CAGG increased the number of Vietnamese enterprises allowed to export rice to China to 41

Of these, there are 22 enterprises whose export licenses expire from January 2, 2021 to January 2, 2026, and 4 enterprises until December 30, 2026. The remaining amount will expire in 2028. After the expiration date, Vietnamese businesses that want to continue exporting rice to this market must apply for a new license.

Many businesses exporting rice to China will increase their competitiveness

Commenting on CAGG increasing the number of rice exporting enterprises from 22 to 41, Mr. Nguyen Van Don, Director of Viet Hung Co., Ltd. said that China allowing many enterprises to export rice to this market is good news. But there are also its difficulties, in which case there will be businesses that export in small quantities and offer low prices, affecting businesses that sell large volumes. On the other hand, when there are many sellers, buyers will consider more carefully where to buy and with whom to buy, forcing rice prices down.

“The more businesses there are, the tougher the competition is because each year China imports only about 1 million tons of rice and sticky rice from Vietnam. On the other hand, China is very good at making national reserves. When rice prices are high, the government releases warehouses to stabilize the domestic rice market. When prices are low, they only buy-in. Currently, Vietnamese rice prices are higher than exporting countries and too high compared to domestic prices, so Chinese traders limit buying Vietnamese rice because if they buy and sell, they will incur losses," Mr. Don said.

Not only rice, but Vietnamese sticky rice prices are also higher than sticky rice in China. Vietnamese businesses offer prices of 605 USD/ton and even though it is the peak season for making Tet cake dough in this country, Chinese traders are not buying. , because the price of sticky rice in China is only 570 USD/ton, 35 USD/ton lower than Vietnamese sticky rice.

"I bought some sticky rice to prepare to sell sticky rice for Tet to China, but so far I have not been able to sell it even though the price was 603 USD/ton. Because they still have a lot of sticky rice, it is very difficult to sell. Now the Chinese Government grants rice import quotas for free, not for sale like before, so traders are not rushing to buy and wait to get the quota in 2024 before considering buying rice or sticky rice," Mr. Don said.

Forced to use up the quota, Chinese traders bought rice at high prices and suffered losses

Agreeing with Mr. Don, a business with an office in the city. Ho Chi Minh said that from Vietnam's perspective when there are many companies exporting rice to China, it will increase competition between businesses, while China increases or decreases the amount of rice imported from Vietnam. South due to their rice price situation and rice prices in Vietnam. Each year the Chinese Government grants an import quota of about 5 million tons of rice but does not allocate specific quotas for each market, but traders will be the ones to decide and the rice price of the exporting country will be the factor for them. Decide which country to buy from and how much.

“When India had not banned rice exports and the price of white rice in this country was very cheap, Chinese traders bought a lot of Indian rice. On the other hand, they also observe other rice exporting countries, such as Vietnam, Thailand, and Myanmar, to see which country has a good selling price and will buy it. Therefore, whether Chinese traders buy more or less Vietnamese rice depends on whether Vietnamese rice prices are competitive or not, regardless of the number of Vietnamese businesses 22 or 41. This year, China limited importing rice from Vietnam because this country has a successful season, even at this time China's sticky rice output is still a lot," said this business leader.

Normally from January to May, the time when Vietnam harvests the Winter-Spring rice crop of very good quality is also the time when China imports Vietnamese rice most of the year. However, it depends on the market situation of each country. Currently, in China, the price of rice is quite low while the general level of Vietnamese rice is very high, so Chinese traders do not buy Vietnamese rice because if they buy it, they will not be able to buy it. can be sold.

Recently, although the price of Vietnamese rice is still higher than the price of domestic rice, Chinese traders still have to buy all the quota they have been granted or their quota will be deducted next year.

"Chinese traders' quota at the end of the year is not much left, so they accept to buy Vietnamese rice at high prices to settle the remaining quota, waiting for 2024 to be granted a new quota, if they do not use it this year. If they use up the allocated quota, next year they will have their quota reduced again," this business said.

In the first 11 months of 2023, rice exports to the Chinese market will reach 895,625 tons, worth 517.627 million USD, compared to the same period in 2022, an increase of 10.85% in volume and an increase of 26.71% in turnover thanks to rice prices. exports increased.

Source: thitruongtaichinhtiente.vn