Enterprises boost rice product exports
By Son Nghia - The Saigon Times Daily
A shopper inspects a Vietnamese vermicelli product at a supermarket. Locally-made rice products are favorites in overseas markets - Photo: Son Nghia
HCMC – Many food producers in the country have raised the value of rice by making rice flour, noodles and rice paper that are favorite products in overseas markets.
Trang Si Duc, deputy general director of Bich Chi Food Joint Stock Company, said that the enterprise has over 100 products made from rice. In the first six months, revenue generated from these products increased by around 10% year-on-year.
Exports to the U.S., the EU and Japan made significant contributions to the growth. The enterprise has also shipped products to Myanmar.
Its rice flour exports have strongly increased. In 2010, domestic consumption accounted for 70% of its revenue but the ratio between domestic consumption and exports is now 50:50.
Bich Chi Company expects to ship its products to Africa this year. To enter the overseas market, the enterprise has joined many international fairs and trade promotion trips to find partners overseas, Duc said.
Other enterprises have also updated production technology, using rice as material for many instant products.
Bui Huu Loc, director of flour processing firm Loc Sanh, said that enterprises can produce over 700 kilos of flour from a ton of rice. Rice flour export prices average out at over VND14 million a ton while average 5% broken rice export price is over US$400, or around VND8.4 million. Obviously, processed rice products generate higher value than the raw product.
At the recent seminar on Vietnamese rice values, a representative of Colusa-Miliket Foodstuffs Joint Stock Company said that it uses 10,000 tons of rice to process instant products for domestic sale and export each year. Processing technology has helped local enterprises raise the value of rice compared to normal rice exports.
The Vietnam Trade Office in Japan has also recommended local firms to raise the quality of rice exports, focusing on production of rice products to meet increasing demands in Japan.