China remained Vietnam’s largest export market for rice during the first quarter of 2014, accounting for 40% of market share.
Many leading export firms and market analysts are reporting that Vietnam’s exports to China are continuing to increase and are forecasting sharp rises in the future, predicated on Vietnam’s reservation of the right to export 800,000 tonnes of rice to the Philippines.
In the past, Chinese traders often delayed rice purchases to take advantage of downturns in the price, analysts report.
However, with the Philippines purchase propping up much needed price support for the spring-winter crop, the market dynamics have changed in favour of Vietnam.
According to analysts, geographical factors are also a very important factor which has contributed to make Vietnam’s rice supply source highly competitive and the No 1 option of China.
In terms of transport costs, Vietnamese rice is US$10 per tonne lower than Thai rice.