Vietnam’s rice exports to the G2G markets and sells rice under government to government (G2G) treaties, are likely to deteriorate in 2015 due to a predictable firm competition amongst the top rice shipping countries involving Thailand and India.
The Director General of Vietnam’s stationed rice exporter Southern Food Corporation said, they are assuming reduced orders next year due to a strong competition in the market.
He illustrated that they are mainly concerned of Thailand who is possible to unload massive volume of stocks from the government warehouses into the market next year. Vietnam trades rice in G2G contracts to China, Malaysia, Indonesia and the Philippines. Need from these three countries is estimated to impact around 2.5 million tons next year, however nothing has so far contracted contracts with the Vietnamese rice exporters.
It is tough to forecast next year’s board exports mainly since of the unpredictability of the Chinese market. Vietnam had trusted too much on China. However China has decided to purchase around 2 million tons of rice from Thailand and around 1 million tons of rice after Myanmar subsequent year.
Vietnam could not infiltrate East African market and has very slight existence in West African countries like Ghana and Ivory Coast. He noticed that too many variations of rice assortments in the collective white rice market are adulterating Vietnam’s rice effectiveness.
An official from the Vietnam Food Association (VFA) enhanced that Vietnamese exporters have not been capable to settle any contracts with African countries, which import closely 14 million tons of white rice yearly.
Rice export prices in entire top exporting countries have been diminishing for the last couple of months due to rising supplies from continuing yields and boosted competition.
In the first week of November Export prices of Viet 5% broken rice currently stand at around $390 per ton, down about 10% from around $435 per ton.
Likewise prices of Thai 5% rice deteriorated about 2.4% to around $410 per ton, India 5% rice dropped about 6% to around $390 per ton and Pakistan 5% rice failed about 6.25% to around $375 per ton in the similar period.
Vietnam is pointing to export around 6.5 million tons of rice in 2014. Around 5.961 million tons of rice in January 1 December 18, 2014, It exported around 6.71 million tons of rice exported in 2013.