Building Vietnamese rice brand to increase export value

Vietnam is one of the largest rice exporters in the world, but the value of exported rice is still low because it has not yet built a brand.

Up to this point, Vietnamese rice exporting enterprises have signed contracts to export more than 1 million tons of rice. This is also a positive signal for rice exports this year. However, the value of Vietnamese rice exports is still low and little known to world consumers.

Mr. Bui Huy Hoang, Vietnam's trade counselor in China, said that in 2015, Vietnamese rice accounted for 54% of China's total rice imports, but when he went to supermarkets and rice retail stores in this country, he could not find rice of Vietnamese origin or brand. Meanwhile, Vietnam's rice export competitors such as Thailand, Pakistan, and even Cambodia are surpassing Vietnam in exporting high-quality rice and building brands.

According to Mr. Hoang, the role of the Food Association is to research and coordinate with the trade agency to build the Vietnamese rice brand in the Chinese market.

Vietnam's rice exports are among the top in the world. (Illustration: Vneconomy)

Vietnam's rice export orientation will expand the market to the US, Korea, and Europe. However, with the current business practices and low quality of rice, Vietnamese rice will find it difficult to penetrate these markets. Regarding the 7 banned active ingredients in rice that other countries have introduced, Vietnam has no specific regulations on the list and permitted content.

Recently, some batches of rice exported to the US have been returned due to unsatisfactory testing. Faced with this situation, businesses have also requested that the Ministry of Industry and Trade invest in building an internationally-standard laboratory in the Mekong Delta.

Mr. Nguyen Trung Kien, Chairman of the Board of Directors of Gentraco Joint Stock Company, proposed that the Food Association and trade counselors continue to support businesses with information on policies on quality management, food safety, plant quarantine, TPP roadmap for rice, and tariff policies. Mr. Kien said that it is necessary to support businesses with trade disputes, technical barriers, etc.

At present, businesses still have to maintain two market segments: exporting to China and exporting to other high-end markets. Currently, Vietnam's high-quality rice accounts for 27% of export output. However, to expand and promote exports to the US, Korea, Europe, etc., Vietnamese businesses and farmers need to do many things such as investing in: seeds, clean rice quality, building large-scale fields, building brands and promoting trade. For these things, businesses and farmers really need the support of the State.

Mr. Huynh The Nang, Chairman of the Southern Food Association, General Director of the Southern Food Company said: "The orientation of building a value chain associated with improving the quality of rice grains and moving towards building a rice brand is expected to have a very specific plan in the first quarter of 2016 to bring the Association's enterprises forward to lead the Vietnamese rice market in the coming time."

On the side of the Ministry of Industry and Trade, Deputy Minister Tran Tuan Anh affirmed that in the coming time, it will continue to actively support export enterprises to increase the value of rice grains, reduce risks in export through connecting export hubs, and innovate trade promotion methods. The Ministry also coordinates with relevant ministries and branches to remove difficulties for enterprises in export, and promote the building of Vietnamese rice brands.

Deputy Minister of Industry and Trade Tran Tuan Anh emphasized: "We must promptly coordinate with host countries to implement integration and opening commitments, then there will be guidelines for Vietnamese businesses and products to access this market and meet the technical and quality standards of these countries."

If rice exports only focus on one large market like China, it is not a sustainable direction in the long term, especially when the market fluctuates. However, to increase the value of rice grains and export rice to demanding markets, farmers, businesses and relevant ministries must accelerate the building of the Vietnamese rice brand.

According to VOV