Rice exports will continue to face many difficulties due to competition.

The Vietnam Food Association (VFA) believes that rice exports in 2016 will continue to face many difficulties due to increasingly fierce competition in the world market.

VFA gave an example of Thailand, which, due to a large inventory of old rice that had to be sold and the quality had decreased, sold at a very low price compared to the general price level of the international market and about 40 USD/ton lower than the same type of Vietnamese rice.

The orientation of the rice industry in 2016 is to maintain and consolidate the medium and low-grade rice market segment to exploit the available competitive advantages in production costs and short-term transportation costs, including the Chinese market and Southeast Asian countries. In addition, establish and in the long term expand the high-grade rice market to diversify demand. In particular, seriously implement the Prime Minister's Decision on restructuring the agricultural sector, focusing on strengthening linkages and developing the rice value chain to reduce costs, improve quality, and meet the demand of the high-grade rice market. Build the Vietnamese rice brand to enhance its position in the international market, helping rice export activities develop sustainably in the coming time.

VFA also recommended that the Ministry of Industry and Trade direct the Market Management Department to strengthen inspection and control of the pesticide market, prevent counterfeit goods, fake goods or goods with quality that does not meet regulations, affecting the quality of exported rice.

Previously, the rice export situation in early 2015 was also relatively gloomy. Rice export in the first 3 quarters of the year was low due to the lack of contracts since late 2014. New contracts signed in early 2015 also decreased due to the decrease in demand in the Asian market - the key market for Vietnamese rice. However, the market developed more positively in the last months of 2015, especially in the fourth quarter because enterprises signed a large number of contracts from the concentrated market (more than 1.45 million tons of rice), helping rice export in 2015 to complete the set target. Data from the Ministry of Agriculture and Rural Development shows that: Our country's rice export turnover reached about 6.7 million tons in 2015. Commercial rice was consumed and prices were kept stable, ensuring the target profit for rice farmers.

The structure and types of exported rice have changed significantly when the proportion of white rice has decreased, especially low-grade white rice. Meanwhile, fragrant and glutinous rice has increased sharply. Fragrant rice increased from 3.6% in 2010 to nearly 23% in 2015. Parboiled rice and Japonica rice are also popular in the market. This has created a breakthrough in the structure of types and quality of Vietnamese exported rice.

Asia, Africa and America are still the three largest markets for Vietnamese rice. Rice exports to Asia accounted for nearly 75% in 2015. Africa is the second largest market. This market mainly imports fragrant rice from Vietnam. This partly helps to compensate for the sharp decline in white rice and low-quality rice due to fierce competition from India and Thailand. America - the third largest market is relatively stable with Cuba holding the largest market share. The US, Mexico and Haiti have had significant market share growth in recent years.

According to the Communist Party of Vietnam