Hanoi (VNS/VNA) - Vietnam expects to achieve its export target of6.7 million tonnes of rice this year due to high global demand, according to anofficial.

The country could reach the goal and produce enough rice for domestic demand,said Le Thanh Tung, deputy head of the Department of Plant Cultivation underthe Ministry of Agriculture and Rural Development (MARD).

Due to the spread of the novel coronavirus around the world, demand for ricereserves in many countries, especially China, will increase. Vietnam’straditional rice export markets, such as the Philippines and Indonesia, lackrice and they continue to import huge volumes from Vietnam. Therefore, Vietnamhas many opportunities to boost rice exports, Tung said.

Tung said the winter-spring rice crop will ensure enough output for exports anddomestic consumption.

Thailand – the second-largest rice exporter in the world – has suffered greatlosses in rice output from severe drought and saltwater intrusion with areduction of about two million tonnes of rice.

In the winter-spring crop 2019-20, Vietnam has had only about 28,000ha sufferfrom severe drought and saltwater intrusion, accounting for a small part of atotal 1.65 million ha cultivating rice in the southeast region and the MekongDelta. Therefore, Vietnam will have an oversupply of rice to add to inventoriesfrom the last two crops.

In addition, the State Bank of Vietnam has asked banks to enhance lending forrice production and consumption in the Mekong Delta. Banks there have providedloans in terms of 3-6 months with an annual interest rate of 6 percent. Thathas provided a lot of support for firms and farmers in the industry.

Vietnam's rice value has increased on the world market because a number ofbusinesses have built value chains for rice, though domestic rice is stilllower quality.

Experts say that to achieve sustainable export growth, the rice productionindustry must further develop the value chain.

Pham Thai Binh, General Director of Trung An High-tech Agriculture Joint StockCompany, said if there is investment in the value chain and farmers work withbusinesses, stable production and consumption will follow.

According to the MARD, in the first two months this year, many key agriculturalproducts, such as pangasius (tra fish), cashew nut, rubber and vegetables hadstrong reductions in export value, but rice exports gained year on year growthof 27 percent in volume to 890,000 tonnes and 32.6 percent in export value to 420 million USD, chinhphu.vn reported.

Increasing rice demand in many markets has increased Vietnamese rice exportsfrom early this year, leading to a surge of rice prices in the domestic market,Tung said.

During the first two months, the price of rice purchased at enterprises’warehouses was 5,400-6,400 VND per kilo, 1,000 VND more than rice purchased atfields.

In the first two months this year, the price of 5 percent broken rice forexport on the domestic market increased to 380 USD per tonne, a high sinceDecember 2018./.