Broken rice market in Vietnam

Earlier Report Observations

The Vietnamese broken rice market began the period at a high of 4.3 million tons in 2018, supported by a stable domestic rice production base and the activities of leading firms like Lộc Trời gaining international recognition. However, market volume contracted over the next two years, falling to 2.7 million tons by 2020. This decline was primarily driven by strong rice exports, which diverted supply away from the domestic market. The EU-Vietnam Free Trade Agreement taking effect in late 2020 further supported export-oriented flows, reinforcing this trend.

A sharp reversal occurred in 2021, with the market volume surging by 67% to reach 4.6 million tons. This peak was fueled by a massive, nearly twenty-fold increase in imports of broken rice, coupled with a rebound in domestic production. During this period, major processors like Tập đoàn Tân Long were implementing integrated, closed-loop production systems from field to table, enhancing supply chain management.

Market volume receded to 3.7 million tons in 2022 as Vietnam emerged as the world's largest rice supplier in the latter part of the year, prioritizing export commitments. Prices for broken rice and bran rose sharply, reflecting tight supply conditions. By 2023, the market stabilized around 3.6 million tons. This stabilization occurred amid record Vietnamese rice exports overall, boosted by India's export restrictions which increased global demand. The market's value in dollar terms rose to $1.8 billion in 2023, driven by higher global rice prices.

Production broken rice in Vietnam

In kind, 2017-2020, K t

From 2017 to 2020, Vietnam maintained its position as the world's third-largest producer of broken rice by volume.

Top producers of broken rice, 2017-2020

World map of production of broken rice, 2017-2020

Vietnam's broken rice production declined for the second year in a row. In 2020, the country produced 3,500 K t, which was a modest decrease of 7.9% compared to 2019. Over the 2017-2020 period, production grew by 16.7%, with an average annual growth rate of 5.3%. The highest production volume was recorded in 2018 at 4,500 K t. The largest decline occurred in 2019, falling by 15.6%, while the biggest increase was in 2018, rising by 50.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, Vietnam's broken rice output was valued at 1,714 M $ US, representing a 13.2% increase from 2019. Between 2017 and 2020, production value rose by 58.4%, equivalent to an annualized growth rate of 16.6%. The peak value was reached in 2018 at 1,816 M $ US. The largest decrease was in 2019, dropping by 16.7%, and the largest increase was in 2018, surging by 67.9%.

Annual dynamics of production in Vietnam in value, 2017-2020, M $ US

Exports broken rice from Vietnam

Exports in kind, K t

The market showed significant fluctuations during this period. Exports varied widely, with a low in 2018 and a high in 2020, resulting in a 4.4-fold difference between these years. In 2020, Vietnam exported 784.2 K t of broken rice, which was a 37.6% increase compared to 2019. The lowest export volume was recorded in 2018 at 179.3 K t. The largest decline occurred in 2018, falling by 56.5%, while the biggest increase was in 2019, rising by 217.9%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K t

Between 2017 and 2020, the main buyers of broken rice from Vietnam were China, accounting for 50.3% of exports in volume, Côte d'Ivoire with 23.8%, and Senegal with 7.2%. Together, these three countries made up 81.3% of Vietnam's total broken rice exports by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, M $ US

The market exhibited volatility in these years. Exports reached their highest point in 2020 and their lowest in 2018, with a 5.3-fold amplitude between these extremes. In 2020, Vietnam's broken rice exports totaled 384.1 M $ US, indicating a sharp increase of 69.2% from 2019. The minimum value was recorded in 2018 at 72.4 M $ US. The largest decline was in 2018, dropping by 51.3%, while the largest increase was in 2019, rising by 213.8%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, M $ US

From 2017 to 2020, China was the leading destination for Vietnam's broken rice exports in value terms, comprising 53.0% of the total, followed by Côte d'Ivoire at 22.1% and Senegal at 6.1%. These three countries together accounted for 81.2% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports broken rice to Vietnam

Imports in kind, K t

Vietnam's broken rice imports increased for the third consecutive year. In 2020, import volume reached 13.7 K t, showing a robust year-over-year growth of 14.2%. Between 2017 and 2020, imports grew by 34.4%, which translates to an annualized rate of 10.4%.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K t

During 2017-2020, Thailand and Myanmar were the primary sources for Vietnam's broken rice imports, jointly accounting for 85.0% of the total import volume. The remaining imports were distributed among smaller markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, M $ US

In 2020, Vietnam's broken rice imports were valued at 6.7 M $ US, marking a 45.3% increase from 2019. Between 2017 and 2020, import value rose by 79.7%, equivalent to an annualized growth rate of 21.6%. The largest decline occurred in 2019, decreasing by 1.7%.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, M $ US

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020