Rice traders cleared to ship rice to exclusive markets

CAN THO – The Vietnam Food Association (VFA) has just lifted its ban on shipping rice to the so-called exclusive markets by traders other than its affiliates Vinafood 1 and 2, saying deals under government-to-government rice agreements have now been completed.

In particular, according to Official Dispatch No. 315/CV/HHLTVN signed by VFA president Huynh The Nang on June 20, rice traders are now allowed to make deals with importers from such markets, specifically Malaysia and Bangladesh, now that such deals no longer affect the G2G agreements.

Earlier this month, VFA asked traders not to sign rice contracts with importers from these two markets, explaining that such deals may have adverse impacts on the G2G contracts.

The ban faced stiff opposition from the public since it granted exclusive rights to VFA affiliates to export rice to some countries.

This time, the VFA does not limit the number of deals to export fragrant rice, sticky rice and broken rice to those markets.

Explaining its decision, VFA said its affiliates Vietnam Northern Food Corporation (Vinafood 1) and Vietnam Southern Food Corporation (Vinafood 2) had struck G2G deals with their partners in Malaysia and Bangladesh.

Speaking to the Daily, Pham Thai Binh, director of Trung An Hi-tech Farming Joint Stock Company, said the VFA’s move is to ease fierce opposition from the public.

Official Dispatch No. 164/CV/HHLTVN issued on June 6 by the VFA stated that Vinafood 1 and Vinafood 2 were assigned by the Government to fulfill rice contracts with Bangladesh, Malaysia, and the Philippines. Therefore, rice traders are disallowed to ship rice to these markets until the two corporations have fulfilled their contracts.

The decision caused a public uproar, with many saying this would hamper rice exports of local companies.