Vietnam Rice Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Report on Vietnam Rice Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Introduction to Vietnam Rice Market
Vietnam is the easternmost country in the Indochina peninsula. In 2004, Agriculture and Forestry had accounted for 21.8% of GDP but has been declining since. As of 2018, Agriculture is the third highest contributor to the country’s GDP at 15% after the services and industry sector. The cash crops of Vietnam are Rice, cotton, coffee, peanuts, rubber, sugarcane and tea. It is the second largest coffee exporter and is one of the topmost rice exporting countries in the world.
Vietnam Rice Market Segments
In Vietnam there are 1600 varieties of rice are cultivated. The segmentation of the rice market based on the main rice types is as below:
- Rough Rice
- Brown Rice
- Milled Rice
- Parboiled Rice
Vietnam Rice Market Drivers, Restraints and Opportunities
The main factors that influence rice production and supply in Vietnam are the weather conditions, government policies, increasing rice processing companies and higher exports. Through the years there has been multiple changes in government policies which have had an adverse effect on rice production. Due to multiple wars and government changes the production had been affected multiple times and even causing drought in 1945 and 2010.
The current policies and effort by the government, better management and planting early maturing rice varieties have contributed to the increase in production of rice in Vietnam. The following are opportunities for the Vietnam rice market: the implementation of technology in agriculture has been on the rise and for 70% of the world, rice is their staple food hence will boost exports.
Market Size & Forecast 2018 to 2021
The revenue of the rice market in 2018 is USD $10,671 million and the expected growth from 2018 – 2021 is with a CAGR of 6.8%. Vietnam being the third largest exporter of rice can also continue to grow.
Competition & Major Companies
The major competition in the export of rice are the United States and Pakistan. In 2017, Vietnam had exported 5.8 million tons, Pakistan exported 4.2 million tons and the US had exported 3.5 million tons of rice.
The major rice exporting companies in Vietnam are Sunrise Foodstuff Joint Stock Company, Falcon Rice Mills, Gentraco Feed Joint Stock Company, Thanh Ngoc Co Ltd
Porters Five Force Analysis
- Competitive Rivalry – Medium
- Vietnam is currently the third largest exporter in the world behind India and Thailand. Other countries such as the United States of America and Pakistan are also catching up.
- Also, most of the countries have started implementing technology in their agricultural processes. If Vietnam trails behind, then other countries will take up Vietnam’s place.
- Supplier Power – Low
- The suppliers for rice are the farmers. They do not have bargaining power or power to impact prices in the market
- Buyer Power – High
- When exporting rice, government permissions are required. If a government denies permission to receive rice from Vietnam, the exports come down which in turn can have an impact on the economy.
- Threat of Substitution – Very Low
- For years Rice has been the staple food for the Vietnamese people and that is not going to change in the next few years. Hence the threat of substitution is very low.
- Threat of New Entry – Low
- Production of Rice is mostly dependent on monsoon rainfall and soil type. It is not very feasible for new countries without an adequate environment to start production of rice. Hence the threat for new entry into the global rice market is low.
The report contains a comprehensive analysis on:
- Vietnam Rice Market Segments
- Vietnam Rice Market Drivers, Restraints and Opportunities
- Vietnam Rice Market Size & Forecast 2016 to 2022
- Vietnam Rice Market Current Trends
- Competition & Major Companies
- Porters Five Force Analysis
Regional analysis for Vietnam Rice Market includes
- Asia Pacific
This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors and other qualitative and quantitative insights.
- Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
- Consumer and Pricing Analysis
- Market dynamics of the industry
- In-depth Market Segmentation
- Historical and Projected Market Sizing in terms of volume and value
- Recent market trends and Impact Factors
- R&D Status and Technology Overview
- Extensive Industry Structure Coverage