Rice is the main food source for more than 50% of the world's population, providing energy, mineral proteins, vitamins and fiber to humans. As of December 2018, the world rice price fell to 404 USD / ton, higher than the same period last year, but lower than the price achieving in the beginning of 2018. Rice price is forecasted to rise drammatically in 2019 and keep the high cost for 4 years, which marks the rice price increasing cycle all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural Vietnam as well. The 17/18 season saw a slight increase in the yield of rice which was recorded at 0.45% and achieved 22,200 thousand tons. Although rice exports bring a significant source of foreign currency to the country, the rice industry income is still very low compared to the average level of society.
In general, agricultural production in 2018 attained quite good results. Rice exports are estimated to rise 6.7% in quantity and 21.3% in value compared to the same period of 2017. China always maintains the largest market for Vietnamese rice that accounted for 22% of the total yeild in 2018 and the total rice export turnover of the whole country reached 1,332,888 tons.
The year 2019 is forecasted to be a promising year for rice paddy industy as two countries competing directly to Vietnam (India and Thailand) are lack of rice supply due to a drop in reserves while the demand of Banglasdesh and African countries are raising. Besides, some emerging markets such as Iraq and the Philippines have been and will continue to be potential markets for Vietnam to increase exports, which leads to Vietman's reducing dependence on China. Moreover, Decree 107/2018 / ND-CP of the government will also facilitate small and medium enterprises to boost exports as well as promote these businesses to create high quality rice products and have their own value. On the other hand,the rice price is forecasted to increase sharply from 2019, which will also be a driving force for Vietnam's rice industry in the future.
Rice is not only the main food crop but the main source of income for millions of households in rural Vietnam as well. The 17/18 season saw a slight increase in the yield of rice which was recorded at 0.45% and achieved 22,200 thousand tons. Although rice exports bring a significant source of foreign currency to the country, the rice industry income is still very low compared to the average level of society.
In general, agricultural production in 2018 attained quite good results. Rice exports are estimated to rise 6.7% in quantity and 21.3% in value compared to the same period of 2017. China always maintains the largest market for Vietnamese rice that accounted for 22% of the total yeild in 2018 and the total rice export turnover of the whole country reached 1,332,888 tons.
The year 2019 is forecasted to be a promising year for rice paddy industy as two countries competing directly to Vietnam (India and Thailand) are lack of rice supply due to a drop in reserves while the demand of Banglasdesh and African countries are raising. Besides, some emerging markets such as Iraq and the Philippines have been and will continue to be potential markets for Vietnam to increase exports, which leads to Vietman's reducing dependence on China. Moreover, Decree 107/2018 / ND-CP of the government will also facilitate small and medium enterprises to boost exports as well as promote these businesses to create high quality rice products and have their own value. On the other hand,the rice price is forecasted to increase sharply from 2019, which will also be a driving force for Vietnam's rice industry in the future.
Table of Contents
AbbreviationsSummary
1. Business Environment
2. Global rice-paddy market
3. Vietnam rice-paddy market
4. Industry overview
5. Enterprise analysis
6. Appendix
List of figures
List of tables
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- VINAFOOD II
- VINAFOOD I
- Kigimex
- Tan Thanh An Company Limited
- Tan Dong Tien JSC
- Gia International Corp
- Tin Thuong Investment Trading JSC
- Thuan Minh Import Export Corporation
- Agricam
- Vietnam Intimex Joint Stock Corporation
Methodology
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