Customers buy rice at the Big C supermarket, Long Bien district, Hanoi. (Photo: VNA) HCM City (VNA) - Thailand’s plan to sell all its rice reserves ofabout eight million tonnes this year has sparked concerns that this move willundermine Vietnam’s rice exports.
Nguyen Van Don, director of Tien Giang-based Viet Hung CoLtd, said rice exports were positive last month, with many contracts signed.
But starting early last week, trading tended to slow, hesaid, adding that his company has not had any new export contracts. Heattributed this to the higher prices of Vietnamese rice compared to last month,and to Thailand’s plan to sell all of its rice stockpiles.
Dang Thi Lien, director of Long An Foodstuff Co Ltd, saidthe price of Vietnamese five percent and 15 percent broken rice was 5-10 USD atonne higher than the same kinds of Thai rice.
To compete with Thai rice, Vietnamese traders should lowertheir export price, but domestic rice prices are on the rise, even higher thanexport prices, making it hard for traders to compete abroad, she said.
HuynhThe Nang, chairman of the Vietnam Food Association, said “It will be hard tocompete with Thailand in exporting white rice due to our less competitiveprices.”
Vietnamese firms previously exported a lot of white rice toAfrica, but now firms are only exporting fragrant rice to the market, he said.
“Thailand’s determination to sell all of the rice instockpiles in the first half of the year will continue to adversely affect Vietnam’srice exports. Vietnam’s export rice prices are predicted to drop further thisyear. Only when Thailand’s rice stockpiles are sold out can the rice exportmarket recover,” he said.
Vietnam produces about 44-45 million tonnes of paddy a year,equivalent to 22-22.5 million tonnes of rice. Domestic consumption accounts forabout 15-16 million tonnes a year, and the rest is for export.
Despite being one of the world’s largest rice exporters, Vietnam’shigh-grade rice segment is dominated by foreign brands.
Nang, who is also general director of the Vietnam SouthernFood Corporation (Vinafood 2), said many domestic rice enterprises haveimplemented strategies to promote their rice brands as well as boostconsumption of their products in the home market.
Enterprises have established their own farm and productionfacilities and are focusing on improving the quality of their rice tointernational standards as well as building brands for their products.
Last December, Tien Giang Food Company introduced to themarket four to five new rice brands, which are produced following hygiene andfood safety standards and are able to enter the US market.
In the case of Song Hau Food Company, a member of Vinafood2, thanks to actively promoting its rice brands and expanding its distributionsystem, the company last year doubled its domestic sales revenue from 2015, hesaid.
Other companies, such as Dong Thap Food Company and HCM CityFood Joint Stock Company, have actively improved their distribution systems, hesaid.
Consumption volume of Vietnamese rice in the domestic marketis expected to increase significantly in the coming time, especially as moreand more rice is produced following hygiene and food safety standards.
In addition, programmes to enable consumers to trace theorigin of rice will be sped up this year, he said.
PhamMinh Thien, director of Dong Thap-based Co May Private Enterprise, said: “Wehave a market of more than 90 million people. This is a very good foundationfor us to deal with the supply and demand dynamic of the rice market.”-VNA
Nguyen Van Don, director of Tien Giang-based Viet Hung CoLtd, said rice exports were positive last month, with many contracts signed.
But starting early last week, trading tended to slow, hesaid, adding that his company has not had any new export contracts. Heattributed this to the higher prices of Vietnamese rice compared to last month,and to Thailand’s plan to sell all of its rice stockpiles.
Dang Thi Lien, director of Long An Foodstuff Co Ltd, saidthe price of Vietnamese five percent and 15 percent broken rice was 5-10 USD atonne higher than the same kinds of Thai rice.
To compete with Thai rice, Vietnamese traders should lowertheir export price, but domestic rice prices are on the rise, even higher thanexport prices, making it hard for traders to compete abroad, she said.
HuynhThe Nang, chairman of the Vietnam Food Association, said “It will be hard tocompete with Thailand in exporting white rice due to our less competitiveprices.”
Vietnamese firms previously exported a lot of white rice toAfrica, but now firms are only exporting fragrant rice to the market, he said.
“Thailand’s determination to sell all of the rice instockpiles in the first half of the year will continue to adversely affect Vietnam’srice exports. Vietnam’s export rice prices are predicted to drop further thisyear. Only when Thailand’s rice stockpiles are sold out can the rice exportmarket recover,” he said.
Vietnam produces about 44-45 million tonnes of paddy a year,equivalent to 22-22.5 million tonnes of rice. Domestic consumption accounts forabout 15-16 million tonnes a year, and the rest is for export.
Despite being one of the world’s largest rice exporters, Vietnam’shigh-grade rice segment is dominated by foreign brands.
Nang, who is also general director of the Vietnam SouthernFood Corporation (Vinafood 2), said many domestic rice enterprises haveimplemented strategies to promote their rice brands as well as boostconsumption of their products in the home market.
Enterprises have established their own farm and productionfacilities and are focusing on improving the quality of their rice tointernational standards as well as building brands for their products.
Last December, Tien Giang Food Company introduced to themarket four to five new rice brands, which are produced following hygiene andfood safety standards and are able to enter the US market.
In the case of Song Hau Food Company, a member of Vinafood2, thanks to actively promoting its rice brands and expanding its distributionsystem, the company last year doubled its domestic sales revenue from 2015, hesaid.
Other companies, such as Dong Thap Food Company and HCM CityFood Joint Stock Company, have actively improved their distribution systems, hesaid.
Consumption volume of Vietnamese rice in the domestic marketis expected to increase significantly in the coming time, especially as moreand more rice is produced following hygiene and food safety standards.
In addition, programmes to enable consumers to trace theorigin of rice will be sped up this year, he said.
PhamMinh Thien, director of Dong Thap-based Co May Private Enterprise, said: “Wehave a market of more than 90 million people. This is a very good foundationfor us to deal with the supply and demand dynamic of the rice market.”-VNA
VNA
