Although Vietnamese rice has been exported to some of the world's most demanding markets, much work remains to establish a strong brand so that when rice is mentioned, Vietnam is immediately thought of.

Despite being among the top rice-exporting countries by volume, the image of Vietnamese rice remains "dull" in many markets and is not yet a preferred choice for consumers. Addressing these issues is crucial to enhancing export value and creating sustainable outlets for Vietnam's agricultural sector.

Brand Still Lacks Prominence

In 2023, rice exports achieved impressive numbers with 8.1 million tons valued at 4.68 billion USD, marking increases of 14.4% and 35.3% compared to the previous year. ASEAN remains Vietnam's largest rice export market, accounting for 61% of the country's total rice exports with 4.9 million tons, up 24% from the previous year.

According to preliminary statistics from the General Department of Customs, in January 2024, the country exported 512,265 tons of rice worth 362.26 million USD, with an average price of 707.2 USD/ton. This represents a 4% increase in volume and a 2.8% increase in price compared to December 2023. The Philippines leads in rice consumption from Vietnam, accounting for 53.6% of the total volume and 39% of the total export value, reaching nearly 280,944 tons, equivalent to about 194.28 million USD, with an average price of 691.5 USD/ton.

Despite significant export volumes, according to Mr. Phung Van Thanh, Vietnam's Trade Counselor in the Philippines, the Vietnamese rice brand is not highlighted by importers compared to Japanese and Thai brands. As a result, origin labels on packaging are often smaller and harder to notice.

"Previously, when Filipinos thought of rice, they thought of Thai and Japanese rice. Although they consume Vietnamese rice, it is not highly regarded. This creates a challenge in building the brand so that when it enters supermarkets and retail stores in the Philippines, they proudly display 'Product of Vietnam' or 'Vietnamese Rice.' This would be beneficial for the Vietnamese rice industry," Mr. Thanh recommended.

Therefore, Mr. Thanh suggested that in addition to increasing export volume and value, improving quality and enhancing the reputation of businesses, efforts should focus on brand building.

Similarly, in Indonesia, Vietnam is among the top three rice suppliers. However, Mr. Pham The Cuong, Trade Counselor of Vietnam in Indonesia, noted that Vietnamese rice faces significant challenges in this market, particularly intense competition with Thai rice in the high-quality segment, while the Vietnamese rice brand is not yet well-established in Indonesia.

The Trade Office recommends that Vietnamese rice exporters should pay more attention to strategic brand promotion, focusing on high-quality Vietnamese rice varieties through various channels and promotional methods.

Ensuring rice quality, meeting quarantine standards, and adhering to delivery times and contract agreements are crucial, as the number of licensed importers in Indonesia is limited. Participating in trade fairs to promote the Vietnamese rice brand is also recommended.

Opportunities for Enhanced Position

In the Netherlands, where rice is not a staple food and the culinary culture is influenced by Indonesia, Suriname, and India, Basmati rice is preferred over fragrant rice. Currently, Vietnamese rice is primarily imported and distributed in Asian-owned supermarkets, with limited presence in supermarkets in Pakistan, Turkey, and China, and has yet to reach major Dutch supermarkets. However, the Netherlands is a key gateway for trade into Europe, including rice trade.

Ms. Phan Thi Nga, First Secretary of the Trade Office of Vietnam in the Netherlands, mentioned that the Netherlands imports rice from 241 countries and territories worldwide. Vietnamese rice accounts for 2.6% of the total rice import value in the Netherlands. Retail prices for Vietnamese rice in Asian supermarkets are higher than those for Thai and Cambodian rice, ranging from 3.85 to 4 EUR/kg, compared to 3.65-3.85 EUR/kg for Thai fragrant rice and 3.5-3.65 EUR/kg for Cambodian rice.

"Thai and Indian rice has had an early presence in the market and has established a strong foothold due to stable quality over a long period. In contrast, Vietnamese rice quality remains inconsistent, and its higher price compared to Thai and Cambodian rice leads many consumers to revert to Thai rice for its stable quality and better price," a representative from the Trade Office in the Netherlands shared.

Leveraging Opportunities to Enhance Status

Rice is an essential commodity, with more than 50% of the world's population consuming it daily. Vietnam is one of the top three rice-exporting countries globally, accounting for about 15% of total global rice exports.

However, the successful branding experience of Vietnamese rice in Australia presents an opportunity for businesses to enhance the value of this billion-dollar commodity.

Ms. Nguyen Thu Huong, Trade Attaché of Vietnam in Australia, noted that previously, Australian consumers were only familiar with Thai rice, despite Vietnam being a major rice exporter. The Trade Office took advantage of the opportunity when ST25 rice won the World's Best Rice award, launching widespread promotion even before ST25 was exported to Australia. This promotion led many Australian importers to express interest in ST25. The Trade Office organized major events to sample ST25 and other Vietnamese rice varieties across Australia, including remote areas like Northern Territory, six hours from Sydney. Currently, Vietnamese rice with various brands is well-known in Australia.

"Through ST25's success, the Trade Office promoted the slogan: 'Vietnam, the Land of the Best Rice in the World,' to enhance the status of all Vietnamese rice varieties," Ms. Nguyen Thu Huong shared.

According to agricultural expert Vo Tong Xuan, among agricultural products, rice has the strongest potential for brand building. While Vietnamese rice has been exported to some demanding markets, much work remains to establish a strong brand so that rice is immediately associated with Vietnam.

The expert recommends that businesses and producers enhance their cultivation processes to sell not just a nutritious product but also a story and a brand.

From the management perspective, Mr. Vu Ba Phu, Director of the Trade Promotion Agency, stated that the Ministry of Industry and Trade has been and will continue to implement various trade promotion measures to support businesses in diversifying export markets and finding strategic partners. This will help maintain and enhance the position and brand of Vietnamese rice in major export markets, especially those with Free Trade Agreements, while collaborating with relevant ministries and localities to assist businesses in overcoming trade barriers and trade defense measures.

Additionally, the Ministry of Industry and Trade recommends that localities, the Vietnam Food Association, and traders proactively build high-yield, quality regional supply chains that meet market requirements and food safety standards, ensuring a stable and sustainable supply.

Furthermore, sharing information and proposing solutions for market development, closely coordinating with units of the Ministry of Industry and Trade and the Vietnamese trade offices abroad to build and implement practical and effective trade promotion activities to support rice businesses in exploring diverse export markets and enhancing the industry's brand position.

Source: Vietstock