return icon

Vietnam exporter seek contracts to sell rice to the Philippines

 VietNamNet Bridge – The rice price in the domestic market has been increasing sharply, which may lead to losses for exporters if they bid for the contract to provide 500,000 tons of rice to the Philippines.

VietNamNet Bridge – The rice price in the domestic market has been increasing sharply, which may lead to losses for exporters if they bid for the contract to provide 500,000 tons of rice to the Philippines.


Rice exporters reportedly are making preparations to join the bid to provide 500,000 tons of rice to the Filipino National Food Authority (NFA), which is scheduled to make a decision for the end of August or early September.

However, the Northern Food Corporation (Vinafood 1) and Southern Food Corporation (Vinafood 2), the two enterprises most likely to join the bid, have said they fear they would take loss even if they can sell at the ceiling price, since rice has become more expensive in the domestic market.

International newswires reported NFA as saying that six tenderers have confirmed their participation. These include two Vietnamese food corporations, Vinafood 1 and VInafood 2.

NFA has a budget of $235 million for the 500,000 tons of rice import deal. This means that NFA can pay up to $470 per ton to buy rice.

Vinafood 2’s general director Huynh The Nang said even if his enterprise can sell at the ceiling price of $470 per ton, it would still take a loss of $10 per ton due to the high price in the domestic market.

Nang said the domestic supply has a shortage, while rice exporters continue to collect rice in large quantities to fulfill contracts.

It is estimated that Vietnamese exporters need to deliver 2 more millions tons of rice. Therefore, Nang believes the market would still be hot in the time to come.

However, Duong Van Men, a small merchant in Lap Vo district of Dong Thap province, who specializes in collecting rice from farmers to sell to rice exporters, said that exporters would still make big profits at current domestic prices.

According to Men, white five percent broken rice in Mekong River Delta is now selling at VND9.2-9.3 million per ton, or $438-443 per ton (US$1 = VND21,000). This means that Vietnamese rice exporters would be able to make a profit of $27-32 per ton, if they can sell rice to the Philippines at the ceiling price level of $470.

In fact, the price would be lower than $438-443 per ton, because the Philippines is buying 25 percent broken rice, which means that rice exporters can mix 20 percent broken rice with the 5 percent broken rice they buy from farmers. Meanwhile, a kilogram of 20 percent broken rice is now traded at VND5,000.

In the domestic market, the rice price has increased again after one week of decline. IR 50404 rice in Mekong River Delta, which was traded at VND7,500 per kilo one week ago, now can be sold for VND7,600 per kilo.

However, the current price level is just VND100 per kilo lower than the highest level set a couple of weeks ago.

Meanwhile, fresh IR 50404 rice in An Giang and Dong Thap provinces have regained the VND5,200 per kilo level after dropping to VND4,800 per kilo last week.



Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

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.