Vietnam, a country known for its fertile soil and favorable climate, stands as one of the leading Vietnam rice exporters in the world. This Southeast Asian nation is renowned for producing a variety of high-quality rice, making it a top choice for global importers seeking reliable Vietnam rice suppliers.
As one of the prominent Vietnam rice export companies, the country has a robust rice industry that contributes significantly to its economy. The rice market in Vietnam is diverse, offering various types of rice that cater to different culinary needs worldwide. From the fragrant Jasmine rice to the sticky glutinous rice, the range is vast and of superior quality.
The strength of Vietnam’s rice market lies not only in its variety but also in its volume. With millions of tons of rice exported annually, Vietnam has established itself as a key player in the global rice market. This strong presence in the rice export market has led to a growing number of Vietnam rice wholesalers providing a steady supply of rice to various parts of the world
Vietnam’s rice export market is robust and dynamic. As one of the top Vietnam rice exporters, the country has a strong presence in the global rice market, exporting millions of tons of rice each year. Before knowing how to choose a credible rice manufacturer in Vietnam, it’s essential to understand the wide picture of Vietnam’s rice export!
Vietnam, the world’s leading rice exporter, has its rice exported to nearly 160 countries and territories, accounting for 15% of the global rice market share. It has also initially penetrated demanding markets that require high quality such as Japan, Korea, the USA, EU, making it a reliable source for Vietnam rice suppliers.
In the period between the years 2010 and 2020, on average, Vietnam exported over 6.4 million tons of rice, accounting for close to 20% of the nation’s total output. This has led to an increase in the number of Vietnam rice wholesalers and Vietnam rice export companies.
According to statistics from the Import-Export Department (Ministry of Industry and Trade), by the end of June 15, 2022, the country’s rice exports reached 3.11 million tons, worth $1.52 billion. This represents an increase of nearly 12.3% in volume and a slight increase of 0.7% in value over the same period in 2021.
Besides high-end markets such as the US, Europe (EU), Japan, and South Korea, the Philippines is still the most potential market for Vietnamese rice. In the first 6 months of 2022, the Philippines continues to be the leading market, accounting for 49.89% of the country’s total rice exports. Besides the Philippines market, the markets of China, Africa, and Cuba are also very stable, which has contributed to boosting rice exports in the 2nd quarter and first 6 months of 2022. This is very optimistic for both Vietnam’s import-export balance and Vietnam rice suppliers. On the other hand, rice export to demanding markets is expected to increase in the near future with the improvement of the competitiveness of Vietnam rice export companies.
Vietnam, a leading Vietnam rice exporter, offers a wide variety of rice, ranging from ordinary to specialty. The rice produced by Vietnam rice suppliers can be categorized based on shape (long grain rice, medium grain rice, short grain rice) and color (white rice, brown rice, red rice).
However, quality significantly affects the price of rice. Therefore, for import-export purposes, Vietnam rice wholesalers produce and classify rice into three main types:
Compared with rival Thailand, Vietnam’s rice varieties are more diverse, with many varieties that Thailand and Cambodia do not have. For higher-grade rice exported to the European market, Vietnam’s rice is also in a very good position when some varieties such as Jasmine, ST24, and ST25 are asserting their position. Most Vietnam rice export companies are aiming to produce this high-value and specialty rice.
Notably, Vietnam not only has a market but there are also competitive and specialty rice varieties such as DT8, ST that Thailand does not have.
Accounting for 32.5% of the total national turnover, white rice is a leading product of Vietnam rice suppliers. The Philippines is the largest customer of Vietnam rice wholesalers in terms of white rice, making up for 53.7% of the total Vietnamese white rice export volume. Following are Cuba with 23.5% and Korea with 7.7%. Vietnam rice suppliers provide white rice at the price of 347.3 – 439.6 USD/MT (FAO).
Recently, Vietnamese jasmine rice has recorded significant growth in the export volume, being responsible for 32.9% of the total national turnover in 2020. Therefore, Vietnam rice suppliers also focus on milling jasmine rice and fragrant rice. 31.8% of the total jasmine rice from Vietnam rice suppliers is exported to Ivory Coast, 12.8% to Ghana, and 11.3% to the Philippines. Normal Vietnamese fragrant rice costs 446.5 – 491.1 USD/MT. In addition, Vietnam rice suppliers provide jasmine rice at 528 – 532 USD/MT.
Vietnam rice suppliers have many strengths in the wholesale glutinous trade since this rice type is native to Vietnam. In 2020, the value of the glutinous rice export accounted for 29.6% of the total national turnover. The three main importers of Vietnamese glutinous rice are China (87.9%), Indonesia (2.8%), and the Philippines (2.8%). This shows that the market of Vietnam rice exporters to China is more and more developing. The wholesale price of glutinous rice offered by Vietnam rice suppliers ranges from 501.1 USD/MT to 570 USD/MT (FAO).
Japonica rice accounted for 4.8% of the total national turnover in 2020. This rice is popular in Asia, therefore, Vietnam rice suppliers also provide japonica rice. Papua New Guinea, Solomon, and China are the major export market of Vietnamese japonica rice, making up 16.7%, 9.2%, and 8.1% respectively. In the wholesale rice market now, Vietnam rice suppliers distribute japonica rice at 580 – 660 USD/MT (FAO).
Vietnam rice suppliers are companies that directly produce rice in large quantities for sale. They are responsible for the entire rice process, from milling to packaging. Then, these Vietnam rice suppliers provide their products to other suppliers, wholesalers, and retailers. Many wholesalers prefer working with rice manufacturers in Vietnam due to four main reasons:
The wholesale rice price heavily depends on the supply capacity of Vietnam rice suppliers. In particular, 5% broken rice from Vietnam witnessed an increase in its price, to 537USD/MT in 2019 because the output volume of rice manufacturers was down 133 thousand tons, reaching only 20.47 million tons.
The prices of Vietnam rice suppliers also fluctuate due to changes in demands of major importing countries such as China, the Philippines, Ghana, etc. For example, in half of 2021, the Philippines increased the Vietnamese rice import quantities, making the wholesale rice price up 11.4% compared to the same period in 2020, reaching 517.2 USD/MT.
Transportation charges will directly affect the prices of Vietnam rice suppliers. In fact, because the freight is too high, therefore when deciding to work with Vietnam rice suppliers, customers are very hesitant, making Vietnamese rice less competitive than Thai or Indian rice.
Currently, Vietnam’s 5% broken white rice in normal packaging is trading at $415 – 420 USD/ton. This price is quite high compared to Thai, Indian and Pakistani rice. Specifically, Thai 5% broken rice from 399-403 USD/ton, Indian 5% broken rice from 368-372 USD/ton, unchanged. Pakistan 5% broken rice 363 – 367 USD/ton.
Vietnam’s rice is grown in four major regions: the Mekong Delta, Red River Delta, Central Coast, and Northern Mountainous regions. Each region is distinctive in geography and climate characteristics, yet they all contribute to the success of Vietnamese rice.
In particular, the Mekong River Delta is the main rice production area of the country, providing over 90% of Vietnam’s rice exports. Therefore, most of the Vietnam rice suppliers are located in the southern region of the country. To facilitate the process of rice harvesting, milling/processing, and transportation for export (usually at Cat Lai port, Ho Chi Minh, Vietnam), these Vietnam rice suppliers are located in a centralized location in provinces such as An Giang, Long An, Tien Giang, Can Tho, Ben Tre.
Vietnam is one of the countries that are open and deeply integrated with the world. The rice export industry, as well as other sectors of Vietnam, greatly benefit from various incentive policies from the government as well as Free Trade Agreements (FTAs) with many countries and territories. So, Vietnam rice suppliers can benefit from these open policies and FTAs.
Notably, Vietnam rice suppliers are benefiting in exporting rice from free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) when increasing exports to Australia and Singapore markets. In addition, Vietnam’s rice exports to the EU market were previously subject to very high taxes, up to 45%. There are even some countries in the EU that impose import taxes on Vietnamese rice up to 100% or higher. The Vietnam-EU Free Trade Agreement (EVFTA) now allows Vietnam and Vietnam rice suppliers to be exempt from tax with a quota of 80,000 tons of rice per year; in which, 30,000 tons of milled rice, 20,000 tons of unmilled rice, and 30,000 tons of fragrant rice, and at the same time, complete freedom for broken rice. Within the framework of the World Trade Organization (WTO), Vietnam rice suppliers and Vietnam’s rice exports are supported by promoting the piloting of building material areas meeting export standards, being granted a planting area code, and is associated with export enterprises, such as 50,000ha of rice produced by Vietnam rice suppliers in An Giang and Kien Giang.
>> Read more: The Impact of EVFTA on Rice Export from Vietnam
Vietnam rice suppliers are required by Government Decree 107 to have professional storage facilities for paddy and rice that are compliant with national standards, as well as technical regulations on rice warehouses, rice processing facilities, or grinding facilities. Vietnam rice suppliers must invest in growing regions, collaborate closely with farmers, and follow strict farming procedures to produce high-quality rice. In particular, Vietnam rice exporters are required to have a minimum of one specialized warehouse with a storage capacity of 5,000 tonnes of rice and a minimum of one facility for grinding grains and rice with a production rate of 10 tons per hour. The government’s decree No. 109/2010/CP lays forth these conditions to increase the competitiveness and pricing of Vietnam rice suppliers and rice exporters relative to their overseas rivals.
In countries like China, if you want to import rice from Vietnam, you need to have a quota import from the Chinese government while the Vietnam rice suppliers or exporters do not have a quota for export. However, currently, China is promoting official exports, so only Vietnam rice suppliers and Vietnamese enterprises have the conditions for infrastructure as well as quality management systems, following the Protocol on Phytosanitary for Vietnamese rice exports to China and other requirements of the Chinese side, can be exported to China.
Vietnamese rice grains are very susceptible to residues of fertilizers, antibiotics, or pesticides that reduce the quality and value of rice. If you want to import rice from Vietnam, you need to pay attention to Vietnam rice suppliers must have the GAP standard for rice grain quality requirements. Although each type of rice will have different standards, you can refer to the general Vietnamese export rice standards as follows when working with Vietnam rice suppliers: Depending on markets, there will be different requirements on the technical standards of imported rice and Vietnam rice suppliers, however, the European market is considered to have more strict requirements than other markets, these requirements include food safety and hygiene, restricting the presence of pesticides in products from plants and animals intended for human uses; and packaging and labeling. So you need to ask the Vietnam rice suppliers for these standards.
If you’re searching on the Internet, you may be overwhelmed by too many names of Vietnam rice suppliers. Choosing the wrong rice manufacturer in Vietnam to work with can lead to significant losses, damaging not only your time and money but also your reputation and the trust of your customers. Here are some tips you can apply to find a suitable rice manufacturer in Vietnam:
The first step in importing wholesale rice is to find the information. Pay attention to all the information you see on the Internet, and make sure to check the sources of information. Because companies or Vietnam rice suppliers can easily pay for a rank on some top-list websites, it’s better to find the list of rice manufacturers in Vietnam through the Vietnamese Government website, Ministry of Industry and Trade, Vietnam Rice Import and Export Association to find leading rice factories.
Online B2B marketplaces like Alibaba, Amazon, and Freshdi.com can be valuable resources.
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You should check the website of the rice manufacturer in Vietnam first, then see their presence on other marketing channels, talk to the sales and ask for information/images/address of the factory of the rice manufacturer in Vietnam. These can help you have an overview of the manufacturer’s capacity, profession and avoid scams.
This is the best way to know if what you see and what the rice manufacturer in Vietnam said are the same. Besides, you can check the quality of rice, and the production process, and verify other essential information such as export licenses, quality standard certificates. A credible rice manufacturer in Vietnam must have these standard papers.
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Freshdi.com's guide provides you with all the detailed information about the Vietnamese rice industry, covering various topics from the import market and popular rice varieties to price trends, finding exporters, and necessary considerations when exporting rice from Vietnam. This guide helps you understand the Vietnamese rice market, helping you succeed in trading with rice suppliers in Vietnam.
Chapter 1: Comprehensive Overview of Vietnam’s Rice Market Dive into the heart of Vietnam’s rice industry, exploring the vibrant import market, diverse rice varieties, competitive pricing, and key considerations for exporting rice from this Southeast Asian powerhouse.
Chapter 2: Certified Vietnam Rice Exporters List accredited by the Ministry of Industry and Trade - October 2023 Stay updated with the latest list and criteria of rice export-qualified enterprises recognized by Vietnam’s Ministry of Industry and Trade.
Chapter 3: Vietnam’s Top 10 Rice Exporters (January 2022) Uncover the dynamics of Vietnam’s rice industry, highlighting the top exporters and key market trends in January 2022.
Chapter 4: Top Vietnamese Rice Suppliers: A Comprehensive Guide 2023 Navigate through the top Vietnamese rice suppliers, their diverse product offerings, strategic locations, and tips for successful cooperation.
Chapter 5: How to Import Rice from Vietnam: A Step-by-Step Process Demystify the process of importing rice from Vietnam with insights into types, prices, suppliers, and more.
Chapter 6: How to Find Rice Suppliers in Vietnam Learn how to search and select reliable rice suppliers, along with essential tips when working with Vietnamese suppliers.
Chapter 7: Comprehensive Guide to Import Customs Procedures for Rice from Vietnam Master the import customs procedures for rice from Vietnam, including the necessary steps and key requirements for a smooth import process.
Chapter 8: Understanding Rice Export Taxation from Vietnam: A Comprehensive Guide Get a grasp on rice export taxation in Vietnam, including HS codes, export duties, and the impact of the EVFTA agreement.
Chapter 9: Top Types Of Rice Exported Abroad: Vietnam Rice Export Discover Vietnam’s fragrant rice varieties, their unique characteristics, and their global distribution.
Chapter 10: Forecast for Vietnam’s 2024 Rice Exports Gain an insightful look into Vietnam’s rice industry, its export forecast for 2024, and the underlying market dynamics.
In conclusion, finding reliable Vietnam rice suppliers requires careful research and consideration. From understanding the diverse types of rice available in Vietnam to the factors influencing the prices of rice, it’s crucial to have a comprehensive understanding of the Vietnamese rice market. Moreover, verifying the credibility of the rice manufacturers and understanding the government policies and FTAs can significantly impact your decision-making process. By following the guidelines provided in this article, you can make an informed decision and establish a successful business relationship with a credible rice manufacturer in Vietnam. Remember, the key to a successful import business is not only about finding the right supplier but also about maintaining a good relationship with them. Happy sourcing!
Source:
https://k-agriculture.com/rice-manufacturer-in-vietnam/#Overview_of_rice_manufacturer_in_Vietnam
https://vietnamcredit.com.vn/news/vietnams-top-10-rice-exporters-january-2022_14667
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