A farmer harvest rice in paddy field in central Thua Thien — Hue Province. Viet Nam will ship its rice to Timor Leste in the future. — Photo baothuathienhue.vn

HA NOI (Biz Hub) — The Industry and Trade Ministry (MoIT) and the Timor Leste Ministry of Commerce, Industry and Environment signed a memorandum of understanding on rice trade in Ha Noi on December 21.

Addressing the signing ceremony, Deputy Minister of Industry and Trade Tran Tuan Anh said Viet Nam would not only be a trustworthy partner of Timor Leste in the fields of farm produce, fisheries and rice trade, but also in garment, leather, footwear and electronics.

Viet Nam will also provide all possible support to Timor Leste's business operations, he said, adding that there was room for co-operation in energy, oil and gas and processing sectors.

He said Viet Nam wanted the Timor Leste government to continue refining policies that encouraged investment.

Timor Leste Minister of Commerce, Industry and Environment Constancio da Condeicao Pinto, for his part, said Timor Leste welcomed Vietnamese enterprises to the country to do business.

He said he hoped both countries would work closely together in the areas of oil and gas and mining in the future.

Pinto said procedures to approve the bilateral free trade agreement would be completed as soon as possible.

According to the MoIT, Viet Nam imported goods worth roughly US$31 million from Timor Leste this year and exported goods worth $34 million, ranking sixth among 35 countries exporting to that country.

Rice exports

The Viet Nam Food Association said the country exported 6,007 tonnes of rice this year, five per cent lower than last year. The average price was $410 per tonne, a seven per cent fall compared with 2014.

According to the Food and Agriculture Organisation's forecast, Viet Nam's rice exports will touch 6.3 million tonnes this year, equal to that of 2014.

Meanwhile, with unsatisfactory rice exports in recent months, the VFA has lowered its estimated rice export volume this year to 5.91 million tonnes, 6.5 per cent lower than its forecast made early this year. — VNS