Rising rice prices create long-term opportunity for Vietnam: former German Vice Chancellor

The climate has changed around the world and affected food security and prices. The price of rice is increasing, so does this provide an opportunity for Vietnamese enterprises?

Without any doubt, this is a great opportunity for the long-term and mid-term, rather than the short-term.

Even though Loc Troi has been forced to deal with an increase in fertilizer prices and so on, based on the entire world market, this is just a short-term issue, and we have been fixing that question through day-to-day management.

The long-term perspective is great. Vietnam’s rice production is more efficient - almost double the yield per hectare - than other countries like India, Thailand, and the Philippines. Second, as you mentioned, the global trend is leaning towards rice.

The third factor is climate change, we can contribute a lot. Recently, we have been tearing the GHGs (carbon dioxide and methane) out of the atmosphere and bringing them to the plants. And we can use the rest of the plants, which are by-products of the paddy, for renewable energy (straw, husk).

What can Vietnamese enterprises do to take advantage of these opportunities, especially in Loc Troi's case?

Loc Troi is here for our farmers. We train them to be some of the best in the world. For instance, we train them to cultivate following scientific protocols, use fertilizer efficiently and sustainably, and manage water over the course of the harvest period.

We supply credits from the beginning of the crop for farmers via providing seed and farming services such as plowing and drone support, which are the future of crop management for sowing seeds, spraying fertilizer, and harvesting. Also, we provide digital support such as apps for farmers which help them to reduce costs, sustain their incomes, and contribute to environmental protection.

Our contribution to Vietnam is threefold. First, we train the next generation of farmers. Second, we bring more profit to Vietnamese society. And third, we contribute to fighting climate change.

What do you think about the future of rice prices? Will they continue to rise?

Certainly. Due to the conflict between Ukraine and Russia, there's a lack of wheat. Smart countries have now decided to replace wheat with rice. This is an opportunity. India has decided to stop rice exports to ensure national food security, which certainly will create a shortage and lead to a significant increase in rice prices.

But again, for us, it is not a short-term development. It's a long-term perspective. If you see estimates on population growth, I think it's pretty clear that more food is needed, and rice would be the best option because it grows in Asia, Europe and Africa. This is a question of knowledge. Certainly, you need land and water, but you need knowledge as well, and that knowledge comes from Loc Troi Group.

Loc Troi was funded for sustainable development by the Dutch Entrepreneurial Development Bank (FMO). Why did the bank choose Loc Troi?

On November 2, 2023, Loc Troi and FMO signed a $90 MoU witnessed by the prime ministers of Vietnam and the Netherlands. The reason for that is that we are solving two problems again: global hunger and climate change. These are the two main pillars of Loc Troi Group's contribution to the world.

I think this has been recognized and acknowledged by the bank, and they will push us even further so that we can really deliver to the people. It's a great honor to have this partnership because now even the European banks see what we can do not only for Vietnam but also for people, for food, and for the rest of the world.