Thailand to set up a rice joint venture with Vietnam

VietBusinessNews - Thailand has proposed establishing a rice trading joint venture company with Viet Nam and other rice exporters in Southeast Asia in an effort to stabilise rice market prices.

According to the Thai Ministry of Commerce, the move aims to boost cooperation between rice exporters within ASEAN and around the globe, paving the way for these exporters to set a price appropriate to their production costs and market supply and demand. The joint venture company not only manages rice reserves, but also deals with fluctuations in the rice market.

Sources from the Ministry of Commerce say that Thai officials will discuss the issue with the Vietnamese Minister of Industry and Trade during his upcoming visit to Thailand. Successful negotiations will encourage other ASEAN nations to sign a memorandum of understanding on rice cooperation at the ASEAN summit to be held in Hua Hin, Thailand, late this month.

Thailand and Viet Nam are the world’s leading rice exporters, producing 70% of global volume. (VOV)