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Rice export strategy through neighboring countries Laos

10th May 2022 post by MOIT Vietnam

With the goal of promoting rice exports to neighboring countries such as Laos and China, under the direction, the Trade Promotion Department has and coordinated with the Vietnamese Trade Offices in ASEAN to organize an export consultation session. rice products to ASEAN countries.

According to the analysis, Laos is a country with a small population with a small demand for rice. Lao food is usually made from glutinous rice. In addition, Thailand has the largest rice export turnover to Laos in Southeast Asia.

Vientiane to the northern regions of Laos now has a high-speed railway, making it easier for Vietnamese products to get to the Chinese market and allowing them to compete more effectively.

However, according to the assessment of Ms. Le Thi Phuong Hoa, Vietnam Trade Counselor in Laos, Vietnam still has potential to export rice to Laos market. in particular, Laos also wants to boost rice exports to other markets.

Accordingly, Laos will export 50,000 tons of rice to China and up to now, Laos has not reached all of this quota. Besides, Laos receives many incentives from the EU, so exporting rice to the EU will have many advantages.

"There is now a high-speed railway from Vientiane to the northern provinces of Laos, so it is easy to transport goods and shorten the travel time. Vietnamese enterprises will have the opportunity to spread goods to the provinces. northern Laos"- Ms. Hoa shared.

Since then, this counselor said that, when the goods are covered throughout the northern provinces of Laos, businesses can easily access the Chinese market. "In the context of difficult sea transportation, transporting goods via Laos' high-speed railway will help businesses reduce costs. This is an opportunity for Vietnamese goods," emphasized Ms. Hoa.

Regarding the Malaysian market, Ms. Tran Le Dung, First Secretary of the Vietnam Trade Office in Malaysia, said that Malaysia is a country that does not have good soil conditions to grow rice. Their agriculture focuses on oil palm and rubber plantations. Their rice self-sufficiency only reaches 60% of domestic demand. Therefore, they have to import about 1 million tons annually to meet domestic demand and reserve.

Currently, Vietnamese rice occupies the most important position in the annual rice import volume of Malaysia. However, in recent years, Malaysia's share of rice imports from Vietnam has been decreasing due to higher prices compared to Indian rice and Thai rice.

"In Malaysia, Padiberasnasional Berhad is the sole importer of long white rice, which is mainly consumed in Malaysia. Therefore, Vietnam's fragrant and sticky white rice can still penetrate this market" - Ms. Information content.

Mr. Pham The Cuong, Vietnam's Trade Counselor in Indonesia, said that Indonesia is also a large rice producer, but they still have to import a large amount of rice from other countries for national reserves. The main rice supplying markets are Pakistan, Vietnam, Thailand and India. In which, imported from Vietnam is mainly high quality rice.

According to the assessment of the Vietnamese Trade Counselor in Indonesia, Vietnam's rice exports have had a certain position in the Indonesian market, always in the top three leading rice exporting countries to Indonesia.

In the context of Indonesia's limited ability to produce high-quality rice, fragrant rice, ST 24, ST 25... can completely increase their market share in this market in the near future.

"However, with the current period of fierce competition, the promotion of Vietnamese rice brands needs to be further strengthened. Many large high-quality Indonesian rice importers do not know about quality rice lines. high quality of Vietnam such as ST 24, ST 25 ..." - Mr. Cuong said.