HCM CITY — Export of fragrant rice has topped 369,000 tonnes in the year to date, a rise of more than 115 per cent year-on-year, according to the Viet Nam Food Association.

Pham Van Bay, VFA deputy chairman, said this was because Viet Nam's prices were much less than Thailand's. Thai fragrant rice is currently quoted at above $1,000 a tonne, while Vietnamese fragrant rice costs barely above $700.

However, the quality of Vietnamese fragrant rice is not much lower than that of Thai rice.

Due to the big difference in prices, many Thai rice exporters had bought Vietnamese fragrant rice to export to China under their own brand names, Bay said.

With its competitive prices and good quality, Vietnamese fragrant rice had gradually taken over from its Thai rivals in Hong Kong, a traditional Thai market, he said.

Many Thai businesses are coming to Viet Nam to explore investment opportunities in this area.

"Buying Vietnamese rice is an initial step. In the long term, I think they can co-operate with local companies or set up 100 per cent foreign companies here to invest in the entire chain from production and milling and export," he said.

Local companies should prepare for that eventuality or else would encounter difficulties, he said.

October 11, 2011

Source: VNS

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