Business
Vietnam will sell up to 1 million tons of rice to Bangladesh each year
Vietnam and Bangladesh has just decided to extend the memorandum of understanding (MoU) on rice trade, allowing Vietnam to sell up to 1 million tons of rice to Bangladesh each year till 2022.
On May 23, Vietnamese Industry and Trade Minister Tran Tuan Anh and Bangladeshi Food Minister Md Quamrul Islam signed the MoU for their respective parties in Hanoi.
The MoU, inked during the Bangladeshi minister’s visit, took only two weeks to be discussed and completed.
The MoU, inked during the Bangladeshi minister’s visit, took only two weeks to be discussed and completed.
Immediately after signing the deal, Bangladesh requested for 300,000 tons of 5% broken rice, with a view to importing 500,000 tons of rice by the end of 2017.
Bangladesh market has population of more than 170 million with low supply capacity unequal to high consuming power. The country often faces with disaster, bad harvest while Vietnam’s rice manufacture are seeking for broad market. The MOU plays role as a useful tool to address both Vietnam and Bangladesh worries, generating mutual benefit.
Speaking at the signing ceremony, the Vietnamese minister Tran Tuan Anh expressed hope that Minister Quamrul Islam’s successful visit would foster greater friendship and a stronger bilateral partnership between the two countries.
This is not the first time that Bangladesh has signed an MoU for the import of rice from Vietnam. Vietnam subsquently sold more than 300.000 tons of rice to Banglasdesh in 2011 and 2012.
Originally signed on April 18, 2011, the extended MoU will last for 5 years since the sign day (2017 to 2020). In details, Vietnam will supply up to 1 million tons rice of different kind to Bangladesh. Two sides nominated venues to discuss and deal the contracts.
However, natural disasters in Bangladesh over the last two years have severely curtailed domestic rice production, resulting in a shortage for domestic consumers.
Bangladesh government appreciates Vietnam rice’s quality, price as well as the way Vietnamese enterprises carry out contracts in the previous cooperation. Therefore, despite competitive market and distance, Bangladesh choose Vietnam as rice supplier in the next long period.
Bangladesh market has population of more than 170 million with low supply capacity unequal to high consuming power. The country often faces with disaster, bad harvest while Vietnam’s rice manufacture are seeking for broad market. The MOU plays role as a useful tool to address both Vietnam and Bangladesh worries, generating mutual benefit.
Speaking at the signing ceremony, the Vietnamese minister Tran Tuan Anh expressed hope that Minister Quamrul Islam’s successful visit would foster greater friendship and a stronger bilateral partnership between the two countries.
This is not the first time that Bangladesh has signed an MoU for the import of rice from Vietnam. Vietnam subsquently sold more than 300.000 tons of rice to Banglasdesh in 2011 and 2012.
Originally signed on April 18, 2011, the extended MoU will last for 5 years since the sign day (2017 to 2020). In details, Vietnam will supply up to 1 million tons rice of different kind to Bangladesh. Two sides nominated venues to discuss and deal the contracts.
However, natural disasters in Bangladesh over the last two years have severely curtailed domestic rice production, resulting in a shortage for domestic consumers.
Bangladesh government appreciates Vietnam rice’s quality, price as well as the way Vietnamese enterprises carry out contracts in the previous cooperation. Therefore, despite competitive market and distance, Bangladesh choose Vietnam as rice supplier in the next long period.
