Vietnam shipped 4.3 million metric tons of rice worth US$2.3 billion to overseas markets in the first six months of the year, expanding 22 percent in volume and soaring 35 percent in value against the same period last year.

The increase was partly attributed to foreign rice buyers’ decisions to boost rice imports in order to replenish reserves amidst fears that El Nino will trigger extreme weather patterns, according to delegates who attended a meeting held in Hanoi on Thursday to review the country’s rice exports.

Vietnam has sustained an upward trend in rice exports over the past five years, exporting an average volume of over six million metric tons valued at more than $3 billion per year, according to Le Thanh Hoa, deputy head of the Ministry of Agriculture and Rural Development’s Agro Processing and Market Development Department.

The Philippines was the biggest buyer of Vietnamese rice in the first half of the year, importing 1.5 million metric tons worth $772 million, up 21 percent in volume and 31 percent in value year on year, and accounting for 40 percent of Vietnam’s total volume of rice shipments.

China ranked second with its purchases of more than 632,000 metric tons of Vietnamese rice worth $364 million, improving 63 percent and 79 percent, respectively, versus last year’s figures.

As for rice export prices, each metric ton of Vietnamese rice cost roughly $539, rising 10 percent compared to last year.

Hoa also attributed the rising demand for Vietnamese rice to an undersupply of other foodstuffs.

He added that the country’s rice exports could slow down a bit in the near future since domestic supplies of rice yielded in the winter-spring crop were depleted.

Bui Thi Thanh Tam, vice-chairwoman of the Vietnam Food Association (VFA), forecast that many major markets such as the Philippines, Indonesia, Malaysia, and those from Africa will continue to boost rice imports, further raising rice prices.

The VFA leader pointed out that existing major obstacles hindering local rice exporters are capital and credit.

She proposed the State Bank of Vietnam or the central bank consider offering more short-term loans and guide rice traders through procedures to easily approach loans with low lending rates.

Speaking at the meeting, Minister of Agriculture and Rural Development Le Minh Hoan told local rice exporters to urgently map out business strategies and plans for the short term, as well as provide the ministry with a list of opportunities and threats they encounter.

The minister added that Vietnam is expected to export some eight million metric tons of rice for a combined $4 billion in 2023.​

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