Canada a potential market for Việt Nam’s rice: Insiders
Việt Nam holds the 5th place among the rice exporters to the North American country.
With a high demand for rice, Canada is considered a potential market for exporters of Việt Nam, according to insiders.
Việt Nam holds the 5th place among the rice exporters to the North American country.
After the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect, Việt Nam’s rice export value to this market increased by more than 60 per cent to nearly US$9.5 million in the 2018-22 period, according to the Canadian Border Services Agency (CBSA).
In the first six months of this year, its value rose by more than 35 per cent year-on-year, topping $6 million.
However, Vietnamese rice makes up just 3 per cent in volume and 1.5 per cent in value of the North American country’s import of this commodity and less than one-tenth of the market share of Thai rice. Therefore, ample room remains for Vietnamese rice since it has a competitive advantage in terms of price in comparison with other products of the same type.
In an interview granted to the Vietnam News Agency, Trade Counselor Trần Thu Quỳnh said the embassy in Canada has made great efforts to support Vietnamese businesses, particularly those of overseas Vietnamese, to access the retail system of the host country.
As a result, Việt Nam's rice products have posted a strong growth in both quantity and export price since the beginning of this year, she said, adding that the price of Vietnamese rice reaches $800-830 per tonne on average.
According to Quỳnh, the number of businesses importing Vietnamese rice in the Canadian market is still modest and operating in some large cities such as Vancouver, Montreal, or Toronto. Previously, they often imported Thai rice but have shifted to importing ST25 brand, contributing to the growth of Vietnamese rice to this market, she noted.
Đinh Trung Dũng, director of the Vietnam CanadaTrading Ltd, said that Canada is a large rice consumption market, demanding about 500,000 tonnes per year. However, this market also has strict requirements in terms of quality. Therefore, he said that there should be close coordination from all parties, including the local Trade Office, exporters and importers, to ensure stable quality, especially for the ST25 brand, as the Thais did for their high-quality Hom Mali rice.
The Vietnam Trade Office in Canada is also actively coordinating with domestic agencies, rice associations and exporters and importers to increase Việt Nam's rice market share in the Canadian market, Quỳnh said, elaborating that importers will get support to market research to draw up business expansion strategies. — VNS
