TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

PRACTICES OF INTERNATIONAL TRADE REPORT

TITLE: EXPORT ACTIVITIES OF VIETNAMESE RICE

TO INTERNATIONAL MARKER
SUPERVISOR: NONG THI NHU MAI

FOR EXAMINERS ONLY

Garde (in number)

Group: 7
………………
Class: 22K70601
Semester: 01
Grade (in words)
Academic year: 2023-2024
………………
Lecturer: Nong Thi Nhu Mai
Submission date: 11/12/2023
Examiner (Signature & Full name)
………………

HO CHI MINH CITY, 11TH NOVEMBER 2023

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 LIST OF GROUP MEMBERS AND EVALUATION

NAME STUDENT ID TASK EVALUATION

Chapter 2.4, Chapter 2.5,

Huynh Ngoc Thuy Vy 722K0040 100%
Synthesis the report

Chapter 2.1, Chapter 2.2,

Pham Ngoc Xuan Quy 722K0056 Chapter 2.3, Synthesis the 100%
report

Do Anh Quoc 722K0033 Chapter 1.3, Chapter 3 98%

Tran Huu Thanh Cong 722K0064 Chapter 1.1, Chapter 1.2. 98%

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 COMMENTS FROM LECTURER
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Contents
Introduction: .......................................................................................................................... 5
Chap 1: Overview of the rice export activities in Vietnam: ..................................................... 6
1. Information of five most exported rice: ........................................................................ 6
2. Overview of the situation VN rice export: .................................................................... 8
3. Overview of Vietnam rice consumption in foreign market:........................................... 9
Chap 2: Analyses of rice export situation in Vietnam: .......................................................... 10
1. Rice market: ............................................................................................................. 10
2.1.1: Rice export markets to foreign countries in Vietnam: .......................................... 10
2.1.2: Rice export price: ............................................................................................... 12
2. General process of exporting rice: ............................................................................ 15
2.2.1 Negotiation and sign commercial/sales contract: ........................................... 16
2.2.2 Apply for exporting liscense: .......................................................................... 16
2.2.3 Make arrangements with your transport operator: .......................................... 16
2.2.4 Prepare goods and documents: ..................................................................... 17
2.2.5 Pull the empty container case, pack and ship to port: .................................... 17
2.2.6 Insurance: ...................................................................................................... 17
2.2.7 Export customs clearance: ............................................................................. 17
2.2.8 Ship fowarding: .............................................................................................. 18
2.2.9 Make payment: .............................................................................................. 18
3. Some documents in the rice export trade contract: ................................................... 18
4. SWOT analysis: ........................................................................................................ 19
4.2.1 Strength: ........................................................................................................ 19
4.2.2 Weakness: ..................................................................................................... 21
4.2.3 Opportunity: ................................................................................................... 21
4.2.4 Challenge: ..................................................................................................... 22
5. FTA – Free Trade Agreement ................................................................................... 22
Chapter 3: Recommendation: ............................................................................................. 24
Conclusion .......................................................................................................................... 25
Reference ........................................................................................................................... 25

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Introduction:
Rice production is an important part of Vietnam's economy and food supply. Vietnam
is one of the world's richest agricultural regions and is the second-largest exporter of
rice worldwide. The Mekong and Red River deltas are the heart of the rice producing
region of the country, where water, boats, houses, and markets coexist to produce a
generous harvest of rice. The Mekong Delta is the most prominent irrigated rice
system in Vietnam, which is the heart of the rice-producing region of the country. Rice
is a staple of the national diet and is seen as a "gift from God". In recent years,
Vietnam has also made efforts to expand its rice export markets beyond traditional
buyers. While countries like China, the Philippines, and Indonesia remain major
importers of Vietnamese rice, our country has successfully diversified its customer
base. Vietnam now exports rice to countries in Europe, Africa, and the Americas,
establishing new trade partnerships and increasing its global reach. The export of rice
has had a significant impact on Vietnam's economy. It contributes to the country's
agricultural sector, providing income and employment opportunities for farmers and
workers involved in the rice value chain. Additionally, rice exports generate foreign
exchange earnings, contributing to the overall economic growth of our country. The
revenue generated from rice exports is often reinvested in infrastructure development,
education, and healthcare, benefiting Vietnamese citizens and communities. Vietnam's
exporting rice industry has emerged as a major player in the global market. Vietnam's
favorable climate, commitment to quality, and efficient production practices have
positioned it as a reliable and competitive supplier of rice. With continued investments
and strategic partnerships, Vietnam is well-positioned to further expand its presence in
the international rice trade.
Research subjects: Vietnamese rice exports.
Research purposes:
- Present information you need to know about rice export markets from Vietnam to
foreign countries.
- Show the general process of exporting.
- List the SWOT of the Vietnamese rice market and take out solutions.

5
Chap 1: Overview of the rice export activities in Vietnam:
1. Information of five most exported rice:
- Vietnamese rice, renowned for its exceptional quality and cultural significance,
holds a revered place in the culinary heritage of Vietnam. As a staple food that
has sustained generations, its versatility and unique flavor have made it an
integral part of the country's rich gastronomic tradition. From traditional dishes
to modern interpretations, Vietnamese rice serves as the cornerstone of a diverse
array of culinary creations that showcase the depth and complexity of
Vietnamese cuisine.

• White rice
- White rice is a type of rice that has had the husk, bran, and germ removed, but
still retains the nutritious inner kernel. This milling process helps extend its shelf
life, but also removes many important nutrients, such as fiber, minerals, and
vitamins.
- In terms of Vietnam's rice exports, white rice accounts for 38.2%. The largest
markets for Vietnamese white rice exports are the Philippines at 59%, Cuba at
10%, and Bangladesh at around 5%.
- According to the Vietnam Food Association, Vietnamese white rice is currently
trading at $488-492 per ton for 5% broken rice, and $463-467 per ton for 25%
broken rice. Compared to similar white rice from other major exporting
countries, Vietnamese white rice currently commands the highest price.
• Jasmine rice
- Jasmine rice was officially imported into Vietnam from the Philippines in 1992.
This type of rice is mainly grown in the Mekong Delta region during two
seasons: summer-autumn and winter-spring.
- Jasmine rice is known for its long, white grains, firm texture, and light fragrance
when cooked. It's also affordable, making it a popular choice for both consumers

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 and restaurants. Not only is it visually appealing, but Jasmine rice is also of high
quality and is often exported to countries within and outside the region.
- According to the Vietnam Food Association, the export price of Jasmine rice has
remained stable at around 583-587 USD/ton. Additionally, shortly after the
EVFTA agreement took effect, Trung An High-Tech Agriculture Joint Stock
Company signed a contract to export about 3,000 tons of ST20 and Jasmine rice
to Europe, with Jasmine rice priced at over 600 USD/ton.
• Fragrant rice
- Fragrant rice is a type of rice with long grains, little chalkiness. When cooked,
it's soft, sticky, and has a distinctive fragrance. Fragrant rice, especially the Lai
fragrant rice variety, is grown extensively in the Can Duoc, Long An region.
- Fragrant rice is considered a competitive export product for Vietnamese
enterprises. As the rice export market in the Asian region begins to pick up, many
potential customers have been eagerly buying in. This is particularly true for
markets like China and Bangladesh.
- Among the various types of rice exported by Vietnam, fragrant rice is estimated
to reach 716,000 tons, accounting for 34%. The average export price of fragrant
rice in May 2021 was about 536 USD/ton, an increase of 12 USD/ton compared
to the same period last year. Right after the EVFTA agreement took effect, the
Trung An High-Tech Agriculture Joint Stock Company successfully signed a
contract to export ST20 fragrant rice (5% broken) to the EU for over 1,000
USD/ton.
• Sticky rice
- Sticky rice is a type of rice that's common in Asia. It has short grains, a milky
white color, and low amylose content. When cooked, it's sticky and fragrant.
- In terms of nutrition, sticky rice has high starch and calorie content. In 100
grams, there are about 344 calories. It also contains plenty of vitamin B, calcium,
protein, and it's gluten-free, making it safe for people with Celiac disease.
- Vietnam exports a significant amount of sticky rice, with China being the largest
market, followed by Malaysia and the Philippines. The average export price in
May 2021 was around $474 per ton.
• Japonica rice
- Japonica rice is a high-quality rice originating from Japan. The rice quality is
guaranteed to be high, so Japonica rice is very popular. This is an exported rice
variety of Vietnam to many markets such as China, Japan, and South Korea...
- Unlike other types of rice, Japonica rice grains are round, plump, thick, and
harder. The rice is also stickier due to its high amylopectin content. It has a gentle
fragrance when smelled and a sweet and refreshing taste when eaten. The
nutritional value of Japonica rice is also higher because the rice grains are rich
in minerals and vitamins such as B1, B2, E, K,...
- In addition, Japonica rice is also known as an organic rice variety; it is not
fertilized, pesticide-free, and preservative-free. In terms of export value,
Japonica rice and Japanese rice varieties account for about 2.7%.

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2. Overview of the situation VN rice export:
- According to the Ministry of Agriculture and Rural Development, the rice export
turnover in the first 9 months of 2023 reached 3.66 billion USD, up 40.4%
compared to the same period last year. This figure has exceeded the highest rice
export value ever achieved in 2011 (3.65 billion USD).

- It is noteworthy that achieving an export value of 3.66 billion USD in the first 9
months of 2023 with only 6.6 million tons of rice exported. In 2011, to achieve
3.65 billion USD, 7.1 million tons of rice were needed.
- This is because the average export price of rice from the beginning of the year
until now has always been high, reaching 553 USD/ton, an increase of 14%
compared to the same period last year. There were even times when the export
price of Vietnamese rice reached nearly 650 USD/ton.
- Recently, the price of rice exports has been slowing down due to the actions of
some importing countries to curb inflation. They are focusing on domestic
production policies to increase reserves, stockpiles, and seek alternative food
sources for rice. However, Vietnam's rice export prices are still leading the
world. According to the Vietnam Food Association, from October 4th to 10th,
the prices of various types of Vietnamese rice remain stable, while there is a
slight decrease in some countries such as Thailand and Pakistan.
- Specifically, the price of Vietnam's 5% broken rice is $613/ton, while
Thailand's is $586/ton (a decrease of $4/ton), and Pakistan's is $558/ton (a
decrease of $30/ton).
- Vietnam's 25% broken rice is $598/ton, Thailand's is $538/ton (a decrease of
$3/ton), and Pakistan's is $498/ton (a decrease of $20/ton).
- The Ministry of Agriculture and Rural Development has reported that in 9
months, the whole country has harvested 33.6 million tons of rice, an increase of
0.7% compared to the same period last year. The provinces and cities in the
Mekong Delta region have planted 625.7 thousand hectares of Winter-Spring
rice, an increase of 8.8%. Currently, some areas of Winter-Spring rice have been

8
 harvested in the context of "good season, good price", and farmers are benefiting
from good profits.
- In the Mekong Delta region alone, in 2023, the rice cultivation area is estimated
to reach over 3.8 million hectares, an increase of more than 13 thousand hectares;
the expected yield is 62.81 quintals/ha, an increase of 0.88 quintals/ha, and the
expected output is nearly 24 million tons, an increase of 416 thousand tons
compared to 2022.

3. Overview of Vietnam rice consumption in foreign market:

"In recent years, the rice industry has experienced remarkable development, achieving
significant results. Annually, Vietnam's rice exports account for approximately 15% of
the total global rice export volume. Currently, Vietnamese rice is present in over 150
countries and territories around the world."

- According to the Ministry of Agriculture and Rural Development, rice exports

have continuously accelerated, since India stopped exporting regular rice,
Vietnam took advantage of market opportunities in August and September of
2023.
- In August 2023, rice exports reached 950,000 tons with a value of 553 million
USD. In September, Vietnam continued to export more than 800,000 tons of
rice with a value of about 490,000 USD. Vietnam has become the world's
largest rice supplier in the past 2 months. Thus, in just the past 2 months,
Vietnam has provided the world market with nearly 1.8 million tons of rice; It
not only contributes to ensuring supply for the world but also brings economic
benefits to rice growers.

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 - Rice exports once set a record turnover value of 3.65 billion USD achieved in
2011, but the total export output of that year was 7.1 million tons. Continuously
from 2012 to 2018, export rice prices decreased, causing export turnover to
always be below 2.5 billion USD. By 2019, rice exports gradually increased
again and regained the 2.7 billion USD mark. In 2022, rice export turnover
reached 3.5 billion USD, but has not yet broken the record of 3.65 billion USD
in 2011.
- Total rice export turnover in 2022 is estimated at 7.17 million tons, worth USD
3.49 billion with 3 export markets accounting for the largest turnover,
respectively the Philippines ranked first, China ranked second, and Ivory Coast
ranked third.
- According to the Rice Industry Report in December 2022 and 2022, the
Information Center for Agriculture and Rural Development said that the
volume of rice exported in December 2022 is estimated at 500,000 tons worth
USD 257.2 million, an increase of 1.2% in volume and 0.9% in value over the
same period in 2021.
- Thus, the total rice export turnover for the whole year of 2022 is estimated at
7.17 million tons, worth USD 3.49 billion, an increase of 14.9% in volume and
6.2% in value over the same period last year.
- In which, the Philippines is Vietnam's largest rice export market with 3.0
million tons, worth US 1.39 billion, accounting for 38.8% in volume and
42.9% in value of Vietnam's total rice exports in the first 11 months of 2022.
- Compared to the same period in 2021, rice exports to the Philippines increased
by 30.1% in volume and 18.0% in value. China ranked second with 807.9
thousand tons, worth USD 408.5 million, accounting for 16.3% in volume and
12.6% in value, a decrease of 19.2% in volume and 17.4% in value over the
same period in 2021.

Chap 2: Analyses of rice export situation in Vietnam:

1. Rice market:
Vietnam is one of the major exporters of agricultural products in the region and the
world. In particular, rice is one of the main agriculture export products of Vietnam and
one of the exported agricultural products of Vietnam and one of the exported
agricultural products with strong export turnover in recent years.
2.1.1: Rice export markets to foreign countries in Vietnam:
• ASEAN:
- Vietnam is competing directly with Thai rice in ASEAN countries - a
market that is increasingly fastidious in terms of quality and price
competition. With a population of nearly 700 million people, ASEAN is a

10
 market with many similarities in culture, lifestyle... with Vietnam. This is
also a market for importing many types of goods and agricultural products
from Vietnam, including rice. In particular, , followed by Indonesia.
- Mr. Pham The Cuong, Vietnam Trade Counselor, said that in 2020, the
volume of imported Vietnamese and Thai rice is similar, but now
Vietnamese rice tends to surpass due to quality and competitive price.
- The structure of Vietnamese rice exports is shifting towards increasing “gao
thom”, “gao dac san” group, or “gao trang” high quality. "Vietnamese rice
is in direct competition with Thai rice in the high segment in this market,"
said the Vietnamese Trade Counsellor in Indonesia.
- Phillipines: The Philippines is the largest Vietnamese rice consumption
market. According to the General Department of Customs, in 2020, the
Philippines ranked first in Vietnam's rice consumption, reaching 2.22
million tons, worth 1.06 billion USD, up 4% in volume, up 19.3% in
turnover compared to 2019. In 2022 reached 3.2 million tons and 1.49
billion USD, up 30.7% in volume and 19.0% in value over the same period
in 2021.

• EU:
- The Vietnam-Europe Free Trade Agreement (EVFTA) has opened up
unprecedented opportunities for Vietnamese rice. Thanks to preferential
tariffs, exports of fragrant rice, high quality rice to the European market
(EU) are highly appreciated and give positive results. According to the
General Department of Customs, Vietnam exported 53.91 thousand tons of
rice to the EU. Vietnam's rice exports to the EU market were worth
US$38.07 million. The EU currently accounts for only a small proportion of
Vietnam's total rice exports, but this is a potential market for exporting
high-value rice.
- Italy, Europe's largest rice producer, imported a record 32,017 tonnes of rice
from Vietnam in 2022, up 3.9 times from 2021.
• US:

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 - The United States is one of the largest rice consuming countries in the
world. Demand for rice increases due to changes in tastes. Currently, 30%
of US rice consumption comes from Vietnamese enterprises.
- In the first eight months of 2022, the US imported more than 900 thousand
tons of rice from countries around the world, an increase of nearly 38% in
volume compared to the same period a year earlier, according to data from
the US International Trade Commission (USITC).
- It is worth mentioning that in the first half of 2022, Vietnam's rice exports
to the US market increased by 71% over the same period in 2021. This
shows that this is an extremely potential opportunity for Vietnamese rice
exporters to enter the US market.

2.1.2: Rice export price:

a. Rice price export in recent years:
- From 2019 to 2023, Vietnam's rice export prices tend to increase sharply.
The price of 5% broken rice, Vietnam's main export, has increased from an
average of $390 per tonne in 2019 to $653 per ton in 2023, an increase of
more than 65%.

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• 2019
- Vietnam's rice exports decreased in 2019. According to the General
Department of Customs, Vietnam's rice exports in 2019 reached 6.37
million tons which cost 2.81B USD, down 4.2% compared to 2018.
• 2020
- In 2020, Vietnam's rice exports reached 6.15 million tons, worth about 3.07
billion USD, down 3.5% in volume and up 9.3% in value compared to
2019. Vietnam continues to be the world's 2nd largest rice exporter, after
India.
• 2021
- In the first half of 2021, Vietnam's rice export prices increased sharply,
reaching the highest level in 11 years. The main reason is the high demand
for rice imports of countries, due to the impact of the COVID-19 pandemic.
- The high price of rice has helped Vietnam's rice export turnover achieve
impressive growth in the first half of 2021. According to the General
Department of Customs, Vietnam's rice exports in the first 6 months of
2021 reached 3 million tons, worth 1.64 billion USD, up 14.8% in volume
and 4.7% in value over the same period in 2020.
- In the last half of 2021 witnessed a decrease in exorting volume. Although
the export price of rice decreased slightly, Vietnam's rice export turnover
still achieved impressive growth in the whole year 2021. According to data
from the General Department of Customs, Vietnam's rice exports in 2021
reached 7.4 million tons, worth $ 3.2 billion, up 12.9% in volume and
lowered than 14.8% in value compared to 2020.

Kind 01/10/2019 01/10/2020 1/10/2021 01/10/2022

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 USD/MT

5% Tam 325 463 428 428

25% Tam 323 443 393 408

Jasmine 370-400 578 578 513

100% Tam 350-400 403 328 N/A

b. Some Vietnam’s competitors of rice export market:

• India:
- India is the world's 2nd largest rice producer, after China. According to
statistics, China produced 147 million tons of rice in the 2019-2020 season,
followed by India with 116 million tons.
- According to data from India's commerce ministry, India's rice exports in
the first 7 months of 2021 increased by 65% year-on-year, reaching 12.84
million tonnes. Earlier, India's rice exports in 2020 jumped nearly 50 per
cent to a record 14.7 million tonnes.
- India's rice has dominated cheaper prices than Thai and Vietnamese
exporters since March 2021, while world demand for rice rose to record
highs during the COVID-19 epidemic.

• Thailand:
- Thailand used to be the head leader in the rice production and export
industry in the world. Subsequently, the country was overtaken by India and
relegated in position. However, Thai rice is still highly appreciated and
widely popular in many countries around the world.

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 2. General process of exporting rice:
The rice export transportation process can be done in many ways. Like transportation
by air, land, sea. In which, the most common is still by sea because transportation
costs are the most optimized. And here we will outline the general procedure when
exporting a good by sea.

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 2.2.1 Negotiation and sign commercial/sales contract:
The first step in the process of exporting goods is also the most important step. This is
the decisive stage to the company's profit. You need to negotiate with the customer
and finally come to the conclusion of a foreign trade contract for the export of the
shipment.

2.2.2 Apply for exporting liscense:

If your company does not have an export license. You must apply for an export license
once.
2.2.3 Make arrangements with your transport operator:
If your company's shipment is sold under CIF conditions, you should contact the
shipping company or FWD to find the best shipping price for shipping the shipment.
If you are selling under FOB conditions. You will not need to contact the booking
vessel because the recipient is the one making the reservation. The process of picking
up empty containers at the port: go to the port to change the reservation confirmation
at the port, after issuing the CIF and making the reservation. This job confirms to the
shipping company that you have agreed to take the container and seal it. When
exporting under FOB, you will receive a shipping confirmation and exchange it for
your reservation, then do the same with CIF.

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 2.2.4 Prepare goods and documents:
After the customer's agreement on the invoice. You must plan the production of goods.
The next step of the shipment process after booking is to plan to pick up the container
for packing and check the goods for the 2nd time before sealing.
2.2.5 Pull the empty container case, pack and ship to port:
- Packing at warehouse:
During this period, the import-export department needs to coordinate with the
technical department and factory workers to pack goods. You should include all
shipping information required by the customer (as it relates to foreign trade contracts).
Information includes: name of goods, country of manufacture, net weight, packaging,
shipping instructions (fragile goods, bulky goods,...).
- Packing at port:
The process of packing goods at the port is quite similar to packing at the warehouse.
However, packing goods at the port requires more paperwork and procedures.
Normally, when packing goods at the port, it is necessary to hire workers to pack
goods at the port.
2.2.6 Insurance:
Contact the insurance companies to purchase insurance for your shipment. The
insurance limit will depend entirely on the value of your belongings.
2.2.7 Export customs clearance:
This is a very important stage in the process of exporting goods. This step includes the
following tasks: opening customs declarations, registering declarations, paying fees,
receiving declarations, liquidating declarations, entering the log book and executing -
customs declarations.
- Open a customs declaration:
To open a customs declaration, you must prepare all the following documents: a
referral letter from the freight forwarder; receipt of documents issued by customs (2
copies); customs declaration (2 copies); foreign trade contracts (copies); Commercial
invoices and packing lists.
- Registration Statement:
The registration officer will rely on the information from the opening of the
declaration to enter the information and submit it to the customs officer to sign for
customs clearance of the export shipment. If the shipment has no problems, it will be
entered into the green stream. Conversely, if the shipment is under control, it is
included in the yellow or red stream.
- Payment of fees:
You have to pay customs clearance fees.

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 - Get the statement:
The customs service will write the container number and seal number on the back of
the declaration (customs section).
- Settlement of declarations:
The customs clearance person will present the completed declaration to the port trader
to check whether the container and seal have been lowered or lowered properly. After
completing this step, the container will be received into the port system.
- Actual export of customs declarations:
After delivering the shipment to the customer, the forwarder must proceed to export
the shipment including the following documents: customs declaration (1 original, 1
copy), commercial invoice (1 original), sea freight letter (bill of lading).
2.2.8 Ship fowarding:
The next job after completing the customs clearance of the shipment is to provide
invoice details to the shipping line for issuance of the bill of lading. This step must be
done before closing time and before the actual export step. The onboarding delivery
will be complete once you have received the bill of lading, which can be the original
waybill (3 copies) or the surrender waybill.
2.2.9 Make payment:
The final step in the process of exporting goods by sea is payment for goods. At this
step, the import-export procedure-taker must complete a set of payment documents
including: commercial invoices; packing list; bill of lading by sea; certificate of origin
(C/O) and certificate of disinfection. In case of payment by L/C, it is necessary to
submit a set of documents to the guarantor bank.
3. Some documents in the rice export trade contract:
During the export of a commodity, it is mandatory to provide sufficient documents
related to that commodity. Because it is a state regulation and each country has its own
regulations and requirements for the type of document or certification. Here are some
documents that are needed in exporting rice to foreign countries
• Commercial Invoice: is an invoice provided by the seller, stating the amount
that the buyer must pay. The buyer will make the payment according to the
amount indicated on the invoice. Commercial Invoice is 1 type of international
commercial document expressed. This export commercial invoice clearly states
the characteristics of the goods, unit price, total value of goods, conditions of
delivery facilities (as prescribed by Incoterms), payment method or
transportation of goods.
• Packing List: This is a packing slip, an indispensable component in the set of
import and export documents. On the Packing List it says: what the seller sold

18
 to the buyer. Thereby, the buyer can check and compare with the ordered
invoice for a match or not.
• Sales contract: is an agreement according to which the seller is obliged to
deliver the goods, transfer ownership of the goods to the buyer and receive
payment; The buyer is obliged to pay the seller, receive the goods and the
ownership of the goods as agreed upon.
• Bill of Lading: is a formal document that a carrier (transportation business)
gives to a shipper, outlining the kind, value, and final destination of the cargo.
When the carrier delivers the goods at a specified location, a bill of lading also
functions as a shipping receipt. Regardless of the mode of delivery, this
document needs to be signed by an authorized representative of the shipper,
receiver, and carrier and must be transported with the goods.
• Customs declaration: A customs declaration is a type of document according to
which the owner of the goods must declare such goods to the controlling forces
when importing and exporting goods into our country (also known as exit).
• Certificate of origin: A certificate of origin (CO) is a document that certifies the
nation in which an item or commodity was produced. Information on the
goods, its destination, and the exporting nation is included in the certificate of
origin.
• Phytosanitary Certificate: is a type of document that the state management
party provides to the shipment to ensure that the goods do not contain
dangerous diseases and insects and have been inspected before import and
export.
• Certificate of fumigation: is one of the papers issued for goods before export,
responsible by units with quarantine disinfection function. This document is
issued after the Medical Quarantine and Disinfection Agency injects pesticides.
Using this fumigation document will help protect, clean and eradicate bacteria
and termites in ship compartments when transported by sea. The main chemical
used in the fumigation process is Bromide.
• Certificate of weight/quantity/quality: is a document issued by a third party.
This party is usually a reputable independent inspection company that is
mutually selected by the buyer and seller in the contract of sale. Basic
construction accounting. This document mistakenly concludes whether a
shipment after production conforms to export standards and
quality/quantity/weight terms committed in the contract. Usually, when hiring
an inspection company to perform the control of goods before exporting, they
will inspect at once: quality, quantity, and weight, volume of goods ...
4. SWOT analysis:
4.2.1 Strength:
• Natural condition

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In terms of natural conditions, rice plants are suitable for growing in countries with
tropical climates. In Vietnam, rice is grown mainly in the Red River Delta, the Central
Coastal Delta and the Mekong Delta. These are places with large areas, ecological
conditions, fertile alluvial soil, year-round rain, abundant water sources, etc. Rice
plants like heat and humidity and submerged rice roots, so they are very suitable for
growing in our country. Rice export output is mainly concentrated in the Mekong
Delta provinces, contributing more than 90% of Vietnam's rice exports, developing the
world's best ST rice varieties. Thanks to the suitable climate, soil and ecosystem, this
is the region that produces high quality rice for export.
• Geography and seaports
Vietnam has a very favorable sea transportation location. Besides, Vietnam is also a
trade route between the Indian Ocean and the Pacific Ocean, between Europe and
other countries in the region. The North borders China, the West borders Laos and
Cambodia and the East borders the East Sea. The East Sea plays an extremely
important role as a "bridge" and is a very favorable condition for economic exchanges
between our country and countries around the world, especially countries in the Asia-
Pacific region. Duong, a dynamically developing economic region. Therefore, the
seaport system in general is located close to international maritime routes and can
travel along all routes to Northeast Asia, Southeast Asia, the Pacific Ocean, etc.
• Rice quality
It can be said that high quality Vietnamese rice is one of the criteria that helps our
country's rice receive love from many different countries. Specifically, ST25 Rice is
highly appreciated by many countries for its quality. This is considered the most
delicious rice in the world and is in the top of our country's most popular and exported
rice varieties. The aroma is so unique and fragrant. This type of rice has quite high
export value and brings a large source of income to our country. In addition to ST25
rice, Vietnam also provides nutritious and healing oil rice such as germinated rice,
which is good for diabetics, the elderly and people who need to recover their health
through a strict quality management process to achieve the highest quality
international standards such as BRC, HALAL, HACCP and SMETA.
• Modern production lines
Under the impact of the 4.0 industrial revolution, technology and scientific and
technical achievements are an indispensable factor for any industry on the market.
Faced with that impact, many rice production businesses are now applying automation
and high technology in the production process chain. Many businesses have borrowed
policy capital and taken company capital to refurbish production equipment systems
such as peeling machines, rice husk separators, milling machines, polishing machines,
and optical sorting machines. This is to limit human labor, comprehensive quality
control ensures stable quality, enhances the value of rice while saving time and
production costs in the long run. This is also a move that shows that Vietnam's rice

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industry is focusing on technology in all stages, in order to produce the highest
productivity and rice output for export. In addition, scientific technology always helps
when continuously researching and improving rice varieties with high yields and good
quality rice.
4.2.2 Weakness:
• Agricultural material prices are high and unstable
According to the Ministry of Agriculture and Rural Development, input materials for
agricultural production mainly depend on imports, especially in the context of the
Covid-19 epidemic situation from 2019; the Russia-Ukraine military conflict in early
2022 disrupted supply chains and pushed up material prices. Thus, leading to
increased raw materials and input materials for domestic production and increased
production costs and prices of agricultural products. In addition, many localities still
have limited resources and mechanisms, and do not have a comprehensive scenario
for developing markets and products for domestic consumption according to local
characteristics and comparative advantages, so there is still awkwardness in
implementing trade promotion and market development activities.
• Less diverse and abundant
The rice industry needs to focus on deeper processing, the rice value chain is not just
rice grains but by-products such as rice husks, bran, oil, even rice products must be
diverse such as: organic rice, rice medicine. Increase the export rate of processed
products from high-end to popular such as rice oil, rice cakes, rice flour, nutritional
products, functional foods from rice, and cosmetics from rice
• Unfair competition
Racing for profits and money from the huge economic value that rice exports bring
leads to manipulation, mixing poor quality rice and then packaging it for export,
causing the value of rice products to become weaker and lose their position in the
international market.
4.2.3 Opportunity:
• First, the level of science and technology
Under the impact of the 4.0 Industrial Revolution, the level of science and technology
is the deciding factor in the success or failure and business posture of businesses. In
Vietnam, many businesses are now aware of that and proactively innovate production,
learn to apply science and technology to the production and processing cycle. Thus,
relying on awareness of science and technology and the availability of science and
technology resources will help businesses expand opportunities for their goods.
• Second, the consumer market is wide
Rice is an essential and vital commodity for human life. Rice is not only a purely
commercial product, but also has political significance (national food security, socio-

21
political stability, ensuring jobs and life for farmers in many countries ), so every
country has great demand for this item. Besides, Vietnamese rice always ensures
stable quality, creating a deep impression in the hearts of ordinary people. Currently,
Vietnamese rice is present in many countries around the world. Asia is still the main
market, followed by the African market. Vietnam's largest rice markets can be
mentioned as: Philippines, China, Malaysia, Ghana, Ivory Coast, Iraq, Indonesia,
Senegal... Not only maintaining traditional markets, the restructuring process
Agricultural structure has helped Vietnamese rice reach more demanding markets such
as the EU, UK, etc. This helps businesses actively produce and process for export,
bringing high economic benefits.
4.2.4 Challenge:
• Building a brand for Vietnam's rice industry
Vietnam's exported rice has not yet built a brand in the world market, so the added
value is low, affecting the income of actors throughout the chain, especially farmers.
For example, the brand recognition of Vietnamese rice in the Indonesian market is still
quite blurred, while Thai rice has many recognizable brands for consumers in
Indonesian supermarkets.
• Compete with other countries
Global competition in rice production and trading is increasing, especially in terms of
quality and value. Currently, a mid-range but quite potential market in Africa has
turned to buying Indian rice to enjoy cheaper prices and lower transportation costs.
Although Vietnam has advantages in natural rice growing conditions, it is one of the
countries most affected by climate change. Floods, droughts and saltwater intrusion
frequently occur with increasing frequency and intensity, seriously affecting
agricultural production in general and rice production in particular.
• High requirements for food hygiene and safety quality and technical
barriers
Although Vietnamese rice products are popular, it does not mean that the products will
easily pass through Customs. Most countries are very strict in requiring product
quality, food hygiene and safety are also emphasized, technical specifications. That
poses challenges for businesses to innovate in scale and improve the quality of
exported rice.
5. FTA – Free Trade Agreement
- In the context of integration with the global economy, free trade agreements
related to agriculture that are signed and come into effect will become a
"springboard" for efforts to expand new markets and increase competitiveness.
competition of this industry, and it also has certain impacts on the economies of
the countries signing the agreement. Vietnam is also one of those countries,
(joining bilateral agreements, consumption trends - demand). Currently, our

22
 country has signed three free trade agreements, including the Vietnam - UK
Free Trade Agreement (UKVFTA), the Vietnam - EU Free Trade Agreement
(EVFTA) and the EU - Vietnam Free Trade Agreement (EVFTA).
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP).
- Although the Vietnam - UK Free Trade Agreement (UKVFTA) was officially
signed at the end of 2020 and effective from May 2021, UKVFTA has opened
after the press release. sugar for the Vietnamese agricultural market in general
and rice exports in particular. Because the UK is one of the most demanding
markets, requiring very high quality for exported goods. At the same time,
Vietnamese rice is one of the products that is consumed quite well here. Thus,
with the launching pad of this trade agreement, it will make rice exports easier,
taxes will also be exempted and it promises to be an opportunity for Vietnam's
rice export industry to have the opportunity to appear and dominate. gain more
market share in the UK market.
- The Vietnam - EU Free Trade Agreement (EVFTA) also brings great
opportunities to diversify markets for Vietnam's rice exports, especially after
2025 when most tariff barriers are eliminated. Specifically, the EU gives
Vietnam a quota of 80,000 tons of rice of all kinds; At the same time, complete
liberalization of broken rice helps Vietnam export up to 100,000 tons of broken
rice to the EU annually. For rice products, the EU will bring the tax rate to 0%
after a certain schedule. The Ministry of Planning and Investment assesses that,
in general, the structure of import and export of goods between Vietnam and
the EU is complementary rather than competitive. Therefore, with EVFTA,
Vietnamese rice will have the opportunity to promote its brand and expand to
other markets in addition to being present in one of the most demanding
markets in the world. Businesses have the opportunity to increase exports and
earn more profits. Thereby, Vietnamese businesses will have more contact with
the markets and needs of countries in the EU, thereby developing production
methods and improving product quality to increasingly ensure the quality and
output of exported rice.
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP), like the two agreements mentioned above, participating in CPTPP
helps Vietnam become brighter in exporting to countries such as Australia,
Singapore... Most importantly, the level of liberalization of CPTPP reaches
nearly 100%, and at the same time, when exporting Vietnamese rice, tariffs will
be reduced or eliminated. The removal of this tariff helps businesses become
more confident in investing in promoting rice exports.
- Thus, the opportunity for Vietnam's rice export industry is completely bright as
there are many doors ahead. Proactively grasp the advantages and Vietnam's
rice export industry will become increasingly stronger in the future.

23
Chapter 3: Recommendation:
- The Prime Minister has just issued Decision No. 583/QD-TTg dated May 26,
2023 approving Vietnam's rice export market development strategy until 2030.
- The strategy aims to develop and diversify rice export markets with reasonable,
stable, sustainable and effective scale, market structure and export product
structure; consolidate traditional, key export markets and develop new,
potential export markets and FTA markets; increase market share of
Vietnamese rice in export markets, especially markets in developed countries.
At the same time, linking export markets with domestic production along the
value chain, ensuring quality and food safety of exported rice; Strengthen the
introduction of Vietnamese rice products and rice-processed items into direct
distribution channels in markets; Exporting rice and products processed from
rice with high quality and high value, enhancing value, ensuring sustainable
export efficiency, affirming the reputation and brand of Vietnamese rice.
- Increase the proportion of rice exported directly to the distribution systems of
markets to about 60%: improve export efficiency through intermediary
channels, especially for markets that are not favorable in transportation and
payment.
- Market structure adjusted in accordance with the goal of export market
restructuring and world rice market trends.
- The general orientation of the Strategy is to restructure the export market
towards sustainability, effectively exploit the rice import demand of key and
traditional markets, and at the same time focus on developing markets with
high demand. demand for importing quality, high-value rice and products
processed from rice, markets with sustainable trade and investment
partnerships, and FTA markets.
- Solution:
• Businesses need to coordinate more closely with localities in building the rice
industry's value chain in a green, clean, and sustainable direction. Production
follows sustainable trends and targets social and environmental benefits.
Deploy programs and trade activities, promote Vietnamese Rice products and
brands, and promote rice trade in accordance with the new situation to enhance
the value of Vietnamese rice products.
• Focus on organizing training courses on skills to penetrate target markets and
exploit preferential commitments in FTAs; guide and support rice exporters to
effectively respond to technical barriers of new markets and trade defense
measures;
• Invest in infrastructure: Build and improve transportation infrastructure, from
seaports to rail and road systems, to reduce shipping costs and delivery times.
• Apply information technology: Use technology to manage the supply chain and
track product origin, from production to export. Integrate information and

24
 communication systems to optimize shipping processes and reduce delivery
times.

Conclusion
Vietnam is one of the world's leading exporters of rice. With its favorable climate and
fertile land, our country has a long history of rice cultivation and production.
Vietnamese rice is known for its high quality and diverse varieties, making it in high
demand in global markets. The export of rice plays a crucial role in Vietnam's
economy, contributing to its agricultural sector and overall economic growth. Through
efficient production practices and trade partnerships, Vietnam has established itself as
a reliable supplier of rice to countries around the world.
Vietnam's rice export industry has experienced significant growth in recent years. Our
country has been consistently ranked among the top three largest rice exporters
globally. This success can be attributed to several factors. First, Vietnam benefits from
its geographical location, which allows for easy access to both Asian and international
markets. Second, the government has implemented policies to support and promote
the rice industry, such as providing subsidies and incentives to farmers and exporters.
Additionally, Vietnam has invested in modernizing its rice production infrastructure,
including the use of advanced technology and efficient farming techniques.
Furthermore, Vietnam's rice export success can be attributed to the high quality and
diverse varieties of rice. Our country is known for its fragrant and long-grain rice,
which is popular both domestically and internationally. Vietnamese rice is favored for
its superior taste, texture, and aroma, making it a preferred choice for consumers and
chefs around the world.
In recent years, Vietnam has also made efforts to expand its rice export markets
beyond traditional buyers. While countries like China, the Philippines, and Indonesia
remain major importers of Vietnamese rice, the country has successfully diversified its
customer base. Vietnam now exports rice to countries in Europe, Africa, and the
Americas, establishing new trade partnerships and increasing its global reach.

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