Business
Vietnam: Rice exports increase sharply in two months
The Ministry of Agriculture and Rural Development reported that more than one million tonnes of rice were exported in January and February at 445 million USD, doubling that of 2015 in terms of volume and value.
According to the Vietnam Food Association (VFA), the increase in rice exports was due to the fact that Vietnam ’s rice exporters had to complete government-to-government deals with the Philippines and Indonesia.
The Mekong Delta farmed about 1.54 million out of 1.56 million planned hectares in the winter-spring crop. Localities have harvested about 120,000 hectares with an average productivity of 6.3-6.4 tonnes per hectare.
In 2015,Vietnam exported 6.5 million tonnes for 2.68 billion USD, a decrease of 3.94 percent in value. Asian countries were the main buyers, accounting for 74.5 percent of exports, followed by Africa (13.77 percent) and the US (6.72 percent).
According to the ministry, the Asian region remained Vietnam’s key rice importer in 2015, totalling 4.8 million tonnes of rice and accounting for nearly 74.5 percent of the country’s rice exports.
Domestic rice exporters need information about international markets, such as quota-related information so they can avoid potential damage and losses in signing contracts with international partners. They should also provide consultation services for domestic enterprises in cases of trade disputes and technical barriers, as well as potential competitors.
Deputy Minister of Industry and Trade Tran Tuan Anh urged the Import-Export Agency to cooperate with the Association to help rice exports, with focus on developing the key markets, marketing in new ones and handling international trade disputes. Publicity campaigns will be promoted to enhance rice exporters’ and farmers’ understanding of FTAs, the deputy minister said.
According to the Vietnam Food Association, Vietnam's rice exports this year, excluding border trade, are expected to remain at last year's 6.5 million tonnes. Additionally, rice exported through unofficial channels – across borders - is estimated at 1,6-1.8 million tonnes, which is expected to lift the yearly exports through both official and unofficial channels to about 8 million tonnes.
Vietnamese rice exporters have recently won bids to supply 450,000 tonnes of rice to the Philippines and one million tonnes of rice to Indonesia, helping raise the price of rice in the domestic market. Vietnam has around 4.1 million hectares of rice paddies, 53 percent of which are concentrated across the Mekong Delta.
