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Monday, June 24, 2024

Exporters asked to prepare for rice export to South Korea despite suspension

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HCMC – While the Government has yet to decide on a resumption of rice exports, the Ministry of Industry and Trade has told rice firms to get ready for rice bidding to export over 55,112 tons to South Korea.

The ministry’s Import-Export Department has written to the Vietnam Food Association, local industry-trade departments and rice exporters about the bidding mechanisms and process.

South Korea has pledged to introduce a preferential tariff of 5% for tens years beginning in 2020, on a quota of 408,700 tons of rice.

The total rice import quota is allotted annually via electronic bidding in many phases by the Korea Agro-Fisheries and Food Trade Corporation.

South Korea planned to import about half of its rice quotas allocated to five countries, including Vietnam, in the first half of this year. However, as a result of the Covid-19 outbreak, the plan is subject to change. Shipments invited from China have been reserved and when they might resume is unknown.

As for rice imports from Vietnam, South Korea is considering inviting tenders in May for half of the 55,112 tons allocated to Vietnam.

Since the Prime Minister’s decision to temporarily stop exporting rice on March 24, the Government has not made a final decision on resuming or suspending exports. If exports are back on track, Vietnam still targets rice exports of 6-7 million tons this year.

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