Rice paddy is a flooded or irrigated field where rice is grown. Rice is a most important crop that is used as a primarily food source, providing 21% of energy and 15% of protein for humans. It is also a main source of income for millions of households in rural area of Vietnam country as well. It consists of various parts for instance endosperm, awn, hull, bran layers, and germ (embryo).
According to study, “Vietnam Rice-Paddy Industry Comprehensive Report Q4/2019” the key companies operating in the Vietnam rice-paddy industry are Vinafood I, Vinafood II, Kigimex, Tan thanh an company limited, Tin thuong investment trading JSC, Vietnam intimex joint stock corporation, Thuan minh import export corporation, Tan dong tien JSC, Agricam, Gia international Corp.
Based on rice variety, Vietnam rice-paddy market is segmented into Japonica, Glutinous, Indica and Aromatic. Based on rice type, market is segmented into milled rice, rough rice, brown rice, parboiled rice and others (wild rice, etc.). Based on grain size type, market is segmented into long grain white rice (high quality), long grain white rice (low quality), long grain parboiled rice, long grain fragrant rice, broken and medium grain milled. The long rice (high quality) is one of the superior class rice and it is not consumed on a regular basis. Based on distribution channel, market is segmented into departmental stores, hypermarkets or supermarket, and others. In addition, based on application, market is segmented into pet food, food consumption and beer processing.
The Vietnam rice-paddy market is driven by growth in fast food industry & restaurants, followed by increase in consumption of rice, rise in per capita income and increase in number of diabetic & obesity patients (brown rice). However, decline in investments made in productivity research may impact the market. Moreover, growth in production of genetically modified (GM) rice to determine the quality of rice & food security is a key trend for market.
Currently, Vietnam holds fifth rank in the rice consumption volume. In which, 68% of the total volume is used for humans, 25% is used for animal feed industry and 7% is used for other purposes for instance the demand for rice in the industrial-scale food processing industry, especially for wine and beer industry. Apart from this, Vietnam country is also a third largest exporter of rice and it is expected that the total exports will be reached at 7 million tons owing to increase in rice demand from Southeast Asia, majorly from Philippines. Over the past decade country has increased its rice productivity & profitability and significantly reducing poverty. The consumption of rice is growing at firm rate as per the slow population growth rate, having domestic milled rice demand predictable to be nearly 2 million tons annually. Vietnam has poor weather condition in months of winter-spring, but the months of May-June are most appropriate for cultivation of rice. Thus Indica rice variety demand produced in country spur up, boosting the exports of rice. In upcoming years, it is anticipated that future of the market will be bight as a result of convenient weather for plants to grow & develop during the forecast period.
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Ankur Gupta, Head Marketing & Communications