Vietnam may overtake Thailand to become the world’s leading rice exporter before 2015 as rice prices are higher in Thailand than in Vietnam, according to the Thai Rice Exporters Association.
Chookiat Ophaswongse, an adviser and former president of the association, said that Thailand’s rice exports may drop to 8 million tonnes this year. In 2009, Thailand exported 8.6 million tonnes of rice while Vietnam exported only 6 million tonnes.
However, the gap between rice prices in Thailand and Vietnam is widening. According figures from the Food and Agriculture Organisation (FAO), the price of Thailand’s 5 percent broken rice was priced at US$68 higher than Vietnam’s in 2008, and the difference in price roseto US$123 in 2009.
The value of the Vietnamese dong has also fallen since 2008, resulting in cheaper Vietnamese rice exports compared to the previous two years. In contrast, the value of Thailand’s Baht increased from 33.53 Baht per US dollar to 32.38 Baht per US dollar during the same period.
Mr. Chookiat also noted that the cost of transport and labour in Vietnam is lower than in Thailand.
Figures from the International Rice Research Institute show that since 1980, Thailand has passed the US and become the world’s leading rice exporter, meanwhile Vietnam’s rice exports in 1988 exceeded 1 million tonnes after the government applied a market-oriented policy to develop the agricultural sector./.