Vietnamese exporters have signed contracts to export 700,000 tons of rice, mainly to the Philippines, Middle-East and South America, since early this year, reported the Ministry of Agriculture and Rural Development yesterday.
The ministry said rice prices remain rather high on local and global markets.
At present, prices of local rice are traded at VND3,800-4,000 per kilogram and forecast to continue to go up.
This year, the country will not encounter any difficulties in export markets and prices, but it could run into a shortage of rice supplies.
Export prices will remain over US$320 per ton for 25-percent-broken rice and US$340 per ton for 5-percent-broken rice in 2008.
As scheduled, the Philippines is going to invite bids for imports of 500,000 tons of rice tomorrow. If Vietnamese exporters win the bid, they will sign contracts with Filipino importers right this month to export one million tons.
At a recent meeting in Ha Noi, the ministry has set out an export target of 4.5 million tons of rice this year – roughly the same as last year, which is expected to bring in US$1.7 billion in revenue, an increase of US$300 million.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favorable this year thanks to strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3 million tons annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume, he added.
