Vietnam offers long-term rice supply

UNB, Dhaka

Vietnam has offered Bangladesh a long-term rice supply to ensure food security in the country.

Vietnamese Prime Minister Nguyen Tan Dung made the assurance on Monday when he received Bangladeshi Food and Disaster Management Minister Abdur Razzaque, who is on a visit to Vietnam.

He also said Vietnam's consistent policy is to promote ties with Bangladesh in various areas, particularly in economic relations, trade and investment, according to Vietnam News Agency.

Razzaque's visit opened the prospect of fresh cooperation in trade and agriculture between the two countries, he said, of which signing of the agreement on rice trade was an example.

The Vietnamese PM highlighted the fact that trade turnover between the two countries remained low at US$ 400 million last year, leaving lots of untapped potential, especially in investment.

He recommended a joint-government committee of Bangladesh and Vietnam to figure out specific and practical measures to further enhance trade links.

Razzaque said Bangladesh, with a population of over 150 million, wanted Vietnamese enterprises to invest in the country, particularly in agricultural processing.

Vietnam and Bangladesh will boost their rice trade under an agreement signed Monday in Hanoi.

The agreement was signed by Food and Disaster Management Abdur Razzaque and Vietnam’s Minister of Industry and Trade Vu Huy Hoang.

“This will help ensure stabilisation of the rice market and lessen any adverse effects of climate change, disasters and crop failure in either country,” said Hoang, predicting that trade and economic relations between the two countries would reach new heights.

Bilateral trade between Bangladesh and Vietnam reached US$ 288 million last year, up 250 percent compared to 2009, according to the Vietnam’s Ministry of Industry and Trade.

Vietnam's exports to Bangladesh were rice, steel, fibre and fabric, machines and devices, plastic materials, and cell-phones.

Rice has emerged as the biggest item traded, reaching a volume of US$ 120million in 2010, equivalent to 350,000 tonnes. Vietnam is also gearing up to produce parboiled rice for export to Bangladesh.

In 2009, Bangladesh imported between 2-3 million tonnes of rice to ensure food security due to a rapid increase in population and natural disasters.

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