Fri. Feb 3rd, 2023

Vietnamese rice exporters are facing difficulties in fulfilling their
target of selling 8 million tonnes of rice abroad this year as demand is
waning while supply is increasing, warned Truong Thanh Phong, President
of the Vietnam Food Association (VFA).

Phong was
speaking at a VFA meeting in Ho Chi Minh City on April 4 to review
the association’s export status in the first quarter and the results of
its plan to stockpile one million tonnes of rice earlier this year.

He said in the current condition, VFA’s management must be more careful than ever.

According to VFA, as of March 31, the country registered a total
contracted amount of 3.576 million tonnes, up 12.42 percent over the
same period last year. In Q1, 1.451 million tonnes of rice were shipped
abroad at an average price of 442.06 USD per tonne.

VFA said the primary reason why such a large volume of rice was exported
at a low price was because exporters had to sell their rice to China
at a reduced rate due to declining demand from other traditional
markets.

In the first quarter only, China – the
largest consumer of Vietnamese rice, signed contracts to purchase over
one million tonnes of rice. It has so far received 630,000 tonnes.

Meanwhile, falling demand was seen in Africa – Vietnam’s second
largest market, with only 500,000 tonnes signed in the first quarter
this year.

However, Phong said in the next two months exporters will no longer suffer from buying pressure and can focus on selling.

In the second quarter, the country’s total rice export volume is
estimated to reach 2.2 million tonnes, while exporters are expected to
win additional contracts from concentrated markets, said Phong.

He affirmed VFA’s determination to export 8 million tonnes of rice in
2013, and called on businesses to keep a close eye on market
developments, both imports and exports, and especially in Thailand and
China.

During VFA’s April 4 meeting, the
association reported that they reached their one-million-tonne target of
rice stockpiles on March 31.

Rice traders stressed
the necessity of buying rice to stock and suggested that in the context
of a big rice harvest, the association should implement its buying plan
to stabilise the market price and ensure a good price for farmers.-VNA

By vivian