This document discusses rice production, trade, and current issues in Vietnam. It provides statistics on rice production and consumption globally and in Vietnam. It then examines Vietnam's rice exports by country in 2013. Current issues with rice production in Vietnam include high costs of production, lack of branding and marketing strategy, and small farm sizes. The document analyzes production costs like fertilizers, pesticides, and labor. It also provides selling prices and profits for farmers from 2010-2011 across provinces. The document concludes with opportunities for cooperation like market studies and improving logistics.

1. Rice production –
trading – marketing
& current issues
Ho Cao Viet (PhD)
Institute of Agricultural Sciences for Southern Vietnam (IAS)
Department of Economics & Agricultural Development

2. Production & Consumption
Production
Consumption
Source: USDA, 2013
Unit: thousand metric ton
3.9 million hectares

3. World rice trade
Source: USDA, 2013
Unit: thousand metric ton

4. Rice price in the world (2002-2013)
Source: USDA, 2013

5. Rice exportation to in 2013 (Jan-Nov)
Country Amount (Ton) Value(USD)
Taiwan 13.083 5,915
Indonesia 112.807 66,023
Philippines 353.069 155,678
Hong Kong-China 141.549 79,947
China 1.764.968 732,281
Malaysia 347.964 176,338
Singapore 280.464 126,238
Algeria 83.249 34,920
Cost d’Ivoire 436.858 177,277
Angola 102.096 41,828
Ghana 299.699 141,392
Other 1.386.903 600,576
Total 5.322.709 2,338,413

6. Current issues
• Cost of production: very high (1,500
USD/ha/crop; # 300 USD/ton of paddy
with yield of 5 tons/ha; 160-200 USD/ton
in 2010)
• Low comparative advantage in term of
cost price in comparison to Thailand,
India, Pakistan, Cambodia
• Natural environment impacts due to
chemical overuse (35% of costs)

7. Current issues
• Marketing & trading:
– no strategy of brand name for Vietnamese
rice
– focus on low-price market  low added value
– logistic system: very inconvenient
– high volume of exportation, low benefit 
farmer get loss
– vertical coordination (farmer – middleman –
trader – exporter): very weak
– State-owned food company control over the
market  ineffective marketing strategy

8. Big gap of price
Source: USDA, 2013

9. Marketing channel
Farmers
Local
collectors
Miller
Traders
Retailers
Wholesalers
Exporter
Verticalcoordination
Logistics
Source: Ho Cao Viet, 2011.

10. Current issues
• Processing:
– Size of miller: small-medium (1.5 ton/hour)
– 91% of millers (capacity) are small-medium
size
– State-owned millers dominate processing
channel  unfair competition
– Private millers: lack of market information &
market research; shortage of capital for
warehouse investment and stockade;
backward technology; less support from
government.

11. Current issues
• Production:
– Farm size: small-scale (0.3 ha/family)
– Mechanization: slowly, difficult to expand
– Labor force: seasonal shortage  high wage
– Horizontal coordination (farmer-farmer): low
bargaining power  selling price is very
fluctuation
– Input materials price: inflate year by year
(>100% in 10 years)  high cost
– Climate change: loss 30% arable land in 2050
– Processing product from rice

12. Structure of production costs, 2010-2011
Source: Ho Cao Viet, 2011.
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation
& interest
Average of 3 rice crops

13. Structure of production costs by season
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation
& interest
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation
& interest
Variety
Pesticides
Fertilizers
Labor-machin
Fuels
Depreciation
& interest
Source: Ho Cao Viet, 2011.
Summer-autumn 2010 Summer-autumn 2011
Winter-spring 2010-2011

14. Biến động chi phí phân bón, 2010-2011Cost of fertilizers by province
Source: Ho Cao Viet, 2011.

15. Tỷ lệ chi phí phân bón, 2010-2011Proportion of fertilizers cost by province
Source: Ho Cao Viet, 2011.

16. Chi phí các loại phân bón chủ yếu, 2010-2011Cost on types of fertilizers by province
Source: Ho Cao Viet, 2011.

17. Biến động chi phí thuốc BVTV, 2010-2011Cost of pesticides by province
Source: Ho Cao Viet, 2011.

18. Chi phí lao động & máy móc, 2010-2011
Cost of labor & hired machines by
province
Source: Ho Cao Viet, 2011.

19. Biến động tổng chi phí, 2010-2011Total cost of rice production by province
Source: Ho Cao Viet, 2011.

20. Biến động giá thành, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Giá thành 1
Giá thành 2
Unit price
Source: Ho Cao Viet, 2011.
Unit price 1 (calculate cost of family labour)
Unit price 2 (without cost of family labour)

21. Biến động giá bán lúa, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Wet paddy
Dried paddy
Selling price
Source: Ho Cao Viet, 2011.

22. Biến động doanh thu & lợi nhuận, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Doanh thu
Lợi nhuận
Gross income & profit
Net profit
Gross income
Source: Ho Cao Viet, 2011.

23. Rice varieties
• Coastal plain region: ST3, MTL233, MTL250 & Jasmine
85 meet standard of rice exportation because of high
quality (compared to IR64 & as well as Khao Dawk Mali
105).
• Flood plain region: OMCS2000, OM2717, OM2705 are
high tolerant to diseases and high quality of rice, high
yield (compared to IR64). OM3536 is a fragrant variety.
• Plain of reed region: OMCS2000, VNĐ95-20 &
Jasmine85 are tolerant to acidity, high quality & yield,
adapted to Summer-autumn and Winter-spring crops.
OM3536 is a potential variety for acid-sulfate soil to
diversify rice material for exportation.
Source: Rice project KC06, 2011

24. Opportunity for cooperation
• Market studies and marketing for rice,
coffee, catfish…
• Branding name for exported agricultural
products: rice, shrimp, catfish, coffee
• Logistic systems improvement &
investment (processing equipments,
warehouses…)

25. Our information
• Please contact:
– Dr. Ho Cao Viet (head of department)
– Phone: +84 908442120
– Email: hocaoviet2000@yahoo.com
– Address: 121 Nguyen Binh Khiem Street, District 1,
Ho Chi Minh City, Vietnam

26. Thank you !