Viet Nam is expected to export about 6.3 million tonnes of rice this year. — Photo travinhtrade.vn

HA NOI (Biz Hub) — China has banned the cross-border import of Vietnamese rice, Deputy Chairman of Vietnam Food Association (VFA) Pham Van Bay told Biz Hub on August 11.

Bay did not mention the reason for the Chinese decision, but according to oryza.com, which quoted Chinese local sources, the move was aimed at tightening control over tax payments made by Chinese rice importers.

He added that the ban would not affect Viet Nam's exports because the demand for Vietnamese rice has been rising in Asian countries such as Malaysia, the Philippines and Indonesia.

China is still the biggest market of Vietnamese rice, buying 32 per cent of Viet Nam's total exports, said Bay.

Data showed that Viet Nam exported 3.62 million tonnes of rice in the first seven months of this year, 12 per cent less year over year.

VFA predicted that Viet Nam would export about 6.3 million tonnes of rice this year. The export, while contributing towards Viet Nam's total rice exports, still involves some risks.

VFA recently warned that about 64 per cent of the cross-border rice export contracts with Chinese firms have been cancelled. The Chinese businesses also topped the list of firms which buy Vietnamese rice at cheap rates and press for price bargains too. — VNS