24/04/2006
VietNamNet – Vietnam has become Thailand’s biggest rival in rice exports, after Thai clients switched to importing rice from Vietnam.
The HCM City Trade and Investment Centre (HTIC) quoted the ThaiDay newspaper as saying that Thai business operators are having to closely Vietnamese monitor rice production and exports as Vietnam proves a stronger competitor.
According to Thai exporters, Vietnam may export 38-39mil tonnes of rice this year, up by 15.2% - 18.2% over 2005, which may threaten their business. Prior to that, in 2005, Vietnam had a bountiful crop, with rice exports up 27.3% in quantity and 47.3% in value. Vietnam has become the world’s second biggest rice exporter just a short period after it began exporting rice in 1998.
Thai businessmen acknowledged that the higher rice price offered by them last year has led several long held clients such as Iran, Uruguay, Syria and Nigeria to shift to buying cheaper Vietnamese product.
They are concerned that Vietnam will not only cement its position in the international rice market, but will also expand its market share by exporting more to Japan, the Republic of Korea and Australia, which may abandon importing rice from Thailand.
The biggest difficulty Vietnam faces is the unstable quality of its produce. However, the problem should be resolved soon as Vietnam is investing heavily in improving rice quality.
Vietnam plans to export 5mil tonnes of rice, while Thailand targets 7.5mil tonnes.
HTIC Director Kim Hanh also said that Thai businesses consider Vietnam a direct rival in some specific markets.
Cambodia was once a faithful market for Thai exporters. However, they now have to compete with Vietnamese enterprises exporting rice to the fickle buyers in that market.
According to Ms Hanh, when Vietnam organised a trade promotion trade fair in Cambodia, Thailand sent a delegation of experts to the trade fair to observe the event, and as a result, new strategies to compete against Vietnamese enterprises have been drawn up.
Soon after Vietnam organised a large trade fair, Thailand decided to organise five smaller trade fairs in locations throughout Cambodia.
“While Vietnam focuses on big centres, Thailand aims at promotion in localities,” Ms Hanh said.
Meanwhile, in a campaign to explore the western regions of China, Vietnamese exporters are now encountering fierce competition from neighbouring Thailand.
Deputy Prime Minister Vu Khoan once mentioned the issue, saying at a nation-wide conference that the Thai Economic Minister had warned domestic companies about the rising tide of Vietnamese exports.
The HCM City Trade and Investment Centre (HTIC) quoted the ThaiDay newspaper as saying that Thai business operators are having to closely Vietnamese monitor rice production and exports as Vietnam proves a stronger competitor.
According to Thai exporters, Vietnam may export 38-39mil tonnes of rice this year, up by 15.2% - 18.2% over 2005, which may threaten their business. Prior to that, in 2005, Vietnam had a bountiful crop, with rice exports up 27.3% in quantity and 47.3% in value. Vietnam has become the world’s second biggest rice exporter just a short period after it began exporting rice in 1998.
Thai businessmen acknowledged that the higher rice price offered by them last year has led several long held clients such as Iran, Uruguay, Syria and Nigeria to shift to buying cheaper Vietnamese product.
They are concerned that Vietnam will not only cement its position in the international rice market, but will also expand its market share by exporting more to Japan, the Republic of Korea and Australia, which may abandon importing rice from Thailand.
The biggest difficulty Vietnam faces is the unstable quality of its produce. However, the problem should be resolved soon as Vietnam is investing heavily in improving rice quality.
Vietnam plans to export 5mil tonnes of rice, while Thailand targets 7.5mil tonnes.
HTIC Director Kim Hanh also said that Thai businesses consider Vietnam a direct rival in some specific markets.
Cambodia was once a faithful market for Thai exporters. However, they now have to compete with Vietnamese enterprises exporting rice to the fickle buyers in that market.
According to Ms Hanh, when Vietnam organised a trade promotion trade fair in Cambodia, Thailand sent a delegation of experts to the trade fair to observe the event, and as a result, new strategies to compete against Vietnamese enterprises have been drawn up.
Soon after Vietnam organised a large trade fair, Thailand decided to organise five smaller trade fairs in locations throughout Cambodia.
“While Vietnam focuses on big centres, Thailand aims at promotion in localities,” Ms Hanh said.
Meanwhile, in a campaign to explore the western regions of China, Vietnamese exporters are now encountering fierce competition from neighbouring Thailand.
Deputy Prime Minister Vu Khoan once mentioned the issue, saying at a nation-wide conference that the Thai Economic Minister had warned domestic companies about the rising tide of Vietnamese exports.
No comments:
Post a Comment