CAN THO – Vietnam has the high possibility of securing a major rice export contract after an Indonesian auction.
The National Logistics Agency of Indonesia (Bulog) issued an invitation for bids to import 500,000 tons of rice to bolster the country’s food reserves.
Le Phat Long, director of Phat Tai Food Company and one of the participating bidders, told The Saigon Times on January 31 that Vietnamese enterprises emerged as the primary winners. While the exact quantity of rice Vietnam secured for export to Indonesia is yet to be determined, preliminary estimates suggest around 400,000 tons.
His company took part in five bidding packages, with a combined volume of 130,000 tons, securing one contract for the supply of over 26,000 tons of rice.
A rice export market expert confirmed with The Saigon Times that Vietnam succeeded in the bid for around 400,000 tons out of the total 500,000 tons sought by Indonesia in this procurement round.
Indonesia will proceed to negotiate with bidders offering the lowest prices in the second round. The lowest bid does not automatically secure victory but success will be determined by those willing to negotiate and compromise on the new pricing. Successful bidders will receive email notifications of their victory.
The average winning bid price for Vietnamese businesses is capped at no more than US$655 per ton, with the lowest winning bid at about US$645 per ton. Winning bidders are required to deliver rice to Indonesia by March 31.
In addition to the Vietnamese allocation, Bulog has allocated the remaining 100,000 tons of rice for sources from Pakistan and other selected exporters.
