Hanoi (VNA) – Vietnam exported 5.56 milliontonnes of rice and brought home 2.43 billion USD in the first 10 months of2019, up 6.1 percent in volume but down 9.1 percent in value over the sameperiod last year, according to the Ministry of Agriculture and RuralDevelopment (MARD).

The Philippines was the largest market of Vietnamese ricewith 35 percent of the market share. The country spent 733.8 million USD topurchase 1.89 million tonnes of rice from Vietnam in the first nine months ofthis year, 2.9 times higher in volume and 2.6 times in value over the sameperiod last year.

According to the ministry, downward rice prices, whichsometimes hit the bottom in 12 years, were the major reason behind the fall inrice export revenue in the period.

On the average, rice price in the first nine months of thisyear was 435.6 USD per tonne, a drop of 13.4 percent year on year.

According to Tran Cong Thang, head of the Institute ofPolicy and Strategy for Agriculture and Rural Development, Vietnam has faceddifficulties in exporting rice to China as the neighbouring country has seenhigh rice stockpile and looked to diversify its suppliers.

In many years, Vietnam’s rice export to China remainedstable at 2 million tonnes per year with value of about 900 million USD. Butsince 2018, the figures dropped considerably.

Due to stricter regulations on Vietnamese farm produce, only20 Vietnamese firms have been qualified to export rice to China.

Meanwhile, Vietnamese exporters have faced fiercercompetition in the market where requests for rice export permission from 40Cambodian firms are being considered.

Thang also noted that a lack of new contracts and decreasingdemand of the Philippines have posed pressure on Vietnamese rice prices.

At the same time, Indonesia has announced that it willprioritise Indian products, including basmati rice.

Amidst the situation, Nguyen Quoc Toan, head of the Agro Processing and Market Development Authority (Agrotrade) asserted that it is necessary to removeobstacles in export to China, while promoting other markets such as thePhilippines and African countries.

The Import-Export Agencyunder the Ministry of Industry and Trade revealed that it has invited Chineseimporters to Vietnam to seek partnership with their Vietnamese peers as part ofrice trading promotion activities.

MARD Minister Nguyen XuanCuong stressed the need to explore new markets, especially Africa and theASEAN, and produce products to suit these markets.

He said that 500,000 hectaresof rice fields will be converted into aquatic and fruit farms.

He also underlined the needto develop processing and enhance rice value chain./.