Vietnam wins deal to supply 123,000 tons of rice to Philippines

Farmers are seen with bags of rice. Vietnamese trader Vinafood 2 has won a contract to supply 123,000 tons of rice to the Philippines in a tender, under G2G contracts – PHOTO: TRUNG CHANH

CAN THO - Vietnam Southern Food Corporation (Vinafood 2) will supply 123,000 tons of 25% broken rice to the Philippines as it has won part of a 203,000-ton government-to-government rice tender. Thailand will ship the remaining 80,000 tons of rice, according to Do Ha Nam, vice chairman of the Vietnam Food Association.

Nam on November 27 told the Saigon Times that Vinafood 2 represented Vietnam at the tender this month. It won the contract for the 123,000 tons of rice at US$469.8 per ton, he said.

The Vietnamese and Thai rice suppliers were required to ship the combined volume of 203,000 tons of rice to the Philippines prior to December 30 this year.

In addition, the 203,000 tons tender is reportedly part of the plan to import a total volume of 250,000 tons of rice, set in a tender opened on October 18, under government-to-private (G2P) contracts.

During last month’s tender, the Philippines purchased only 47,000 tons of rice, including 29,000 tons from Vietnam and 18,000 tons from Thailand. The volume was lower than the Philippines’ target as suppliers offered prices higher than the country’s projected price.

As for the Vietnamese bidders, Vinafood 2 won the contract for 15,000 tons of rice at US$427.68 per ton, and Vietnam Northern Food Corporation (Vinafood 1) secured a contract for 14,000 tons at US$427.5 per ton.

Meanwhile, Thai Capital Crops Co., Ltd, of Thailand won a deal to ship 18,000 tons of rice to the Philippines at US$426.3 per ton.

Recently, on November 20, Vietnam also clinched a deal to ship 118,000 tons of 25% broken rice to the island nation in its tender for importing 500,000 tons of rice based on G2P contracts, while the remaining rice volume will be supplied by Thailand and other countries.

In May, the National Food Authority of the Philippines held a tender to import 250,000 tons of rice under G2P contracts, but Vietnamese traders did not win any contracts, while Thailand offered better prices and thus won the deal.

However, Vietnam secured a deal on May 4 to supply 130,000 tons of rice to the Philippines at a bidding session, under G2G contracts.