Africa is considered as a promising market for Vietnamese rice.Increasing the export of high-quality rice to Africa will help Vietnamraise the value of the sale of the grain to this market. Report by theVietnam Economic News.
Rapid increases in export value
According to the Vietnam Food Association (VFA), in 2013, Vietnamexported about 6.6 million tonnes of rice, and Africa was Vietnam'ssecond largest importer of the grain, behind China (exports to Africaaccounted for nearly 30 percent of the total export value of Vietnameserice in 2013). In September, exports to Africa for the first timeaccounted for nearly 70 percent of the total export volume of Vietnameserice, even higher than those to China. Currently, Vietnam exports riceto 30 out of the 55 African countries. Major African countries importingVietnamese rice include Ivory Coast, Ghana, Senegal, Angola andCameroon.
Thanks to competitive prices and high quality,Vietnamese rice has won the trust of a growing number of consumers fromAfrican countries. The price of Vietnamese fragrant rice exports toAfrica is just half of that of Thai grain of the same kingd while theyare equal in quality. However, Vietnamese businesses export rice toAfrica mostly via intermediaries and this has pushed up prices, creatingrisks for domestic businesses.
These difficulties have been, tosome extent, reduced through the signing of a number of memoranda ofunderstanding (MOUs) between Vietnam and some foreign countries in therecent period. In late March, Vietnam signed an MOU on trade in ricewith Guinea, under which Vietnam would export 300,000 tonnes of thegrain annually in the period from April 1, 2013 to December 31, 2015. Inearly August 2013, Vietnam signed a similar document with Comoros,under which Vietnam would export 60,000 tonnes of rice to Comorosannually in the period from August 2013 to the end of December 2015.Besides, Vietnam has also signed an MOU with the Republic of SierraLeone. These MOUs allow Vietnamese rice exporters to carry outtransactions directly with importers, minimising payments throughintermediaries.
Africa currently is the world’s largest riceconsumer with annual demand for over 9 million tonnes, of which 6.4-6.5million tonnes are imported. Vietnamese businesses can seekopportunities to boost rice exports to this potential market.
Increasing high-quality rice exports
Africa is a new emerging market full of potential. To penetrate thismarket, in the opinion of Hoang Duc Nhuan, Director of the AfricaDivision of the African, West and South Asian Markets Department underthe Ministry of Industry and Trade, along with exporting medium-qualityrice to Africa, domestic businesses should promote the export of higherquality rice such as fragrant and parboiled rice. In 2013, sometimes theexport volume of some kinds of rice decreased while the export volumeof fragrant rice to Africa considerably increased. In the first eightmonths of 2013, Vietnam exported to Africa 600,000 tonnes of fragrantrice, nearly half of the total volume of rice exports to this market.Vietnamese rice currently has to compete with low-priced rice from Indiaand Thailand and in this context, promoting high-quality rice exportsis considered as the key to building a firm position for Vietnamese ricein the African market.
Nhuan added that Nigeria was the world’slargest rice importer with an annual demand for about 2 million tonnes,mostly parboiled rice. However, due to high production costs, theamount of rice Vietnam exports to Africa remains low. “Large,financially capable businesses should invest in technology to producemore rice of this kind for export to the Nigerian market,” he said.
To help businesses increase rice exports to Africa, in 2014, theMinistry of Industry and Trade will send trade promotion teams to Angolaand Ivory Coast, which are large importers of Vietnamese rice, to seekpossibilities for signing MOUs so that domestic businesses can exportdirectly to these two markets. The ministry will also invite Africanbusinesses to come to Vietnam to seek partners.
Through itsdepartments and overseas Vietnamese trade offices, the ministry willhelp domestic businesses verify information about African partners andprovide them with consultancy so that they can avoid risks whenexporting to Africa. It will also create favorable conditions fordomestic businesses to open representative offices and bonded warehousesin African countries so that they can export rice directly to Africa.-VNA
Rapid increases in export value
According to the Vietnam Food Association (VFA), in 2013, Vietnamexported about 6.6 million tonnes of rice, and Africa was Vietnam'ssecond largest importer of the grain, behind China (exports to Africaaccounted for nearly 30 percent of the total export value of Vietnameserice in 2013). In September, exports to Africa for the first timeaccounted for nearly 70 percent of the total export volume of Vietnameserice, even higher than those to China. Currently, Vietnam exports riceto 30 out of the 55 African countries. Major African countries importingVietnamese rice include Ivory Coast, Ghana, Senegal, Angola andCameroon.
Thanks to competitive prices and high quality,Vietnamese rice has won the trust of a growing number of consumers fromAfrican countries. The price of Vietnamese fragrant rice exports toAfrica is just half of that of Thai grain of the same kingd while theyare equal in quality. However, Vietnamese businesses export rice toAfrica mostly via intermediaries and this has pushed up prices, creatingrisks for domestic businesses.
These difficulties have been, tosome extent, reduced through the signing of a number of memoranda ofunderstanding (MOUs) between Vietnam and some foreign countries in therecent period. In late March, Vietnam signed an MOU on trade in ricewith Guinea, under which Vietnam would export 300,000 tonnes of thegrain annually in the period from April 1, 2013 to December 31, 2015. Inearly August 2013, Vietnam signed a similar document with Comoros,under which Vietnam would export 60,000 tonnes of rice to Comorosannually in the period from August 2013 to the end of December 2015.Besides, Vietnam has also signed an MOU with the Republic of SierraLeone. These MOUs allow Vietnamese rice exporters to carry outtransactions directly with importers, minimising payments throughintermediaries.
Africa currently is the world’s largest riceconsumer with annual demand for over 9 million tonnes, of which 6.4-6.5million tonnes are imported. Vietnamese businesses can seekopportunities to boost rice exports to this potential market.
Increasing high-quality rice exports
Africa is a new emerging market full of potential. To penetrate thismarket, in the opinion of Hoang Duc Nhuan, Director of the AfricaDivision of the African, West and South Asian Markets Department underthe Ministry of Industry and Trade, along with exporting medium-qualityrice to Africa, domestic businesses should promote the export of higherquality rice such as fragrant and parboiled rice. In 2013, sometimes theexport volume of some kinds of rice decreased while the export volumeof fragrant rice to Africa considerably increased. In the first eightmonths of 2013, Vietnam exported to Africa 600,000 tonnes of fragrantrice, nearly half of the total volume of rice exports to this market.Vietnamese rice currently has to compete with low-priced rice from Indiaand Thailand and in this context, promoting high-quality rice exportsis considered as the key to building a firm position for Vietnamese ricein the African market.
Nhuan added that Nigeria was the world’slargest rice importer with an annual demand for about 2 million tonnes,mostly parboiled rice. However, due to high production costs, theamount of rice Vietnam exports to Africa remains low. “Large,financially capable businesses should invest in technology to producemore rice of this kind for export to the Nigerian market,” he said.
To help businesses increase rice exports to Africa, in 2014, theMinistry of Industry and Trade will send trade promotion teams to Angolaand Ivory Coast, which are large importers of Vietnamese rice, to seekpossibilities for signing MOUs so that domestic businesses can exportdirectly to these two markets. The ministry will also invite Africanbusinesses to come to Vietnam to seek partners.
Through itsdepartments and overseas Vietnamese trade offices, the ministry willhelp domestic businesses verify information about African partners andprovide them with consultancy so that they can avoid risks whenexporting to Africa. It will also create favorable conditions fordomestic businesses to open representative offices and bonded warehousesin African countries so that they can export rice directly to Africa.-VNA
