Rice exporting enterprises seek new directions

Decline in exports to traditional markets

Director of Duong Vu Company Limited (Binh Thanh Commune, Thu Thua, Long An Province) - Nguyen Quang Hoa said: Before 2023, the company's main export market was China with sticky rice. However, from 2024, the Chinese market reduced imports of sticky rice from Vietnam. The company reduced exports to this market by 400-500% compared to 2023.

According to Mr. Hoa, in the first 6 months of 2024, the company exported 160,000 tons of rice and sticky rice. The sudden change in the Chinese market led to a sharp decline in the export output.

Many businesses are currently shifting rice export markets

Director of Tan Dong Tien Joint Stock Company (Khanh Hau Commune, Tan An City) - Nguyen Thanh Muoi commented that in 2023-2024, the selling price of rice is quite stable, farmers have a good harvest and good prices. Although the export price is good, businesses participating in processing and exporting are still heavily dependent on the Chinese market. His company itself is also facing difficulties in exporting and has to shift to many other markets such as Singapore, Philippines, Indonesia, Malaysia, etc.

Currently, on average, Tan Dong Tien Company exports hundreds of tons of finished rice per month, in which the Malaysian market is dominant. Particularly for the Chinese market, if before 2024, the company exported hundreds of thousands of tons/month, now it is only more than 10,000 tons/month.

According to the analysis of the Vietnam Trade Office in Beijing, some difficulties have caused Vietnam's rice exports to the Chinese market to decrease as China annually issues import quotas for rice, tightens import quotas, and limits official export enterprises.

In addition, China limits the number of rice enterprises allowed to export to China; raises the quality standards of rice compared to before, from quality to packaging design.

Many enterprises also commented that China has a fairly good national rice reserve policy. Therefore, rice traders in this country mainly buy when world rice prices are low. Not to mention that currently, the prices of Vietnamese sticky rice and non-glutinous rice exports are higher than the prices of similar products from China. Therefore, although the number of enterprises exporting to this market has increased, it will be difficult to be proportional to the corresponding increase in rice export turnover to China.

Change to adapt

According to Mr. Nguyen Quang Hoa, to change to new export markets, the company must change many processing and milling technologies, and even change all rice varieties. If before 2023, Duong Vu Company exported about 90% of processed sticky rice output to China, now this market no longer imports sticky rice. Therefore, the company has switched to other markets such as the Philippines, Singapore, Malaysia, etc. The rice varieties needed by these markets are 5451, Dai Thom 8, etc. To adapt to the new export situation, the company is guiding farmers to diversify rice varieties suitable for export.

Similarly, Duong Vu and Tan Dong Tien Companies have also shifted their export direction to many new markets with great potential. According to Mr. Nguyen Thanh Muoi, the advantage of the new markets is that all enterprises participating in rice import import through official channels. Currently, Malaysia is the main market of the company, in addition to Indonesia, Singapore and other markets.

According to the leader of Long An Food Company, in addition to trying to maintain the market as well as traditional customers, the company continues to develop new customers in the fierce competition of the domestic and foreign markets. In the first 6 months of 2024, the company's sales output was over 86,999 tons, reaching more than 47% of the sales plan of 180,000 tons. Of the number of products sold, more than 30% were for export, the rest were sold domestically.

Facing many changes and difficulties in the rice export market of enterprises, Vice Chairman of the Provincial People's Committee - Huynh Van Son has just signed and issued a document directing the Department of Industry and Trade; Department of Agriculture and Rural Development; Department of Finance; State Bank of Vietnam, Long An Province Branch; People's Committees of districts, towns and cities; Rice export traders focus on implementing and performing tasks according to Official Dispatch No. 4377/VPCP-KTTH, dated June 24, 2024 of the Government Office on the rice export situation in 2023, the first quarter of 2024 and export forecast in the coming time.

The Provincial People's Committee assigned the Department of Industry and Trade to coordinate with the Department of Agriculture and Rural Development and relevant units to closely monitor the operations of rice export traders, especially the maintenance of business conditions, promptly report and propose to the Provincial People's Committee on arising issues. Provincial agencies must regularly coordinate with diplomatic and trade representative agencies abroad to support enterprises in promoting rice exports; promote rice products through fairs, forums, seminars, conferences on trade promotion, trade connections, etc to expand domestic and foreign consumption markets./.

By Mai Huong - Translated by Q. Thien

Source: https://baolongan.vn/doanh-nghiep-xuat-khau-gao-tim-huong-di-moi-a182748.html