Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.
Vietnam is anticipated to become the world’s third largest rice exporter next year with an estimated export volume reaching 6.3 million tonnes, according to the projection made by the United States Department of Agriculture (USDA).
Rice exports were the only bright part in the picture of Vietnam’s farm exports in the first six months of the year. However, the achievements may not be upheld in the second half.
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.
Rice quotas for Vietnam under the EVFTA are expected to push Vietnam’s rice exports up from the second half of this year, according to the Ministry of Industry and Trade (MoIT).
Vietnam may take a global lead in rice exports in 2020, a trade report to the National Assembly on Monday showed.
Officials from many localities in the Cuu Long (Mekong) Delta and rice exporters have urged the Government to resume rice exports without setting limits, saying many firms face difficulties because of this.
Prime Minister Nguyen Xuan Phuc requested more drastic measures to prevent speculation, price increases, and market devaluation when chairing a meeting of the National Steering Committee for Price Management on April 21.
The Government should tax all rice exports instead of issuing quotas to stabilise domestic rice prices during the COVID-19 pandemic.
The Ministry of Industry and Trade (MoIT) has proposed resuming rice exports from April, with a volume of 400,000 tonnes, after it has compiled reports on production, domestic consumption and exports to submit to the Prime Minister.
Prime Minister Nguyen Xuan Phuc has said that in the current situation, rice exports should be controlled to ensure food security in line with the Government’s Decree No.107.
Vietnam shipped 884.94 million USD worth of rice to the Philippines in 2019, a year-on-year rise of 92.58 percent, according to the General Department of Customs.
With an abundant global supply and high inventory in major exporting countries, Vietnam is expected to struggle to secure exports of rice in the second half of the year, speakers said at a conference held in HCM City on Monday.