Vietnam sets three million tons of rice export target

By Bui Hong Nhung April 15, 2016 | 03:53 am PT

The Vietnam Food Association plans to export three million tons of rice in the first six months of 2016, up 12 percent from the same period last year, despite an historic drought and saline intrusion that are crippling the country's rice fields.

The association said that rice exports in the first quarter saw some signs of growth. Data from Vietnam Customs showed the export volume from January-March reached 1.55 million tons, up 38.1 percent from the same period last year. Export value also touched $680 million, up 38.5 percent.

China remained the key recipient of Vietnamese rice in the first quarter with over 470,000 tons, up 41.8 percent on year, followed by Malaysia with 350,000 tons, a surge of more than 422 percent.

The reason behind these rising rice exports is that a number of 2015 contracts signed between Vietnam, Indonesia, Philippines and China have been transferred to 2016.

Despite higher value gained from rice exports, the association said the number of contracts signed in March fell from the previous month as Vietnamese is more expensive than its Asian rivals. The prolonged drought and salinity, which has razed more than 140,000 hectares of rice fields, has been blamed for the problem.

The Vietnam Food Association aims to export 1.6 million tons of rice in the second quarter, down 200,000 tons from the original plan.

Source: VNA