Current Standings

According to the Department of Foreign Trade, in terms of volume and value, Thailand is currently still the world’s largest exporter of rice while Vietnam follows close behind. As can be predicted, there have been concerns regarding Vietnam’s ability to surpass Thailand, especially considering its competitive pricing. Vietnamese rice is currently about $20 to $40 per ton on average lower than Thai rice. Though this is due to inventory and rice quality issues, they can be easily rectified through time and experience.

Despite the competition between the two top positions, Thailand and Vietnam have agreed to encourage cooperation between their “private sectors.” Leaders of the rice industry in Vietnam have proposed joint investment opportunities with Thai exporters which would benefit Vietnam by improving their quality and inventory through modeling their systems after Thailand. According to the Department of Foreign Trade’s director-general, Rachane Pojanasuntorn, “[w]ith the cooperation, prices of rice of both countries would stabilize and move in the same direction on the world market.” (1)

 

 

How did Vietnam move from 6th to 2nd place from 2003 to today?

Vietnam ’s government has played an important role in encouraging Vietnam’s progress in the rice industry. Vietnam’s Ministry of Agriculture and Rural Development proposed a new five-year development strategy with the purpose of yielding 36 million tons of rice each year. Four million of those would be reserved for exports. To continue its growth, Vietnam is investing in new irrigation projects, more developed storage facilities, and more efficient methods to produce increased and improved rice crops.

As an additional upper hand, Vietnam’s competitive pricing has attracted former Thailand customers, such as Iran, Uruguay, Syria, and Nigeria. Yet despite the quick upward movement, Thailand still retains a competitive advantage due to Vietnam’s inconsistency in quality, which results in prices $15 to $20 per ton lower than average prices on Thai exports. (2)

 

 

 

 

Works Cited for this page