Vietnam Rice-Paddy Comprehensive Report Q1/2019
VIETNAM RICE PADDY INDUSTRY
Rice is the main food source for more than 50% of the world's population, providing energy, mineral proteins, vitamins and fiber to humans. As of December 2018, the world rice price fell to 404 USD/ton, higher than the same period last year, but lower than the price achieving in the beginning of 2018. Rice price is forecasted to rise drammatically in 2019 and keep the high cost for 4 years, which marks the rice price increasing cycle all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural Vietnam as well. The 17/18 season saw a slight increase in the yield of rice which was recorded at 0.45% and achieved 22,200 thousand tons. Although rice exports bring a significant source of foreign currency to the country, the rice industry income is still very low compared to the average level of society.
In general, agricultural production in 2018 attained quite good results. Rice exports are estimated to rise 6.7% in quantity and 21.3% in value compared to the same period of 2017. China always maintains the largest market for Vietnamese rice that accounted for 22% of the total yeild in 2018 and the total rice export turnover of the whole country reached 1,332,888 tons.
The year 2019 is forecasted to be a promising year for rice paddy industy as two countries competing directly to Vietnam ( India and Thailand) are lack of rice supply due to a drop in reserves while the demand of Banglasdesh and African countries are raising. Besides, some emerging markets such as Iraq and the Philippines have been and will continue to be potential markets for Vietnam to increase exports, which leads to Vietman's reducing dependence on China. Moreover, Decree 107/2018/ND-CP of the government will also facilitate small and medium enterprises to boost exports as well as promote these businesses to create high quality rice products and have their own value. On the other hand,the rice price is forecasted to increase sharply from 2019, which will also be a driving force for Vietnam's rice industry in the future.
Rice is the main food source for more than 50% of the world's population, providing energy, mineral proteins, vitamins and fiber to humans. As of December 2018, the world rice price fell to 404 USD/ton, higher than the same period last year, but lower than the price achieving in the beginning of 2018. Rice price is forecasted to rise drammatically in 2019 and keep the high cost for 4 years, which marks the rice price increasing cycle all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural Vietnam as well. The 17/18 season saw a slight increase in the yield of rice which was recorded at 0.45% and achieved 22,200 thousand tons. Although rice exports bring a significant source of foreign currency to the country, the rice industry income is still very low compared to the average level of society.
In general, agricultural production in 2018 attained quite good results. Rice exports are estimated to rise 6.7% in quantity and 21.3% in value compared to the same period of 2017. China always maintains the largest market for Vietnamese rice that accounted for 22% of the total yeild in 2018 and the total rice export turnover of the whole country reached 1,332,888 tons.
The year 2019 is forecasted to be a promising year for rice paddy industy as two countries competing directly to Vietnam ( India and Thailand) are lack of rice supply due to a drop in reserves while the demand of Banglasdesh and African countries are raising. Besides, some emerging markets such as Iraq and the Philippines have been and will continue to be potential markets for Vietnam to increase exports, which leads to Vietman's reducing dependence on China. Moreover, Decree 107/2018/ND-CP of the government will also facilitate small and medium enterprises to boost exports as well as promote these businesses to create high quality rice products and have their own value. On the other hand,the rice price is forecasted to increase sharply from 2019, which will also be a driving force for Vietnam's rice industry in the future.
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. INDUSTRY OVERVIEW
4.1 Analysis of risks
4.2 Analysis of competitiveness
4.3 Industry planning
4.4 Forecasts
5. ENTERPRISE ANALYSIS
5.1 Introduction of enterprises
5.2 Indicators of business results
5.3 Indicators of finance
5.4 Indicators of performance efficiency
6. APPENDIX
Financial statements
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. INDUSTRY OVERVIEW
4.1 Analysis of risks
4.2 Analysis of competitiveness
4.3 Industry planning
4.4 Forecasts
5. ENTERPRISE ANALYSIS
5.1 Introduction of enterprises
5.2 Indicators of business results
5.3 Indicators of finance
5.4 Indicators of performance efficiency
6. APPENDIX
Financial statements
LIST OF FIGURES
Figure 1: GDP growth by quarter, 2015 – 2018
Figure 2: GDP structure at current prices, 2018
Figure 3: VND/USD exchange rate, 2013-2018
Figure 4: Average interest rate, 2012- 2018
Figure 5: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 –2018
Figure 6: Commodity imports and exports, 2011-2018
Figure 7: Rice exports proportion of Vietnam to ASEAN countries in 2017
Figure 8: Rice exports proportion of Vietnam to ASEAN countries, 2018
Figure 9: Paddy area, output and global productivity in the period of 1960/61 - 2017/18
Figure 10: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 11: The structure of rice production output by regions, 2018/19e
Figure 12: Global rice-paddy production, 2008/09 - 2018/19e
Figure 13:The structure of rice production output by countries, 2018/19e
Figure 14: Rice consumption in the period from 1960/61 to 2017/18e
Figure 15: Rice consumption by regions in the season 2018/2019e
Figure 16: Rice consumption by using purposes, 2012/13 – 2017/18e
Figure 17: Top 10 largest rice consumers in the season 2017/18 – 2018/19e
Figure 18: Rice consumption per capita in the regions, 2006 - 2016
Figure 19: Global rice exports in the period from 2000/01 - 2017/18e
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 12/2018
Figure 25: Thailand rice exports, 2010/11 – 2018/19e
Figure 26: Area, output and productivity of India rice-paddy industry
Figure 27: India rice consumption, 2011/12 – 2018/19e
Figure 28: India rice exports, 2011/12 – 2018/19e
Figure 29: Production output, consumption of rice in China, 2012/13 – 2018/19e
Figure 30: Rice trade of China, 2012/13 – 2018/19e
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 2018e
Figure 34: Rice-paddy cultivated area by regions, 2010 -2017e
Figure 35: Fertilizer application for rice cultivation averaged over 1ha, 2010 - 2014
Figure 36: Vietnam rice production, 2010/11 - 2018/19e
Figure 37: Vietnam rice consumption, 2010/11 - 2018/19e
Figure 38: The structure of rice consumption by volume, 2017e
Figure 39: Export volume and value of rice, 2010 – 2018
Figure 40: The structure of rice export by volume, 2018e
Figure 41:The structure of rice export by products, 2017e
Figure 42: Proportion of exported rice under centralized contracts, 2007 – 9M/2018
Figure 43: The structure of rice exports by output, 6M/2018
Figure 44: Comparison of the asking price for exported rice between Thailand and Vietnam in 2017
Figure 45: Comparison of the asking price for exporting to some countries, 2014 - 2018
Figure 46: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 47: Gross profit margin, 2016 – 2017
Figure 48: Selling expense/Net revenue, 2016 - 2017
Figure 49: General and administrative expense/Net revenue, 2016 - 2017
Figure 50: Financial expenses/net revenue, 2016 - 2017
Figure 51: Days of sales outstanding, 2016 - 2017
Figure 52: Solvency ratio, 2017
Figure 53:Days’ sales in inventory,
Figure 54: Asset structure and total assets turnover in 2017
Figure 55: Debt structure and debt/equity ratio 2017
Figure 56: Return on assets and equity, 2017
Figure 1: GDP growth by quarter, 2015 – 2018
Figure 2: GDP structure at current prices, 2018
Figure 3: VND/USD exchange rate, 2013-2018
Figure 4: Average interest rate, 2012- 2018
Figure 5: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 –2018
Figure 6: Commodity imports and exports, 2011-2018
Figure 7: Rice exports proportion of Vietnam to ASEAN countries in 2017
Figure 8: Rice exports proportion of Vietnam to ASEAN countries, 2018
Figure 9: Paddy area, output and global productivity in the period of 1960/61 - 2017/18
Figure 10: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 11: The structure of rice production output by regions, 2018/19e
Figure 12: Global rice-paddy production, 2008/09 - 2018/19e
Figure 13:The structure of rice production output by countries, 2018/19e
Figure 14: Rice consumption in the period from 1960/61 to 2017/18e
Figure 15: Rice consumption by regions in the season 2018/2019e
Figure 16: Rice consumption by using purposes, 2012/13 – 2017/18e
Figure 17: Top 10 largest rice consumers in the season 2017/18 – 2018/19e
Figure 18: Rice consumption per capita in the regions, 2006 - 2016
Figure 19: Global rice exports in the period from 2000/01 - 2017/18e
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 12/2018
Figure 25: Thailand rice exports, 2010/11 – 2018/19e
Figure 26: Area, output and productivity of India rice-paddy industry
Figure 27: India rice consumption, 2011/12 – 2018/19e
Figure 28: India rice exports, 2011/12 – 2018/19e
Figure 29: Production output, consumption of rice in China, 2012/13 – 2018/19e
Figure 30: Rice trade of China, 2012/13 – 2018/19e
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 2018e
Figure 34: Rice-paddy cultivated area by regions, 2010 -2017e
Figure 35: Fertilizer application for rice cultivation averaged over 1ha, 2010 - 2014
Figure 36: Vietnam rice production, 2010/11 - 2018/19e
Figure 37: Vietnam rice consumption, 2010/11 - 2018/19e
Figure 38: The structure of rice consumption by volume, 2017e
Figure 39: Export volume and value of rice, 2010 – 2018
Figure 40: The structure of rice export by volume, 2018e
Figure 41:The structure of rice export by products, 2017e
Figure 42: Proportion of exported rice under centralized contracts, 2007 – 9M/2018
Figure 43: The structure of rice exports by output, 6M/2018
Figure 44: Comparison of the asking price for exported rice between Thailand and Vietnam in 2017
Figure 45: Comparison of the asking price for exporting to some countries, 2014 - 2018
Figure 46: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 47: Gross profit margin, 2016 – 2017
Figure 48: Selling expense/Net revenue, 2016 - 2017
Figure 49: General and administrative expense/Net revenue, 2016 - 2017
Figure 50: Financial expenses/net revenue, 2016 - 2017
Figure 51: Days of sales outstanding, 2016 - 2017
Figure 52: Solvency ratio, 2017
Figure 53:Days’ sales in inventory,
Figure 54: Asset structure and total assets turnover in 2017
Figure 55: Debt structure and debt/equity ratio 2017
Figure 56: Return on assets and equity, 2017
LIST OF TABLES
Table 1: Preferential Tariff Scheme for rice- paddy in EAEU FTA 2018- 2022
Table 2: Tariff scheme of Viet Nam for rice – paddy in CPTPP
Table 3: The competitiveness comparison of long grain rice between some countries in the world
Table 4: Main rice-paddy cultivated seasons in Vietnam
Table 5: Domestic price for rice in 2017
Table 6: Comparison of the asking price for exported rice between Thailand and Vietnam in 2018
Table 7: Domestic price for rice in 2018
Table 8: TOP OF THE LARGEST RICE-PADDY ENTERPRISES WITH THE GREATEST REVENUE IN 2017
Table 1: Preferential Tariff Scheme for rice- paddy in EAEU FTA 2018- 2022
Table 2: Tariff scheme of Viet Nam for rice – paddy in CPTPP
Table 3: The competitiveness comparison of long grain rice between some countries in the world
Table 4: Main rice-paddy cultivated seasons in Vietnam
Table 5: Domestic price for rice in 2017
Table 6: Comparison of the asking price for exported rice between Thailand and Vietnam in 2018
Table 7: Domestic price for rice in 2018
Table 8: TOP OF THE LARGEST RICE-PADDY ENTERPRISES WITH THE GREATEST REVENUE IN 2017
