Vietnam wins bid for 800,000 tons of rice.

On the afternoon of April 15th, the Vietnam Food Association (VFA) won a bid to supply 800,000 tons of 15% broken rice to the Philippines. Delivery is scheduled to take place from May to August.

The Philippine market is temporarily helping to ease export pressure for Vietnamese rice - Photo: Diep Duc Minh

According to Reuters, Vietnam won the bids thanks to its low prices. Specifically, the Northern Food Corporation (Vinafood 1) won the bid for 100,000 tons at a selling price of $436 per ton; the Southern Food Corporation (Vinafood 2) won the bid for 700,000 tons at prices ranging from $436.50 to $441.25 per ton. Reuters also quoted a spokesperson for the Philippine National Food Authority (NFA) as saying that the country may have to import more rice after the recent bidding round.

According to experts, yesterday's rice tender in the Philippines is crucial for Vietnam's rice market. Currently, domestic rice prices are falling, and output is limited, so winning the tender will alleviate pressure on sales. Nguyen Hung Linh, Chairman of the Vietnam Food Association (VFA), commented: “We won the tender thanks to a better price than our competitors. This will help keep domestic rice prices from falling further and may even help them rise. It will also benefit the summer-autumn crop because the delivery time extends until August. However, we still have to wait for the official results to be announced by the National Food Authority (NFA).” Winning the tender at this time is extremely important for the domestic rice market because, one month after the policy of temporarily stockpiling one million tons of rice was implemented, rice prices in the Mekong Delta are still continuing to fall.

A day before the auction, Mr. Tran Thanh Van, Deputy Director of Gentraco Joint Stock Company (Can Tho), expressed his expectation: "If we win (the bid), the price might increase slightly due to the domestic market's renewed demand."

According to Thanh Nien newspaper