Opportunity for Vietnam as Indonesia increases rice tender volumes

Indonesia has increased its rice import demand by 30,000 tonnes in August compared to the previous month, bringing the total to 350,000 tonnes, according to the latest tender announcement from the Indonesian National Logistics Agency (Perusahaan Umum BULOG).

Opportunity for Vietnam as Indonesia increases rice tender volumes -0
vietnamnet.vn

The tender invitation specifies that Indonesia is inviting bids for 350,000 tonnes of 5% broken white rice and will favour suppliers to Vietnam, Thailand, Cambodia, Myanmar and Pakistan.

In the first half of 2024, Indonesia averaged tenders for about 300,000 tonnes of rice each month. Since July, Bulog increased the tender quantity by 20,000, bringing the total to 320,000 tonnes.

However, the tender results fell short of expectations, with the country purchasing only 200,000 tonnes. To meet its demand, Bulog has set an unprecedentedly high target of 350,000 tonnes for the August tender.

Indonesia's call for larger rice tenders is a major opportunity for rice exporters, particularly those from Vietnam, given the current uncertainties in the global rice market

"Indonesia's increased invitation to bid for rice is a positive signal for Vietnam's rice export industry. In the bidding round last July, Vietnamese enterprises won the most bids with seven out of 12 lots, accounting for 185,000 tonnes of rice,” said General Director of Can Tho Rice Export Joint Stock Company Nguyen Van Nhat.

This shows that Vietnamese rice still maintains a strong competitiveness compared to other sources.

“Although Vietnam's rice export price is currently the highest in the world, reaching 578 USD per tonne, we believe that the increase in demand from Indonesia will create opportunities for us to continue exploiting this market," he said.

He added that the current supply of Vietnamese rice is constrained due to the nearing end of the summer-autumn crop and the autumn-winter crop not yielding a large quantity.

As a result, rice prices will remain high, which could affect price competitiveness. However, the large demand from countries like the Philippines could alleviate some of the price pressure.

Given the current market conditions, Vietnamese rice exporters are approaching tenders with caution to avoid "selling more and losing more" he said.

"We are carefully weighing the pros and cons before bidding, especially considering the premium prices of our rice in the global market."

In the first seven months of 2024, Vietnam exported nearly 5.3 million tonnes of rice, earning 3.34 billion USD. The figures set new records for Vietnam's rice industry compared to the same period in previous years, including 2023.

According to forecasts from the Ministry of Agriculture and Rural Development, Vietnam is expected to have another successful year of rice exports, with a target of exporting 7.5-8 million tonnes of rice and exceeding 5 billion USD in export revenue.

Economy

Localities report progresses in IUU fishing combat
Economy

Localities report progresses in IUU fishing combat

Coastal localities nationwide have implemented practical and effective activities and specific measures, demonstrating their determination to join the nation’s efforts to have the “yellow card” that the European Commission (EC) has imposed on Vietnamese seafood regarding illegal, unreported, and unregulated (IUU) fishing lifted in 2024.

Da Nang Hi-Tech Park attracts 177-million-USD FDI project
Economy

Da Nang Hi-Tech Park attracts 177-million-USD FDI project

The Da Nang Hi-Tech Park continues to strengthen its position as a leading investment hub with the recent in-principle approval of a 177-million-USD project by Dentium Co., Ltd., from the Republic of Korea (RoK).This significant investment brings the total registered foreign direct investment (FDI) in the park to 875.2 million USD, spanning 13 projects.

UNGA President congratulates Vietnam on re-election to UNCITRAL
Economy

UNGA President congratulates Vietnam on re-election to UNCITRAL

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations (UN), had a meeting in New York on November 21 with President of the 79th session of the UN General Assembly (UNGA) Philemon Yang who congratulated Vietnam on the country’s re-election to the UN Commission on International Trade Law (UNCITRAL) for the 2025-2031 term.