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Vietnam rice market weekly 17.08 – 23.08.2009: EXPORT RICE PRICE FLUCTUATES SLIGHTLY
26 | 08 | 2009
According to AGROINFO report , 5% broken rice price inches up to 387 USD/ton (up 0.34%) while 25% brokens for export reduces to 330 USD/ton (down 0.6%) compared to last week.

However, export rice of Vietnam is supported from domestic and international policies. Currently, some banks are carrying special support program for rice enterprises. Lien Viet bank signed cooperation with Gentraco Company, undertaking to support finance for enterprises in purchasing rice for export. VIP bank will spend credit support of 2,000 billion VND for exporters together with specific polices for rice processors and exporters in simple procedures.

In addition, 5 ASEAN countries including Vietnam, Thailand, Cambodia, Laos and Myanmar on 15 August 2009 agreed to establish Rice Association in 2010. Main duty of Association is to stabilize rice price, prevent from sharp reduction in rice price. Moreover, members will cooperate to develop their rice.

Over time, Vietnam enterprises signed 11 contracts, worth 400 million USD with Cambodia. Projects are in sectors: NPK fertilizer production, rice, sugar and ethanol processing and generator.

According to Vietnam Food Association, this action will reduce illegal rice import from Cambodia to Vietnam.  Cambodia produces a bulk of rice but legal export rice volume is not significant, only at 3,000-5,000 tons per year Thanks to establishing purchasing a foundation in Cambodia, illegal rice export will be controlled. Up to mid-June, volume of rice from Cambodia to Vietnam was millions of tons and it has been likely to rise. This is one of reasons why domestic rice prices have increased over time.

According to “Vietnam rice market weekly report” – AGROINFO, www.agro.gov.vn



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