Vietnam exported 409,000 tonnes of rice worth US$207 million in June, increasing the overall six-month export volume and value to nearly 3.5 million tonnes and US$1.71 billion, respectively, according to figures released by the Agro Processing and Market Development Authority (Agrotrade).
The opening five months of the year saw the Philippines top the list of consumers of Vietnamese rice, purchasing 1.3 million tonnes for US$598.6 million, annual increases of 23% in volume and over 42% in value.
Moreover, strong growth was also recorded in other markets such as Senegal, with an 18.3-fold increase, Indonesia, up 2.9 times, and China, with a 2.3-fold rise. Indeed, the average export price of rice during the five-month period stood at US$485 per tonne, a rise of 13% on-year.
The Philippines retained its leading position as the prime consumer of Vietnamese white rice, accounting for 63.6%, followed by Malaysia with 12.6%, and Ghana with 2.9%.
In relation to the global market, Thailand’s rice export price in June saw a slight increase compared to May, causing Thai rice to become less competitive when compared to other major exporters such as India and Vietnam.
According to the Agrotrade, there are plenty of bright prospects for Vietnamese rice exports ahead once the impending European Union-Vietnam Free Trade Agreement (EVFTA) comes into force in August this year
In line with the commitments set out within the EVFTA, the EU will give the country a quota of 80,000 tonnes of rice per year, with the tax rate for rice being slashed to 0% over the course of the next three to five years following the reduction roadmap.