RICE EXPORT MARKET IN THE FIRST 9 MONTHS OF 2019
In the first 9 months of 2019, the country’s rice export reached 5.06 million tons, earning US $ 2.2 billion, up 3.4% in volume but down 10.4% in turnover compared to the first 9 months. in 2018. Average export price decreased by 13.4%, reaching 435.6 USD / ton.
According to preliminary statistics of the General Department of Customs, rice exports in September 2019 decreased 20.4% in volume and 21.7% in turnover compared to August 2019, reaching 479,363 tons, equivalent to 210, 94 million USD; However, compared to the same month in 2018, it increased by 33.1% in volume and 21.3% in turnover. Rice export price in September 2019 averaged US $ 440 / ton, down 1.7% from the previous month and down 8.9% compared to September 2018.
Vietnam’s rice exported the most to the Philippines market, reaching 1.89 million tons, equivalent to 773.78 million USD, up 188% in volume and 159.3% in turnover over the same period in 2018, accounting for 37.3% of the country’s total rice export and accounted for 35.1% of the total turnover. Export price to this market decreased by 10% over the same period, reaching 410.3 USD / ton.
Rice exports to China – the second largest market in turnover in the first 9 months of this year dropped sharply, down 65.6% in volume, down 66.8% in turnover and down 3.5% in price. compared to the same period last year, reaching 387.807 tons, equivalent to 192.88 million USD, the export price reached 497.4 USD / ton, accounting for 7.7% of the country’s total rice export and accounting for 8.8% in total turnover.
In contrast, exports to Ivory Coast – the third largest market increased sharply by 149.3% in volume and by 81.8% in turnover over the same period, reaching 427,762 tons, equivalent to 182.58 million USD, accounting for over 8% of the total volume and total turnover.
The most prominent markets for the sharp increase in both volume and turnover in the first 9 months of this year include: Senegal increased 577 times in volume and 296.8 times in turnover over the same period, reaching 53,706 tons, equivalent to 16.91 million USD; Brunei increased 304.5% in volume and 279.4% in turnover, to 7,868 tons, equivalent to 3.27 million USD; Belgium increased 145% in volume and 189.8% in turnover, reaching 1,278 tons, equivalent to 0.88 million USD; Angola increased by 257.3% in volume and 138.3% in turnover, reaching 13,459 tons, equivalent to US $ 5.05 million.
In contrast, rice exports to a number of markets such as Indonesia, Bangladesh, China and Turkey fell sharply from 66% – 96% in both volume and turnover over the same period last year.
Regarding the types of exported rice in the first 9 months of 2019, white rice accounted for 47% of the total turnover; Jasmine rice and fragrant rice account for 39.8%; sticky rice accounts for 7.2%; japonica rice, Japanese rice accounted for 5.7%. Regarding sticky rice, the major export market is China accounting for nearly 52%.
According to the Department of Agricultural Product Processing and Market Development, the Ministry of Agriculture and Rural Development recently said the Philippines government would consider using a variety of non-tax measures, such as strict hygiene requirements. and plant quarantine, to regulate rice import activities. The Philippines Department of Agriculture is also proposing a safeguard duty on rice imports, which is expected to be no lower than 30%, as the provisions of the Republic’s Act 8800 states that the Philippines could impose 30- 80% for imported rice exceeds 350,000 tons. Thus, rice imported into the Philippines in addition to being subject to 35% tariff, in case the country has imported more than 350,000 tons, the lowest tax rate will be 65%, this could become one of the factors. Factors will hinder the export of Vietnam’s rice to this market in the near future.
However, Vietnam’s rice exports also have positive signals from other markets. Typically, Japan – a country that regularly imports 50% of rice from the United States – is considering switching to importing rice from countries that sign the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); including Vietnam.
Singapore, which regularly imports 30-40% of rice from Thailand, is considering a strategy to diversify imports from other sources. Therefore, in the near future, opportunities to access the Singapore rice market will be opened to the above countries, especially Vietnam and Cambodia, countries in the same Southeast Asia region, with the advantage of trade together, with Singapore.
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