return icon

Stock gets empty; Vietnam misses opportunity to boost rice export

 VietNamNet Bridge – The rice demand is increasing in the world market, but Vietnamese farmers have sold out their third-crop rice. Exporters don’t have rice to sell while the Filipino government has opened an invitation for bids.

VietNamNet Bridge – The rice demand is increasing in the world market, but Vietnamese farmers have sold out their third-crop rice. Exporters don’t have rice to sell while the Filipino government has opened an invitation for bids.


Rice running out, domestic prices go up

Tran Thi Bong, a merchant specializing in collecting rice in Thoai Son district of An Giang province, said on November 20, export companies paid VND72,000 per kilo for IR 50404 material rice, another increase of VND200 per kilo.

“The price has been increasing partially because farmers have no more rice to sell. The third-crop rice has been selling well because the rains and floods have led to the short supply,” Bong said.

Nguyen Thi Thu Hang, a farmer in Chau Phu district of Dong Thap province, said the price increase does not benefit farmers, because they have sold out rice before, when the prices were low.

“We sold out fresh rice two months ago, when the price stayed at VND4,000 per kilo. With such a low price, we incurred the loss of VND5 million per hectare,” she said.

Tran Thanh Van, Deputy Director of Gentraco, an export company in Can Tho City, has confirmed that he cannot buy rice these days though he has raised the prices.

“We buy 25 percent broken rice at VND7,200 per kilo, an increase of VND200 per kilo over the last week,” Van said.

“The third-crop rice output is just big enough for domestic supply. We cannot compete with the merchants who collect rice from farmers to sell domestically,” he added.

According to Lam Anh Tuan, Director of Ben Tre-based Thinh Phat Food Company, the domestic high prices have pushed the production cost of the 5 percent broken rice for export to $400-410 per ton. Meanwhile, enterprises can sign the export contracts at $370 per ton, which means that they incur the loss of $40 per ton.

Big opportunities missed

Le Thanh Tung, a senior official of the Ministry of Agriculture and Rural Development (MARD), affirmed that the rice output in 2013 would be equal to that of the last year, while the merchandise volume for export would be at 7.2-7.3 million tons.

In the first 10 months of 2013, Vietnam exported 5.73 tons of rice already, worth $2.47 million FOB. If counting on the exports to China across the border, estimated at 1.5 million tons by the Vietnam Food Association, the total export volume has reached 7.23 million tons so far this year.

“The rice volume in stock is modest, which may be not enough to fulfill the signed contracts. Meanwhile, the sale on the domestic market goes well,” Tuan said.

“We fear that we may miss the opportunity to export rice to the Philippines, when the country needs more rice to relive the people in the typhoon stricken areas,” he added.

Also according to Tuan, Vietnam has the opportunity to export rice at $400 per ton. However, exporters can only do this if the Filipino government accepts the deliveries in February 2014, when Vietnam harvests the winter-spring crops.

“If they (the Philippines) want prompt deliveries, we would miss the opportunity,” Tuan said.

Chi Mai


The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.


Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.


Vietnam leaves good impressions at multi-ethnic festival in Czech Republic

Vietnam to build center for search and rescue in Spratly Islands

Deputy Prime Minister Tran Luu Quang has approved a project to improve the capacity of incident and natural disaster response and search and rescue to 2030, with a vision to 2045.

Male model finishes as third runner-up at World Fitness Supermodel

Ngo Hoang Linh, the Vietnamese representative at World Fitness Supermodel 2023, was awarded the third runner-up title during the male pageant’s grand final held on May 27 in Thailand.

Old Vietnamese publications in romanised script on display in Paris

An exhibition showcasing old Vietnamese publications in Chu Quoc ngu (romanised Vietnamese script) is underway in Paris, France.

HCMC police raze black-credit companies with illicit profits of over US$176mln

The Ho Chi Minh City Department of Public Security yesterday prosecuted nine people for usury in civil transactions.

Entertainment and cultural events of the week (May 29-June 4/2023)

Upcoming entertainment and cultural events in Vietnam's major cities on May 29-June 4.

More cooperation needed to develop rare earth industry in Vietnam

The applications for rare-earth element products have developed strongly in recent decades, especially in the field of agriculture in which they are used to create clean, safe, and effective agricultural products.

Hanoi's West Lake to be given a makeover

The district authority will also plan to renovate and embellish the infrastructure around the lake, such as installing lighting systems and upgrading promenades and flower gardens.