Vietnam's rice export for the first 6 months of 2013

Friday, 03 May 2013 15:25

VIETRADE - Vietnam primarily has a rice-based agricultural economy. Rice is cultivated on 82% of the arable land and provides 80% of carbohydrate, and 40% of the protein intake of the average Vietnamese. The two rich deltas of the north and south - Red River and Mekong, respectively are responsible for most of the rice. The Mekong River delta accounts for 52% and Red River delta another 18% of Vietnams rice. Vietnams export of rice, 2009 2013 (million USD)

Source: General Department of Vietnam Customs Vietnam is one of the most important rice producers and exporters in the world. Surprisingly, before 1986, the country had to import rice, because domestic demand exceeded supply. The amount of rice Vietnam imported rice even exceeded 1 million tons during the latter 1960s and in 1976. Thanks to the 1986 launching of the Doi moi reform, starting the countrys integration into the world economy and also putting in place policies encouraging development of agriculture, rice production in Vietnam increased rapidly. The country started exporting rice in 1987, transforming itself from a rice importer to rice exporter starting in 1989. Vietnam Food Association (VFA) data shows that rice exports from Vietnam in 2012 reached a record high of 7.7 million tons, thereby maintaining its place as the worlds second largest rice exporter, following only India. Export products Vietnam rice export, by product group, 2008-2012 Unit: million USD Code HS Product label 2008 2009 2010 2011 2012

100630

Semi-milled/wholly milled rice, whether polished/glazed Broken rice Husked (brown) rice Rice in the husk (paddy or rough)

2,805

2,591

3,180

3,536

2,228

100640 100620 100610

84 7 .04

64 11 .14

46 23 .95

68 55 .19

231 15 5

Source: Trademap ITC June, 2013 Export markets In the face of the complicated situation in the global grain market, in 2012, Vietnam, the second biggest rice exporter in the world, still managed to reach a record high of 7.7 million tons, attaining its target. Vietnam exported 518,000 tons of rice valued at US$245 million in December 2012 and over 8 million tons of rice worth US$3.7 billion for the whole of 2012, up 13% in volume and 0.4% in value over the previous year of 2011. Vietnam rice export by grade and destination in 2012 (Unit: tons) 5% ASIA AFRICA EUROPEand CIS AMERICAS AUSTRALIA UNKNOWN TOTAL 3,597,718 24,699 1,795,560 894,625 437,418 309,434 598,914 58,188 7,716,556 2,684,815 821,826 39,828 32,014 19,235 10% 24,699 15% 1,505,767 75,947 756 213,090 25% 793,317 98,407 2,901 100% 15,925 365,610 55,883 Glutinous Jasmine 309,434 433,707 104,162 24,564 25,445 11,036 Other 5,832 52,356 Total 5,748,797 1,518,308 89,847 329,333 30,271

Source: Trade/ General Department of Vietnam Customs / Vietnam Food Association Asia was the largest market for Vietnamese rice with imports totaling 6 million out of the total 8 million tons. Indonesia, Philippines, and Malaysia were still the main traditional buyers in 2012. Demand from the Asian countries, Vietnams traditional rice export markets -- especially the Philippines, Indonesia, and Malaysia -- still has potential. China became the top Vietnamese rice importer with more than 2 million tons of milled rice in 2012, with revenue of US$898 million, accounting for 24% of the countrys rice export, up 575% in volume and 459% in value in comparison with the previous year. Vietnamese rice exports to the Chinese market remained strong in 2013. Vietnams exports of rice by main export markets (2012)

Source: General Deparment of Vietnam Customs. The Philippines is Vietnams second largest importer of rice, importing US$475 million in 2012, accounting for 13% of the countrys rice export, up 14% in volume compared with 2011. At the same time, Vietnam exported 930 tons of rice worth of US$458 million to the Philippines, accounting for 12% of the total value. It was followed by Malaysia with 765 tons worth of US$403 million, accounting for 11%, up 44% in volume and 38% in value compared with 2011. The General Department of Vietnam Customs also reported that Vietnam exported more than 3.5 million tons of rice in the first six months of 2013, earning US$1.5 billion. In comparison to the same period of 2012, rice export decreased by 6% in volume and 10% in value. Most Vietnamese rice in the first six months of 2013 went to China, the Philippines, Malaysia, and the Ivory Coast, with total revenue of US$860 million, accounting for 54% of the countrys rice export. China has been the export market with the largest export growth (34%); followed by the Philippines (8%), Malaysia (7%) and the Ivory Coast(6%). Key export regions include Asian markets, accounting for 62% of the countrys rice export. Next are African markets(24%, up 1% from last year), America, and Europe. Vietnams rice export markets 2011 No. Markets Value (million USD) TOTAL 1 China 2 The Philippines 3,657 161 476 % (of total export) 100 4 13 2012 Value (million USD) 3,673 898 475 % (of total export) 100 24 13 Jan-Jun/2013 Value (million USD) 1,582 536 132 % (of total export) 100.00 34 8 Compared with Jan-Jun 2012 (%) -9.90 17 -42

3 Malaysia 4 Ivory Coast 5 Singapore 6 Ghana 7 Hong Kong 8 Indonesia 9 Angola 10 Algeria Others

292 139 198 77 89 1,019 28 20 992

8 4 5 2 2 28 1 1 27

403 203 131 150 121 458 55 36 714

11 6 4 4 3 12 1 1 19

103 89 77 77 58 45 38 24 403

7 6 5 5 4 3 2 1 25

-41 -2 37 12 23 -71 31 -6 -3

Source: General Department of Vietnam Customs. Note: Commonwealth of Independent States