Vietnam firms anxious to stockpile rice

On June 15, several businesses began to purchase rice for storage in the Mekong Delta under a government programme that aims to ensure farmers’ income level.

The government has covered 100 per cent of interest rates on three-month loans to assist businesses to buy rice.

Selected by the Viet Nam Food Association, 115 eligible enterprises are taking part in the programme, targeting a varying amount in each province. For example: In Long An Province 91,000 tonnes, Kien Giang 85,000 tonnes and Bac Lieu and Hau Giang between 10,000-15,000 tonnes. The association said that 12 days after the programme had got underway, businesses had purchased 140,000 tonnes, or 14 per cent of all rice stocks, under the temporary stock programme.

However, the large remaining stockpile of winter-spring rice, due to low exports over the last few months, is a challenge, as the eligible enterprises do not have enough warehouse space to store the forthcoming summer-autumn rice.

Nguyen Thanh Huong, director of Hau Giang Province’s Department for Industry and Trade, said that the four provincial enterprises are purchasing quotas for the temporary storage of 15,000 tonnes of rice. 

Hung said the state should allow firms that are not members of the Viet Nam Food Association to purchase rice for their own warehouses and also increase the space of warehouses owned by enterprises that are members so they capable to stockpile rice.

Nguyen Van Ho, deputy director of the Vinh Long Food Company, said the company must sell up to 70 per cent of the rice it has stockpiled to the domestic market to have adequate warehouse space for the summer-autumn rice. The company still has 50,000 tonnes of rice to be either exported or sold on the domestic market. However, current export prices are noticeably low at US$365 to $370 (Bt11,290-Bt11,440) per tonne.