|Rice exports to regular importers such as the Philippines and Indonesia will soar in the first quarter of 2019 as both have recently been hit by natural disasters.
The Agro Processing and Market Development Authority made the prediction at a press conference on January 22. The conference briefed expectations of farm produce exports during 2019, reported the news outlet Vietnam Economic Times.
The authority stated rice exports to regular importers such as the Philippines and Indonesia will soar in the first quarter of 2019 as both have recently been hit by natural disasters.
As many as 166 Filipino companies have made plans to import 1 million tons of rice, of which many have been ordered from Vietnam. This move came after the Philippines lifted its import restriction policy.
Under new rules set by the Philippines, rice imported from ASEAN countries will be taxed at 35% while the rate of rice shipments from non-ASEAN countries is 50%.
Upon gaining easier access to the Filipino market, Vietnamese rice will face fierce competition from regional rivals, including Cambodia, Myanmar, and Thailand.
Moreover, China, a regular import of Vietnamese rice, has revised its border trading policy and begins to attach more importance to fully-taxed imports. Meanwhile, rice production will be expanded in regional countries such as Cambodia, Myanmar, and Thailand.
Apart from rice, high hopes have been placed on the export of other staple products such as peppers, aquatic products, and wooden items.
As for fruit products, Nguyen Quoc Toan, acting director of the Agro Processing and Market Development Authority, said that 2018 was a good year for fruit exports with turnover peaking at US$3.8 billion.
However, fruit shipments still depend heavily on the Chinese market. In 2019, fruit and vegetable exports have to meet more stringent requirements set by Chinese importers.
Regarding aquatic exports, Toan said that the EU-Vietnam Free Trade Agreement is scheduled to come into effect in 2019. This pact enables 90% of the tariffs levied on aquatic products shipped to the bloc to reduce from 14% to 0% over the course of three to four years.
This opens up a range of exciting opportunities for the exporters of aquatic products.
Vietnam’s aquatic exports are forecast to reach US$10 billion in 2019 as the demand for aquatic products from the Republic of Korea and ASEAN countries continues to soar.