Rice loaded for export. Việt Nam remains the largest exporter of rice to the Philippines in the first five months of 2023. VNA/VNS Photo

HCM CITY — Việt Nam remains the largest exporter of rice to the Philippines with shipments surging by 31.1 per cent year-on-year in the first five months of the year to US$772.4 million.

It exported a total of 1.5 million tonnes to the Philippines, or nearly 90 per cent of that country’s rice imports, according to the Ministry of Industry and Trade’s Asia-Africa Market Department.

Việt Nam’s total rice exports amounted to 3.6 million tonnes, it said.

More exports to the Philippines are expected in the second half due to the impact of the El Nino phenomenon, which could affect the Philippines’ domestic food production, according to experts.

Vietnamese rice exporters should closely monitor market developments and trade policies there, they said.

Market research firm Fitch Solutions said this year the global rice market was experiencing its largest shortfall in two decades.

Production was declining across China, the US and the EU, resulting in higher prices for over 3.5 billion people worldwide, particularly in the Asia-Pacific, which consumes 90 per cent of the world’s rice, it said.

It estimated the global deficit in 2022-23 would be 8.7 million tonnes, the largest since the 2003-04 crop when there was a shortage of 18.6 million tonnes.

Given the situation, rice prices were expected to remain high until 2024.

Other Asian countries such as Indonesia were also increasing their imports of rice from Việt Nam, the experts said.

Diversifying export markets

The government approved in May a rice export scheme that aims to reduce annual shipments from 7.1 million tonnes last year to four million tonnes by 2030.

Việt Nam plans to diversify its export markets to reduce dependence on any country by exploring new markets and expanding its market share in developed countries.

Its focus will be markets with high demand for quality grains and those with which it has signed free trade agreements.

Việt Nam is the world’s third largest rice exporter after India and Thailand. — VNS