Rice export in the first 6 months estimated to be up
Exports up but high price may hit Vietnam sometime soon.
The Vietnam Food Association (VFA) has released a plan for rice exports in the second quarter of the year, which are to grow 1.6 million tons, or 200,000 tons less than the previous plan. Total exports in the first half are to increase 12 per cent year-on-year, excluding non-registered exports via border gates.
There were positive signs for rice export in the first quarter, VFA said. Quantities rose significantly, by 500,000 tons, with three-month productivity nearly 58 per cent higher year-on-year.
Despite exports rising, Vietnam’s rice price is also the highest compared to other exporters in Asia.
VFA believes exports may lose their competitive advantage and market share in the future. Vietnam must balance needs and demand because this has a major effect on the world rice market. Signed contracts on rice export have fallen noticeably since March.
According to VFA, however, there were still outstanding export rice contracts at the end of the first quarter, of around 1.4 million tons. This will help export productivity for a few months.