VietNamNet Bridge – In early October 2012, the Philippines,
Myanmar and Thailand signed a memorandum of understanding on the establishment
a 3-member South East Asian rice alliance. Vietnam is not a member of the
alliance.
The three countries, when
announcing the establishment of the alliance, said they hope they can create a
full distribution chain and cement a firm position for South East Asian rice in
the world’s rice market.
In the past, Vietnam once thought
of cooperating with Thailand, one of the biggest rice exporters in the world,
to control the rice prices. However, the alliance broke up because the two
sides could not find a common voice to maintain the alliance.
Thai rice products have higher
quality than Vietnamese, which explained why Thailand wants to set the rice
prices at high levels in the world market. Meanwhile, Vietnamese enterprises
want to sell rice at reasonable prices in order to increase the export volumes.
Most recently, Yanyong
Phuangrach, a senior official of the Thai Ministry of Trade suggested an idea
about a strategic cooperation among five South East Asian countries, namely
Thailand, Vietnam, Laos, Cambodia and Myanmar.
However, two months later, a rice
alliance was set up without Vietnam, where there are only three members –
Thailand, the Philippines and Myanmar.
The fact that the Philippines, a
big rice importer, not a rice exporter, is a member of the alliance which has
caught the special attention from the public.
According to the Asian
Development Bank, in 2010, the Philippines imported 2.45 million tons of rice.
The import volume reduced to 860,000 tons in 2011 and plans to import 500,000
tons in 2012.
Filipino officials hope that the
country would stop importing rice from 2013. It has fulfilled 80 percent of the
plan on storing rice, while experts have warned about the global food crisis to
occur in 2013.
However, ADB’s experts do not
think the country would be able to stop rice import with its bad agricultural
infrastructure and high rice production costs. Especially, it believes that the
country would have to import 700,000 tons of rice in 2013.
Why hasn’t Vietnam joined the
South East Asian rice alliance, though it has shown interest in such
cooperation?
According to Nhip Cau Dau tu,
Vietnam and Thailand are both the big rice exporters, who have been competing
with each other in rice export, an alliance of the two rivals would not be able
to exist.
Commenting about the three-member
alliance, director of a rice export company said their cooperation would help
fix the problems of every member. Thailand has a good rice brand, but its
production has not been good enough. Meanwhile, Myanmar has more fertile and
larger land fund. The Philippines have received the support from the US in
agriculture production, while it has good rice varieties.
Vietnam is not a member of the
rice alliance, but its rice production and export would not be influenced,
according to Professor Vo Tong Xuan, former President of the An Giang
University, who is considered the biggest rice specialist in Vietnam.
Analysts said that the immediate
impact that the alliance can have on Vietnam is the loss of the orders from the
Philippines – which has always been a big rice importer of Vietnam’s rice. The
country has also reduced the rice imports from Vietnam recently.
Meanwhile, according to Xuan,
Vietnam remains a big rice exporter in the world. Therefore, it is very likely
that the three countries would discuss the rice alliance with Vietnam again.
The three countries, like
Vietnam, want to keep the rice export prices at reasonable levels to both
retain clients and ensure benefits for their farmers.
Do Thien
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