Vietnam Spends Nearly $1.2 Billion on Rice Imports

In the first 10 months of the year, Vietnam spent nearly $1.2 billion importing rice, an increase of almost 73% compared to the same period last year and a record high.

According to the General Department of Customs, in the past 10 months, Vietnam exported nearly 7.8 million tons of rice, earning approximately 4.86 billion USD – the highest level in history. The volume of rice exports increased by more than 10% and the value increased by about 23% compared to the previous year.

Conversely, rice imports also surged. In the first 10 months, Vietnamese businesses spent nearly $1.2 billion importing rice, a 72.9% increase compared to the same period last year. In October alone, the import value reached $148 million, a 225% increase compared to October 2023.

Reasons for the sharp increase in rice imports.

Due to the resurgence of supply from India, meeting domestic demand for low-grade rice as Vietnam prioritizes the production of high-quality goods, “Importing low-grade rice for production is reasonable,” the Vietnam Food Association assessed.

Furthermore, businesses report a shift in domestic farming trends, with farmers moving towards growing fragrant rice for export, while the demand for rice noodles and pho only requires inexpensive rice with good expansion properties. Therefore, businesses import this type of rice to reduce input costs. Currently, most imported rice is cheap broken rice from India, Cambodia, Myanmar, and Pakistan, which is cheaper than domestically produced rice.

Leaders of the Ministry of Agriculture and Rural Development affirmed that rice imports do not affect food security. Vietnam still exports millions of tons of rice every year and imports millions of tons of inexpensive rice to meet diverse market demands.

Source: VnExpress