Vietnam-Australia rice cooperation in fine shape

Deputy Prime Minister Vuong Dinh Hue, during his visit to the Australia, told a meeting with Australian businesses on July 24 that Vietnam can supply all types of rice in bulk to the country.

Vietnam’s rice exports to Australia reached 220,000 tonnes last year, an increase of 50 per cent compared to 2015 and accounting for 4.5 per cent of all trade with the country.

Mr. Rob Gordon, CEO of Sunrice, the world’s largest rice and food processor, said that some Vietnamese enterprises have exported micronutrient rice to islands in the Pacific Ocean under orders from Sunrice.

He also suggested the Vietnam Government permit Sunrice to expand its business in Vietnam, transfer technology, and share its experience in rice production in a closed process with Vietnamese enterprises.

Deputy PM Hue appreciated Sunrice’s goodwill and affirmed that the Vietnamese Government would direct the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development to cooperate with the company to support Vietnamese rice producers.

Besides rice, Australian enterprises are also keen on other sectors in Vietnam such as tourism. Vietnam is becoming a popular holiday destination for many Australians, with 50,000 expected each year in the near future.

Vietnam is now Australia’s 15th largest trade partner, with two-way trade of over $10 billion, while Australian investment in Vietnam has boomed over recent years. In the first six months of this year, Australian investors invested over $95.7 million in 27 projects in Vietnam (both new projects and additional capital in existing projects).

The United Nations’ Food and Agriculture Organization (FAO) predicted in June that Vietnam would be among the Top 5 countries in terms of rice volumes this year. The five are China (with more than 142 million tons), India (over 110 million tons), Indonesia, Bangladesh, and Vietnam.

Global rice volumes are likely to increase by 0.7 per cent this year compared to last year, to more than 502 million tons, according to the Food Potential report published by the FAO, due to policies promoting production in Asia and the recovery of production in South America and Australia.

Vietnam exported nearly 4.9 million tons of rice last year worth $2.1 billion, a decline of 25.5 per cent and 20.5 per cent, respectively, against 2015.