Page 56 - Regional_rice_report_with_full_bookmarks

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

Table 23: Import requirements for rice by Japan

Cambodia Lao PDR Thailand Viet Nam
MFN duties (Applied) 262% 262% 262% 262%
Preferential tariff 262% 262% 262% CPTPP - 38%
Number of tariff lines 4 4 4 4
Number of import requirements 13 13 13 13
measurements
Some of the main requirements
+ Followed by foreign supplier verification program
(FSVP);
+ Quality requirement
+ Minimum requirement of ensuring hazard analysis
and risk-based preventive controls for certain foods
+ Requirement to establish, keep and make available
+ Traceability requirement
the records
+ Storage and transport conditions
+ Others
+ Food defense plan)
Source: Authors’ compilation from International Trade Centre and customs
of each country.

- The South Korean market:

Market overview: South Korea is also one of the markets paying high prices
for rice. Over the past 5 years, Korea’s rice imports have grown slightly, from 264
million US$ in 2015 to 375 million US$ in 2020. However, the types of imported rice in
this market are not diversified. Brown rice accounts for 90% of Korea’s total import
value, polished milled rice such as white rice, fragrant rice, parboiled rice, etc only
accounts for 10%.

Competition: Import markets are also not varied either, in which China
accounts for 44% of the market, followed by the US about 37%, Viet Nam about 14%,
and Thailand only 4%. Besides, domestic production has not met the demand, the
shortage of rice for the Korean market will reach 78,000 tons in 2021. The HHI index
of this market is 3572, indicating a very high level of market concentration, and a
strong barrier for new exporters to access this market

Market requirements: Besides Japan, this is also the market with high
protection of the domestic rice sector. The quota applied on rice is equivalent to 513%
of tax. Besides, there are 57 requirement measurements on rice imported. Some of
the requirements related to rice include global allocations and requirements to pass
through the specified port of customs.

Market potential: This market has medium-high potential for the region as the
consumer’s preference on broken rice which is produced mostly in the ASEAN region.
Among these 4 markets, Viet Nam has met market standards in both quality and quantity.
Vietnamese enterprises ranked 3rd with an export market share of about 14%.

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