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Vietnam to export rice to Philippines
Publication Date : 08-06-2012
The Vietnam Southern Food Corporation (Vinafood 2) has won a contract to supply 100,000 tonnes of rice for the Philippines for the high price of US$400 per tonne.
According to the Philippines' National Food Authority (NFA), it selected Vinafood 2 for the deal because its price is much lower than that quoted by Thailand.
Shipments are due next month.
Vinafood 2 also expected to secure another contract with the Philippines to supply 20,000 tonnes of rice.
In the past, the Philippines regularly imported rice from Vietnam under the two governments' agreements.However, over the last two years, the country has changed its policy on contracts and now also allows the private sector to find trade partners themselves to get more competitive prices.
The Philippines this year will import 500,000 tonnes of rice, of which 120,000 tonnes have been allotted to the NFA, while private traders and farmer groups will import the remaining 380,000 tonnes.
Vietnam exported 788,296 tonnes of rice last month, the highest monthly amount since January 2010, lifting the country's rice exports in the first five months of this year to 2.5 million tonnes.
The ministry said it expected 6.25 million tonnes of rice to be shipped abroad this year, up 16 per cent more over last year.