Rice importers try to force prices down, Vietnam needs long-term export plan

Earlier this month, when Mekong Delta’s farmers were harvesting the 2020 summer-autumn crop, rains and storms affected rice quality and caused the market price to fluctuate.

Meanwhile, the Philippines recently stated it has cancelled the plan to import 300,000 tons of rice under the G2G (government to government) mode that it opened for bidding on June 8, in which Vietnam won the bid of providing 60,000 tons.

Rice importers try to force prices down, Vietnam needs long-term export plan



According to AgroMonitor’s July 1 updates, merchants are collecting rice but sales have been going slowly. There are few buyers and transactions in the market as the rice price is on the decrease.

Filipino businessmen are reported as seeking to buy summer-autumn 5 percent broken rice OM 5451, but they are offer ing low prices. Therefore, Vietnam’s exporters still cannot close the deals.

While merchants hesitate to collect rice for fear that the price will continue decreasing, farmers are resolved not to sell rice at low prices. Rice prices of different kinds are stable.

Earlier this month, when Mekong Delta’s farmers were harvesting the 2020 summer-autumn crop, rains and storms affected rice quality and caused the market price to fluctuate.

AgroMonitor reported that Vietnamese exporters offered rice at $420 per ton, but Filipino businesses only accepted a price of $410-412 per ton.

 


A rice exporter in HCM City affirmed that demand still exists, especially from Filipino businesses, but they still are trying to force the prices down.

Five percent broken rice OM 5451 has cost price of $430 per ton, but importers want to buy at $405 per ton. Therefore, large exporters including Quoc Te Gia, Intimex, Kigimex, Thuan Minh and Hieu Nhan, have not signed new contracts, but are gathering strength to fulfill contracts they signed before.

Analysts cited two reasons causing the rice prices to go down.

The first relates to the Philippines’ decision to stop pursuing the plan to import 300,000 tons of rice under G2G mode.

Second, buyers know that Vietnamese are harvesting the summer-autumn crop, so they are not making purchases and are listening to the news. Once the supply is plentiful, the prices will go down.

The problem is that many farmers sell fresh rice at their fields, so they have to sell rice at any price and cannot wait for prices to increase.

The structure of Vietnam’s rice exports has changed a lot recently. In the past, low-quality rice accounted for 40-50 percent of total exports, but the proportion of high-quality rice has increased in the last two years.

Mai Lan 

VN develops new rice variety for flood and drought-prone areas

VN develops new rice variety for flood and drought-prone areas

New rice seed variety which is capable of adapting to climate change has been planted in flood and drought-prone regions in north and south central provinces.

VN's rice exports bounce back after one-month interruption

VN's rice exports bounce back after one-month interruption

While exports of many products have plunged because of Covid-19, rice exports are growing, with prices of some products reaching an 8-year high.

 
 

Other News

.
Corporate income tax reduction comes into effect
Corporate income tax reduction comes into effect
BUSINESSicon  04/08/2020 

Resolution 116/2020/QH14 granting a reduction of 30 per cent on corporate income tax (CIT) for eligible enterprises officially came into effect on Monday.

Big rearers win big
Big rearers win big
BUSINESSicon  04/08/2020 

Many animal husbandry enterprises are leveraging the pork supply shortage to sell at high prices, earning huge profits

VN businesses slow in preparing to enjoy preferential tariffs in EVFTA
VN businesses slow in preparing to enjoy preferential tariffs in EVFTA
BUSINESSicon  04/08/2020 

 Experts have raised concerns that Vietnamese businesses are slow in preparing conditions to enjoy preferential tariffs in the Viet Nam-EU Free Trade Agreement (EVFTA).

Probe into Tenma Vietnam’s alleged bribery underway: police official
Probe into Tenma Vietnam’s alleged bribery underway: police official
BUSINESSicon  04/08/2020 

The investigation into the Japanese-invested Tenma Vietnam company’s allegation of bribing civil servants and tax and customs officers of northern Bac Ninh province is still ongoing, according to a police official.

VN textile, electronics hardest hit in pandemic: official
VN textile, electronics hardest hit in pandemic: official
BUSINESSicon  04/08/2020 

Textile and electronics have been the two export-oriented sectors mostly impacted by the COVID-19 pandemic, an official has said.

Businesses in HCM City's central business districts are idle as demand is weak
Businesses in HCM City's central business districts are idle as demand is weak
BUSINESSicon  05/08/2020 

Many streetfront buildings in large cities that house shops that were busy in the past are idle because business activities have declined due to Covid-19.

Vietnam prepares to receive investors from Japan, the US, EU
Vietnam prepares to receive investors from Japan, the US, EU
BUSINESSicon  04/08/2020 

Japanese businesses have begun relocating factories to Vietnam, and it is expected that American and European businesses will also come soon.

VN Civil Aviation Authority's plans for new Quang Tri Airport face opposition
VN Civil Aviation Authority's plans for new Quang Tri Airport face opposition
BUSINESSicon  04/08/2020 

The Civil Aviation Authority of Vietnam (CAAV) plans to build Quang Tri Airport in Quang Tri province, but experts disagree with the idea.

Vietnam factory activity dips in July as Covid-19 impacts grow
Vietnam factory activity dips in July as Covid-19 impacts grow
BUSINESSicon  03/08/2020 

Despite a drop in output in July, firms remained confident in the 12-month outlook for production.

Enticing legal changes lure in foreign investors
Enticing legal changes lure in foreign investors
BUSINESSicon  04/08/2020 

Foreign investors are making new investments moves into Vietnam on the back of supporting policies and new rules. However, as some legal concerns remain, the development of the next steps still requires some preparation. 

Summary of new points of amended Law on Investment 2020
Summary of new points of amended Law on Investment 2020
BUSINESSicon  03/08/2020 

After more than six years in effect, the Law on Investment has been officially amended with a number of new articles to improve the country’s appeal to higher-quality foreign investment flows.

Outlining the preferential mechanisms for new PPP projects
Outlining the preferential mechanisms for new PPP projects
BUSINESSicon  04/08/2020 

Public-private investment projects play a significant role in developing infrastructure and have the potential to accelerate large-scale construction works across the country.

Vietnam economic outlook remains positive despite Covid-19 resurgence: HSBC
Vietnam economic outlook remains positive despite Covid-19 resurgence: HSBC
BUSINESSicon  03/08/2020 

HSBC economists forecast GDP expansion of 3% in 2020 for Vietnam, the only ASEAN country they expect to have positive growth this year.

Vietnamese startups bag millions of US dollars despite COVID-19 pandemic
Vietnamese startups bag millions of US dollars despite COVID-19 pandemic
BUSINESSicon  03/08/2020 

A slew of Vietnamese startups managed to secure millions of US dollars even in the midst of the rapidly escalating COVID-19 pandemic.

Capital inflows to Southeast Asian startups up 91 percent despite outbreak
Capital inflows to Southeast Asian startups up 91 percent despite outbreak
BUSINESSicon  03/08/2020 

Southeast Asian startups, especially e-commerce and fintech companies, have witnessed a significant increase in investment between April and June.

Sky-high livestock prices may breach competition law
Sky-high livestock prices may breach competition law
BUSINESSicon  03/08/2020 

Although many livestock companies could face an inspection to ensure they follow through on commitments to cut their prices, the market outlook still looks dreary in spite of the government’s call to stabilise the selling cost of live pigs.

Aligning with trade remedy principles
Aligning with trade remedy principles
BUSINESSicon  03/08/2020 

The EU-Vietnam Free Agreement (EVFTA) is a giant leap for Vietnam in international integration.

Electricity of Vietnam suggests not to extend deadline for wind farm FiT
Electricity of Vietnam suggests not to extend deadline for wind farm FiT
BUSINESSicon  03/08/2020 

In order to ensure transparency and stability in the selling price of wind power, EVN opposes the Ministry of Industry and Trade's proposal to extend the deadline on the current feed-in tariff (FiT) scheme for wind power projects

Ministry seeks to further open petroleum retail market
Ministry seeks to further open petroleum retail market
BUSINESSicon  03/08/2020 

The Ministry of Industry and Trade has called for allowing all foreign investors to further participate in the petroleum retail market.

Shares to correct on worries of virus surge
Shares to correct on worries of virus surge
BUSINESSicon  03/08/2020 

 Vietnamese shares may continue to fall this week as a spike in fresh coronavirus cases fuelled concerns that the path to economic recovery could be hindered.

 
 
 
Leave your comment on an article

OR QUICK LOGIN