Favourable time for Vietnamese rice enterprises

Vietnam’s rice industry enjoys favourable factors, such as weather and geographical advantage, says an expert. — Reuters

HANOI: The Vietnamese rice industry is set to benefit from high demand and prices this year, with lower input costs leading to expanded profit margins for rice businesses, Vietnam News Agency reports.

According to an expert from Vietnam Securities Co Ltd Bank for Foreign Trade (VCBS), the country’s rice industry enjoys favourable factors, such as weather and geographical advantage.

The prolonged drought in China has caused a decrease in the country’s output for the 2021-2022 crop, leading to an anticipated six million tonne increase in rice imports for the 2022-23 crop.

Meanwhile, inventories in the Philippines have declined due to typhoons and high fertiliser costs, leading to increased rice imports.

The cultivated area in India has also dropped due to drought, making the decrease in supply in India the main factor for the forecast of the global rice deficit.

Despite these challenges, the hydrological situation in Vietnam has been stable, with heavy rain in the past year and a neutral outlook in the first half of this year, leading to sound output.

VCBS highly appreciates the possibility that Vietnam will benefit from the upward trend in rice prices due to limited supply and the shift in demand from India this year.

The total commodity of rice is expected to reach 4.1 billion tonnes in the first six months of this year, with rice exports reaching 390,000 tonnes in January. — Viet Nam News/ANN

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Vietnam , rice , demand , prices , output


Next In Business News

FBM KLCI slips below 1,400 support in opening minutes
Rupee set to rebound from near record low
Bear market looms for China stocks in Hong Kong
Cloudpoint’s share price nearly doubles on ACE Market debut
IJM Corp expects better outlook for all its divisions
Impact of excluding T20 from fuel subsidies
DRB-Hicom to leverage on strong auto segment
Calls for policy support to spur demand
Biden pact puts brakes on US economy
Thai central bank to deliver final rate hike

Others Also Read