Vietnam only exported over 270,000 tons of rice in July, reaching at US$ 120 million of Free on Board (FOB) and US$ 122 million of cost insurance and freight (CIF), according to the Vietnam Food Association (VFA).
The low growth during the first seven months have affected by rice purchase demand from main markets like Indonesia, the Philippines and China. Additionally, Vietnam’s rice price also has been impacted by El Nino phenomenon, and competitive price between rice export countries that caused many businesses hesitate and not sign new export contracts.
However, Vietnam Food Association (VFS) said the Philippines and Indonesia businesses are planning to buy rice in Vietnam upcoming time. With the rice import demand, Vietnam will take advantaged chances because its rice price is lower than the regional export country. According to the VFS, this year’s rice export in the country will approximate 5, 7 million tons, reducing 14 percent over last year.