Positive signals in rice exports

08:56 | 23/08/2017 Trade

(VEN) - Rice exports have shown many positive signals since May 2017 after overcoming the continuous decline.

positive signals in rice exports

Increased exports

Phan Thi Dieu Ha, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said rice export turnover has gone up after a period of sharp decline thanks to efforts of the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development in opening the market and promoting exports.

Rice exports in June reached an estimated 413,000 tonnes valued at US$182 million, bringing the total volume and value in the first half of the year to 2.8 million tonnes and US$1.2 billion, an increase of 6.3 percent in volume and 4.9 percent in value compared to a year ago.

According to the Vietnam Food Association (VFA), rice export contracts have increased since May 2017. About 770,000 tonnes of rice will be delivered to importers by August 2017.

China continues to be Vietnam’s top rice importer. In the first five months, Vietnam exported 1.1 million tonnes of rice to China for US$488 million, an increase of 34.2 percent in volume and 31.7 percent in value compared to the same period last year.

Opportunities for rice exports are open when the Philippines is bidding to buy 250,000 tonnes of rice in July and Vietnam’s ability to be chosen is very high. In addition, the Philippines’ National Food Authority also considers to import 544,000 tonnes of rice between late July and early September to prepare for the 2017 harvest season after several delays.

Vietnam and Bangladesh decided to extend the memorandum of understanding on rice trade, which will allow Vietnam to sell up to one million tonnes of rice to Bangladesh each year till 2022. Immediately after signing the deal, Bangladesh requested for 250,000-300,000 tonnes of five-percent broken white rice from Vietnam.

Towards exports of 5.7 million tonnes

Vietnam’s rice exports are forecasted to reach about 5.7 million tonnes this year, an increase of 800,000 tonnes compared to 2016.

To complete the goal, the Ministry of Industry and Trade will continue to coordinate with related ministries and agencies in implementing agreements on cooperation in promoting agricultural, forestry and fishery trade, and strengthening negotiations to sign memorandums of understanding on rice trade with such countries as Latin America, Africa and Asia.

The new decree, replacing Decree 109/2010/ND-CP on rice export and business, drafted by the Ministry of Industry and Trade and submitted to the Ministry of Justice for appraisal, is expected to provide more opportunities for businesses as they will be able to engage in the free trade of rice without quantitative restrictions.

Phuong Lan