Many Vietnamese enterprises have said that China has prohibited rice imports from Vietnam through unofficial channels. However, they say this will not affect the domestic market.
As called with the Saigon Times Online, Mr. Nguyen Cong Khanh, a merchant in Hai Phong City, who sells rice to China through unofficial channels, said that Vietnam’s rice can be exported only through official channels, while imports that go through the border gates have been banned by the Chinese administration.
According to Khanh, China has prevented the rice imports across the border in order to tighten control over tax payments made by Chinese rice importers. “Many Chinese importers of rice have been found evading tax. So, the Chinese administration imposed the ban, and plans to have fixed tax rates for easier control,” he said.
Mrs. Nguyen Thi Tu, another merchant in Hai Phong City, who specializes in providing rice to Chinese businessmen, has also confirmed that the rice import ban was issued to prevent tax evasion. “However, they (Chinese) still have high demand for Vietnam’s rice,” she said.
Observers said though China stopped buying Vietnam’s rice through the border gates, this will in no way affect the domestic market and rice production.
According to Lam Anh Tuan, Director of Thinh Phat Company in Ben Tre Province, Chinese businessmen mostly order fragrant rice, but there is no longer an abundant domestic supply of this rice. “I heard from some businessmen who directly export rice to China that the Chinese demand for rice is now weaker than several months ago,” he said.
Meanwhile, in the communication with Saigon Times Online during the Conference “Discussion on solutions to enhance the production and consumption of agricultural products in Mekong Delta” organized in Can Tho on August 05th, Mr. Huynh The Nang, General Director of the Southern Food Corporation (Vinafood 2), told that he has not been told about the Chinese decision to prohibit rice imports from Vietnam.
However, Nang said, even if this is true, the domestic market will not be badly affected because the demand from countries other than China for Vietnam’s rice is very high now, while the domestic supply is declining.
“The Philippines wants to buy more rice from Vietnam. Meanwhile, Indonesia and Malaysia are considering importing more rice. I think the current conditions are very favorable for Vietnam’s rice,” he maintained.
The rice price has been staying firmly high in the domestic market.
Particularly, in the Mekong Delta, the rice granary of Vietnam, IR 50404 rice is sold at VND 7.650-7.700/kg, while long-grain rice at VND 7.700-7.800/kg. Fresh rice IR 50404 is purchased by traders with the price of VND 5.000 -5.200/kg depending on various areas.
Meanwhile, the export rice price offered by Vietnamese exporters have regained the previous high levels after they decreased slightly some days ago. 5% broken rice is offered at $465-475/ton, while the 25% broken rice at $415-425/ton.
Huỳnh Văn
TBKTSG
