Voluntary Report - public distribution

**Date:** 08/09/2004

**GAIN Report Number:** VM4048

VM4018

**Vietnam**

**Grain and Feed**

###### Rice Weekly Update

**2004**

**Approved by:**

![](media/image1.wmf)Henry Schmick

U.S. Embassy

**Prepared by:**

Tran Quoc Quan

**Report Highlights**: Vietnam is trying to limit rice exports to 3.5
million metric tons. It is unclear if Vietnam will take firm action to
force rice exporters to comply with the export restriction. Exports of
fragrant and glutinous rice are excluded from the 3.5 MMT limit.
Nevertheless, it still limits fragrant and glutinous rice exports to
5,000 metric tons per month.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Hanoi \[VM1\]

\[VM\]

**Indicative price (Week ending August 6, 2004)**

Vietnam rice export prices (FOB basis) for various grades

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 11%" />
<col style="width: 17%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2"><p>Grade</p>
<p>% Broken</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2">Period Averages</td>
</tr>
<tr class="even">
<td>#1</td>
<td>#2</td>
<td>#3</td>
<td>#4</td>
<td>#5</td>
<td>#6</td>
<td>#7</td>
<td>Current Average</td>
<td><p>Previous</p>
<p>(July 30)</p></td>
</tr>
<tr class="odd">
<td>5</td>
<td>232</td>
<td>232</td>
<td>232</td>
<td>233</td>
<td>233</td>
<td>232</td>
<td>232</td>
<td>232.29</td>
<td>231.00</td>
</tr>
<tr class="even">
<td>10</td>
<td>229</td>
<td>229</td>
<td>230</td>
<td>230</td>
<td>230</td>
<td>230</td>
<td>230</td>
<td>229.71</td>
<td>227.71</td>
</tr>
<tr class="odd">
<td>15</td>
<td>226</td>
<td>226</td>
<td>228</td>
<td>228</td>
<td>228</td>
<td>226</td>
<td>226</td>
<td>226.86</td>
<td>224.71</td>
</tr>
<tr class="even">
<td>25</td>
<td>222</td>
<td>222</td>
<td>223</td>
<td>223</td>
<td>223</td>
<td>222</td>
<td>222</td>
<td>222.43</td>
<td>221.29</td>
</tr>
</tbody>
</table>

Source: Average indicative prices from exporters

Export prices were slightly firmer compared with prices offered last
Friday. Local prices also increased by VND10-20/kg (approx. USD 0.7 --
1.3/mt).

**Exports**

######## The following are reported rice exports (metric tons) from July 24 to July 30, 2004.

+--------------+-----------+-----------+---------------+--------------+
| **Week       | **Q       | **4-WK    | **Year to     | **Year ago** |
| ending**     | uantity** | Avg.**    | date**        |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 100,000   | 93,250    | 1,875,000     | 1,785,000    |
| #### June 04 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 31,000    | 80,250    | 1,906,000     | 1,857,000    |
| #### June 11 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 64,000    | 76,250    | 1,970,000     | 1,947,000    |
| #### June 18 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 61,000    | 64,000    | 2,031,000     | 2,156,000    |
| #### June 25 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 131,000   | 71,750    | 2,162,000     | 2,250,000    |
| #### July 02 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 118,000   | 93,500    | 2,280,000     | 2,321,000    |
| #### July 09 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 72,000    | 95,500    | 2,352,000     | 2,395,000    |
| #### July 16 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 103,000   | 106,000   | 2,455,000     | 2,449,000    |
| #### July 23 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 97,000    | 97,500    | 2,552,000     | 2,539,000    |
| #### July 30 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+

######### Additional rice exports granted. 

######## The Ministry of Trade (MOT) has issued an official letter to allow rice exporters to export fragrant and glutinous rice that is excluded from Vietnam's 2004 rice export plan of 3.5 million metric ton (mmt). However, the export quantity of fragrant and glutinous rice is limited to 5 thousand metric tons per month. This new market segmentation resulted from a recommendation by Viet Food Association (VFA). 

Per MOT's official letter dated July 26, Vietnam's 2004 rice exports
should be halted if the concluded year to date quantity has reached 3.5
mmt.

End of Report