Nearly 1 million tons of rice export contracts canceled

• August 22, 2013 17:17

This is the highest number of canceled contracts ever in the rice industry..

According to the Vietnam Food Association (VFA), in the first 7 months of the year, Vietnamese enterprises registered to export 6.8 million tons of rice. However, the volume of canceled rice was up to nearly 1 million tons.

Most of the canceled contracts were signed with Chinese traders. Others were with tradersPhilippinessigned a contract but there was no import quota, so the ship was not allowed to dock.

7In the first month of the year, the whole country signed to sell 6.8 million tons of rice, but nearly 1 million tons were canceled.(Photo: Alrroya)

VFA said that contracts between businesses often do not have strong binding terms such as compensation, indemnity, etc., so partners can easily cancel. To limit the number of canceled contracts, VFA has recommended that businesses carefully review the contract content before signing, especially with Chinese traders. However, VFA also said that the recently canceled contracts do not have a major impact on rice export activities.

According to VTVnew-LC