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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

2014). The shift in consumer preferences toward sustainable and healthy products
has been shown to have possibilities for marketing strategies for specific consumer
segments on the one hand, and for imposing new obligations on downstream supply
chain actors on the other.

In Viet Nam, rice is chosen mostly based on sense, taste, familiarity, or a reasonable
price, with little regard for rice quality and nutrients. As a result, the domestic rice
market is a jumble of hundreds of names, prices, and characteristics for various sorts
of rice, all of which are uncertified. However, many enterprises have established
their brand recognition in the market with criteria such as high quality, low pesticide
residue, and good taste. The most famous brand is ST25 rice which won World’s Best
Rice in 2019. Other brands are Sunrise rice, Vibigaba, etc. Some niche markets are
developing such as organic, herbal, ethnic, etc.

2.2 Export rice markets of each country
2.2.1 The situation of intra-trade

The total export value of the sub-region (Viet Nam, Lao PDR, Cambodia, and
Thailand) is not stable, fluctuating with the trend of the rice traded in the world,
accounting for 27.34% of total rice export value in the world (Figure 8). In 2020,
the total export value of this region reached 7 million USD, a slight decrease of
8.45% compared to the year 2015. The decrease in export comes from the decrease
in Thailand and Viet Nam, the two largest exporters in the region, accounting for
52.5% and 39.72% of total export value in the region respectively. However, this region
remains an important role in producing rice in the world. Among 136 exporters in
the world, this region has two of the largest rice exporters in the world Thailand and
Viet Nam (rank 2 and 3 after India). The main reason for the decrease in export
nd
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in recent years is due to Covid-19, many countries decided to stop exporting rice to
protect national food security. Besides, the total rice supply in the world surpasses
the demand. It is gradually becoming saturated, and the supply of rice has surpassed
the demand for rice. As of 2021, worldwide rice production will reach 507 million tons,
9 million tons more than total rice consumption. According to FAO’s forecast, the rice
oversupply will continue reaching nearly 3 million tons by 2030.
One of the main important things to mention in this region is that China has
an important role in the export of this region, accounting for 13% of the total value of
rice exported by this region. China is the main destination of many rice exporters in
the world. Due to the close border, this region makes use of this advantage to exploit
this huge market. However, China changes its strategy to focus on rice domestic
production, causing barriers for this region to the entrance.

Although the value of exports from this sub-region is huge, the formal value
of intra trade is insignificant at only 66 million USD in 2020 according to AseanStat
(2022). This figure is also not stable, from 12 million USD in 2012 to 81 million in 2015
before falling to only 66 million in 2020. One of the main reasons for the formal value
being very insignificant is due to the total import demand of this group not being
high. The total rice value imported of the region reached 189 million USD in 2020,
increasing from 66 million USD in 2015, with 67% of rice imported by Viet Nam. Viet
Nam mainly imported rice in husks for domestic processing from ASEAN countries,
accounting for 81% (mainly from Cambodia). Lao PDR is the second-largest importer

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