China changes policy, buys Vietnam’s rice

Previously, China imported rice in small quantities from Vietnam, but the country has recently increased imports from Vietnam and accepted higher prices.

The General Department of Customs (GDC) reported that the total amount of rice exported to China in the first three months of the year reached 162,000 tons, accounting for 11 percent of total exports.

China changes policy, buys Vietnam’s rice


The average price that Chinese buyers paid for Vietnamese rice was VND12.7 million per ton, up by VND1.7 million than that of the last year.

Meanwhile, Vietnam’s average export price in the first three months of the year was VND10.7 million per ton. As such, the export price to China was VND2.7 million per ton higher than the price at which Vietnam sold to other countries.

China is buying Vietnam’s rice at a price much higher than the Philippines, which is Vietnam’s number 1 rice buyer.

Dan Tri newspaper cited statistics from GDC as reporting that in the last three months, the Philippines imported more than 500,000 tons of rice at VND9.9 million per ton only.

Vietnam, after half a month of interruption, has resumed rice export. However, the exports will be implemented under strict control to ensure domestic food security. Only 400,000 tons of rice will be exported in April, and the same amount is predicted for May.

Vietnam, after half a month of interruption, has resumed rice export. However, the exports will be implemented under strict control to ensure domestic food security. Only 400,000 tons of rice will be exported in April, and the same amount is predicted for May.

 


While the government takes cautious steps in exporting rice, experts believe that Vietnam will not lack rice and it is necessary to let exports return to normal. If only small amounts of rice are exported, Vietnam will see rice abundance and the prices will fall. If so, both enterprises and farmers will suffer.

Duong Van Chin, a respected rice expert, former director of the Mekong Delta Rice Institute, thinks Vietnam should speed up rice export to be able to sell rice at good prices.

He said it would be better to export 5 million tons of rice by the end of May, because the winter-spring crop is the major crop in Mekong Delta, the rice granary of the country. Later, the government should allow export of 1.5 million tons more of summer-autumn crop rice, and that will be enough for this year.

“As the world prices are high, it would be better to allow enterprises to export rice in large quantities, which would bring benefits to both exporters and farmers,” Chin said. “High profits will help encourage farmers maintain their rice production, which is an important factor to ensure domestic food security."

According to Reuters, India, the biggest exporter, has resumed its exports after three weeks of interruption. Thai 5 percent broken rice price has dropped to $530-538 per ton from $550-580 per ton.

Le Ha

Will FIEs distribute rice in the local market?

Will FIEs distribute rice in the local market?

As a market economy, Vietnam has to open its markets to foreign invested enterprises (FIEs) but the opening may lend a hand to FIEs to control the home market.

Problems plaguing rice export controls

Problems plaguing rice export controls

Confronted with food security risks as Covid-19 spreads, the Prime Minister decided on March 25, 2020 to suspend rice export and then regulate it using quotas. 

 
 

Other News

.
Vietnam to import live pigs to cut live hog prices at home
Vietnam to import live pigs to cut live hog prices at home
BUSINESSicon  29/05/2020 

Vietnam will allow the import of live pigs for the first time in a bid to counter the skyrocketing live hog prices in the domestic market, said an agricultural official.

Vietnam domestic pepper prices hit one-year high
Vietnam domestic pepper prices hit one-year high
BUSINESSicon  29/05/2020 

Vietnam pepper prices rose to a one-year high on Wednesday, driven by Chinese consumption recovery and higher demands from local businesses. 

Full-scale audit compulsory to all PPP projects: NA deputies
Full-scale audit compulsory to all PPP projects: NA deputies
BUSINESSicon  29/05/2020 

A full-scale audit should become compulsory for work carried out under public-private partnerships to make sure they are efficient and benefit all stakeholders, lawmakers have told the National Assembly.

Shrimp exports expected to increase in coming months
Shrimp exports expected to increase in coming months
BUSINESSicon  29/05/2020 

Viet Nam’s pushback of COVID-19 pandemic has helped shrimp exporters raise their competitiveness on the world market, being over other competitors...

HCM City says petrol supply adequate to fully meet demand
HCM City says petrol supply adequate to fully meet demand
BUSINESSicon  29/05/2020 

The HCM City Department of Industry and Trade has assured there is an adequate supply of petroleum products to meet demand and it will prevent any hoarding of these goods.

Air passenger transport increases slightly in May
Air passenger transport increases slightly in May
BUSINESSicon  29/05/2020 

The Civil Aviation Authority of Vietnam reported that the number of passengers through airports nationwide reached 2.88 million passengers this month, down 70 per cent compared to the same period last year.

Man jailed for stock manipulation
Man jailed for stock manipulation
BUSINESSicon  29/05/2020 

 The Ha Noi People's Court on Wednesday sentenced one person to 18 months in jail over stock market manipulation at Binh Thuan Mineral Industry JSC (KSA).

North-South Expressway faces lack of funds
North-South Expressway faces lack of funds
BUSINESSicon  29/05/2020 

The Ministry of Transport (MOT) said that it has been difficult to mobilize credit capital for the huge eastern North-South Expressway project.

Utilisation of EVFTA requires strict clarity
Utilisation of EVFTA requires strict clarity
BUSINESSicon  29/05/2020 

The upcoming bilateral free trade between Vietnam and the EU may be a tough nut to crack unless the country can make thorough preparations for fulfilling commitments in the deal to further its trade and investment with the bloc.

Proposal to halt M&A a question of fine balance
Proposal to halt M&A a question of fine balance
BUSINESSicon  29/05/2020 

Just a few days ago, Tiki and Sendo struck a hundred-million dollar deal that could redraw the landscape of the entire e-commerce industry,

Investing frameworks can entice even more
Investing frameworks can entice even more
BUSINESSicon  29/05/2020 

Starting with the silent move of global smartphone titan Apple, companies have been shifting their facilities to Vietnam, following the call for more lucrative investment opportunities.

FiT revamp vulnerable to speculation
FiT revamp vulnerable to speculation
BUSINESSicon  28/05/2020 

Despite bankability concerns inherent in power purchase agreements, investing in renewable power is a bright spot in Vietnam as developers rush to take advantage of the current feed-in tariff. 

EVFTA to fan flames of European investor interest
EVFTA to fan flames of European investor interest
BUSINESSicon  28/05/2020 

European investors are expected to stir mergers and acquisitions activities in the coming time as the landmark free trade agreement between the European Union and Vietnam nears ratification. 

Seaport ambitions fail to hold water
Seaport ambitions fail to hold water
BUSINESSicon  28/05/2020 

Despite some improvements, seaport joint ventures between foreign partners and state-owned shipping giant Vietnam Maritime Corporation continued to incur losses in the first quarter of this year, 

COVID-19 a boost for Vietnam’s fintech
COVID-19 a boost for Vietnam’s fintech
BUSINESSicon  28/05/2020 

As a promising digital economy, Vietnam has facilitated fintech development to penetrate deeper and faster into the world’s digital economy, especially in the post-COVID-19 period.

Vietnamese take increasingly to cashless payments
Vietnamese take increasingly to cashless payments
BUSINESSicon  28/05/2020 

Non-cash payments have increased sharply, especially through mobile devices and the internet, according to the State Bank of Vietnam.

Vietnam should enhance its productivity to grow: WB
Vietnam should enhance its productivity to grow: WB
BUSINESSicon  28/05/2020 

Vietnam should focus on a productivity-driven development model to become a high-income economy by 2045, according to the latest report from the...

Coronavirus: Von der Leyen calls €750bn recovery fund 'Europe's moment'
Coronavirus: Von der Leyen calls €750bn recovery fund 'Europe's moment'
BUSINESSicon  28/05/2020 

A giant fund is proposed, some of it raised on capital markets, but several countries express doubts.

VN corporate bond market turns gloomy because of Covid-19
VN corporate bond market turns gloomy because of Covid-19
BUSINESSicon  29/05/2020 

The primary supply of corporate bonds has dropped sharply as the epidemic has upset enterprises’ business plans. Many have postponed bond issuance plans.

FIEs try to evade tax in Vietnam
FIEs try to evade tax in Vietnam
BUSINESSicon  28/05/2020 

Vietnam plans to enact a law to fight against the transfer pricing tax in an effort to enforce transfer pricing rules more aggressively, according to Cao Anh Tuan, general director of the General Department of Taxation (GDT).

 
 
 
Leave your comment on an article

OR QUICK LOGIN