Buyers dry up as Vietnam's rice exports drop off in Q2

By Bui Hong Nhung June 7, 2016 | 11:30 pm PT

The Vietnam Food Association said that the country’s rice exports fell by 31 percent on-year to 400,000 tons in May, contributing to a drop in export volume in the second quarter of this year.

Huynh Minh Hue, general secretary of the association said: “Last year, Vietnam exported 1.8 million tons of rice in the second quarter, so we set the same target for the second quarter of this year. However, the target has been adjusted down to 1.6 million tons and then to 1.5 million tons.”

He explained that the number of export contracts decreased in April and May, especially contracts from China, the biggest buyer of Vietnamese rice.

“If this situation continues, we will have to adjust the figure to 1.3 million tons,” Hue added.

Despite falling contract numbers, the association predicts that in the next few months, the situation could improve with more contracts from Southeast Asian countries.

Data from Vietnam Customs said that last year, the country exported 6.6 million tons of rice, up four percent year-on-year. China was the biggest buyer of Vietnamese rice, accounting for 30.7 percent of total export volume, followed by Indonesia (10.2 percent) and Malaysia (7.8 percent).