Vietnam’s Deputy Trade Minister foresees the Vietnam’s rice export to be increased this year after strong demand from China and lower export prices.
Last year Vietnam’s export volume has dropped by 4% to around 6.4 million tons, according to Bloomberg.
Trade Minister said that the export would pick up from second quarter and will not raise above 10% because Thailand is providing a tough competition to Vietnam and this year also Thailand will remain the largest rice exporter with export volume of 11 million tons.
Although China is a strong market for Thailand but Vietnam have much more favorable climatic conditions, export price and suitable varieties with China. The China market will soon become active early this year, he said.
Vietnam this year has enough supplies from ongoing winter spring harvest and reduced export demand which has declined Vietnam’s rice prices.
According to Thailand Rice Exporter Association, Thailand’s rice prices are much more than that of India and Pakistan but they will decrease due to increased sales of stockpiled rice.
Vietnam Food Association forecasted this year rice export for first two month at 515,000 tons down from around 690,100 tons during same period in 2014.