The Vietnam Food Association (VFA) said that the yearly target for 7 million tonnes is within reach.

A VOV reporter interviewed Pham Van Bay, VFA Vice Chairman, on the current rice export situation.

VOV: Vietnam’s export price for five-percent broken rice has reached US$560 per tonne, which is equal to that of Thai rice. Many people say that this is a virtual price, which will cause difficulties for future rice exports. Do you think so?

Mr Bay: Recent speculation and false information has pushed the price of Vietnamese rice up higher than the world price. The VFA has handled the problem and now the price of rice is stable. The current price of paddy rice is around VND6,600-6,800 per kilo, lower than the previous price of more than VND7,000. I think the price is now reasonable and it shouldn’t cause any difficulties for business contracts. The price of exported rice at US$550-560 per tonne is also reasonable and it benefits both farmers and businesses.

VOV: The Thai Government will start purchasing rice from farmers as of November 7. How will this affect the domestic rice price and the export price on the world market?

Mr Bay: The Thai Government’s decision to increase the purchase price will make it possible for Vietnam to raise its export price. But it does not mean the decision will push the world price up as it has its own roadmap and solution. Anyway, the world price will likely go up.

VOV: Is there any unhealthy competition in the world rice export market?

Mr Bay: In addition to Thailand and Vietnam, India has also resumed exporting rice. If India exports a large volume, it will affect the world price. However, due to its food security policy and inflation, India will only export a certain amount of rice so it won’t affect the world price very much.

The Ministry of Agriculture and Rural Development should balance production and consumption from now until the end of the year and direct export businesses to implement this policy. In addition, Vietnam should devise policies to stabilise the domestic price of rice when the world price is high.

VOV: What do you think of the current export markets and contracts of Vietnamese businesses?

Mr Bay: The VFA has estimated that rice exports from now until the end of this year will be a smooth sailing for businesses and farmers. Farmers have basically completed harvesting the summer-autumn crop and will begin sowing the autumn-winter crop in October and November. The yearly target for exporting 7 million tonnes of rice will be met with both volume and value hitting an all-time high since 1989. Rice exports in the first quarter of next year are also promising.

VOV: Thank you very much.