Vietnam’s rice exports projected to fall in second quarter

The Vietnam Food Association predicts that Vietnam’s rice exports will reach 1.5 million tons in the second quarter of this year, lower than its previous target of 1.6 million tons.

Data from Vietnam Customs showed that Vietnam’s rice exports hit 1.5 million tons in the first quarter, up 38.1 percent in volume and 38.5 percent in value due to a large number of existing contracts transferred from 2015.

However in the second quarter, the export volume is likely to fall by 100,000 tons against the targeted figure, the association said.

In April, the country’s rice exports fell to 450,000 tons, down 20.5 percent in volume and 7.5 percent in value compared to March.

Vietnamese rice experts said that at present traders from Thailand, Vietnam and Pakistan, the world’s largest suppliers, are setting high prices as the prolonged drought caused by El Nino has taken its toll on rice output. At the same time, global demand for rice remains stagnant.

The association forecasts that demand will increase in the second half of 2016 after purchasing power increases in the Philippines, China and Indonesia. Unless Vietnam offers competitive prices, the country will lose its market share to India and Pakistan.

From the start of 2016, Vietnam has exported over two million tons of rice to fetch more than $870 million, up 15 percent in both volume and value from the same period last year.

By Bui Hong Nhung / VnExpress