Vietnam can ship 3 million tons of rice at maximum under a freshly reached agreement on extending rice exports to the Philippines for another two years up to December 31, 2018, according to the Ministry of Industry and Trade.
Cambodia, Thailand and Vietnam are currently allowed to export rice to the Philippines through government-to-government (G-G) bidding method.
In the background of fierce competition from both traditional and new rivals like Thailand, India, Pakistan, Cambodia and Myanmar, the export extension is seen as the better way for Vietnam to bolster exports and improve its global rice brandname.
Under the agreement, the Southern Food Corporation and the Northern Food Corporation remain the major exporters and the first bidding is set for January this year.
During the 2011-2016 period, the Philippines bought 500,000-1.5 million tons of Vietnamese rice, accounting for 17-24% of the Southeast Asian nation’s total rice export value.VOV