Vietnam Expects Rice Export Demand to Remain Stable

Vietnam Expects Rice Export Demand to Remain Stable

The Vietnam Food Association (VFA) is estimating rice export demand to remain stable in the third quarter of 2017, according to Vietnam Net citing the VFA Chairman.

The Chairman noted that Vietnamese private traders winning the Philippines tender for 175,000 tons is a clear demonstration of the capacity of Vietnamese rice traders. This is the first time private traders were allowed to participate in the Philippines rice tender. He added that the Philippines contract would help stabilize domestic rice prices.

The official also noted that in addition to the Philippines contract, Vietnamese private rice exporters were also preparing to deliver goods under the previously signed contracts to Cuba, Bangladesh, and Malaysia. “Therefore, from now until the end of the third quarter of 2017, Vietnamese rice sector will not struggle with the settlement of output for farmers,” he was quoted.

He added that increased demand from the Asian countries like Bangladesh, Sri Lanka the Philippines had a positive impact on this year's Vietnamese rice exports.

The official, however, noted that rice traders are facing difficulties to keep up their export contracts due to increased domestic prices. He expressed hope that the arrival of the summer-autumn crop between August and September would push down the prices to some extent.

Vietnam exported about 3.3 million tons of rice in the first seven months of 2017, up about 16% from last year. Export earnings increased about 14% y/y to around $1.5 billion during the seven month period.