Vietnam is poised to export the first batch of its best rice strain – ST20 - at a high price to the EU market next week, Minister and Chairman of the Government Office Mai Tien Dung has announced.
Addressing a regular press conference of the Government on September 4, Minister Dung said the European Union is considered to be a potential export market for Vietnamese rice products, including the ST20 variety, following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA), therefore pushing up the export price of local rice to the EU market.
At present Vietnamese ST20 and jasmine rice varieties have been traded at over US$1,000 and over US$600 per tonne, respectively, compared to figures of US$800 and US$520 per tonne as seen in the past.
Most notably, preferential tariffs and rice quotas for the nation under the EU-Vietnam Free Trade Agreement (EVFTA) are anticipated to serve to increase rice exports to the EU market, while simultaneously enhancing the competitiveness of domestic rice in the demanding market in comparison with other rice exporters.
Dung also affirmed that the agricultural sector is set to continue providing a solid foundation for the national economy, as it is likely to maintain growth momentum at between 2.6% and 2.8% and earn approximately US$41 billion this year.
The Ministry of Industry and Trade reported that Vietnam’s rice exports to the EU remain low, earning just US$10.7 million from exporting approximately 20,000 tonnes last year. The average rice consumption in the EU market reached roughly 2.5 million tonnes per year in the 2016 to 2020 period