Vietnamese long grain white rice: Helpful information to know before investing
As one of the prevailing suppliers of agricultural products in the global market, Vietnam has supplied a wide variety of rice to many countries, one of those is Vietnamese long grain with rice with high quality and reasonable prices.
Vietnamese long grain white rice: A flourishing market
Vietnamese long grain white rice is nowadays a global commercial product that is considered to be profitable.
Vietnam is currently considered the second-largest exporter of rice in the world. In 2020, Vietnam exported 6.25 million tons of rice with an export value of 3.12 billion USD. The export value increased by 11.2% while the export amount decreased by 1.8%.
In total export value, the Vietnamese long grain rice accounts for 32.9%, making it one of the most prominent types of Vietnamese rice for traders. Nowadays, Vietnamese long-grain white rice is not only exported to traditional markets like China, Malaysia, Africa, but also consumed in premium markets like the EU and the USA.
Vietnamese long grain white rice: Famous types
There are various types of Vietnamese long grain white rice. However, some prevalent types mentioned below are popular for traders.
Long-grain delicacy white rice
This is the most valuable type of Vietnamese long grain white rice. Their length is usually 7.5 to 8.5 mm and their width is 0,8-1mm. This type of rice is long, thin, and clear. When heated, the rice has the pandan-leave aroma and delicious flavor. The most frequently traded varieties are ST05, ST20, ST24, and ST25.
In addition, in 2019, ST25 – Vietnamese long grain white rice is awarded the World’s Best Rice. With exceptional features, nowadays, this rice is not only preferred by domestic consumers but also by foreign markets, especially China. The average price of this rice fluctuates between 630-670 USD/MT (FOB).
Normal long grain aromatic white rice
This variety of long grain white rice also has a unique taste and aroma but has a more reasonable price than the delicacy one. The average length of normal aromatic rice is between 6.5mm to 7mm. They are regularly long, delightfully chewy, and have a long-lasting fragrance after being cooked.
The most popular varieties are jasmine, OM18, Nang Hoa, and DT8 Dai Thom
Nowadays, with reasonable prices, this Vietnamese long-grain white rice is consumed mostly in developing markets like Africa, China, the Philippines, etc. The average price is between 480-680 USD/MT (FOB).
Normal long-grain white rice
This is considered to be the most reasonable type of Vietnamese long-grain white rice. They are thin, long, and milky white grains with a soft flavor when cooked. The most popular type is OM5451, which is nowadays engrossed in many developing markets. It is usually imported in big orders and by governments. The frequently traded price is between 480-530 USD/MT (FOB).
Basmati rice
Vietnamese long-grain white rice: Factors that affect export
There are many factors that can have a great influence on the market of Vietnamese long-grain white rice.
Support from Government
The Vietnamese Government has made great efforts in boosting the production of Vietnamese long-grain white rice since it is one of the leading products to export in the global market. Some typical policies to encourage the production of Vietnamese long-grain rice are eliminating regulations about warehouse sizes, encouraging traders to invest in the production and export of high-quality and high-value rice products
In addition, Vietnam also signed many trading agreements such as EVFTA, EEC, UKFTA to make this type of rice penetrate into more markets and to develop the position of Vietnamese long-grain white rice in the global market. In particular, in EVFTA, the European Council set the limit for Vietnamese white rice at 80.000 tons with 30.000 tons of milled rice, 30.000 tons of aromatic rice, and 20.000 tons of unmilled rice.
Natural disasters
However, natural disasters in Vietnam like floods, saltwater intrusion happened more frequently in the last few years. These negative weather conditions have destroyed many growing areas and hence reduced the total production of Vietnamese long grain rice.
Covid-19 pandemic
Covid 19 has turned all aspects of the global economy upside down and the rice export industry is no exception. This pandemic especially brings on the lockdown of importing countries, rising ship costs, and the lack of shipping containers. The latest reports have shown that the cost to export each container from Vietnam has increased fourfold in comparison with the period before the pandemic. Moreover, it is also expected to reach a peak at the end of 2021 due to the higher demand for transportation.
Competitive rice market
The rise of new exporters like Myanmar, Indonesia, especially Cambodia with the aim to build the image of a sustainable rice manufacturer, are posing threats to Vietnamese long grain white rice. The foreign customers now have a wider range of alternative products besides rice from Vietnam to choose from with lower prices.
The foreign customers now preferred more aromatic rice, which is the dominating product of Thailand. In 2020, Vietnam exported 1.94 million tons of rice to the Philippines. In comparison with 2019, the amount of Vietnamese rice to export to this market decreased by 1,7% due to the rising prices.
Vietnamese long-grain white rice: Top 3 suppliers in Vietnam
Below are some prestige suppliers of Vietnamese long-grain white rice to trade with.
Angimex
Angimex is one of the top Vietnamese long grain white rice suppliers. Located in An Giang province, Angimex has a system of factories with a capacity of 100 thousand tons. Hence, the company saves transportation costs from raw material areas to the factory. The company always offers Vietnamese long grain white rice at the most affordable price. Angimex’s long grain rice is now consumed by either premium or popular markets, from Europe to Africa.
Sunrise Ins Group – Top Vietnamese long grain rice supplier
Founded in 2012, Sunrise Ins Group possesses a wide distribution system in both the domestic and global markets. Vietnamese long-grain white rice is one of the leading products of Sunrise Ins Group. In addition, this exporter also supplies other rice types such as KDM, Japonica, and medium-grain rice.
K-Agriculture
In the 25 years of development, K-Agriculture Factory has developed from a small business to become the leading exporter of Vietnamese rice, coffee, cashew, and spices. The factory is supported by the Ministry of Industry and Trade with the vision to bring Vietnamese agricultural products, especially high quality Vietnamese long grain rice to the world.
Having an advanced milling and polishing chain with a capacity of 15000 tons/month, along with a 21500-ton storage capacity, K-Agriculture Factory has exported its products to over 80 countries around the world.
K-Agriculture
To trade with K-agriculture Factory, contact via:
Email: info@k-agriculture.com
WhatsApp: +84855555694
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