Cambodia feared to be a threat to Vietnam’s rice

Cambodia feared to be a threat to Vietnam’s rice

Two years ago, Vietnamese rice exporters were warned that Cambodia would become their redoubtable rival in rice export. And they have been once again awakened to the danger.

Vietnam’s export markets get narrowed?

International press has reported that Cambodia is preparing to “conquer” the US and South Korean markets, while Vietnam mostly targets Chinese, South East Asian and some African markets.

Commenting about the news, Tran Cong Thang from the Vietnam Institute for the Policies on Agriculture and Rural Development said it is not a surprise at all. South Korea still has demand for rice imports, while Vietnam has also been exporting rice to South Korea.

However, Thang said he cannot imagine how Cambodia can penetrate the US market, a very choosy market which always sets high requirements.

It is still unclear what kind of Cambodian rice would be brought to the US, where Thai rice has been dominating the market.

The General Department of Customs, in its report released on January 17, 2014 showed that Vietnam’s rice exports to China reached 2.15 million tons in 2013, accounting for 1/3 of the total rice exports in the whole year 2013.

Meanwhile, the exports to Indonesia have decreased sharply by 81.42 percent in quantity and 78.12 percent in value by the end of November 2013. The figures were 67 percent and 65.71 percent for the Philippines, and 39.05 percent and 42.49 percent for Malaysia.

The first month of 2014 saw the continued decreases in rice export both the export volume and value.

Thang commented that since Vietnam’s loyal markets have got narrowed, it needs to diversify the market to boost exports. While the exports to the Philippines and Indonesia have been on the decrease, the exports to China have increased, which is the “savior” helping Vietnam maintain the average export volume.

However, some analysts have warned that China should not be considered as a sustainable market. China may make Vietnamese farmers and exporters suffer once it suddenly stops the import.

How’s big the “Cambodian threat”?

Dr. Vo Tong Xuan, who is considered the expert with the deepest knowledge about Vietnam’s rice cultivation and export, commented that Vietnam should be aware of the “Cambodian challenge.”

Cambodia has been programming their material growing area development, set up the workshops to make out high quality rice, while the Cambodian trade promotion agency has helped eight Cambodian rice export companies to participate in a trade fair in Thailand, where Vietnam did not make a presence.

According to Xuan, Cambodian rice exporters, unlike Vietnamese exporters, only fulfill the small orders of tens of thousands of tons. However, they tend to focus on high quality branded products.

Meanwhile, Xuan noted that Vietnamese rice exporters mostly collect rice through merchants, while they do not care much about branding.

Meanwhile, the Vietnam Trade Promotion Agency (Vietrade) does not have any policies to encourage Vietnamese enterprises to develop their own brands.

“Having no strong rice brands is a big challenge for Vietnam’s rice,” Xuan commented.

vietnamnet