Vietnam Rice Rich Co., Ltd. was established in 2020 with a registered capital of VND76 billion. It is engaged in the purchase, processing and sales of agricultural products and commodity trading, among which the main product is Vietnamese rice. The company has 300 employees and a modern rice processing plant. The annual processing capacity of the plant in Ho Chi Minh, Vietnam, is 500,000 tons. Ho Chi Minh City has a cool climate and abundant rainfall. It is the “golden production area” of Vietnamese jasmine rice and is known as the “City of Lotus”. The region is the best place to grow authentic Vietnamese jasmine rice.
By deploying more mechanized equipment and introducing the contract farming model, RICE RICH Group plans to increase its production level and expand exports to more international markets.
With existing processing equipment, the company can provide 50,000 tons of high-quality rice per month. This year, the company expects a 20% increase in production and a new rice processing plant in Ho Chi Minh, Vietnam.
“We have seen an increase in demand for rice in overseas markets. There is a greater opportunity for Thai rice to go international,” said James, CEO of RICE RICH.
“We are considering improving the irrigation system to increase production, and we will develop more contract farming this year.” He added that the company has begun to cooperate with local farmers in small-scale contract farming.
RICE RICH’s production is mainly for overseas markets, with China as the main buyer (accounting for 30% of its export orders), and another 20% of rice is shipped to Malaysia. This year, RICE RICH has entered the US market.
This is a tight rice market. Vietnam has become a major rice exporter in the world. In addition, there is fierce competition at home, with about hundreds of rice producers competing for the export market.
At the same time, rice producers face other challenges such as erratic weather conditions, lack of proper farming techniques and high energy costs, which increase production costs and make Vietnam’s rice more expensive than some competitors.