(Market) - Early Q3, Vietnam's rice exports are constantly winning new contracts for export outside of China, the Philippines.

Rice prices increased but still low

2014 summer-autumn rice harvest is entering in the Mekong Delta appears some other markets outside of China and the Philippines are expected to unfreeze consumed this summer rice yield.

In particular, it can include the contract with Malaysia. Accordingly, Malaysia's official Vietnam decided to buy 200,000 tons of 5% broken rice through Food Corporation South (Vinafood 2) for $ 410 U.S. dollars / ton (FOB, delivered at the port of Saigon).

Most recently, a number of newspapers in the country outside the contract said that 800,000 tons of the Philippines have agreed to enter Vietnam on 04/15/2014, the country has decided to buy 200,000 tons more rice.

Information on the Saigon Times newspaper, Mr Lam Anh Tuan - Director Thinh Phat Co., Ltd. (Ben Tre) - now a member of Vietnam Food Association VFA affirmed that "there is no official confirmation from the Philippines imports Vietnam with the agency. "

However, according to Tuan, the ability to choose the Philippines for rice in Vietnam is huge. "By first present the Asian countries affected by the El Nino phenomenon, reduced food production.

Second, Thailand temporarily banned exports of rice to check the storage room because a huge shortage, so make sure the importer will focus on the quality of rice Vietnam because Vietnam is relatively well , reasonable prices, "Tuan said.

Not only in the Malaysian market, the Indonesian market in 2013 could not be exported, now they all are exposed to the Vietnam and imported rice could be back in August, September. Similarly Bangladesh has also turned again.

The above information has helped Vietnam rice export prices increased by $ 10 / t compared to early June. Specifically, 5% broken rice in Vietnam is being offered at 405-415 USD / ton and rice 15 % broken was offered at 360-370 USD / ton.

However, it should be noted that although rice export price of Vietnam's 5% broken was increased but the current level is still water in Vietnam has exported rice is very low, lower than India, Pakistan, Cambodia , Uruguay, Argentina ... the same type.

Specifically, the price of 5% broken rice in India is 430-440 USD / ton, Pakistan, Cambodia is 440-450 USD / ton, Urguay is 625-635% USD / ton, Argentina is 620-630 USD / ton.

Demolish the whole of VN low prices

Vinafood 2 - units directly provide 200,000 tons of rice to Malaysia in time to have the Southern Food Corporation of North Vinafood 1 is two now live bidding shall provide 800,000 tons of rice to the Philippines this year. With the removal of cheap deals, 2 Corporation has lost vast sums of up to 23.2 million estimate.

Meanwhile, according to analysts, Vietnam can absolutely sell at high prices because the biggest rival of Vietnam in implementing a contract to supply rice to the Philippines only Thailand, by delivery in terms of distance to Philippines, India and Pakistan, the Vietnam far more numerous and their price is also higher.

Dr. Nguyen Van Nam - former Director of the Research Institute, cites commercial perspective, with low bid this time, all foreign traders buy Vietnam rice prices are taking this match demolish all prices Vietnam rice down.

"Vietnam rice industry is an advantage but increasingly eroded, farmers exhausting due to the weakness of domestic traders and institutions manage the value chain of rice products do not.

Currently China is the largest importer of rice in Vietnam in the past 2 years but its share of business in the journal Youth shows, never assured businesses doing business with the Chinese merchants China.

After the night away with Philippines factor, Vinafood 2 part rice to Malaysia

Whether buying more long-term needs but obviously not, they just wait for those times when you really need or deep discount new contract. Payment terms are a big problem in the business of rice exports when domestic buyers do not pay by letter of credit that payment by LC documents. Accordingly, the purchaser will pay in advance 20% of the shipment and will pay the rest after receiving invoices from suppliers.

"The sale of this very risky for the seller. Where the goods have been shipped and that the buyer does not pay or delayed payment, the seller is very hard to collect money "- the director of a rice export business in the city. Minh said.

By Tam An  - http://baodatviet.vn/