Thai rice exporters concern about Vietnamese rivals: report

Thailand, the world's biggest rice exporter, is keeping close watch on Vietnam's rice production, since the latter is threatening the former's number one position, local newspaper Vietnam News reported Friday.

Vietnam is expected to export 5 million tons of rice in 2006, about 2.5 million tons fewer than Thailand. However, with an anticipated paddy rice production of 38-39 million tons this year, 15-18 percent higher than that of last year, Vietnam is catching up quickly.

Thai rice exporters have expressed their concern that Vietnam will expand its global rice market share by boosting sales to Japan, South Korea and Australia, all of which buy rice from Thailand.

Price hikes of Thai rice last year pushed several customers, including Iran, Uruguay, Syria and Nigeria to look to Vietnam, whose products have more competitive prices.

The Vietnamese government has recently decided to export 5 million tons of rice at most in 2006, a move to ensure the country 's food security.

Rice firms in Vietnam, which shipped abroad more than 5.2 million tons of rice worth nearly 1.4 billion U.S. dollars to more than 40 countries and regions in 2005, have already signed contracts on exporting 3.5 million tons of rice in 2006, according to the country's General Statistics Office.

The Trade Research Institute under the Vietnamese Trade Ministry forecast global rice supplies would increase in coming months, with the 2005-2006 crop expected to yield about 441 million tons, up 8.3 percent over the previous crop.

Source: Xinhua