Vietnam's rice exports drop to record low
Vietnam's rice exports have sharply fallen to a seven-year record low because of weak abilities, according to a new report by the Ministry of Agriculture and Rural Development.
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As of November, Vietnam exported 4.5 million tonnes of rice with a turnover of US$2 billion, a decrease by 26% and 22% respectively compared to the same period last year.
According to the General Department of Customs, rice exports are losing out to other agriculture products such as coffee, vegetables and aqua products.
The evaluation report from the Ministry of Agriculture and Rural Development showed that the 4.5 million tonnes of rice exported so far this year is the lowest figure since 2009.
Most export firms couldn't meet their goals. Vietnam will also be unlikely to meet the goal to export 5.7 million tonnes of rice this year, which is already lower than the 6.5 million tonnes exported last year.
Average monthly export output has reached 409,000 tonnes and Vietnam is exporting less near the end of the year. The output for September, October and November was 300,000-320,000 tonnes.
In addition, Vietnam is losing its key markets. Rice export to China in 11 months reached 1.6 million tonnes with turnover of US$700 million, a decrease by 400,000 tonnes and US$120 million respectively than last year.
Exports to the Philippines totalled 350,000 tonnes with turnover of US$150 million, a fall of 600,000 tonnes and US$300 million.
The Vietnam Food Association said many countries had tightened management on import-export activities. China had tightened grip on unofficial imports. Meanwhile, Vietnam is losing its price advantages in Philippines, Indonesia and Ghana to Thailand, India and Cambodia.
Pro. Vo Tong Xuan from Can Tho University, said, "We need to completely reform the rice sector as it is fluctuating because of climate change. Vietnam needs to improve productivity, rice quality and distribution networks to compete in the global market."
According to Pham Chi Lan, member of the Advisory Group of the Vietnam National Assembly’s Economic Commission, Vietnam has advantages with electronic, aqua and agriculture products exports. But the competitive abilities of the aqua and agriculture sectors are weak.
There are huge amounts of Vietnamese rice exported under foreign brands, or unnamed or unlabelled.
Most of the rice was exported to aid poor people or was stockpiled. Few local brands are able to compete in the retail market.
Local firms are also facing tough competition at home from imported rice, especially from Thailand.
