Vietnam is forecast to earn $3 billion-$3.2 billion from exporting six million tons of rice this year, up 16% in value from in 2009, the Nong Nghiep Vietnam newspaper reported Jan. 6, citing Chairman of the Vietnam Food Association (VFA). Chairman Truong Thanh Phong said that the revenue increase is thanks to growing rice prices resulting from high demand on weak supply on the world market. Phong forecast that the world’s rice production will decrease 3% this year while its consumption will be 437 million-438 million tons, up 2 million-3 million tons from previous year. The world’s rice purchase demand will hit 30.5 million-31 million tons, up 6% from 2009. The chairman said that Vietnam will have 4.5 million tons of rice for export in the first half of this year, including 1.5 million tons from previous year, and 3 million tons from the 2009-2010 winter-spring crop. The total rice export volume may peak at 6.9 million tons if the country harvests an additional 2 million tons from the 2010 summer-autumn crop and 400,000 tons from the autumn-winter crop, he added. Phong stressed that the VFA will require provincial Finance Departments in Mekong Delta region to calculate rice prices in the 2009-2010 winter-spring crop at between VND4,500-VND5,500/kg to ensure profit for farmers. The VFA will also call on commercial banks to provide the farmers with longer-term loans to 7-8 months from current 4 months to help them preserve rice for higher prices. Phong said that the VFA will kick off a VND30 billion program to help farmers in 13 communes of Mekong Delta region to access market information. The association will also require its members to expand warehouse to raise total capacity to 4 million tons by late 2010 and early 2011.
