A new report from India says Vietnam is claiming supremacy over India in commodities trading as Ho Chi Minh City continues to look like Southeast Asia’s emerging commodities hub. Already Vietnam is among the leaders in exports of a range of agricultural commodities — rice, cashews, tea, coffee, pepper, rubber, tapioca, seafood, and others.
Vietnamese traders are characterized as aggressive and warehouses full, and the Singapore Mercantile Exchange is seeing Vietnam as the new market mover in the $2 billion pepper market and other markets because of high volumes.
India’s setback suggests Vietnam’s government is making the right moves regarding commodities as Indian policies have led to stagnant yields, rising labor costs, low mechanization, and less competitiveness.
Meanwhile, Vietnam’s agribusiness expansion has been remarkable. For example, a decade ago India let the world in pepper exports and processed Vietnamese cashews for re-export; today, Vietnam exports five times India’s volume of pepper and far more cashews.
As food becomes increasingly precious around the globe, Vietnam is positioning itself to be one world’s top suppliers.