Practices Of International Trade Report Title Export Activities Of Vietnamese Rice To International Marker.pdf

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TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

TON DUC THANG UNIVERSITY

PRACTICES OF INTERNATIONAL TRADE REPORT TITLE: EXPORT ACTIVITIES OF VIETNAMESE RICE

TO INTERNATIONAL MARKER SUPERVISOR: NONG THI NHU MAI

FOR EXAMINERS ONLY

Garde (in number)

Examiner (Signature & Full

name)

HO CHI MINH CITY, 11™ NOVEMBER 2023

LIST OF GROUP MEMBERS AND EVALUATION

report

Chapter 2.1, Chapter 2.2, Pham ON en | 722K0056 Chapter 2.3, 100%

report

Tran Huu Thanh Cong 722K0064 Chapter 1.1, Chapter 1.2 98%

COMMENTS FROM LECTURER

Contents

Chap 1: Overview of the rice export activities in Vietnam: 5

1 — Information of five Most (soi no 5

2 Overview of the situation VN rice export: 7

3 Overview of Vietnam rice consumption in foreign Market: c:sccccsssssssccscesseceecececcecccesceees 8

Chap 2: Analyses of rice export situation in ViCtNaAM: ccccsesssccecessesssscecsesscsstccessessessessessessessenseeess 9

2.1.1: Rice export markets to foreign countries in Vietnam: 10

3

2.1.2: Rice export price: 11

2.2.1 Negotiation and sign commercial/sales CO rIf4CÏ: G6 e9 01193001 90.990 3 5605661 re 15

2.2.2 Apply for exporting |: 000008 .- 15

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Introduction:

Rice production is an important part of Vietnam's economy and food

supply Vietnam is one of the world's richest agricultural regions and

is the second-largest exporter of rice worldwide The Mekong and

Red River deltas are the heart of the rice producing region of the

country, where water, boats, houses, and markets coexist to

produce a generous harvest of rice The Mekong Delta is the most

prominent irrigated rice system in Vietnam, which is the heart of the

rice-producing region of the country Rice is a staple of the national

diet and is seen as a "gift from God" In recent years, Vietnam has

also made efforts to expand its rice export markets beyond

traditional buyers While countries like China, the Philippines, and

Indonesia remain major importers of Vietnamese rice, our country

has successfully diversified its customer base Vietnam now exports

rice to countries in Europe, Africa, and the Americas, establishing

new trade partnerships and increasing its global reach The export of

rice has had a significant impact on Vietnam's economy It

contributes to the country's agricultural sector, providing income

and employment opportunities for farmers and workers involved in

the rice value chain Additionally, rice exports generate foreign

exchange earnings, contributing to the overall economic growth of

our country The revenue generated from rice exports is often

reinvested in infrastructure development, education, and healthcare,

benefiting Vietnamese citizens and communities Vietnam's

exporting rice industry has emerged as a major player in the global

market Vietnam's favorable climate, commitment to quality, and

efficient production practices have positioned it as a reliable and

competitive supplier of rice With continued investments and

strategic partnerships, Vietnam is well-positioned to further expand

its presence in the international rice trade

Research subjects: Vietnamese rice exports

Research purposes:

- Present information you need to know about rice export markets

from Vietnam to foreign countries

- Show the general process of exporting

- List the SWOT of the Vietnamese rice market and take out

solutions

Chap 1: Overview of the rice export activities in

Vietnam:

1 Information of five most exported rice:

Vietnamese rice, renowned for its exceptional quality and cultural significance, holds a revered place in the culinary heritage of Vietnam As a staple food that has sustained generations, its versatility and unique flavor have made it an integral part of the country's rich gastronomic tradition From traditional dishes to modern interpretations, Vietnamese rice serves as the cornerstone of a diverse array of culinary creations that showcase the depth and complexity of Vietnamese cuisine

Cơ cấu chủng loại gạo xuất khẩu của Việt Nam sang Trung Quốc trong 4 tháng đầu năm 2023 (% xét theo khối lượng)

In terms of Vietnam's rice exports, white rice accounts for 38.2% The largest markets for Vietnamese white rice exports are the Philippines at 59%, Cuba at 10%, and Bangladesh at around 5%

According to the Vietnam Food Association, Vietnamese white rice is currently trading at $488-492 per ton for 5% broken rice, and $463-467 per ton for 25% broken rice Compared to similar white rice from other major exporting countries, Vietnamese white rice currently commands the highest price

¢ Jasmine rice

Jasmine rice was officially imported into Vietnam from the Philippines in 1992 This type of rice is mainly grown in the Mekong Delta region during two seasons: summer-autumn and winter-spring

Jasmine rice is known for its long, white grains, firm texture, and light fragrance when cooked It's also affordable, making it

a popular choice for both consumers and restaurants Not only

is it visually appealing, but Jasmine rice is also of high quality and is often exported to countries within and outside the region

According to the Vietnam Food Association, the export price of Jasmine rice has remained stable at around 583-587 USD/ton Additionally, shortly after the EVFTA agreement took effect, Trung An High-Tech Agriculture Joint Stock Company signed a contract to export about 3,000 tons of ST20 and Jasmine rice

to Europe, with Jasmine rice priced at over 600 USD/ton

e Fragrant rice

Fragrant rice is a type of rice with long grains, little chalkiness When cooked, it's soft, sticky, and has a distinctive fragrance Fragrant rice, especially the Lai fragrant rice variety, is grown extensively in the Can Duoc, Long An region

Fragrant rice is considered a competitive export product for Vietnamese enterprises As the rice export market in the Asian region begins to pick up, many potential customers have been eagerly buying in This is particularly true for markets like China and Bangladesh

Among the various types of rice exported by Vietnam, fragrant rice is estimated to reach 716,000 tons, accounting for 34% The average export price of fragrant rice in May 2021 was about 536 USD/ton, an increase of 12 USD/ton compared to the same period last year Right after the EVFTA agreement took effect, the Trung An High-Tech Agriculture Joint Stock Company successfully signed a contract to export ST20 fragrant rice (5% broken) to the EU for over 1,000 USD/ton

e Sticky rice

Sticky rice is a type of rice that's common in Asia It has short grains, a milky white color, and low amylose content When cooked, it's sticky and fragrant.P

In terms of nutrition, sticky rice has high starch and calorie content In 100 grams, there are about 344 calories It also contains plenty of vitamin B, calcium, protein, and it's gluten- free, making it safe for people with Celiac disease.P

Vietnam exports a significant amount of sticky rice, with China being the largest market, followed by Malaysia and the Philippines The average export price in May 2021 was around

$474 per ton

e Japonica rice

Japonica rice is a high-quality rice originating from Japan The rice quality is guaranteed to be high, so Japonica rice is very popular This is an exported rice variety of Vietnam to many markets such as China, Japan, and South Korea

Unlike other types of rice, Japonica rice grains are round, plump, thick, and harder The rice is also stickier due to its high amylopectin content It has a gentle fragrance when smelled and a sweet and refreshing taste when eaten The nutritional value of Japonica rice is also higher because the rice grains are rich in minerals and vitamins such as B1, B2, E, K,

In addition, Japonica rice is also Known as an organic rice variety; it is not fertilized, pesticide-free, and preservative-free

In terms of export value, Japonica rice and Japanese rice varieties account for about 2.7%

Overview of the situation VN rice export:

According to the Ministry of Agriculture) and_ Rural Development, the rice export turnover in the first 9 months of

2023 reached 3.66 billion USD, up 40.4% compared to the same period last year This figure has exceeded the highest rice export value ever achieved in 2011 (3.65 billion USD)

Indonesia Ghana Céte d'Ivoire Malaysia Singapore Mozambique

This is because the average export price of rice from the

beginning of the year until now has always been high, reaching

553 USD/ton, an increase of 14% compared to the same period last year There were even times when the export price of Vietnamese rice reached nearly 650 USD/ton

Recently, the price of rice exports has been slowing down due

to the actions of some importing countries to curb inflation They are focusing on domestic production policies to increase reserves, stockpiles, and seek alternative food sources for rice However, Vietnam's rice export prices are still leading the world According to the Vietnam Food Association, from

October 4th to 10th, the prices of various types of Vietnamese rice remain stable, while there is a slight decrease in some countries such as Thailand and Pakistan

Specifically, the price of Vietnam's 5% broken rice is $613/ton, while Thailand's is $586/ton (a decrease of $4/ton), and

Pakistan's is $558/ton (a decrease of $30/ton)

Vietnam's 25% broken rice is $598/ton, Thailand's is $538/ton (a decrease of $3/ton), and Pakistan's is $498/ton (a decrease

of $20/ton)

The Ministry of Agriculture and Rural Development has reported that in 9 months, the whole country has harvested 33.6 million tons of rice, an increase of 0.7% compared to the same period last year The provinces and cities in the Mekong Delta region have planted 625.7 thousand hectares of Winter-

9

Spring rice, an increase of 8.8% Currently, some areas of Winter-Spring rice have been harvested in the context of "good season, good price", and farmers are benefiting from good profits

- In the Mekong Delta region alone, in 2023, the rice cultivation area is estimated to reach over 3.8 million hectares, an increase of more than 13 thousand hectares; the expected yield is 62.81 quintals/ha, an increase of 0.88 quintals/ha, and the expected output is nearly 24 million tons, an increase of

416 thousand tons compared to 2022

4 thắng nam 2022 4 thắng năm 2023 Campuchia TT khác 1,3% Campuchia TT khác0,3%

3 Overview of Vietnam rice consumption in foreign market:

"In recent years, the rice industry has experienced remarkable

development, achieving significant results Annually, Vietnam's rice

exports account for approximately 15% of the total global rice

export volume Currently, Vietnamese rice is present in over 150

countries and territories around the world."

- According to the Ministry of Agriculture and Rural

Development, rice exports have continuously accelerated,

since India stopped exporting regular rice, Vietnam took

advantage of market opportunities in August and September of

2023

10

In August 2023, rice exports reached 950,000 tons with a value

of 553 million USD In September, Vietnam continued to export more than 800,000 tons of rice with a value of about 490,000 USD Vietnam has become the world's largest rice supplier in

the past 2 months Thus, in just the past 2 months, Vietnam

has provided the world market with nearly 1.8 million tons of

rice; It not only contributes to ensuring supply for the world but also brings economic benefits to rice growers

Rice exports once set a record turnover value of 3.65 billion

USD achieved in 2011, but the total export output of that year was 7.1 million tons Continuously from 2012 to 2018, export

rice prices decreased, causing export turnover to always be

below 2.5 billion USD By 2019, rice exports gradually

increased again and regained the 2.7 billion USD mark In

2022, rice export turnover reached 3.5 billion USD, but has not yet broken the record of 3.65 billion USD in 2011

Total rice export turnover in 2022 is estimated at 7.17 million

tons, worth USD 3.49 billion with 3 export markets accounting for the largest turnover, respectively the Philippines ranked

first, China ranked second, and Ivory Coast ranked third

According to the Rice Industry Report in December 2022 and

2022, the Information Center for Agriculture and Rural

Development said that the volume of rice exported in

December 2022 is estimated at 500,000 tons worth USD 257.2 million, an increase of 1.2% in volume and 0.9% in value over the same period in 2021

Thus, the total rice export turnover for the whole year of 2022

is estimated at 7.17 million tons, worth USD 3.49 billion, an

increase of 14.9% in volume and 6.2% in value over the same period last year

In which, the Philippines is Vietnam's largest rice export market with 3.0 million tons, worth US 1.39 billion, accounting for

38.8% in volume and 42.9% in value of Vietnam's total rice

exports in the first 11 months of 2022

Compared to the same period in 2021, rice exports to the

Philippines increased by 30.1% in volume and 18.0% in value China ranked second with 807.9 thousand tons, worth USD

408.5 million, accounting for 16.3% in volume and 12.6% in

11

value, a decrease of 19.2% in volume and 17.4% in value over

the same period in 2021

Chap 2: Analyses of rice export situation in Vietnam:

1 Rice market:

Vietnam is one of the major exporters of agricultural products in the

region and the world In particular, rice is one of the main agriculture

export products of Vietnam and one of the exported agricultural

products of Vietnam and one of the exported agricultural products

with strong export turnover in recent years

2.1.1: Rice export markets to foreign countries in Vietnam:

e ASEAN:

- Vietnam is competing directly with Thai rice in ASEAN

countries - a market that is increasingly fastidious in terms

of quality and price competition With a population of nearly

700 million people, ASEAN is a market with many similarities

in culture, lifestyle with Vietnam This is also a market for importing many types of goods and agricultural products from Vietnam, including rice In particular, , followed by Indonesia

- Mr Pham The Cuong, Vietnam Trade Counselor, said that in

2020, the volume of imported Vietnamese and Thai rice is similar, but now Vietnamese rice tends to surpass due to quality and competitive price

- The structure of Vietnamese rice exports is shifting towards

increasing “gao thom”, “gao dac san” group, or “gao trang”

high quality "Vietnamese rice is in direct competition with Thai rice in the high segment in this market," said the Vietnamese Trade Counsellor in Indonesia

- Phillipines: The Philippines is the largest Vietnamese rice

consumption market According to the General Department

of Customs, in 2020, the Philippines ranked first in Vietnam's rice consumption, reaching 2.22 million tons, worth 1.06 billion USD, up 4% in volume, up 19.3% in turnover compared to 2019 In 2022 reached 3.2 million tons and 1.49 billion USD, up 30.7% in volume and 19.0% in value over the same period in 2021

12

IN 2020 Ghana 6.65

Philippines 33.85%

e EU:

The Vietnam-Europe Free Trade Agreement (EVFTA) has opened up unprecedented opportunities for Vietnamese rice Thanks to preferential tariffs, exports of fragrant rice, high quality rice to the European market (EU) are highly appreciated and give positive results According to the General Department of Customs, Vietnam exported 53.91 thousand tons of rice to the EU Vietnam's rice exports to the EU market were worth US$38.07 million The EU currently accounts for only a small proportion of Vietnam's total rice exports, but this is a potential market for exporting high-value rice

Italy, Europe's largest rice producer, imported a record 32,017 tonnes of rice from Vietnam in 2022, up 3.9 times from 2021

e US:

The United States is one of the largest rice consuming countries in the world Demand for rice increases due to changes in tastes Currently, 30% of US rice consumption comes from Vietnamese enterprises

In the first eight months of 2022, the US imported more than 900 thousand tons of rice from countries around the world, an increase of nearly 38% in volume compared to the same period a year earlier, according to data from the US International Trade Commission (USITC)

It is worth mentioning that in the first half of 2022, Vietnam's rice exports to the US market increased by 71%

over the same period in 2021 This shows that this is an extremely potential opportunity for Vietnamese rice exporters to enter the US market

13

Nhập khẩu gạo của Mỹ từ Việt Nam từ năm 2014 - 2021

70.000 60.000 50.000

40.000

30.000 20.000 10.000

0

Năm Năm Năm Năm Năm Năm Năm

2014 2015 2016 2017 2018 2019 2020 mm”

Lượng (tấn) 65.969 41237 35115 21647 18798 16511 20.073 5.616

—+e—(%) tăng trưởng 24,2 -37,5 -14,8 -38,4 -13,2 -12,2 21,6 21,0

37/2021

2.1.2: Rice export price:

a Rice price export in recent years:

- From 2019 to 2023, Vietnam's rice export prices tend to

increase sharply The price of 5% broken rice, Vietnam's main export, has increased from an average of $390 per tonne in 2019 to $653 per ton in 2023, an increase of more

1.34

14 2.5 1

- Vietnam's rice exports decreased in 2019 According to the

General Department of Customs, Vietnam's rice exports in

2019 reached 6.37 million tons which cost 2.81B USD, down 4.2% compared to 2018

14

« 2020

In 2020, Vietnam's rice exports reached 6.15 million tons, worth about 3.07 billion USD, down 3.5% in volume and up 9.3% in value compared to 2019 Vietnam continues to be the world's 2nd largest rice exporter, after India

in value over the same period in 2020

In the last half of 2021 witnessed a decrease in exorting volume Although the export price of rice decreased slightly, Vietnam's rice export turnover still achieved impressive growth in the whole year 2021 According to data from the General Department of Customs, Vietnam's rice exports in

2021 reached 7.4 million tons, worth $ 3.2 billion, up 12.9%

in volume and lowered than 14.8% in value compared to

15