VFA: Bright outlook for 2018 rice exports

Farmers harvest rice in Mekong Delta. VFA is pinning high hopes on this year’s rice exports - PHOTO: TRUNG CHANH

CAN THO – Despite certain concerns over rice exports, the Vietnam Food Association (VFA) is optimistic about stronger rice export performance this year.

Speaking to the Daily on the sidelines of a seminar on rice production and consumption in Can Tho City last Friday, VFA chairman Nguyen Ngoc Nam, who is also acting general director of Vietnam Southern Food Corporation (Vinafood 2), said rice exports would grow this year.

According to Nam, the total export contract volume registered by VFA members last year was 6.4 million tons, just 5.7 million tons was shipped. Therefore, some 700,000 tons was carried forward to this year.

In addition, the export contracts signed in the year to date have surged in both volume and value over the same period last year. However, Nam gave no specifics.

Indonesia resumed rice import early this year after many years of interruption. Thailand has drastically lowered its huge rice inventories, easing the pressure on other rice exporting countries, including Vietnam, Nam said.

However, Lam Anh Tuan, director of Thinh Phat Co., Ltd, told the Daily that there is growing optimism about rice exports this year. “But I don’t know for sure,” he said.

According to Tuan, Vietnam’s price offered for 5% broken rice is higher than Thailand’s, making it tough for local enterprises to sell. Only small rice shipments have been delivered whereas no big contracts have been signed.

Nguyen Dinh Bich, a rice export analyst, said he is concerned about rice exports because shipments will decline when prices run high. “Then rice trading firms will have to lower prices to win export contracts,” he said.