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According to the assessment of the Ministry of Agriculture and Rural Development, Vietnam is facing a great opportunity for rice exports. Vietnam can rest assured about food security and make the most of this favorable opportunity for rice export.
Recommendation to the Prime Minister for Issuing Directive on Rice Export in the Current Situation.
According to the Ministry of Agriculture and Rural Development, Vietnam is facing continuous fluctuations in rice export conditions worldwide, such as Russia officially withdrawing from the Black Sea Grain Initiative; India and the United Arab Emirates (UAE) temporarily suspending rice exports, along with other emerging issues. Additionally, the occurrences of El Nino, saline intrusion, and drought are negatively affecting rice production.
To reaffirm the crucial role and maintain the position and reputation of Vietnam's rice industry in the global food supply chain and contribute to ensuring global food security in line with Vietnam's commitments, the Ministry of Agriculture and Rural Development proposes that the Prime Minister consider issuing a directive to enhance rice export activities in the current context.
The directive will outline specific tasks for various ministries, agencies, localities, the Vietnam Food Association, and focus on resolutely directing efforts to strengthen rice export activities in the present situation.
Specifically, the Ministry of Agriculture and Rural Development will monitor, forecast, and grasp the production situation, enhance pest control measures, and proactively respond to adverse weather developments to ensure the safety of the 43 million tons of rice production target for 2023. They will direct localities to closely follow agricultural fields, organize production in accordance with technical guidelines to ensure productivity and planned output.
Taking the lead and coordinating with relevant agencies and localities to timely address technical barriers to ensure increased volume and expanded export markets for Vietnamese rice. Directing Plant Protection agencies to create the most favorable conditions for rice export, minimizing inspection time and completing procedures based on compliance with Vietnam's regulations and the importing countries.
The Ministry of Industry and Trade will continue to promote rice exports based on close monitoring and forecasting of import-export situations, consumption demands, and grain prices in the region and the global market. This will facilitate proactive and flexible trade, import, and export of rice to enhance export efficiency.
Additionally, the Ministry of Industry and Trade will lead and coordinate with relevant agencies to consolidate traditional and key markets and maximize the advantages of signed Free Trade Agreements to increase export value. For the People's Committees of provinces and centrally-run cities, specialized agencies will be directed to monitor and closely follow agricultural fields, proactively and flexibly manage rice production to achieve and exceed productivity and planned output targets, while complying with Vietnam's technical regulations and food safety standards as well as those of the importing countries...
Vietnam can rest assured about food security and make the most of the favorable opportunity for rice export. The Ministry of Agriculture and Rural Development has planned to increase the rice cultivation area in the Mekong Delta from 650,000 hectares to 700,000 hectares in the beginning of 2023. This will result in a significant harvest, with approximately 1.2 million tons of rice expected by January 2024.
Regarding the potential impact of El Nino, it is predicted to start affecting the region around October 2023. However, Vietnam is less susceptible to the effects of El Nino compared to other rice-growing countries. The current rice crop is projected to be safe, but the next winter-spring crop and the year 2024 might face some challenges due to El Nino's impact on production.
In response to concerns about the increased rice exports leading to a domestic shortage and higher prices, the ministry emphasizes that the country has already taken measures to balance domestic consumption and export demands. Vietnam's rice production capacity is more than sufficient to meet the needs of its population of 100 million people. Additionally, the country has ample national reserves, and it only takes about 90 days to produce a new rice crop. Therefore, there is no need to worry about food supply shortages.
While there might be some psychological impact and market mechanism issues that could potentially lead to certain price increases, overall, the domestic rice supply is well-assured, and the government will continue to monitor the market situation and adjust as necessary to maintain food security.
In conclusion, Vietnam is well-prepared to handle the challenges and opportunities in rice exports. The government will continue to prioritize food security and strike a balance between domestic consumption and export needs, ensuring the stability of both the domestic market and the country's position in the global rice trade.