News from the Philippines that the country will increase its rice imports for the remaining months of 2024 is seen by Vietnamese businesses and farmers as a significant opportunity for Vietnamese rice.

Despite heavy rains and storms, the output and quality of rice grown in the Mekong Delta provinces of Vietnam during the summer-autumn crop are expected to surpass those of the same period last year.

According to recent findings by Tuoi Tre (Youth) Newspaper, the price of rice this year is significantly better due to rising demand for imported rice from several nations.

Optimistic about rice pricing 

Nguyen An Thanh, a farmer in My Xuyen District, Soc Trang Province in the Mekong Delta, has been cultivating his 10,000 square meters of rice for more than 40 days.

It will take him around 60 more days to harvest the summer-autumn crop.

While Thanh takes great care of his rice, he is also concerned about potential fluctuations in rice prices.

As a farmer whose income primarily depends on two rice crops per year, Thanh is surely thrilled to hear about the Philippines' growing need for imported rice.

Nguyen Van Co, another farmer with a 20,000-square-meter rice field in Tran De District, Soc Trang, stated that Vietnamese farmers' rice-growing skills had greatly improved over time.

Aside from selecting high-quality rice varieties, the farmers have used numerous contemporary agricultural techniques to assist in cutting CO2 emissions and reducing the usage of chemical fertilizers and pesticides as well. 

"The Philippines' rising demand for imported rice is good news for our country, particularly its farmers. Aside from the Philippine market, I believe we should consider developing excellent products that can enter other markets, which would assist in adding value to our rice while also increasing farmers' incomes," Co remarked. 

Huynh Kim Trang, a farmer in Tri Ton District, located in the delta's An Giang Province, has recently sold rice at VND7,500 (US$0.33) per kilogram for the OM18 grain, as agreed upon two weeks ago.

Despite the lower rate, Trang's family has already received more than VND60 million ($2,553) for three hectares of rice.

"The rice price for the summer-autumn season is higher than it was last year. If other countries buy more, farmers will be able to sell rice at a greater price," Trang said, adding that constant rains have hampered this season's yield.

According to Lam, a seasoned rice merchant with 25 years of experience in the Mekong Delta who lives in Chau Thanh District, An Giang, the output and quality of rice during the summer-autumn season are often lower than those of the winter-spring season due to rainy weather patterns.

Lam buys about 300-400 tonnes of rice daily as raw materials for resale in the domestic market.

More opportunities

According to Nguyen Van Van, head of Tri Ton District's agricultural and rural development office, more than 22,000 hectares of rice were harvested early in the summer-autumn season, accounting for more than 52 percent of the total.

While the Dai Thom 8 and OM18 varieties fetch VND7,400 ($0.32) to VND7,600 ($0.33) per kilogram, the IR50404 variation is priced at VND7,200 ($0.31) a kilogram.

Although costs are VND200 ($0.009) per kilogram lower than the previous month, they remain higher than the same period last year.

"Constant rains have affected both the harvesting process and seasonal output. This year's summer-autumn rice crop has yielded good results, with production exceeding 0.2 tonnes per hectare. Although prices have risen somewhat, this has excited farmers. For me, the news that the Philippines will increase rice imports is fantastic for farmers right now," said Van.

Dai Duong Xanh firm from the Mekong Delta province of Kien Giang primarily exports rice to the United States, the EU, and the Middle East, rather than the Philippines, according to an executive.

However, the news from the Philippines has delighted both farmers and exporting businesses.

In the domestic market, rice prices range from VND13,000 ($0.56) to VND14,000 ($0.61) a kilogram, with no significant fluctuations.

"We only conduct our own business when there are orders, as other companies do not purchase significant quantities of commodities. Even though India has imposed a ban on rice exports, they continue to ship other types of rice at higher prices. I see this as part of their strategy, as they claim it is to ensure food security. With a large population, India often maintains substantial rice inventories," stated a Dai Duong Xanh executive.

Pham Thai Binh, chairman of Trung An Hi-Tech Farming JSC in the delta's Can Tho City, told Tuoi Tre that Indonesia's National Logistics Agency (Bulog), responsible for ensuring food security across the country, is set to announce a new tender to purchase 320,000 tonnes of rice for delivery in August or September.

According to Binh, this presents a significant opportunity for many nations and highlights the substantial demand for food security, particularly among Vietnam's key rice-importing partners.

"The need for rice is exceedingly high. Given this strong demand, it would be inappropriate for us to lower prices. The quantity of rice is decreasing due to the impacts of climate change, so the greater the demand for rice, the more opportunities arise for us," Binh stated.

According to Binh, Vietnam has exported over 4.8 million tonnes of rice, generating over $3 billion in revenue.

To fulfill the increased demand for rice from the Philippines and Indonesia, Vietnam has aggressively planned for supply.

However, the quality of rice during the summer-autumn season is inferior to that in the winter-spring season, according to Binh.

He also mentioned the one million hectares of high-quality rice project being implemented in the Mekong Delta, which he believes will create favorable conditions for both farmers and enterprises, thereby enhancing the quality of rice supply chains while also improving the livelihoods of the farmers.

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