In the first 10 months of 2024, Vietnam spent nearly 1.2 billion USD to import rice, an increase of nearly 73% over the same period last year and a record high.

According to preliminary statistics from the General Department of Customs, last October, Vietnam exported 0.8 million tons of rice, earning 505 million USD, up 29% in volume and 27.2% in value over the same period last year.

In the first 10 months of 2024, Vietnam exported nearly 7.8 million tons of rice, worth nearly 4.86 billion USD - a record high. Rice export volume increased by 10.2% and value increased by 23.4% over the same period in 2023.

On the other hand, Vietnam's rice imports also increased sharply. In the past 10 months, Vietnamese enterprises spent nearly 1.2 billion USD to import rice, up 72.9% over the same period last year.

Notably, in October 2024 alone, the value of rice imports jumped to 148 million USD, an increase of 225%, equivalent to nearly 3.3 times compared to October 2023.

According to the Vietnam Food Association (VFA), the supply from India increased again, meeting the domestic demand for low-grade rice as Vietnam is prioritizing the production of high-quality goods.

Accordingly, imported rice mainly uses cheap broken rice from India used to make cakes, vermicelli, food and animal feed... In addition, Vietnamese enterprises also import rice from Cambodia, Myanmar, Pakistan at lower prices than domestic rice.

Notably, India's loosening of exports has caused world rice prices to drop sharply to rock bottom, so businesses have also taken advantage of the opportunity to boost imports. This is also part of the reason for the sudden increase in rice import turnover in October.

Data from the Vietnam Food Association (VFA) shows that at the end of the trading session on October 30, the export price of 5% broken rice from Vietnam was at 524 USD/ton, while the same type of rice from Thailand and Pakistan decreased to 486 USD/ton and 461 USD/ton, respectively.

After India removed the floor price for exports, the price of 5% broken rice from this country immediately plummeted to only 444 USD/ton. Currently, the price of 5% broken rice from the world's top 4 exporting countries, India, Thailand, Vietnam and Pakistan, is at its lowest in the past year.

The prices of 25% and 100% broken rice from Thailand, India and Pakistan also decreased sharply and were 6-72 USD/ton lower than the price of the same type of rice from Vietnam.

According to the US Department of Agriculture (USDA), in 2024, Vietnam will have to increase rice imports from 2.6 million tons to 2.9 million tons. Vietnam will become the third largest rice importer in the world after the Philippines, with a forecast of 4.7 million tons and Indonesia 3.8 million tons.

The Ministry of Agriculture and Rural Development forecasts that Vietnam still has a lot of potential to increase rice output and export value due to the high global demand for rice, which means Vietnam will increase rice imports in the future.

Source: Cong Thuong Newspaper