Việt Nam rice export will be more difficult next year

Vietnam export rice

The Việt Nam Food Association (VFA) forecasts that Việt Nam’s rice export next year will encounter many difficulties which are even worse than those in the first few months of this year.

According to Phạm Văn Bảy, vice chairman of VFA, no rice exporting contracts with large volume have now been sealed for execution early next year.

Meanwhile, early this year, the country shipped abroad around 800,000 tons carried over from 2011.

The rice volume which will be delivered from this month onwards is 951,000 tons, with 550,000 tons delivered this month.

Therefore, if based on the contracted volume left, 400,000 tons of this year’s contracts will be delivered next year, according to VFA.

“We are striving to seek contracts, especially big ones, but have found none so far,” Bảy said.

However, Phạm Thái Bình, director of Trung An Co. based in Cần Thơ City, said that the situations were not that serious.

It is because countries have now finished the year’s import targets, and thus having no new exporting contracts at this point of time is nothing abnormal.

“I think VFA complains just to enjoy incentives of the Government.

However, this is an excuse taken by importing countries to lower the price of Việt Nam’s rice,” Bình said.

According to the latest statistics of VFA, Việt Nam’s rice export volume amounted to 7.256 million as of December 6, with a value of US$3.234 billion, rising by around 150 million tons from last year.

Despite having a higher export volume, the rice export value has been nearly US$300 million lower than last year.

The average export price in the January-November period reached US$445.56 per ton, declining by US$43.03 per ton from the same period last year, according to VFA.

Explaining the low price, Bảy said thatViệt Nam’s rice had to face tough competition from low-price rice of India, Pakistan and Myanmar.

Source: The Saigon Times 13/12/2012


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