Vietnam Rice-Paddy Comprehensive Report Q2/2019
VIETNAM RICE-PADDY INDUSTRY
Rice is the main source of food for over 50% of the world's population, providing 21% of energy and 15% of protein for humans. Asia is the area with the highest rice consumption volume accounting for 90% of the world consumption production. In the first 2 months of 2019, the world rice price generally witnessed a slight increase compared to the end of 2018; however, it was lower than the beginning of 2017. It is forecasted that the rice price will rise dramatically in 2019 and remain high cost over the next 4 years, marking the increasing cycle of rice price all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural area of Vietnam as well. In general, agricultural production in 2018 attained quite good results. The weather was convenient for plants to grow and develop, especially for rice. Up to Q1/2019, the amount of rice planted nationwide increased by 0.8% compared to the same period of the previous year. In which, Northern areas were equivalent to 99.6% of the same period of the previous year, Southern areas were equivalent to 101.4% of the previous year.
Currently, Vietnam ranks fifth in the rice consumption volume. In which, food for humans accounts for 68% of the total volume, 25% of the total volume is used for animal feed industry, 7% is used for other purposes such as the demand for rice in the industrial-scale food processing industry, especially for beer and wine industry.
Regardless exporting, up to Q1/2019, the volume of exported rice decreased by 5.2% in volume and 17.9% in value compared to the same period of 2018. China always maintained the biggest rice consumption market of Vietnam, accounting for 22% of the total volume in 2018 and the total export turnover nationwide. However, in Q1/2019, the amount of rice exported to China decreased sharply, accounting for only 3.1% of Vietnam's rice export structure in the first 3 months of 2019.
Rice is the main source of food for over 50% of the world's population, providing 21% of energy and 15% of protein for humans. Asia is the area with the highest rice consumption volume accounting for 90% of the world consumption production. In the first 2 months of 2019, the world rice price generally witnessed a slight increase compared to the end of 2018; however, it was lower than the beginning of 2017. It is forecasted that the rice price will rise dramatically in 2019 and remain high cost over the next 4 years, marking the increasing cycle of rice price all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural area of Vietnam as well. In general, agricultural production in 2018 attained quite good results. The weather was convenient for plants to grow and develop, especially for rice. Up to Q1/2019, the amount of rice planted nationwide increased by 0.8% compared to the same period of the previous year. In which, Northern areas were equivalent to 99.6% of the same period of the previous year, Southern areas were equivalent to 101.4% of the previous year.
Currently, Vietnam ranks fifth in the rice consumption volume. In which, food for humans accounts for 68% of the total volume, 25% of the total volume is used for animal feed industry, 7% is used for other purposes such as the demand for rice in the industrial-scale food processing industry, especially for beer and wine industry.
Regardless exporting, up to Q1/2019, the volume of exported rice decreased by 5.2% in volume and 17.9% in value compared to the same period of 2018. China always maintained the biggest rice consumption market of Vietnam, accounting for 22% of the total volume in 2018 and the total export turnover nationwide. However, in Q1/2019, the amount of rice exported to China decreased sharply, accounting for only 3.1% of Vietnam's rice export structure in the first 3 months of 2019.
ABBREVIATIONS
Summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
1.2 Legal Framework
1.3 The impact of Free Trade Agreements
2. GLOBAL RICE-PADDY MARKET
2.1 Establishment history
2.2 Classification
2.3 Input factors
2.4 Production
2.5 Consumption
2.6 Global rice trade
2.7 Price movements
2.8 Typical countries
3. VIETNAM RICE-PADDY MARKET
3.1 History of establishment and development
3.2 Industry value chain
3.3 Rice-paddy cultivation
3.4 Rice production
3.5 Rice consumption
3.6 Rice trade
3.7 Price movements
4. RISKS
4.1 Risks
4.2 Challenges
4.3 Analysis of competitiveness
5. SCALE
6. ENTERPRISE ANALYSIS
6.1 Introduction of enterprises
6.2 Enterprises analysis
7. APPENDIX
ABBREVIATIONS
Summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
1.2 Legal Framework
1.3 The impact of Free Trade Agreements
2. GLOBAL RICE-PADDY MARKET
2.1 Establishment history
2.2 Classification
2.3 Input factors
2.4 Production
2.5 Consumption
2.6 Global rice trade
2.7 Price movements
2.8 Typical countries
3. VIETNAM RICE-PADDY MARKET
3.1 History of establishment and development
3.2 Industry value chain
3.3 Rice-paddy cultivation
3.4 Rice production
3.5 Rice consumption
3.6 Rice trade
3.7 Price movements
4. RISKS
4.1 Risks
4.2 Challenges
4.3 Analysis of competitiveness
5. SCALE
6. ENTERPRISE ANALYSIS
6.1 Introduction of enterprises
6.2 Enterprises analysis
7. APPENDIX
Summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
1.2 Legal Framework
1.3 The impact of Free Trade Agreements
2. GLOBAL RICE-PADDY MARKET
2.1 Establishment history
2.2 Classification
2.3 Input factors
2.4 Production
2.5 Consumption
2.6 Global rice trade
2.7 Price movements
2.8 Typical countries
3. VIETNAM RICE-PADDY MARKET
3.1 History of establishment and development
3.2 Industry value chain
3.3 Rice-paddy cultivation
3.4 Rice production
3.5 Rice consumption
3.6 Rice trade
3.7 Price movements
4. RISKS
4.1 Risks
4.2 Challenges
4.3 Analysis of competitiveness
5. SCALE
6. ENTERPRISE ANALYSIS
6.1 Introduction of enterprises
6.2 Enterprises analysis
7. APPENDIX
ABBREVIATIONS
Summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
1.2 Legal Framework
1.3 The impact of Free Trade Agreements
2. GLOBAL RICE-PADDY MARKET
2.1 Establishment history
2.2 Classification
2.3 Input factors
2.4 Production
2.5 Consumption
2.6 Global rice trade
2.7 Price movements
2.8 Typical countries
3. VIETNAM RICE-PADDY MARKET
3.1 History of establishment and development
3.2 Industry value chain
3.3 Rice-paddy cultivation
3.4 Rice production
3.5 Rice consumption
3.6 Rice trade
3.7 Price movements
4. RISKS
4.1 Risks
4.2 Challenges
4.3 Analysis of competitiveness
5. SCALE
6. ENTERPRISE ANALYSIS
6.1 Introduction of enterprises
6.2 Enterprises analysis
7. APPENDIX
LIST OF TABLES
Table 1: Limit of agricultural land allocation due to Land Law 2013
Table 2: Preferential Tariff Scheme for rice- paddy in EAEU FTA 2018- 2022
Table 3: Tariff scheme of Viet Nam for rice – paddy in CPTPP
Table 4: The competitiveness comparison of long grain rice between some countries in the world
Table 5: Area, output and productivity of Thailand rice-paddy industry, 2016/17-2019/20f
Table 6: Thailand’s rice export by categories, 2015 = 2018
Table 7: Rice mortgage program in MY2018/19 of Thailand government
Table 8: Comparison of FOB price of rice exported to China, by some main countries, 3/2019
Table 9: Main rice-paddy cultivated seasons in Vietnam
Table 10: The ranking table of leading exporters in 2017 and 2018 by volume
Table 11: Comparison of the asking price for exported rice between Thailand and Vietnam in Q1/2019
Table 12: Domestic price for rice in Q1/2019
Table 13: TOP OF THE LARGEST RICE-PADDY ENTERPRISES WITH THE GREATEST REVENUE IN 2017
Table 1: Limit of agricultural land allocation due to Land Law 2013
Table 2: Preferential Tariff Scheme for rice- paddy in EAEU FTA 2018- 2022
Table 3: Tariff scheme of Viet Nam for rice – paddy in CPTPP
Table 4: The competitiveness comparison of long grain rice between some countries in the world
Table 5: Area, output and productivity of Thailand rice-paddy industry, 2016/17-2019/20f
Table 6: Thailand’s rice export by categories, 2015 = 2018
Table 7: Rice mortgage program in MY2018/19 of Thailand government
Table 8: Comparison of FOB price of rice exported to China, by some main countries, 3/2019
Table 9: Main rice-paddy cultivated seasons in Vietnam
Table 10: The ranking table of leading exporters in 2017 and 2018 by volume
Table 11: Comparison of the asking price for exported rice between Thailand and Vietnam in Q1/2019
Table 12: Domestic price for rice in Q1/2019
Table 13: TOP OF THE LARGEST RICE-PADDY ENTERPRISES WITH THE GREATEST REVENUE IN 2017
LIST OF FIGURES
Figure 1: GDP growth by quarter, 2016 – 2019
Figure 2: GDP structure at current prices, Q1/2019
Figure 3: VND/USD exchange rate, 1/2013-3/2019
Figure 4: Average interest rate, 2012- 3T/2019
Figure 5: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 – Q1/2019
Figure 6: Commodity imports and exports, 2016-Q1/2019
Figure 7: Rice exports proportion of Vietnam to ASEAN countries in 2018-Q1/2019
Figure 8: Paddy area, output and global productivity in the period of 1960/61 - 2018/19f
Figure 9: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 10: The structure of rice production output by regions, 2018/19f
Figure 11: Global rice-paddy production, 2008/09 - 2018/19f
Figure 12: The structure of rice production output by countries, 2018/19f
Figure 13: Rice consumption in the period from 1960/61 to 2018/19e
Figure 14: Rice consumption by regions in the season 2018/2019e
Figure 15: Rice consumption by using purposes, 2012/13 – 2018/19e
Figure 16: Top 10 largest rice consumers in the season 2017/18 – 2018/19e
Figure 17: Rice consumption per capita in the regions, 2006 - 2027f
Figure 18: Incomes and rice consumption per capita of some countries in 2018
Figure 19: Global rice exports in the period from 2000/01 - 2018/19e
Figure 20: Top 10 largest rice importers in the season 2018/19e
Figure 21: Rice imports by regions, 2018e
Figure 22: Top 10 rice exporters in the season 2018/19e
Figure 23: Rice exports by regions, 2018e
Figure 24: Rice price movements from 11/1987 to 2/2019
Figure 25: Price correlation of Thailand, 01/2010-02/2019
Figure 26: Area, output and productivity of India rice-paddy industry 2000/01 – 2019/20f
Figure 27: India rice consumption, 2011/12 – 2019/20e
Figure 28: India rice exports, 2011/12 – 2019/20
Figure 29: Production output, consumption of rice in China, 2012/13 – 2019/20e
Figure 30: Rice trade of China, 2012/13 – 2019/20
Figure 31: Rice-paddy area and output, 1961 - 2018
Figure 32: Structure of domestic rice distribution market in 2016
Figure 33: Rice-paddy area and output in the 3 seasons of the period from 2010 to Q1/2019
Figure 34: Rice-paddy cultivated area by regions, 2010 -9M/2018
Figure 35: Fertilizer application for rice cultivation averaged over 1ha, 2010 - 2016e
Figure 36: Vietnam rice production, 2010/11 - 2019/20f
Figure 37: Vietnam rice consumption, 2010/11 - 2019/20
Figure 38: The structure of rice consumption by volume, 2017e
Figure 39: Export volume and value of rice, 2010 – 2019f
Figure 40: The structure of rice export by volume, Q1/2019
Figure 41:The structure of rice export by products, 2018e
Figure 42: Rice proportion exported under concentrated export contract, 2007 – 9M/2018
Figure 43: Comparison of the asking price for exported rice between Thailand and Vietnam in 2018
Figure 44: Comparison of the asking price for exporting to some countries, 2014 - 2018
Figure 45: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 46: Gross profit margin, 2016 – 2017
Figure 47: Selling expense/Net revenue, 2016 - 2017
Figure 48: General and administrative expense/Net revenue, 2016 - 2017
Figure 49: Financial expenses/net revenue, 2016 - 2017
Figure 50: Days of sales outstanding, 2016 - 2017
Figure 51: Solvency ratio, 2017
Figure 52:Days’ sales in inventory,
Figure 53: Asset structure and total assets turnover in 2017
Figure 54: Debt structure and debt/equity ratio 2017
Figure 55: Return on assets and equity, 2017
Figure 1: GDP growth by quarter, 2016 – 2019
Figure 2: GDP structure at current prices, Q1/2019
Figure 3: VND/USD exchange rate, 1/2013-3/2019
Figure 4: Average interest rate, 2012- 3T/2019
Figure 5: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 – Q1/2019
Figure 6: Commodity imports and exports, 2016-Q1/2019
Figure 7: Rice exports proportion of Vietnam to ASEAN countries in 2018-Q1/2019
Figure 8: Paddy area, output and global productivity in the period of 1960/61 - 2018/19f
Figure 9: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 10: The structure of rice production output by regions, 2018/19f
Figure 11: Global rice-paddy production, 2008/09 - 2018/19f
Figure 12: The structure of rice production output by countries, 2018/19f
Figure 13: Rice consumption in the period from 1960/61 to 2018/19e
Figure 14: Rice consumption by regions in the season 2018/2019e
Figure 15: Rice consumption by using purposes, 2012/13 – 2018/19e
Figure 16: Top 10 largest rice consumers in the season 2017/18 – 2018/19e
Figure 17: Rice consumption per capita in the regions, 2006 - 2027f
Figure 18: Incomes and rice consumption per capita of some countries in 2018
Figure 19: Global rice exports in the period from 2000/01 - 2018/19e
Figure 20: Top 10 largest rice importers in the season 2018/19e
Figure 21: Rice imports by regions, 2018e
Figure 22: Top 10 rice exporters in the season 2018/19e
Figure 23: Rice exports by regions, 2018e
Figure 24: Rice price movements from 11/1987 to 2/2019
Figure 25: Price correlation of Thailand, 01/2010-02/2019
Figure 26: Area, output and productivity of India rice-paddy industry 2000/01 – 2019/20f
Figure 27: India rice consumption, 2011/12 – 2019/20e
Figure 28: India rice exports, 2011/12 – 2019/20
Figure 29: Production output, consumption of rice in China, 2012/13 – 2019/20e
Figure 30: Rice trade of China, 2012/13 – 2019/20
Figure 31: Rice-paddy area and output, 1961 - 2018
Figure 32: Structure of domestic rice distribution market in 2016
Figure 33: Rice-paddy area and output in the 3 seasons of the period from 2010 to Q1/2019
Figure 34: Rice-paddy cultivated area by regions, 2010 -9M/2018
Figure 35: Fertilizer application for rice cultivation averaged over 1ha, 2010 - 2016e
Figure 36: Vietnam rice production, 2010/11 - 2019/20f
Figure 37: Vietnam rice consumption, 2010/11 - 2019/20
Figure 38: The structure of rice consumption by volume, 2017e
Figure 39: Export volume and value of rice, 2010 – 2019f
Figure 40: The structure of rice export by volume, Q1/2019
Figure 41:The structure of rice export by products, 2018e
Figure 42: Rice proportion exported under concentrated export contract, 2007 – 9M/2018
Figure 43: Comparison of the asking price for exported rice between Thailand and Vietnam in 2018
Figure 44: Comparison of the asking price for exporting to some countries, 2014 - 2018
Figure 45: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 46: Gross profit margin, 2016 – 2017
Figure 47: Selling expense/Net revenue, 2016 - 2017
Figure 48: General and administrative expense/Net revenue, 2016 - 2017
Figure 49: Financial expenses/net revenue, 2016 - 2017
Figure 50: Days of sales outstanding, 2016 - 2017
Figure 51: Solvency ratio, 2017
Figure 52:Days’ sales in inventory,
Figure 53: Asset structure and total assets turnover in 2017
Figure 54: Debt structure and debt/equity ratio 2017
Figure 55: Return on assets and equity, 2017
