Actively seek new markets for exported rice

The Ministry of Industry and Trade requires rice exporting enterprises to proactively seek new markets and actively purchase rice for temporary storage - Photo: BUU DAU

In response to the Philippines' suspension of Vietnamese rice imports for 60 days, starting from September 1, the Ministry of Industry and Trade has just sent a document to the People's Committees of provinces and cities, the Vietnam Food Association (VFA), and rice traders. rice export need to adjust production and business activities accordingly.

According to this ministry, the rice products that the Philippines has temporarily stopped importing are regular milled rice and highly milled rice (excluding specialty rice varieties that are not commonly produced by local farmers). Therefore, to ensure rice export activities in 2025, contributing to the implementation of the annual export target, the People's Committees of provinces and cities are requested to promptly inform rice export traders in the area to grasp the information.

Review and promptly synthesize information and opinions of the business community on difficulties and problems arising to report appropriate solutions. VFA needs to promptly inform rice export traders to adjust production and business activities accordingly.

Strengthen information updating, monitoring and forecasting to provide information on domestic and international rice production and market situation to report and propose to the Government and relevant ministries and branches solutions to promote domestic rice consumption and export.

Closely coordinate with the Philippine Rice Importers Association to actively monitor and grasp market information, change policies of the host country to promptly report and propose appropriate solutions. Support member businesses to diversify export markets, strengthen trade promotion, especially with traditional partners.

The Ministry of Industry and Trade also recommends that rice exporters, in addition to maintaining traditional markets, should proactively seek and exploit new potential markets to diversify risks and adapt. Actively purchase and temporarily store rice for farmers, strictly implement the provisions of Decree 107 and regulations related to rice export business.

Talking to us, Mr. Nguyen Tuan Viet, General Director of VietGo Company - an export consultancy unit, said that each year Vietnam exports 8 - 9 million tons of rice, but about 3.6 million tons are exported to the Philippines, accounting for more than 40% of the total turnover.

Accordingly, each month this country imports about 300,000 tons from Vietnam, so if it stops importing for 60 days, it will be equivalent to about 600,000 tons, equivalent to 7% of Vietnam's rice exports, depending on the demand each year.

According to Mr. Viet, the country's temporary suspension of rice imports is partly due to the impact of US President Donald Trump's tariff policy, which has disrupted global trade. Some rice exporting countries that are direct competitors of Vietnam such as India and Thailand are adjusting rice prices and looking for strong neighboring rice consuming markets such as the Philippines.

Therefore, Mr. Viet believes that not only the rice industry but also export enterprises must proactively seek new alternative markets, when traditional markets are difficult to maintain because the world trade order is being affected by the tax order. Also because countries with high taxes will tend to lower prices in other markets to save their products, products are at risk of being oversupplied and having their prices reduced, so they must stop or postpone imports and exports.

"Finding new alternative markets is an inevitable trend and requirement in the context of changing global trade and traditional markets are less able to play their role. Therefore, businesses need to step up trade promotion and export promotion," said Mr. Viet.

Source: https://baoquangninh.vn/tich-cuc-tim-thi-truong-moi-cho-gao-xuat-khau-3374642.html