Vietnamese rice put for sale at a supermarket in the UK. (Photo: VNA)The UK, home to a community of over5.5 million Asian-origin people, has high rice demand while it doesn’t producerice. In 2022, its rice import volume increased 4.1% year on year to over 678,000tonnes while the value rose 7% to more than 603 million USD.
Last year, Vietnam’s rice export to this market grew strongly to approximate3,400 tonnes worth over 3.7 million USD, up 24.5% in volume and 34% in valuefrom 2021. However, the country accounts for just 0.6% of the UK’s rice importat present, ranking 14th among exporters there, according to statisticscited by Cuong.
He said the export ban by India, which makes up nearly 27% of the UK’s riceimport volume, will trigger a shortage of about 75,000 tonnes of rice in thismarket in the second half of 2023.
The sudden decline in rice supply from India will create advantages for otherexporters, including Vietnam, the Trade Counsellor noted, perceiving that it’snow a good chance for Vietnamese rice to increase its market share in the UK,especially with favourable tariffs generated by the UK - Vietnam Free TradeAgreement (UKVFTA).
If Vietnamese exporters conductprofessional marketing in the British market such as advertising in English onthe local media, they can gain a bigger market share, including at therestaurants serving Asian tourists who make up a large number among the tens ofmillions of visitors to the UK each year, according to the official.
Echoing the view, Nguyen Hai Nam, Chairman of EUTEK Group which exclusively distributesthe rice brand of ST25 Ong Cua in the UK, held that Vietnam’s long-grain rice hasa big opportunity in the UK amid India’s export ban, which will cause supplyshortages and inflate prices.
The UK is a highly potential market for Vietnamese rice, one of the commoditiesbenefiting from tariff exemption under the UKVFTA, Nam went on.
For her part, Nguyen Thi MinhPhuong, product development manager at the Longdan group – one of the biggestimporters of Vietnamese goods in the UK, said rice import demand in the UK hassurged since start of 2023. Her company’s import of Vietnamese rice so far thisyear has risen 40% from the same period of 2022.
Though immediate impacts haven’tbeen recorded, India’s rice export ban is likely to affect supply sources inthe UK in the future and subsequently boost import from other countries likeVietnam and Thailand. Meanwhile, consumers now prefer Vietnamese rice to the Thaione thanks to more competitive prices and quality, she added./.
VNA
