Vietnam wins contract to supply 130,000 tonnes of rice to the Philippines

Vietnamese rice exports are positive with a range of recent winning bids.

Accordingly, out of a total of 250,000 tonnes of rice in the deal offered by the Philippines, Vietnam will supply 130,000 tonnes and the remaining 120,000 tonnes will be provided by Thai businesses.

The NFA said that Vietnam will supply 50,000 tonnes of 15% broken rice to the Philippines at US$526.5 per tonne and 80,000 tonnes of 25% broken rice at US$517.5 per tonne.

The shipment will arrive at the designated ports in the Philippines in three deadlines, not later than May 31 for the first package of 40,000 tonnes of 25% broken rice, June 15 for the remaining 40,000 tonnes of 25% broken rice and June 30 for the 50,000 tonnes of 15% broken rice.

In addition, the NFA will also open a new bid for rice supply on May 22.

Statistics from the Vietnamese Ministry of Industry and Trade show that rice export turnover in the first four months in 2018 reached US$1.1 million tonnes, up 22.3% in volume and 38.3% in value annually. The positive increase is mainly due to a range of winning contracts for exporting rice to large markets since the beginning of the year.

Along with the recent rice contract to the Philippines, rice exports in the near future look set to flourish after a long time in difficulties, experts have said. In addition to the Indonesian market, since the beginning of 2018, rice export turnover has also increased sharply due to the significant increase in demand from the Chinese and the Philippines’ market. In addition, Iraq is also emerging as one of the strongest importers of Vietnamese rice.

With favourable momentum, the Vietnam Food Association predicts that the rice export volume will reach about 6.5 million tonnes for the whole year.

Source: NDO