Three countries now export rice to the Philippines - Cambodia, Thailand and Vietnam - under its government’s tender process. The extension will help Vietnam strengthen its position in the global rice trade as it copes with pressure in price and competition from Thailand, India, Pakistan, Cambodia, and Myanmar.

The Northern Food Corporation and the Southern Food Corporation will export the rice, with the first shipment heading out this month.

From 2011 to 2015, the Philippines was an important market for Vietnamese rice, importing 500,000 to 1,500,000 tons and accounting for 17 to 20 per cent of Vietnam’s rice export turnover.

“Export markets for agricultural goods and fishery products present many difficulties, with demand and prices in agricultural production on the decline, especially in rice,” Minister of Agriculture and Rural Development Nguyen Xuan Cuong said.

Diseases in crops and livestock and higher costs for inputs and fertilizers also had a negative effect on planning in 2016.

The quantity of rice exported in December reached 399,000 tons worth $181 million. Total rice exports for the year were 4.88 million tons worth $2.2 billion, down 25.8 per cent and 21.2 per cent, respectively, compared to 2015.

China is Vietnam’s largest rice export market, with a 35.9 per cent market share, followed by Ghana with 11.1 per cent.