After nearly three years of the pandemic, on January 8, 2023, China officially opened its borders and removed regulations on testing and disinfecting COVID-19 for frozen and chilled foods. This brings positive expectations for some essential agricultural products of Vietnam, such as pangasius, rubber, and rice.
Source: Tan Nam Chinh Vietnam Logistics
However, pangasius exports will still face many difficulties in the US and EU markets in the first half of 2023 due to inflation and slowing economic growth. Therefore, the growth from the Chinese market can only partially offset the decline from other markets.
For rubber products, Agriseco said that China is the world's largest natural rubber import market, with a market share of more than 43% globally. This is also the largest rubber-importing country of Vietnam, which account for nearly 70% of the total market in 2022.
With China reopening, the demand for rubber for tire and car production is expected to increase next year. As a result, rubber manufacturing and exporting enterprises can benefit and have more positive business results in 2023.
On the other hand, Agriseco noted that the price of rubber is an essential factor to watch. Looking back at the first half of 2022, the business results of businesses in the industry were positive based on a sharp increase in rubber prices. However, in the second half of 2022, the industry's outlook deteriorated due to the cooling of rubber prices. Therefore, China's increase in rubber imports for production will be an important condition for rubber prices to rise again after the recent price reduction cycle.
One agricultural product that also benefits from China's opening is rice. Accordingly, China is Vietnam's second largest rice export market in 2022, after the Philippines.
Along with the fact that India has applied an export restriction policy for some types of rice since early September 2022, the opening of China is expected to help Vietnam's rice enterprises increase export output to this market. With India restricting rice exports, Vietnamese enterprises will have the opportunity to replace it, thereby increasing export output to the Chinese market.
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