Gainful season seen for global rice suppliers including Vietnam
Vietnam and other major rice exporters are likely to enjoy higher demand and prices in the 2023-24 season, says the United Nations’ Food and Agricultural Organization.
In its half-yearly World Food Outlook report issued this month, the FAO forecasts world rice production to rise 1.3% year-on-year to 523.5 million tons in this season.
“The anticipated output increase mostly reflects positive incentives provided by generally higher producer prices, easing fertilizer costs and continuing government assistance measures,” the report says.
Asian production this season could end 1% above the last, but still fall short of the record high in 2021-2022, it adds.
It also notes that many uncertainties persist for secondary crops being currently planted along and south of the equator and for main crops being sown in the Northern Hemisphere.
“These uncertainties primarily surround weather conditions, given the high probability of an El Nino event emerging during the Northern Hemisphere summer and its association with reduced rainfall over parts of Southern and Southeastern Asia.”
Price rise
Rice prices have remained on an upward trajectory after rising for much of last year. The FAO All Rice Price Index climbed 7.5% from December to 127.8 points in May, its highest level since October 2011.
The price increases reflected both demand and supply factors, the report says.
“On the demand side, prices have drawn support from strong purchases by Asian buyers, often resulting from public efforts to keep domestic prices in check and/or to reconstitute reserves.”
Meanwhile, suppliers including Argentina, Brazil, Russia, the U.S. and especially Pakistan “are expected to see their 2023 rice exports hampered by supply tightness stemming from output reductions.”
On the other hand, “Australia, Cambodia, Guyana, Thailand and Vietnam are all seen counting on sufficient supplies to step-up shipments in 2023, or to keep them at overall high levels, as is expected to be the case in Paraguay and Uruguay.”
Record high stocks
With output forecast to surpass utilization, rice stocks are predicted to reach 198.3 million tons at the close of the marketing seasons, up 1.8% from a year earlier.
“This would be an all-time record high, being sufficient to cover 4.5 months of projected global consumption,” the FAO report says.
Rice exporting countries are expected to boost reserves 3.2% from a year earlier to 66.7 million tons. Stocks in Vietnam are expected to be little changed whereas Australia, Cambodia, Myanmar and Uruguay “may all need to draw on their reserves to meet expected consumption and export needs.”
Much of the increase in stocks could be attributed to India, the FAO report says, adding that output recoveries could also let Pakistan and the U.S. reconstitute their reserves. The report expects to see accumulation in Thailand.
Vietnam’s quality focus
Vietnam, the world’s third-largest rice exporter after India and Thailand, is seeking to boost quality to increase value and will cut its annual rice exports by 44% to four million tons by 2030. The changes are part of the country’s latest rice development strategy issued in late last month, which will be implemented until the end of the decade.
Vietnam shipped 7.1 million tons of rice overseas last year, a 10-year record high, generating revenues of $3.45 billion, up 5.1% year-on-year, according to government official data.
The strategy envisages Vietnam diversifying export markets to reduce its reliance on any particular country. By 2025, 60% of Vietnamese rice exports will be shipped to Asian markets, 22% to Africa, 7% to American markets, 4% to the Middle East, and 3% to Europe. By 2030, Asian and European markets will respectively account for 55% and 5% of Vietnam’s rice exports.
In the first five months of this year, Vietnam shipped 3.62 million tons of rice overseas, higher than the corresponding 2.77 million tons in 2022 and 2.59 million tons in 2021, according to the General Department of Customs.
Meanwhile, according to the Vietnam Food Association, the prices of several Vietnamese rice varieties are currently higher than that of similar types of Indian and Thai rice. The price of Vietnamese 5% broken rice reached $498/ton early this month, compared to $492 and $453 for Thailand and India, respectively.
On June 17, the Bangkok Post quoted Thailand’s Commerce Minister Jurin Laksanawisit as saying El Nino is likely to propel rice exports across the world as countries stock up while bracing for the effects caused by the ongoing weather phenomenon’s impacts.
He said the Philippines is expected to increase its rice purchases by 2-3 million tons, while Indonesia is expediting procurement of a substantial quantity from both Thailand and Vietnam.
He said the Philippines is expected to increase its rice purchases by 2-3 million tons, while Indonesia is expediting procurement of a substantial quantity of rice from both Thailand and Vietnam.
The Philippines has long been Vietnam’s biggest rice buyer, accounting for 45% of its rice shipments in 2022. Vietnam’s Prime Minister Pham Minh Chinh told Philippine President Ferdinand Marcos Jr at a regional meeting in Indonesia last month that Vietnam was willing to supply rice to the Philippines for the long term at reasonable prices.
- Read More
Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official
Relevant agencies should prepare to complete the first phase of the $14-billion Long Thanh International Airport project on September 2, 2026, as soon as the Vietnamese National Assembly approves changes to the project, said a senior parliament member.
Infrastructure - Mon, November 4, 2024 | 12:44 pm GMT+7
Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital
The U.S. Fed’s rate cut cycle and the Vietnamese government’s fresh efforts to upgrade the local stock market status are likely to bring foreign investors back into the stock market next year, according to VinaCapital.
Finance - Mon, November 4, 2024 | 11:42 am GMT+7
Foxconn’s subsidiary Shunsin to invest $80 mln in northern Vietnam to produce integrated circuits
Shunsin Technology (Bac Giang, Vietnam) Limited, a subsidiary of Taiwanese giant Foxconn, will invest $80 million in Vietnam’s northern province of Bac Giang to produce integrated circuits (IC).
Industries - Mon, November 4, 2024 | 10:44 am GMT+7
Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup
Net profits of listed companies in Vietnam increased 21.6% year-on-year in the third quarter of this year, maintaining a stable growth rate since the start of this year, according to local financial data provider FiinGroup.
Finance - Mon, November 4, 2024 | 9:31 am GMT+7
Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept
Thailand’s Siam Cement Group (SCG) recorded a revenue of THB36.71 billion ($1.08 billion) in Vietnam in the first nine months of this year, up 14.7% year-on-year.
Companies - Mon, November 4, 2024 | 8:00 am GMT+7
Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province
Nghiem Xuan Thanh, Party chief of Hau Giang province, was appointed by the Politburo, the country’s supreme decision-making body, to be Khanh Hoa province’s Party chief for the 2020-2025 term.
Politics - Sun, November 3, 2024 | 7:45 pm GMT+7
Thailand seeks FTA negotiations with Eurasian Economic Union
Thailand is holding talks with Russia to expedite negotiations for a free trade agreement (FTA) with the Eurasian Economic Union (EAEU).
Southeast Asia - Sun, November 3, 2024 | 7:20 pm GMT+7
Indonesia attracts foreign investment in technology sector
As many as 19 Australian companies have expressed an interest in investing in Indonesia's technology sector, Communication and Digital Affairs Minister Meutya Hafid said on Thursday.
Southeast Asia - Sun, November 3, 2024 | 7:18 pm GMT+7
Robots work hard, don’t argue: Viettel exec counsels effective use of technology
Small businesses in logistics should look to use existing tools, software and technology solutions effectively, says Dinh Thanh Son, deputy CEO of Viettel Post.
Companies - Sun, November 3, 2024 | 4:30 pm GMT+7
Vietnamese multi-sector group Masan uses AI to forecast product sales: executive
AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.
Companies - Sun, November 3, 2024 | 2:51 pm GMT+7
Vietnam needs large, specialized logistics centers to compete better: official
Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.
Economy - Sun, November 3, 2024 | 11:00 am GMT+7
Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco
Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.
Economy - Sun, November 3, 2024 | 9:00 am GMT+7
Construction majors to continue capitalizing on public investment projects
Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.
Companies - Sun, November 3, 2024 | 8:00 am GMT+7
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7