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

Number of import
requirements mea-
surements 56 56 56 56
Some of the main requirements
Followed by EC regulation no 852/2004, including:
+ Production registration;
+ Quality requirement + Producing under HACCP;
+ Microbiology as EC no 2073/2005
+ General requirements for production;
+ Requirement of food safety supervising
+ Traceability require- Ability to trace every step of producing products
ment
+ Others + Licensing for the protection of public health

Source: Authors’ compilation from International Trade Centre and customs
of each country.
- The US market

Market overview: The United States is one of the world’s largest rice importers.
In 2020, the value of rice imports in the US market is 1.3 billion USD, nearly doubled
compared to 2010. This is the market with the most stable average growth rate
compared to the other 4 markets. The main imported products of this market are
long-grain rice accounting for 61% (of which 13% is Jasmine rice) and Basmati rice
accounting for 11%.

Competition: Thailand is the largest exporter accounting for 59% of the market,
followed by India with 24% of the market. The HHI index of this market reached 4036,
showing that this is a medium-high concentration market, causing barriers to entry
for new exporters.

Market requirements: the US has lifted the tariff barriers for rice exporters
to this market. At the moment, the MFN tariff for importing rice into this market is
4%. However, there are no preferential tariffs for ASEAN countries as well as bilateral
agreements with each country now. Besides, the US has been well known for being
one of the hardest markets to enter. According to calculations from FDA data, in the
period 2014-2021, Viet Nam had a total of 202 shipments of rice and rice products
that refused to be imported, accounting for 10% of the total rice shipments refused to
be imported, ranked the 3rd.

Market potential: Among the 4 countries, Thailand is already exploiting this
market with up to more than 50% market shares. With the similarity in terms of rice-
producing, Viet Nam and Cambodia have a high potential to replace Thai rice. However,
this will require a lot of branding strategies, especially in Viet Nam. Besides, the low
demand of the US will give fewer incentives for new enterprises from Viet Nam and
Cambodia to further research this market. The demand for rice in the US market is
very low and stable at 4.6 million tons/year during the period 2010-2020 while the US
rice production is over 6 million tons/year. Up to 50% of rice produced domestically
is for domestic consumption and processing (Childs, 2021). Low demand along with
many barriers does not create motivation for exporters to enter this market.

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