Vietnam Becomes Singapore’s Top Rice Supplier Amid Price Surge | Vietcetera
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Apr 22, 2024

Vietnam Becomes Singapore’s Top Rice Supplier Amid Price Surge

Vietnam dominates the Singapore rice market with 80% export growth, while prices surge at home.
Vietnam Becomes Singapore’s Top Rice Supplier Amid Price Surge

Source: Shutterstock

Vietnam has overtaken India and Thailand as Singapore’s leading rice exporter. According to data from the Vietnam Trade Office in Singapore, Vietnam exported rice worth SGD36.15 million (approximately $26.55 million) in the first quarter of this year, marking an impressive 80.46% increase compared to the same period in 2023. This achievement translates to capturing 32.03 percent of the market share.

Thailand trailed behind with an export value of SGD33.63 million, while India ranked third with SGD33.16 million in exports.

The surge in export value can be attributed to the remarkable growth in sticky rice, milled or peeled fragrant rice, and broken rice, with turnovers reaching SGD3.79 million, SGD18.06 million, and SGD575,000, respectively. Notably, alongside Vietnam’s traditional staple of white rice, the increased turnovers in these product categories played a pivotal role in securing the majority of the market share in Singapore.

Despite stiff competition from Thailand, India, and Japan, Vietnam benefited from India’s temporary ban on rice exports since July 20, 2023, which allowed it to expand its market share in Singapore. However, the Vietnam Trade Office advised local rice exporters to continuously enhance competitiveness and uphold the quality of their products.

To consolidate its position as the top rice supplier in Singapore, the office plans to organize more exhibitions to showcase Vietnamese rice and increase its visibility in the market. Data from the Accounting and Corporate Regulatory Authority (ACRA) of Singapore revealed that rice imports surged to nearly SGD112.9 million in the first three months of this year, representing a 23.86% year-on-year increase.

In order to sustain its leading position, the office emphasized the importance of collaboration among ministries, sectors, localities, associations, and businesses to promote Vietnamese rice products and trademarks. Additionally, the signing of a memorandum of understanding in rice trading between Vietnam and Singapore is anticipated to bolster bilateral trade and support Vietnam’s status as the primary rice supplier to Singapore.

Also Read: What Future Awaits Vietnam’s ‘Rice Bowl’?

Vietnamese rice prices experience an upward trend

Source: Delicious Vietnam

According to the Vietnam Food Association (VFA), Vietnamese paddy and rice prices witnessed a notable increase last week. The average paddy price in fields rose to VND8,000 (approximately $0.31) per kilo, with the highest reported being VND8,050. Similarly, the average price for paddy at warehouses expanded to VND9,475 per kilo, reaching a peak of VND9,650.

Meanwhile, pricing for broken rice varieties saw an upward trajectory, with 5% broken rice priced at VND14,200 per kilo, 15% broken rice at VND13,950, and 25% broken rice at VND13,750. Premium white rice also experienced a price hike, increasing by VND35 per kilo to VND14,010.

In the export market, Vietnamese 5% broken rice was priced at $582 per tonne, surpassing Thailand’s $579 and Pakistan’s $581. Similarly, Vietnam’s 25% broken rice commanded a price of $557 per tonne, compared to Thailand’s $530 per tonne.