The Viet Nam Food Association (VFA) has set the target for rice export at 5.7 million tonnes this year, up 800,000 tonnes from 2016, amid rising global demand.

Huynh The Nang, president of VFA, said that since May, the demand for rice in the global market had seen a significant rise, and sellers now had the upper hand.

The current stockpiles of major rice exporting countries were not high, while rice import demands from countries such as the Philippines, Bangladesh and Indonesia were rising, Nang said, adding that the average export price had seen a rise of US$6-7 per tonne compared to the same period last year.

Nang said the Philippines planned to purchase 250,000 tonnes of rice in July and there was a high possibility that Viet Nam would be chosen. The Philippines was also considering importing another 544,000 tones by the beginning of September.

Recently, Bangladesh and Viet Nam also signed a memorandum of understanding on rice trade, in which Viet Nam can sell up to one million tonnes of rice to Bangladesh every year.

A survey by the Ministry of Agriculture and Rural Development (MARD) revealed that local rice prices were increasing this year, by VND300-600 per kg.

Data from the MARD shows that in the first six months of 2017, rice export reached 2.8 million tonnes worth $1.2 billion, up 6.3 per cent in quantity and 4.9 per cent in value over the same period last year. The increase is considered impressive, given that it declined by 26.5 per cent in volume and 22.4 per cent in value in 2016. – VNS