Although Vietnamese rice has successfully entered some of the world's demanding markets, much work remains to establish a strong brand so that when people think of rice, they immediately think of Vietnam.

Despite being among the top exporters of rice, the brand image of Vietnamese rice in many markets remains "dull" and is not a preferred choice for consumers. Addressing these issues is crucial for increasing export value and ensuring sustainable demand for Vietnam’s agricultural products.

Brand Still in the Shadows

In 2023, rice exports achieved impressive figures, with 8.1 million tons valued at $4.68 billion, marking a 14.4% and 35.3% increase compared to the previous year. The largest market for Vietnamese rice is ASEAN, accounting for 61% of total rice exports, with 4.9 million tons, a 24% increase from the previous year.

According to preliminary statistics from the General Department of Customs, in January 2024, the country exported 512,265 tons of rice, equivalent to $362.26 million, with an average price of $707.2 per ton. This represents a 4% increase in volume and a 2.8% increase in price compared to December 2023. The Philippines is the top consumer of Vietnamese rice, accounting for 53.6% of total volume and 39% of total export value, reaching nearly 280,944 tons, equivalent to nearly $194.28 million, with an average price of $691.5 per ton.

Despite large export volumes, Mr. Phùng Văn Thành, Vietnam’s trade counselor in the Philippines, notes that the Vietnamese rice brand is not well highlighted compared to brands from Japan and Thailand. Therefore, the country of origin labels on the packaging are often smaller and require keen attention to be noticed.

“Previously, Filipinos associated rice with Thailand and Japan. Although they consume Vietnamese rice, it is not highly valued. This highlights the need for branding so that supermarkets and retail stores in the Philippines proudly display 'Product of Vietnam' or 'Vietnamese Rice.' This would be beneficial for the Vietnamese rice industry,” Mr. Thành recommends.

Therefore, besides increasing export volume and revenue, improving quality and the reputation of businesses, there is a need to focus on brand development.

Similarly, in Indonesia, while Vietnam is among the top three rice suppliers, Mr. Phạm Thế Cường, Vietnam’s trade counselor in Indonesia, believes Vietnamese rice faces significant challenges in this market, particularly competition with Thai rice in the high-quality segment, and weak brand recognition.

The trade office recommends that Vietnamese rice exporters focus more on building a well-planned brand strategy, promoting high-quality rice through various channels and promotional activities. Ensuring rice quality, meeting quarantine standards, and adhering to delivery schedules are crucial. Participating in trade fairs to promote Vietnamese rice is also suggested.

In the Netherlands, where the population primarily consumes potatoes and bread and rice is not a staple food, rice is influenced by Indonesian, Surinamese, and Indian culinary traditions, with Basmati being the preferred type rather than fragrant rice.

Currently, Vietnamese rice is mainly imported and distributed in Asian supermarkets owned by people of Vietnamese origin, with only a few reaching supermarkets in Pakistan, Turkey, China, and not yet penetrating major Dutch supermarkets. However, the Netherlands is a gateway for trade into Europe, including rice trade.

Ms. Phan Thị Nga, First Secretary of the Vietnamese Trade Office in the Netherlands, notes that the Netherlands imports rice from 241 countries and territories worldwide. The value of Vietnamese rice imports accounts for 2.6% of the total rice import value into the Netherlands. Retail prices of Vietnamese rice in Asian supermarkets are higher than those of Thai and Cambodian rice, ranging from €3.85 to €4 per kg, compared to Thai fragrant rice at €3.65 to €3.85 per kg and Cambodian rice at €3.5 to €3.65 per kg.

“Thai and Indian rice entered the market early and have established a strong presence due to consistent quality over time. Vietnamese rice, on the other hand, has unstable quality and higher prices, leading many consumers to switch back to Thai rice for its stable quality and better prices,” the representative from the Vietnamese Trade Office in the Netherlands shared.

Leveraging Opportunities to Enhance Position

Rice is a staple food for over 50% of the world’s population. Vietnam is one of the top three rice-exporting countries, accounting for about 15% of global rice exports.

The successful branding of rice in Australia presents an opportunity for businesses to increase the value of this billion-dollar commodity.

Ms. Nguyễn Thu Hường, Trade Attaché at the Vietnamese Trade Office in Australia, mentioned that previously, Australian consumers were only familiar with Thai rice despite Vietnam being a major rice exporter. After the ST25 rice won the “World’s Best Rice” award, the trade office launched a promotion campaign, even before ST25 was available in Australia. This campaign led many Australian importers to become interested in ST25. The trade office organized several large events to promote ST25 and other Vietnamese rice varieties across Australia.

The trade office also made efforts to introduce Vietnamese rice to remote areas in Australia, such as the Northern Territory, a six-hour flight from Sydney. Today, Vietnamese rice with various brands is well established in Australia.

“Through ST25’s success, we promoted the slogan: ‘Vietnam, the land of the world’s best rice,’ to enhance the status of all Vietnamese rice varieties,” Ms. Nguyễn Thu Hường shared.

Agricultural expert Võ Tòng Xuân noted that among agricultural products, rice has the strongest potential for branding. While Vietnamese rice has been exported to some demanding markets, much work remains to establish it as a prominent brand. Experts suggest that businesses and producers must improve cultivation processes to market not just the nutritional value but also the story and brand.

From the management side, Mr. Vũ Bá Phú, Director of the Trade Promotion Department, stated that the Ministry of Industry and Trade has been coordinating various trade promotion measures to support businesses in diversifying export markets, finding strategic partners, and maintaining and enhancing the position and brand of Vietnamese rice in key export markets, especially those with free trade agreements. The ministry is also working with relevant agencies and localities to help businesses overcome trade barriers and safeguard trade.

Additionally, the Ministry of Industry and Trade encourages localities, the Vietnam Food Association, and traders to proactively build regional supply chains with high productivity and quality that meet market requirements and food safety standards. Ensuring a stable and sustainable supply is also crucial.

The ministry will continue to share information, propose solutions for market development, and collaborate closely with relevant departments and trade offices abroad to implement practical and effective trade promotion activities, helping the rice industry explore diverse export markets and build and enhance the sector’s brand.

Source: Vietstock