1-7-2023 (HANOI) In the first five months of this year, the Philippines imported 1.5 million tonnes of rice from Vietnam, accounting for almost 90% of the country’s rice imports, according to the Philippine Statistics Authority. Vietnam is the largest rice supplier to the Philippines.
In the Asian and African rice markets, Vietnam exported 3.6 million tonnes of rice to the world, with 1.5 million tonnes going to the Philippines, earning 772.4 million USD and accounting for 42.3% of the market share. This export volume increased by 31.1% compared to the same period last year, making it the highest rice export volume from Vietnam to the Philippines ever.
The Philippine Statistics Authority reported that the country’s rice imports in the first five months of the year increased by nearly 7.7% compared to the same period last year. Vietnam’s rice exports to the Philippines increased both in volume and value. In addition to the increasing demand, the El Nino phenomenon has pushed up global rice prices as many countries begin to stockpile food.
It is expected that in the second half of the year, rice exports to this country will continue to increase due to the influence of climate change, with El Nino returning and the risk of significant impact on domestic food production in the Philippines.
To take advantage of the opportunity to export to this market, according to the Asian-African Market Department, businesses need to continue to closely monitor market developments and rice trade policies. Additionally, companies need to actively coordinate with government agencies, ministries, and associations to timely resolve difficulties arising in trade activities.
Fitch Solutions, a market research company, predicts that the global rice market in 2023 will face the most severe shortage in 20 years. It is predicted that the shortage volume will be around 8.7 million tonnes in the 2022-2023 crop year, the highest level since the 2003-2004 crop year (reaching 18.6 million tonnes).
According to the US Department of Agriculture (USDA), the supply of major agricultural products such as coffee, rice, and seafood in the world is stagnant and at risk of decline as “El Nino has appeared.” As a result, prices for these commodities will rise sharply, and many countries have pushed to increase their food reserves.
Vietnamese agricultural experts believe that in the short term, rice prices will be at a good level due to global economic and political instability, which is pushing up food reserve demand.
In addition to the Philippines, Indonesia and many other Asian countries are also increasing their purchases of Vietnamese rice due to declining supply sources. Indonesia’s announcement that it will import 2 million tonnes of rice this year has led to a continuous increase in the price of 5% broken rice exports. The Indonesian government previously decided to import 2 million tonnes of rice for reserve purposes.
