17-Sep-2022 Intellasia |
A number of Vietnamese rice businesses are planning to export high-quality products like ST25 to demanding markets such as Japan, Australia, the UK, and the EU.
ST25, which was crossbred by engineer Ho Quang Cua and recognised as the world’s best rice in 2019, is becoming increasingly popular in the global market.
Tan Long group which specialises in animal feed processing and rice exports, recently announced plans to introduce ST25 branded A An into the European market after the Vietnamese rice was positively received in Japan.
In June Tan Long successfully delivered its first shipment of ST25 rice branded A An to Japan after it passed the extremely rigorous testing process of more than 450 indicators. This was the first time that a domestic rice brand had been successfully exported to Japan widely viewed as a highly demanding market.
Most notably, its ST25 rice was part of the menu of dishes made for the Japanese Cabinet Office on September 2.
Meanwhile, Ho Quang Tri, a private business specialising in rice, corn, and other cereal grain processing, and EUTEK group of the UK signed a contract on September 8 to exclusively distribute ST 25 rice branded Cua ST25 Rice in the UK.
Nguyen Hai Nam, business development manager of EUTEK Group, said the successful penetration of Cua’s rice into the UK market clearly demonstrates the rising position and future potential of Vietnamese rice in the global market. He noted that his group is currently focusing on marketing so it can distribute more rice and other specialties from Vietnam to this market.
Moreover, the Ho Quang Tri firm reached a deal with AusViet Food Trading PTY.Ltd in early August to sell Cua ST25 Rice in Australia.
Early September also saw Loc Troi Group introduce the Vietnamese rice product branded ‘Com Vietnam’ at Carrefour Ormesson and E.Leclerc Viry Chatillon hypermarkets in France. A representative of the group said that roughly 860 tonnes of Jasmin rice will be sold throughout E.Leclers’ outlet chains for the medium segment, whilst higher-quality rice will be delivered to the outlet chain during the Vietnamese week slated for this November.
This positive news has motivated local businesses to improve their product quality and develop brands as they seek to make inroads into the demanding markets. According to statistics unveiled by the Ministry of Agriculture and Rural Development, as of August 15, Vietnamese rice exports reached more than $2.3 billion, up 8.1 percent in value over the same period from last year.
When the EU Vietnam Free Trade Agreement (EVFTA) took effect in August, 2020, the bloc offered Vietnam a quota of 80,000 tonnes of rice a year. In particular, the EU completely liberalised Vietnamese broken rice, presenting a prime opportunity for the product to gain a firm foothold within the EU, a market with very high requirements for product quality.
India, the world’s largest rice exporter, recently decided to impose taxes on several varieties of rice for export as a means of ensuring domestic supply due to reduced output. The move that came into effect on September 9 is anticipated to disrupt global food markets and exacerbate any potential food issues.
As a consequence, India’s for-export rice will prove to be less competitive in the international market, and importers are likely to shift to other rice exporters such as Thailand and Vietnam. In addition, Vietnam announced it has enough rice output to ensure rice exports from 6.5 to 6.7 million tonnes this year.
It is noteworthy that the enforcement of Free Trade Agreements (FTAs) such as those between Vietnam and the UK (UKVFTA), the EVFTA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will be the driving force behind the rapid growth of trade, including rice trading, between Vietnam and its partners.
Vietnamese rice, when it is accepted into demanding markets and given tax preferences due to the FTAs, will certainly enhance its competitive edge in the world market.
Category: Business, Vietnam
Article source: https://www.intellasia.net/rice-businesses-seek-to-penetrate-demanding-markets-1092175