Prof Bui Chi Buu, head of the Southern Agricultural Science Institute, spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about a national brand for Vietnamese rice.

Viet Nam is the second largest rice exporter in the world, but the country exports under a vague label, “Vietnamese rice.” Why can’t we have a national brand name?

We do have famous rice brands like Kim Ke and Song Hau, but they are local; we are yet to have a national brand name. On the world market, clients know Vietnamese rice is different from Thai rice – that is a national brand name.

To build national brand names, we must give top priority to customer trust and rice companies should ensure the quality of their current consignment is equal to or better than the last one.

For instance, jasmine rice is delicious but when companies export it, the quality of their shipment is often lower than their last one because the jasmine rice is mixed with lower quality rice.

Many export companies fail to focus on building their customers’ trust. If they can win the trust, Viet Nam’s rice exports will develop.

There are still many risks attached to rice exports which cause worry to farmers, especially those in the Cuu Long (Mekong) Delta. What do you think about this?

There are many risks attached to rice prices, making farmers feel insecure. Risks caused by internal factors account for a large part. There are also risks caused by external factors like market fluctuations, but these are not as significant as many people think.

The global rice market is not really large – it is only worth US$9-10 billion a year – while the world fruit and vegetable market is worth $160 billion.

Since the rice market is small, market fluctuations and risks are also small and we can control them easily.

Viet Nam exports around $2.6 billion worth of rice a year and Thailand $6 billion. The two account for more than three fourths of world rice exports.

You said the risks stem from “internal” factors. What are they?

Every one knows we learnt an expensive lesson about rice exports last year because of internal factors. It is a bitter lesson because we could not forecast our output, and for the sake of our food security we signed export contracts late that we could not get higher prices.

Many analysts are pessimistic about the rice export situation this year. What is your opinion? Do you think the world market will see large fluctuations this year?

I have trust in Vietnamese rice and the situation is not so pessimistic as some analysts predict. There is no other country that has Viet Nam’s advantages in growing rice. If the northern and the central regions harvest poor crops, three months later the southern region can harvest its crop and secure the situation.

The world rice market will see volatility this year. Thailand now has 1 million tonnes of rice in stock. It has auctioned 200,000 tonnes and is seeking to sell the remaining 800,000 tonnes.

It lowered its rice prices to compete with Viet Nam and so at the end of last year Thai long grain rice was $20 a tonne cheaper than Vietnamese rice. But the lower prices are not real prices and we do not need to lower our prices.

Thailand, China and the Philippines will harvest their rice crops in April while Viet Nam’s winter spring rice crop will be harvested in February. So Viet Nam will have no competitors when it harvests the crop.

We are only worried (about the time) when Thailand sells its 800,000 tonnes of rice, but it is not big concern because the global demand for rice is large.

We are only afraid the financial crisis will worsen this year and many countries will not buy rice to donate to African countries.

I don’t think rice prices will go up much this year… only to $400-500 a tonne.

In 2011 under Viet Nam’s commitments to the ASEAN Free Trade Agreement and the World Trade Organisation, foreign companies will be allowed to trade rice in Viet Nam just like State-owned companies. It will benefit farmers but State-owned companies will face the threat from foreign companies. This is our biggest concern.

State-owned companies must be ready with their strategies and co-operate with farmers to have their own rice-growing areas to compete with foreign rivals. (VNS)