China slashes Vietnamese rice imports
China slashes Vietnamese rice imports
Vietnam’s rice exports to China have nosedived as the northern neighboring country, due to its soaring stockpile, has imposed stricter trade barriers against farm produce.
According to a Ministry of Industry and Trade report, Vietnam shipped more than 223,000 tons of rice to China in the first five months of 2019, tumbling nearly 74% compared with the same period last year. China used to be Vietnam’s largest rice importer, accounting for 40% of Vietnam's total rice exports, but it now ranks third after the Philippines and Malaysia, representing only 8.1% of the total.
Speaking at a conference held today, June 24, to review January-June rice exports, Deputy Minister of Industry and Trade Tran Quoc Khanh said that local exporters have faced many difficulties this year as major traditional markets such as China, Indonesia and Bangladesh have slashed imports. Between January and May, the three markets imported a combined 239,000 tons of rice from Vietnam, down over 83% year-on-year.
However, Vietnamese exporters have been exploring new markets for the staple food. As a result, the nation’s rice export volume hit 2.76 million tons, down just 6.3% year-on-year, whereas Thailand reported a 16% decrease.
Khanh predicted further challenges for local firms in the coming days. For 2019, the Chinese government has granted a rice import quota of 5.32 million tons, but the actual volume might be as low as 3.5 million tons, one million tons lower than last year.
China’s customs statistics showed that rice imports reached 850,000 tons in the first four months of 2019, down 24.4% year-on-year. Meanwhile, its export volume soared 112.4% to nearly 830,000 tons in the period.
Bui Thi Thanh Tam, vice chairwoman of the Vietnam Food Association, said that major rice exporters such as Thailand and Indonesia have considered China a new rival. The nation is forecast to become the fifth largest exporter in the world after offloading its stockpile.
To address China’s stricter regulations on farm produce, Deputy Minister Khanh told local enterprises to embrace healthy business practices and maintain good trading relationships with Chinese importers.
