VietNamNet Bridge - Experts have urged changing the rice export strategy: instead of growing high-yield rice and exporting rice in large quantities, it should focus on exporting high-quality products at high prices and building a national brand.

 

Agricultural experts have warned that Vietnam might be overtaken by newly emerging rice exporters such as Myanmar and Cambodia. 

Myanmar has two scented rice varieties well known in the world market, Lone Thwal Hmwe and Paw San. Paw San, considered the most delicious variety now, exported at $900 per ton. 

Cambodia has Phka Romduol. Meanwhile, Vietnam still does not have any strong brand.

Nguyen Phuoc Tuyen from the Dong Thap provincial Department of Agriculture and Rural Development, warned that Vietnam will be under pressure as Myanmar and Iran have lifted rice export bans. 

The Indonesian government is also considering a self-supply policy, and plans to stop importing rice in coming years. The country plans to have an output of 36.3 million tons of rice in 2015 and will only import 1.25 million tons.

Meanwhile, other rice exporters have been growing rapidly. Cambodia has positioned its rice products in the world market with scented varieties such as Phka Romdeng, Phka Romeat and Phka Rumduol. 

The country reportedly plans to export 1.1 million tons of high-quality rice this year at high prices.

Vietnamese rice exports find it more difficult to compete with other exporters also because of the cheap yuan. With the yuan devaluation, the rice imported from Vietnam has become 4 percent more expensive in US dollar payments. 

A report showed that the cross-border rice export to China has decreased by VND300 per kilo in price. 

Meanwhile, China is a big rice buyer, consuming 38 percent of 3.72 million tons of rice Vietnam has exported.

Rice varieties

Dr. Le Van Banh, former head of the Mekong River Delta Rice Institute, Vietnam mostly exports long-grain white rice priced at $350-360 per ton. 

However, many other countries also export this product. Vietnam has to compete with India and Pakistan, which are trying to lower export prices.

International press on September 8 reported that the Thai government plans to put 732,806 tons out of 14 million tons in stocks into auction. 

Vietnam’s 5 percent broken rice is priced at $325-335 per ton, while 25 percent broken rice at $320-330 per ton, which is $15-20 per ton lower than Thai rice of the same kind.  

“If Vietnam still focuses on exporting long-grain white rice, it will suffer,” Banh said, adding that Vietnam should try to earn more money by selling high-end products instead of making modest money by exporting high-yield rice.

NLD