Sign up | Log in



Home  >>  Daily News  >>  Vietnam News  >>  Trade  >>  Vietnam may ship 700,000mt rice to Philippines

9 August 2009

Vietnam may ship 700,000mt rice to Philippines

Related Stories

July 25, 2009
Australia to help strengthen Vietnam’s market economy

July 20, 2009
Vietnam garment exports seen rising

June 7, 2009
Vietnam to ramp up rubber exports by 2015

May 19, 2009
Vietnam seen allowing depreciation of dong to boost exports

May 7, 2009
Vietnam slashes prices of rice exports

May 5, 2009
Rice props up Vietnam’s sagging exports

April 27, 2009
Vietnam earns $18.63 billion from exports in Jan-April 2009

Vietnam is expected to sell 700,000 tonnes of rice to the Philippines between now and the end of the year, said Reuters, citing a local news report.

The imports would take to 2.2 million tonnes the total grain purchase from Vietnam by the Philippines, the world's largest rice importer, Deputy Minister of Industry and Trade Nguyen Thanh Bien told the Rural Today newspaper, run by the Vietnam Farmers' Association.

Bien did not give exact time or price details but the quantity is well above market expectations after top export firm Vinafood 2 started talks last month to sell up to 500,000 tonnes to the Philippines.

He said rice prices could drop slightly in the second half of this year, partly due to large stocks in Thailand, the world's largest rice exporter.

Thai government rice stocks have risen to the equivalent of 7 million tonnes of milled rice, the highest ever, which could add to the downward pressure on prices, a senior official and exporters said on Thursday.

If Vinafood 2, assigned by the government to handle rice demand from the Philippines, can reach a sale agreement, other Vietnamese exporters will not be allowed to sell rice to foreign firms that compete in the Philippine market.

A deal with the Philippines will help stop domestic prices from falling in Vietnam, where the harvest of a huge crop in the Mekong Delta has been peaking, traders said. The harvest is expected to end next month before seasonal floods arrive.

The sale could also help put Vietnam on track to achieve a record export volume this year of up to 7 million tonnes as expected by the government.

The Philippines bought 1.5 million tonnes of Vietnamese rice in January, bringing calm to a market which last year saw rice prices shoot to record levels.

Vietnam will stop firms exporting rice to certain destinations when such sales would be in competition with government contracts handled by the top two state-controlled exporters, according to rules issued by an industry body.

From August 10, exporters will not be allowed to sell rice to foreign companies that have signed government-backed deals, or to foreign traders who compete in the markets where Vietnam aims to sign such contracts, the Vietnam Food Association has ruled.

The regulations were issued on July 30 and obtained by Reuters on Thursday. Vinafood 2, the country's top rice exporter, started talks on selling up to 500,000 tonnes of rice to the Philippines in late July.

Rice is Vietnam's top cash earner among its agricultural exports. It is the world's second-largest rice exporter.

The government assigns Ho Chi Minh City-based Vinafood 2 to handle rice demand from the Philippines, Malaysia and Indonesia, while Vinafood 1, based in Hanoi, deals with Iraq and Cuba. Their contracts are government-to-government deals.

Other exporters compete for company-to-company contracts and can join government deals only by contributing their rice to shipments by Vinafood 1 or 2.

The food association has from time to time banned domestic firms from selling rice to foreign firms in markets where Vinafood 1 or 2 bids in major tenders, but it had not set any formal legal framework until July 30.

The association sets a price floor for the export of ordinary rice and grants loading permits after it has checked contracts to ensure proper pricing, destinations and payment terms.

Vietnam allows free export of glutinous and fragrant rice, which make up a tiny part of overall grain exports.

Under the new rules, serious violators could have their export licence revoked by the Industry and Trade Ministry, the association said.

More than 160 rice exporters, all Vietnamese, shipped a combined 4.65 million tonnes of rice last year. Vinafood 1 and 2 accounted for the bulk of that.


Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand