Vietnam’s Rice Export Prices Now Highest in the World
Vietnam has now achieved the highest rice export prices globally, overtaking other major exporters like Thailand and Pakistan, according to the Vietnam Food Association (VFA).
Currently, Vietnam’s 5% broken rice is being traded at $575 per tonne, surpassing Thailand’s by $14 and Pakistan’s by $34 per tonne. Similarly, the price of Vietnam’s 25% broken rice has risen to $539 per tonne, outpacing similar products from Thailand and Pakistan by $27 and $22 per tonne, respectively.
This milestone highlights Vietnam’s rice now commanding the highest prices among leading exporters. The significant price recovery is especially notable as Vietnam’s export prices were lower than those of Thailand, Pakistan, and Myanmar just last July.
The VFA attributes this price surge to an imbalance between supply and demand, with supply struggling to meet the growing market demand. As global demand for rice escalates, many rice-producing countries have already passed their main harvest seasons.
Additionally, the Philippines, a major import market, has reduced its rice import tax from 35% to 15%, prompting Filipino businesses to increase rice imports from Vietnam.
Vietnam’s rice export prices have also seen an increase in non-traditional markets. For example, prices in Brunei and the United States have reached $959 and $868 per tonne, respectively.
According to VFA statistics, Vietnam exported nearly 5.3 million tonnes of rice, earning approximately $3.34 billion in the first seven months of the year. Although the export volume only increased by 8.3%, the value surged by 27.7% compared to the same period last year.
The Ministry of Agriculture and Rural Development (MARD) predicts that global rice demand will continue to rise in the coming months, creating a vibrant export market towards the year’s end. Indonesia, for instance, has announced it may import 4.5 million tonnes of rice, up from the initially projected 3.6 million tonnes for 2024.
In addition to Indonesia, the Philippines—another traditional customer of Vietnamese rice—has also forecast an increase in rice imports, expecting to import between 4.5 and 4.7 million tonnes this year, up from 4.2 million tonnes.
MARD projects that Vietnam will export around 7.4 to 8 million tonnes of rice in 2024, with export revenues expected to exceed $5 billion.
