Dong Xuan is the main rice crop in the Mekong Delta (Mekong Delta) with good rice quality, so traditional markets, such as Malaysia and the Philippines ... are stepping up buying, especially the Philippines, making the export market quite active. .
Good signal from the beginning of the year
According to the General Department of Customs, in January 2020, rice exports were estimated at 559.61 million tons, worth US $ 270.26 million, compared to December 2019, up 12.01% in volume and 38.96% in value. Compared to the same period in 2019, it will increase by 28.05% in volume and 38.38% in turnover.
Since the beginning of the winter-spring crop, domestic rice prices have been stable and the sales have been high, so the export market is also active. Before Tet, businesses signed many contracts to sell rice to the Philippines and Malaysia. Up to now, these countries continue to buy rice because the price of Vietnamese rice is very competitive.
Currently rice (IR 50404) of 5% broken rice ranges from 340 - 350 USD / ton (FOB). 15% broken and 25% broken are USD 10 / ton each. Rice DT8 and OM 5451 are trading at 400 USD / ton, as of November, December 2019 these types of rice are priced at 470-480 USD / ton. These are the two types of rice that the Philippines market is very popular with, low prices, so Filipino traders are stepping up to buy.
In 2019, Vietnam exports more than 2 million tons of rice to the Philippines; it is expected that in 2020 the Philippines will buy rice equal or higher than 2019. The African market buys about 1 million tons of rice / year, Malaysia will import about 500,000 tons / year, since December 2019 this country has started to buy rice from Vietnam and Thailand, but because Vietnam’s rice price is more competitive than Thailand, Malaysia mainly buys Vietnamese rice.
Each year Vietnam exports to Cuba (G2G) from 300,000 to 400,000 tons of rice / year. Iraq also buys about 300,000 tons of rice a year. China only buys 400 thousand tons / year ... In addition, businesses also export to other markets.
Saline drought will affect productivity and export rice
Mr. Do Ha Nam, Vice President of Vietnam Food association, said that China will continue to tighten rice imports from Vietnam in 2020, so the quota will be equal to 2019. In 2019, Vietnam exports to China about 400,000. tons of rice, of which the quota for export is over 300,000 tons of long grain rice, others are exported goods.
Vietnam is expected to export by 2020 or more than 2019, but due to the current complicated situation of salinity drought, it is likely that rice productivity and output will be affected and affect the amount of exported rice. Password.
Mr. Nguyen Chanh Trung, Managing Director of Tan Long Group, said that if exporting at 6 million tons / year is reasonable, it will not be in surplus, but 5.5 million tons will be difficult for businesses.
Currently, basic rice demand is quite stable and the rice export market is quite bright, Tan Long is a big rice exporter with a large enough warehouse system, the issue we are concerned about is buying the right quality goods. quality for business and at a price that suits the market demand.
“We have the output and the customer has also ordered in principle, so we have to find the goods that meet the customer’s requirements and in the process, we will have to stimulate the farmers to grow the right kind of goods to cover. Thereby establishing an area of rice cultivation to provide a relatively low supply, ”Mr. Trung stressed.
According to an enterprise in Dong Thap, the Mekong Delta has appeared some areas of water shortage, rice plants died, so, drought can affect rice productivity and yield. The export market is very positive, but with farmers the price of rice from 4,500 to 4,600 VND / kg is low and people are not satisfied. However, the price of rice may increase when rice is harvested.
