400,000 tons of rice exported in September

(VET-03/October/2000)-According to the Ministry of Trade rice exports in September dropped 46,000 tons compared with the previous month. September saw rice export of 400,000 tons earning export turnover of US$ 76 million or a drop of US$ 9 million compared with August. Vietnam has exported 2.8 million tons of rice in the first 9 months of the year, earning US$ 543 million.

Rice and gold prices stable as dollar rises

(VNS-03/October 2000)- Rice and gold prices remained stable during the week ending September 30, while the price of the US dol-lar increased. The prices of unprocessed rice stayed at VND 1,500-1,600 in the northern and central coastal provinces, and proc-essed rice was still fetching between VND 2,400 and 2,700. Unprocessed summer autumn rice saw slight changes in the Cuu Long (Mekong) Delta, with one kilo selling for between VND 1,300-1,400.

The price of 99.9 per cent pure gold stayed at VND4.94 mil-lion per tael (3.5g) at the State -owned shop in Hanoi and VND4.9 million in the Cuu Long (Mekong) Delta prov-ince of Can Tho. The exchange rate for one US dollar increased by between VND 24-35 and VND 14,216 at the Foreign Trade Bank. Meanwhile, one Chinese Yuan fetched VND 1,700 in the northern border provinces of Lang Son and Quang Ninh.

Pork on the hoof prices remained stable in northern provinces, with one kilo cost-ing VND 9,000-10,500, but it continued failing in the south-ern provinces.

Prices of export farm pro-duce remained unchanged.

Refined sugar sold for around VND 4,500-5,000 per kilo, an increase of between VND 100-200 in HCM City.

Prices of construction ma-terials were also stable, with one kilo of black cement sell-ing for VND 730-750 in the north and VND880-920 in the south.

Note: one dollar = VND 14,200

(VET-02/October/2000)- Despite the nega-tive effects of severe droughts in the north, storms in the Central Provinces and protracted floods in the southern provinces the nation's economy continued to grow at a steady and positive rate.

The gross domestic product (GDP) growth in the first nine months of the year was estimated at 6.4 percent over the same period last year, in which agricultural sector plays its part with combined vegetable and rice pro-duction expected to reach 35.7 million tons by year-end, the high-est result ever recorded.

Although floods in the Cuu Long (Mekong) Delta saw the summer autumn rice crop yield 2 14,000 tons less than last year's, the national rice output nonetheless man-aged to record a slender increase. The total yield to date of 32.7 mil-lion tons is 1.3 million tons more than that of the same period last year. The growth in foodstuff production outstripped the national population growth rate of 1.5 percent, helping to shore up the national food security program and boost ex-ports.

The industrial sector, according to the General Statistics Office (GSO) report, remains the spearhead of the economy's development with strong growth of 15.4 percent during the period and it is estimated to reach 15.5 percent by the year- end the highest figure posted in five years.

The export turnover has grown 28 percent over the same period last year to VND10.49 billion; and the imports were estimated at US$11.002 billion during the period. However the economy is still faced with some challenges, for example. The banking sector re-mains largely unattractive to business investors despite having undergone reforms; moreover bidding procedures remain complex and time-consuming in Vietnam have discouraged investors.

250,000 tons of rice to be exported to Iraq

(VET-29/09/2000)- An official with The Ministry of Trade said his ministry has assigned 27 rice exporting companies to export 250,000 tons of rice (10 percent broken) to Iraq under an oil for food program initiated by the United Nations. The Northern Vietnam Food Corporation or known as VINAFOOD No.1 is assigned to export 137,000 tons and other 26 companies to ship the rest.

400,000 tons of paddy rice for export and domestic consumption

(VET-28/08/2000) -The Prime Minister has just assigned the Southern Vietnam Food Corporation or known as Vinafood 2 to buy 400, 000 tons of rice paddy used for export and domestic consumption; 100,000 tons of which will come from Long An, 100,000 tons from Dong Thap; 100,000 tons from An Giang Province and the rest from other provinces. The State Bank of Vietnam will authorize the commercial banks to loan Vinafood 2 at the current lending rates to buy up all that amount of rice.

Sinco boosts rice processing machine exports

(SGT-27/09/2000)- Sinco was well known be-fore 1975 as a manufacturer of sewing machines bearing the brands of Sinco, Standard and Singer. Its owner aban-doned the factory when Saigon was liberated and the company has since become a State-owned concern.

However, in the 1990s, the appearance of cheaper Chi-nese-made sewing machines on the market made the com-pany fail to sell its products and it nearly had to stop op-erations due to falling turn-over. In face of crisis, the company decided to conduct market research and diver-sify products. The company then started designing a rice-polishing machine as Vietnam is a big rice producer and rice exports were increasing strongly at that time said Huynh Duc Hai, head of market develop-ment.

From separate items, the company started manufacturing husking and polishing lines. Gradually, besides the domestic market, Sinco has, found buyers of its machines through foreign importers.

In 1992, the company exported its first rice process-ing line worth some US$59000. In 1993, the com-pany sent a rice whitening and polishing line worth some US$63,000 to a customer in Pakistan. In 1994, it pen-etrated markets in Rwanda, Cambodia, Thailand and Tai-wan, with export sales reach-ing US$228,000. Sinco later produced many other ma-chines and found customers in the Philippines, Africa and Singapore.

Last year, for the first time the company exported ma-chines to Brazil, and to Af-rica through a French company. "These are our poten-tial markets," Hai said, add-ing his company would boost marketing in this vast market in the upcoming time. Last year Sinco obtained an ex-port turnover of more than US$180,000.

Since the beginning of this year, besides customers in traditional markets, the com-pany has exported to Italy and Uruguay and has ob-tained export sales of US$270,000. The figure is expected to reach US$370,000 by the year-end, up 100% compared with last year, according to Hai.

Price of Vietnamese rice tends to rise

(VET-25/09/2000)- According to the Ministry of Trade, the rice prices in the world market do not change much for the time being. While the price of Thailand ( 5 percent broken and 25 percent broken) have tended to go down; the prices of Vietnamese rice have improved. Vietnamese rice ( 5 percent broken) is now quoted at US$ 184 to US$ 185/ton FOB price; and 25 percent broken at US$ 155 /ton FOB.

The Ministry of Trade disclosed that Malaysia is considering import of additional 150,000 tons of Vietnamese rice, or an increase of 50, 000 tons over the last year. Besides Malaysia may import other Vietnamese agro products such as chicken and coffee. Malaysia has so far imported 8,539 tons of coffee from Vietnam or as many as 3.6 times more than that of the same period last year.

As of early September this year Vietnam's exports to Malaysia are estimated at over US$ 22 million, or up 84 percent over the same period last year.

Rice export should be conditional: meeting

(SGT-25/09/2000)- Many local businesses are of the opinion that the Government should issue certain regulations to those keen to export rice, in addition to the normal condi-tions for setting up a busi-ness in line with the Enter-prise Law.

The proposal was made at a meeting organized in HCMC on Friday by the Ministry of Trade, and the Government Office to map out a policy to be applied from 2001 to con-trol and stabilize the rice and fertilizer markets.

According to the Govern-ment Office's draft policy, businesses of all economic sectors which have registered to trade in agro-products and food and have been granted import-export codes are al-lowed to export rice. However, leaders of a num-ber of provinces and, businesses said allowing busi-nesses to register for rice ex-ports like other fields would likely cause instability to the domestic rice market in particular and to the country's rice exports in general.

Deputy Chairman of Soc Trang Province Nguyen Duy Tan suggested rice exporters must have a minimum work-ing capital equaling to 2,000 tons of rice. Deputy Chairman of Ca Mau Province Le Hong My said in addition to meet-ing regulations on capital, rice exporters must have facility and equipment Suitable W process rice for export.

Meanwhile, Nguyen Cuong, deputy director of the HCMC Trade Service, said fix-ing more conditions for rice export is not necessary. How-ever, he suggested rice ex-porters must regularly report their operations to State agen-cies in charge of managing rice export sales.

Regarding this matter, the Ministry of Trade's import- export division proposed the automatic licensing method which allows relevant agen-cies to collect latest informa-tion about rice exports and control rice export activities.

Government Office Vice Chairman Nguyen Cong Su emphasized the Government should also seek to garner in-formation on rice exports when more businesses take part in this field but not by applying more complicated procedures.

Deputy Minister of Trade Mai Van Dau said the ministry would have to draft a policy, which guarantees food security and maintains domestic rice stabilization.

The country plans to ex-port four million tons of rice per annum. "The trade sector must coordinate with the ag-riculture sector to prevent a glut of rice on the domestic market," Dau said.

Vietnam, Thailand join to export rice

(VET-21/09/2000)- SGT quoted an official with the Southern Food Corporation Vietnam as saying that Vietnam and Thailand, the world largest rice exporters, signed on Tuesday a memorandum of un-derstanding (MOU) on rice export in Bangkok in a move to coordi-nate rice sales of the two coun-tries and to stabilize export prices.

The official said MOU covers information related to rice exports and experiences in managing rice exports of the Rice Exporters Associations of Vietnam and Thailand.

"The MOU stipulates that the two coun-tries will jointly export rice with each contributing 100,000 tons initially, "he said, adding the two sides will meet to decide the grade of rice to be contributed for export periodically.

The Vietnamese delegation was headed by Deputy Min-ister of Agriculture and Rural Development, Cao Duc Phat.

According to the Vietnam Food Association, rice prices remained stable over the past weeks, with 25 percent broken rice being quoted at US$150-153/ ton, FOB Saigon Port. The country has so far this month exported 180,000 tons of rice, bringing the total rice exports from the beginning of this year to 2.4 million tons.

Singapore business wants Vietnamese rice, sugar

(SGT)- Representatives of 14 Singapore businesses and officials of the Singapore Trade Development Board are vis-iting Vietnam from Monday to Saturday to survey the local agro-product market, especially rice and sugar.

Yesterday the delegation met with 11 Viet-namese businesses specializing in agro-product import-export at the office of the HCMC branch of the Vietnam Chamber of Commerce and Industry.

Ronald Tan, leader of the Singapore mis-sion, told the Daily that besides seeking infor-mation on Vietnam's rice and sugar market, Singapore businesses wanted to establish trade, links with local agro-product importers and exporters.

"Currently 80%-90% of the Singapore popu-lation use rice for their daily meals, and this is a great potential market for Vietnam, "Tan said. "However, as Singapore is an open market, Vietnamese rice must be of high quality and its prices must be competitive."

Tan is also general manager of Singapore Storage & Warehouse Pte. Ltd., which special-izes in storage and warehousing services and working as an agent for foreign rice suppliers in Singapore. He said he also wanted to find suppliers and partners to set up joint-ventures in the Vietnamese rice sector.

Er Poh Hock, sole proprietor of Hong Lian Gim Kee, during talks with Vu Minh Ha, head of import-export trading at the Grain Import Export Co. (Grainco), asked the latter to supply 20 to 25 containers of white sugar after the two sides had reached agreement on prices and goods quality. The two sides also agreed to meet again to exchange samples and discuss further on the deal.

Tan Obn Meng, director of Chop Chiap Heng Pte. Ltd., also said during talks with Ha that he wanted more information on broken rice and sugar and sought to import two to three containers of broken rice for sale in Singapore, and a larger amount for re-export.

Jimmy Soh, executive director of Chye Choon Foodstuffs Mfg. Pte. Ltd., said during talks with the import-export company Pitco that his company wanted to import rice and food.

Gov't moves to deregulate rice export

(VNS-15/09/2000)- The Prime minister has decided to revoke current regulations governing rice export with a view towards boosting Vietnam export of food.

The decision, contained in Government Office Communiqué No.71 and made public recently, effec-tively dismantles the system of export quotas as well as the practice of licensing exports through State-appointed firms only. It is expected to go into effect as of early next year.

"The Ministry of Trade will co-ordinate with the min-istries of Agriculture and Ru-ral Development, Finance and other relevant agencies to draw up a new mechanism governing market control and stabilization, " said deputy di-rector of the MoT's Export -Import Department, Nguyen Lang Chi, in a recent inter-view.

The new document will lay out measures designed to ensure stable rice supplies, food security, and an end to unorganized rice trade. The role taken by provincial Peo-ple's Committees and the Vietnam Food Association in the rice export process will also be strengthened.

Pending its submission to the Government for consid-eration and approval, the MoT is trying to solicit com-ments and contributions from relevant ministries, sectors and localities.

" If need be, a seminar will be arranged for individuals and organizations who wish to express their views on the draft," Chi said.

It is expected that about 500,000 tonnes of rice will be exported this month, bring-ing the total rice export since the beginning of the year to between 2.8 and 2.9 million tones.

Last month alone 480,000 to 500,000 tonnes of rice was exported. According to the MoT, no major price fluctuations are expected to take place in the international rice market. De-mand and supply remain sta-ble; and the current price is not in the rice exporters' favour.

Vietnam's rice export plan remains unchanged though rice cultivation has been badly hit by floods and storms.

Asked about an agree-ment reached by Vietnam and Thailand on joint rice ex-port on a trial basis, Chi said food associations in the two countries were exploring the steps required to turn the agreement into a reality. They have also studied the possibility of co-opera-tion in exporting rice exports (25 per cent broken) to a third country, but no specific con-tracts have been signed for such a project.

According to the Trade Ministry, Malaysia is consid-ering importing many farm products, particularly rice from Vietnam from 100,000 tonnes last year to 150,000 tonnes this year.

In 1989, Vietnam offi-cially joined the international rice market, and since then its export volume has increased considerably thanks to the constant improvement of rice quality.

Asian and African countries are the major customers, consuming 75-80 per cent of Vietnam's total rice export in the past five years.

Rice export increased from 1.4 million tonnes in 1989 to 4.5 million tonnes last year.

As a result, Vietnamese rice accounted for 20 per cent of the world market as of last year.

The rate of rice sold with only five to 10 per cent bro-ken rice increased from 14.2 per cent in 1990 to 43.6 per cent in 1997, while the rate of rice sold with 25 per cent broken rice went from 56.2 per cent to 12 per cent, a remarkable reduction.

Success in raising the qual-ity of rice for export reflects the great efforts of domestic producers to improve post -harvest technology, includ-ing storage, processing and transportation.

Another indicator of the improved quality of Vietnam-ese rice is that the price differ-ential between Vietnamese and Thai rice has been nar-rowed. Since the 1980s, new Government policies encour-aging rice export have con-tributed greatly to the devel-opment of the domestic rice market. With judicious analysis of the domestic and interna-tional markets, and due at-tention paid to rice quality and pricing, Chi went on, Vietnamese rice can become a prime mover in the world market.

Some more needed to be done for VN-Thai rice export

(VET-12/09/2000)- Vietnam's representatives failed to leave for Bangkok to sign an agreement for joint rice export in early this week, as they were not ready for this.

" Several mat-ters needed to be discussed more specifically and the cooperation should not only involve in Vietnam and Thailand but also in other ASEAN countries and should cover other agro-products in addition to rice." Minister of Agriculture and Rural Development Le Huy Ngo, who was authorized by the Government to oversee this issue, was quoted as saying While Deputy Minister of Trade Mal Van Dau said the two associations representing Vietnamese and Thai rice ex-porters should exert all their strength and discuss more carefully to reach a coopera-tion agreement which benefit both countries.

Vietnamese rice exporters said the biggest difficulty was that collaboration aimed to raise low-grade rice prices only; meanwhile, Vietnam is strong in low-grade rice. Rais-ing the price of this item will result in reducing Vietnamese rice competitiveness in the world market.

Rice export agreement between VN and Thailand to be signed next month

(VET-24/08/2000)- A reliable source from the Vietnam Food Asso-ciation disclosed that Thailand and Vietnam are scheduled to sign a rice export agreement next month, whose basic provisions will cover price, mar-kets and rice grades.

If the two sides agree on the content of the draft provisions prepared by Thailand's state-run Public Warehouse Orga-nization PWO, the agreement will be signed early next month, otherwise it could take a few more weeks. Vietnam's 25 percent broken rice is now quoted at US$152 a ton, FOB Saigon Port, down US$2-3 from last week. Domestic summer-autumn paddy has also decreased, by VND50 per kilo to VND 1,300-1,350.

In the past few years, Thailand and Vietnam have accounted for 70-80 percent of the world's rice exports. Rice exporters hope Vietnamese and Thai rice prices will be more stable on the world market after the agreement is reached.

Vinh Long Food Company boosts rice exports

(VNS-06/09/2000)- The Vinh Long Food Company has exported 160,000 tonnes of rice this year, generating a turnover of US$25 million and placing it among the top rice exporters in Vinh Long Province.

The company has opened a number of new purchasing branches to keep prices stable and to ensure sufficient stock for export. It has plans to ship 200,000 tonnes of rice by the end of the year.