Branded Vietnamese rice makes inroads into global market

Vietnamese rice in small bags has recently hit the shelves of Japan, Europe, Canada, and the United States, showing the unrelenting efforts by businesses to increase the value of the product in the international market.

Penetrating demanding markets

In early July, the initial shipment of ST25 rice, a Vietnamese specialty recognised as the world’s best rice, was imported into the Japanese market by Tan Long group to be put on sale.

Nguyen Chau Hong, an overseas Vietnamese national who has been living in Japan for more than 10 years, said that her family now has the chance of tasting Vietnamese rice after years of using round grain rice of Japan or long gain of Thailand.

“I bought a five-kg pack for 2,000 yen, an equivalent to nearly 70,000 VND/kg. Though the price is about 10% higher than the Thai one, I am satisfied because it has the right taste,” said Hong.

According to Nguyen Chanh Trung, deputy general director of Tan Long Group, the firm had been negotiating with Japanese partners for a year before its ST25 rice hit the shelves of supermarkets in Japan. He stated that Japanese people tend to enjoy eating round grain rice, so the long grain rice is just for replenishment. Meanwhile, more than one million people of other Asian communities, including approximately 450,000 Vietnamese, prefer using long grain varieties such as ST25.

“We have yet to set profit targets in this market in the short term because everything is at the beginning. We do not aim to increase output, but the most important thing is to control quality and maintain credibility. In the near future, we will increase the amount of rice packed in one-kg bags besides two-kg and five-kg bags to match the consumption habits of this market. After Japan, we will develop our brand in the Republic of Korea and the US,” Trung expected.

Meanwhile, Vietnamese firm Loc Troi recently announced a shipment of nearly 500 tonnes of rice with its own brand ‘Vietnamese Rice’ was on its way to the European market and would be sold in Carrefour, the largest supermarket chain in the EU, this July.

Nguyen Duy Thuan, general director of Loc Troi group, said the rice is packed in one-kg, five-kg, and 20-kg bags and features the design and trademark of ‘Vietnamese Rice’ which has been registered in numerous target markets.

Untapped potential

Assoc. Prof. Dr. Duong Van Chin, former deputy director of the Mekong Delta Rice Institute, who cares about the Vietnamese rice brand, stated that he is happy to see that many businesses have moved to promote Vietnamese rice in high-end markets. According to the expert, Vietnamese long grain rice is highly competitive in terms of price within the global market. Indeed, both ST 25 and Loc Troi 28 have won prizes at global rice contests and should therefore be further marketed globally as they are favoured by consumers in many countries worldwide.

“Vietnam still has many other varieties of fragrant rice such as Nang Thom, Tam Xoan, Seng Cu that can be branded in the lower price segment. The lower the price, the wider the market, and the important thing is they produce a good profit,” analysed Chin Assoc. Prof.

Le Ba Linh, chairman of Pacific Foods Joint Stock Company, said that each year Vietnam’s rice exports account for approximately 15% of the world’s total, with Vietnamese rice being present in more than 150 countries and territories, although Asia remains the main market.

This growth has led to businesses recently building their brands internationally, partly thanks to the enforcement of free trade agreements (FTAs) which the country has signed with its partners, in an effort to help its rice become more well-known globally.

“In December 2021, Pacific Foods exported 20 tonnes of rice ST25 to Canada. In March and April 2022, it continued to ship its branded rice in small bags in the United States. Recently, the firm marketed ST25 rice in the UK and is negotiating to export larger shipments to this market,” revealed Linh.

Statistics indicate that businesses exported 3.1 million tonnes of rice during the first half of the year, thereby earning US$1.5 billion, with an average price of US$484 per tonne. However, experts say that Vietnam needs to ship more batches of US$1,000 per tonne rice in order to increase the value of its rice.

Source: VOV