroad are mostly exported and have higher prices compared to the others. The more rice varieties are recognized for their quality, the higher the price is, like the ST line.
• Production costs affect Vietnamese rice price: Production costs include all inputs to create a product such as raw materials, machinery. As investment costs for inputs increase, in order not to lose profits, wholesalers must increase product prices.
• Government policies affect Vietnamese rice price: Vietnamese rice are not only influenced by the policies of its government but also by the policies of other countries. Policies such as tariff barriers, quotas to limit the amount of rice exported, thereby causing prices to rise. For instance, India, which accounts for 40% of the total global rice trade, banning broken rice exports and imposing a 20% export tax on broken rice not only drives up the price of rice in India, but also drives up global rice prices by 10% increase.

6. Reliable suppliers of Vietnamese rice

We highly recommend some of the most reputable rice of Vietnam suppliers around the world so that you can make the right investment.

6.1. Hoan Nghia Viet Agriculture Product Export Vietnamese rice suppliers

Hoan Nghia Viet Agri Export co. ltd (Viet Agri Wholesale Company) is one of the largest wholesale rice suppliers in Vietnam. It has exported large rice volumes to many countries worldwide and gets a lot of trust from buyers.

As one of the best wholesale rice suppliers who can supply many Vietnamese rice varieties that the company exports include broken rice, Jasmine rice, and Japonica rice guaranteed about their quality. To be such a good supplier in rice market, Viet Agri Wholesale did spend many years to research and develop the rice varietes that can meet almost the demand of wholesaler.

Contact information:

• Website: https://vietagriwholesale.com
• Location: Hong Minh Village, Chien Thang Hamlet, Bac Son District, Lang Son Province, Vietnam

6.2. Vietnam Southern Food Corporation Joint Stock Company Vinafood II Vietnamese rice suppliers

Vinafood II is one of the largest enterprises in Vietnam in terms of rice export, and willing to stockpile and process all kinds of rice according to market demand. Vinafood II supplies different Vietnamese rice varieties of rice for both domestic consumption and export.

6.3. Gao Ong Cua Vietnamese rice suppliers

Ong Cua rice is the exclusive brand representing ST rice lines These rice lines have won many international and domestic awards, as well as raising the brand name of Vietnamese rice in the world market. Ong Cua rice has been exported to many parts of the world, especially markets with strict standards such as Japan, EU.