Rice export targets lifted as India, Thailand cut back
The government has set a target of 4.5 million tonnes of rice exports this year, which is expected to bring in US$1.7 billion in revenue, an increase over last year of $300 million. The target was set out by the Ministry of Agriculture and Rural Development at a meeting last Friday in Ha Noi.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favourable this year because of strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3 million tonnes annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume.
"Export rice prices will remain high, benefiting both enterprises and farmers," he added. Viet Nam exported a total of 4.5 million tonnes of rice last year, earning $1.4 billion in revenue.
The export rice price stood at $309 a tonne, up $41 a tonne over the previous year.
Local rice exporters said that rice prices offered by foreign importers hade risen by $20 a tonne over the past week to $385 a tonne, and could climb to $400 a tonne.
On the local market, rice prices were VND4,000 a kilogram, the minimum price set by the VFA for the year, according to Phong.
Phong warned that rice exporting businesses should be cautious and wait for the highest possible price before signing contracts.
"Rice prices are on an upward trend so we recommend that farmers not sell rice immediately unless they really need the money," he said.
Deputy Minister of Trade and Industry Nguyen Thanh Bien said that the 2008 rice export volume of 4.5 million tonnes scheduled for contracts include 700,000 tonnes in the first quarter, 1.5 million tonnes in the second quarter, 1.5 million in the third quarter and 800,000 tonnes in the last quarter.
Contract problems
Despite favourable conditions for rice exports in 2007, rice export businesses said that profits were declining compared with previous years, with some companies only breaking even or suffering a loss.
The director of a rice export company, who asked to remain anonymous, said that many rice contracts at the end of last year were not honoured because local rice prices were higher than the price quoted in the contracts.
He said the contract-based allocation of rice quotas was unfair and lacked transparency.
"When the allocated quota of rice export volume reaches us, export prices on the local market have already climbed to VND4,200 a kilo, while the price contracted is merely VND3,800 a kilo," he explained, adding that losses were inevitable.
Many companies have complained that they received information about export quotas two to three months after contracts had been signed.
The best time to buy rice, they said, would be when a business was able to decide whether it can make a profit or a loss.
Another problem is that local rice exporters can take out bank loans only if they have contracts that state the quotas.
The allocated time for rice shipment delivery was also too long, exporters said.
Unhealthy competition among rice exporters in securing rice contracts by offering a low bid is also damaging both businesses and farmers, according to industry insiders.
"If businesses scramble to win rice contracts at a competitively low price, they will suffer if export rice prices should later soar on the local market," said Pham Van Bay, director of An Giang Agricultural Products and Foodstuff Co.
VNS 21.01

Target of 1.6-1.8 billion USD of garment exports to the EU
Only coming second after the US, EU has always been considered a traditional and potential market for Vietnam’s garments and textiles, said the Export Department under the Ministry of Industry and Commerce.
The turnover of garment and textile is Vietnam’s second biggest export to the EU. According to statistics, Vietnam’s garments and textiles export turnover to the EU only reached 537.1 million USD in 2003, surged to 760 million USD in 2004, rose to 882.8 million USD in 2005, exceeded 1 billion USD in 2006, and recorded 1.432 billion USD in 2007. This record figure shows a 15 percent increase over 2006, 62.2 percent increase of 2005, and three-fold increase over 2003.
According to experts, the EU market is high income and has a diversified demand for garments and textiles products that is in accordance with Vietnam’s production capabilities. These are good conditions for the country’s garments and textiles to penetrate the EU market.
According to a plan by the Ministry of Industry and Commerce, garment exports in 2008 will be 9.5 billion USD, an increase of 21.8 percent over 2007. Of this, the US is expect to import 5.3-5.5 billion USD of Vietnam’s garments and textiles, the EU market with 1.6-1.8 billion USD and the Japanese market with nearly 800 million USD.
Experts also said that the US and EU are suggesting drafts regulating labels for garments and textiles, footwear, and tourism products. Accordingly, the labels on garments and textiles exported the two markets must specify origin, kind of fabric, and instructions for use. Thus, Vietnamese businesses must be careful when they receive orders and set up suitable production plans.
BTA (According to Tien Phong) 21.01

Over 85,000 Vietnamese workers sent aboard in 2007
More than 85,000 Vietnamese workers were sent aboard in 2007, surpassing the yearly set target by 5,000.
According to the Overseas Labour Management Department under the Ministry of Labour, Invalids and Social Affairs, among 85,020 Vietnamese workers, 26,704 were recruited to work in Malaysia, 23,640 in Taiwan, 12,187 in the Republic of Korea, 5,517 in Japan, 4,685 in Qatar, 3,068 in Laos, 2,130 in United Arab Emirates (UAE), 2,132 in Macao, 1,620 in Saudi Arabia, 423 in the Czech Republic, 32 in Australia and 2,882 in other countries.
So far, Vietnam has sent workers to 40 countries and territories around the world. The quality of Vietnamese labourers has improved with more than 50 percent from being trained workers.
At present, more than 400,000 Vietnamese workers are working abroad. Labour exports have helped ease pressure on employment in the domestic market and to have reduced poverty. However, there remains a number of shortcomings relating to the quality of labour and labour export management.
CPV/VOV 21.01

International visitors to Vietnam in December and 12 months of year 2007