Vietnam - News & Discussions

[Philip]

How Will New Subs Affect Vietnam's South China Sea Strategy?
Image Credit: Wikimedia Commons

How Will New Subs Affect Vietnam's South China Sea Strategy?
New subs might not be enough for Vietnam to defend its South China Sea claims.

By Nam Nguyen
February 16, 2016

The fifth Kilo-class submarine procured for the Vietnamese People’s Navy (VPN) arrived at Cam Ranh Bay at the beginning of February. The Russian-built submarine started its journey from St Petersberg on the 16th of December on the Dutch-registered cargo ship Rolldock Star and arrived late in the night on Tuesday, February 2, according to Thanh Nien News.

There are currently four Vietnamese crews, supported by Russian advisers, for each of the existing Kilo-class Type 636 submarines in service with the VPN. Under Vietnam’s expanded relationship with Russia, a purpose-built submarine support facility was included as part of the deal to procure six conventional submarines for the VPN.

With the end of this modernization cycle looming on the horizon, however, it remains to be seen how much of an impact these new platforms will have on the security balance in Southeast Asia and, more specifically, the maritime disputes in the South China Sea.

Although Vietnam is progressing with its platform deliveries as scheduled, Hanoi has only recently deployed its first fully-operational Kilo-class submarine. In the mean-time it is unclear what impact the new Kilo’s will have on Vietnam’s naval and maritime law enforcement operations in the South China Sea. Even with an operational submarine as a deterrent, there are still significant capability gaps that Vietnamese military planners need to consider. Also, as history has shown, the ability to follow up initial military action with additional forces to solidify victory is essential in the amphibious domain; Hanoi would do well to heed some of the lessons from previous skirmishes with China over land in the South China Sea.

This, of course, does not mean that Hanoi needs to pursue a strategy similar to that of China’s. Instead what is important for the rapidly-modernizing country to consider is the requirement for at least some capacity to achieve limited sea control. As some analysts have suggested, platforms such as submarines will not be enough to achieve sea control during conflict. Surface ships, and lots of them, forms an essential element of this facet of military planning despite the vulnerabilities of surface combatants against submarines and long-range missiles.

Although delivery of the Kilo submarines appears to be on track, the full operating capacity for the new Kilos is still some years away. What does provide some glimmer of hope for the VPN is the Russian-built equipment now in service in Vietnam’s arsenal, including the Su-30MK2V Flankers and Bastion K-300P mobile coastal batteries armed with the Orynx missile. The new hardware will be well-served if Vietnam is able to expand its ISR capabilities in order to provide better domain awareness and targeting data for conventional attacks. Investing in unmanned systems, such as the HS-6L long-range unmanned aerial vehicle, can also assist in better tactical awareness and investing in better satellite coverage can provide increased domain awareness in the South China Sea.

Whilst not entirely new to Vietnam’s theater of operations, the reliability and range of these new platforms will be able to assist in providing a capability edge in limited action and sea control if a “hot” conflict were to flash up. Vietnam’s modernization efforts to date have primarily been aimed at replacing aging equipment. If Hanoi’s aim was to further strengthen its footing in the South China Sea, the Vietnamese People Party’s debate needs to be steered beyond what the Kilo-class can provide and consider what assets can best-serve his goal.

Nam Nguyen is a graduate of the University of New South Wales and the Australian Defence Force Academy. He is currently a warfare officer in the Royal Australian Navy and has publishes regularly on military and strategic affairs. He is an MPhil candidate at UNSW and the views expressed in this article are his own.

[SSridhar]

L&T likely to build patrol vessels for Vietnam - The Hindu

Larsen & Toubro (L&T) could soon build Offshore Patrol Vessels (OPV) for Vietnam.

The bid document was handed over by Vietnamese border guards to L&T in the presence of Defence Minister Manohar Parrikar during an industry interaction in Hanoi on Monday. Mr. Parrikar is on a two-day visit to Vietnam from June 5 after attending the Shangri-La dialogue in Singapore.

He held a meeting with his Vietnamese counterpart, General Ngo Xuan Lich where both sides agreed on greater industry-to-industry interaction.

Mr. Parrikar later attended a business roundtable meeting comprising defence industry delegates from the two countries.

Enhanced co-operation

“The meeting focussed on enhancing defence industry networking, information sharing and exploration of possibilities for partnerships and collaborations between the two countries,” according to a Defence Ministry statement. The purchase will be funded through a $100 million Line of Credit (LoC) India had extended to Vietnam for military purchases.

Vietnam has embarked on a major modernisation of its armed forces and both countries operate a wide range of Russian equipment.

A Memorandum of Understanding for the LoC was signed during President Pranab Mukherjee’s visit to Hanoi in September 2014.

During his visit, Mr. Parrikar also called on the President of Vietnam, Tran Dai Quang and Prime Minister, Nguyen Xuan Phuc.

[arun]

X Posted:

India extends $500 million credit line to Vietnam to help it strengthen its defence - Shailaja Neelakantan, ToI

Even as Vietnam continues to be at odds with neighbour China over the South China Sea issue, Prime Minister Narendra Modi said on Saturday that New Delhi will give Hanoi a line of credit of $500 million to help shore up its defences.

"We recognized the need to cooperate in responding to emerging regional challenges. As two important countries in this region, we also feel it necessary to further our ties on regional and international issues of common concern," PM Modi said.

The line of credit is just one of a dozen agreements India and Vietnam signed in Hanoi during Modi's state visit. Most of the agreements are to do with deepening the two countries' defence and security engagement, both economically and geopolitically.

Vietnam is in the midst of a major military buildup that analysts say is a deterrent, as neighboring China grows more assertive in staking its rival claims in the South China Sea.

Although Modi didn't mention the South China Sea issue, his statement's focus on regional challenges signalled a recognition of the regional fallout of the dispute at a time when both India and China are competing for maritime supremacy.

On Friday, a day before PM Modi and Vietnamese counterpart Nguyen Xuan Phuc signed the dozen agreements, India's ambassador to Beijing also referenced the South China Sea dispute.

"We believe that UNCLOS (United Nations Convention on the Law of the Sea) represents the foundational aspect of international law on seas and oceans, and we call on all parties to respect UNCLOS," said P Harish, India's ambassador to Vietnam.

On Saturday, PM Modi was accorded a ceremonial welcome in front of the majestic Presidential palace. He is the first Indian PM to visit the communist nation in 15 years.

Modi flew in to Hanoi Friday night for a day long packed visit to Vietnam. He leaves Saturday evening for the G20 talks in China.

[arun]

Vietnamese Press has released the full text of India-Vietnam Joint Statement:

Việt Nam, India issue Joint Statement

[Kashi]

Viet Nam important pillar in India’s Act East Policy: Modi

Viet Nam News New Delhi – The Prime Minister of India, Narendra Modi has granted an interview to the Vietnam News Agency on the occasion of his visit to Vietnam.

The following is the full text of the interview.

Prime Minister, could you please tell us about the significance of the visit to Vietnam?

India and Vietnam share traditionally close relations that have their roots in our freedom struggle led by our founding fathers, Mahatma Gandhi and Ho Chi Minh.

India not only stood by Vietnam during its freedom struggle but also during its phase of national reunification. The late 1970s and 80s were a difficult period for Vietnam, and India was one of the few countries that stood by Vietnam in its time of need.

My visit to Vietnam is a reinforcement of our friendship, solidarity and comprehensive cooperation. The visit is intended to further boost our bilateral and multilateral engagement and cooperation in the fields of politics, economy, commerce, culture, human resource development, science and technology, space research, defense and security.

The thrust of our multifaceted relationship is to work towards stability, maintenance of peace, economic growth and prosperity in our countries, Asia and beyond.

The countries have been traditional friends for long time, and also strategic partners in foreign policy. What issues will be discussed during the visit to Vietnam to strengthen our relations, Prime Minister?

We would be covering a wide variety of topics across the entire range of our bilateral and multilateral interactions.

Trade is certainly one important aspect. Our trade currently stands at USD 7.83 billion, and we are committed to meet the target of US$15 billion by 2020.
We would be deliberating on the thrust areas and new sectors for enhancing trade and the impetus required for enhanced investments.

We are also keen on increasing our investments in Vietnam. Indian investments in Vietnam are currently at about $1.1 billion, and would be significantly enhanced upon implementation of large infrastructure projects such as Tata Power’s Long Phu – II 1,320 MW thermal power project with an estimated cost of $2.2 billion.

We would similarly like to invite Vietnam to look at India as an attractive investment destination. We would especially like to invite Vietnamese entrepreneurs to invest in North East India which is a focus area for our Act East Policy.

We are determined to encourage connectivity between North East India and ASEAN and I have announced a $1 billion Line of Credit for India-ASEAN physical and digital connectivity.

Prime Minister Phuc and I would also be discussing regional cooperation and stability and our multilateral cooperation.

Prime Minister, India is implementing the ‘Act East’ policy, so where is the position of Vietnam in this strategy?

Our Act East Policy aims to forge partnerships with our eastern neighbours to encompass security, strategic, political, counter-terrorism, and defence collaboration in addition to economic ties. It was crystallised to underscore the importance of East Asian neighbors of India and to make them a priority in our foreign policy engagement.

Vietnam is an integral member of ASEAN and is a very important pillar in our Act East Policy. Vietnam is the ASEAN Coordinator for India for 2015-18 and both countries are committed to strengthening our partnership within the India-ASEAN and Mekong-Ganga Cooperation frameworks.

Towards the 45th anniversary of the establishment of diplomatic relations between Vietnam and India and 10 years of strategic partnership relations between Vietnam and India in 2017, would you give a message to Vietnam, Prime Minister?

The year 2017 marks a very important milestone in the bilateral relations between the two countries and we would be organising various events throughout the year to commemorate the events.

The ‘Strategic Partnership’ established in 2007 has been instrumental in cementing our security and defence relations and is today comprehensive in its reach, depth and engagement.

However, our relationship is not limited to the 45 years of our modern existence but spans two millennia of contacts between our civilisations.

The advent of Buddhism from India to Vietnam and the remnants of the Hindu Cham civilization stand testimony to this.

Both India and Vietnam have a young and dynamic demography with majority of the population below the age of 35 years. It is therefore important to secure our future, and the focus of our relations is rightly set towards fulfilling the aspirations of our youth.

The two countries share many similarities in history, traditional culture and religion though their friendship and mutual understanding have been tested through the ups and downs of history.

I would like to reiterate late Vietnamese Prime Minister Pham Van Dong’s words that the India - Vietnam relationship is “as pure as a cloudless sky”. We have a duty to our countries and peoples to add to this rich inheritance.-VNA

[SSridhar]

India, Vietnam agree to deepen defence cooperation - PTI

India today extended USD 500 million Line of Credit to Vietnam for facilitating deeper defence cooperation with the south east Asian nation, as the two countries elevated their ties to a Comprehensive Strategic Partnership to respond to emerging regional challenges.

“Our decision to upgrade our Strategic Partnership to a Comprehensive Strategic Partnership captures the intent and path of our future cooperation. It will provide a new direction, momentum and substance to our bilateral cooperation,” Prime Minister Narendra Modi said after talks with his Vietnamese counterpart Nguyen Xuan Phuc here.

He said the two sides recognised the need to cooperate in responding to emerging regional challenges.

Vietnam had earlier Strategic Partnership only with Russia and China.

Modi, who arrived here yesterday on his maiden visit to the country, described his talks with Vietnamese counterpart as “extensive and very productive” and said they covered the full range of bilateral and multilateral cooperation.

“I am also happy to announce a new Defence Line of Credit for Vietnam of USD 500 million for facilitating deeper defence cooperation,” he said.

“Our common efforts will also contribute to stability, security and prosperity in this region,” he said.

Pacts

The two countries signed 12 agreements in a wide range of areas covering IT, space, double taxation and sharing white shipping information. {India has signed white shipping informtion with several countries in the Indo-Pacific region}

An agreement on construction of offshore patrol boats was also signed by the two sides, signalling a step to give concrete shape to defence engagement between the two nations.

“The range of agreements signed just a while ago point to the diversity and depth of our cooperation,” Modi said, adding the agreement on construction of offshore patrol boats is one of the steps to give concrete shape to bilateral defence ties.

He said as the two important countries in this region, India and Vietnam feel it necessary to further their ties on regional and international issues of common concern.

Grant for Software Park

Modi also announced a grant of USD 5 million for the establishment of a Software Park in the Telecommunications University in Nha Trang.

“We agreed to tap into the growing economic opportunities in the region,” said Modi, the first Indian premier to visit the country in 15 years.

Noting that enhancing bilateral commercial engagement is the strategic objective of the two nations, he said, “For this, new trade and business opportunities will be tapped to achieve the trade target of USD 15 billion by 2020.”

Partner and friend

Besides seeking facilitation of ongoing Indian projects and investments in Vietnam, Prime Minister Modi said he has invited Vietnamese companies to take advantage of the various schemes and flagship programmes of the Indian government.

“As Vietnam seeks to empower and enrich its people, Modernise its agriculture; Encourage entrepreneurship and innovation; Strengthen its Science and Technology base; Create new institutional capacities for faster economic development; and Take steps to build a modern nation, India and its 1.25 billion people stand ready to be Vietnam’s partner and a friend in this journey,” Modi told his Vietnamese counterpart.

Collaboration with ISRO

Speaking about the framework agreement on Space Cooperation, he said it would allow Vietnam to join hands with Indian Space Research Organisation to meet its national development objectives.

Hoping for an early establishment and opening of the Indian Cultural Centre in Hanoi, he said, “The Archaeological Survey of India could soon start the conservation and restoration work of the Cham monuments at My Son in Vietnam.”

He also thanked Vietnam’s leadership in facilitating inscription of Nalanda Mahavihara as a UNESCO World Heritage site earlier this year.

Noting that ASEAN is important to India in terms of historical links, geographical proximity, cultural ties and the strategic space that the two sides share, he said, “It is central to our ‘Act East’ policy. Under Vietnam’s leadership as ASEAN Coordinator for India, we will work towards a strengthened India-ASEAN partnership across all areas.”

Modi also expressed the need to “stay focussed to keep up the momentum” in bilateral ties and invited the Vietnamese leadership to India.

[Bhurishravas]

The `brahmos sale to Vietnam` rhetoric on Indian side is pure hot air.
Brahmos is a dangerous missile and Russia will veto its sale to Vietnam for sure.

[sanjayc]

^^^ It appears that Russia is playing ball on this one. The talks to sell are at an advanced stage. Discussions won't reach minister to minister stage without first asking Russians

India plans expanded export of BrahMos cruise missiles

After starting sales negotiations with Vietnam, India now plans to export its indigenously manufactured BrahMos medium-range anti-ship cruise missiles to at least 11 other countries, Indian officials and industry sources said.

Negotiations with Hanoi to supply the BrahMos, which features a 292 km strike range, were at an advanced stage, with Indian Defence Minister Manohar Parrikar discussing the potential sale of the supersonic missile with his Vietnamese counterpart, General Ngo Xuan Lich, on 5 June.

The talks in Hanoi included the option of stationing a team of Indian technicians in the Southeast Asian country to offer the Vietnamese assistance in using the system. The transfer of the BrahMos could take place 'shortly', official sources in New Delhi said.

Moreover, India's Ministry of Defence (MoD) is believed to have instructed BrahMos Aerospace - a joint venture (JV) between India and Russia - to increase production to meet potential orders from Indonesia, Malaysia, the Philippines, and Thailand.

http://www.janes.com/article/61334/indi ... e-missiles

[SSridhar]

The $100 M grant announced by Pres. Mukherjee during his visit to Hanoi in 2014 was 'meant' for BrahMos, it was rumoured. Then, there was a news item about Russia having cleared the sale to Vietnam. Russia has a close strategic partnership with Vietnam and has sold (and continues to sell) it many offensive platforms such as Su-30 & Kilo-class subs. The list of countries that BrahMos said the Russians have allowed exports to did not include Vietnam though going by the generally agreed principle of exporting to common countries with which neither India nor Russia have any problems, Vietnam should be eligible. In any case, each case will have to be cleared by Russia. One can only surmise that the delay is because of strong Chinese objections, either conveyed directly to India or through Russia. Now, we have the grant enlarged to USD 500 M, but no sign of BrahMos. We thought India's imminent MTCR entry was behind the delay. Let's give it some more time.

[Bhurishravas]

Considering the relationship between Russia and China at present, it would come as a surprise(to me). Brahmos packs some real punch and sale to Vietnam would be a game changer in South china Sea. Thanks for the updated info, guys.

[sanjaykumar]

So Modi goes to Vietnam and proffers a half billion dollar line of credit, but no mention of Brahmos.

[Philip]

If there is any hiccup reg BMos sales due to PRC pressure on Russia,then we must provide the Vietnamese with Prithvi/Dhanusn,Prahaar/Pragati,even Agni-1 covertly. If the PRC can supply Pak with both its own strat missiles as well as NoKo "Ding-Dongs",we should pull out all stops in arming Vietnam to the teeth.Pilot N-plants for "civil" research ,etc.,etc. so that Vietnam can one day develop their own N-arsenal.

[SSridhar]

L&T bags $100 million Vietnam ship order - K.T. Jagannathan, The Hindu

So, this was the USD 100M grant announced by Pres. Pranab Mukherjee when he visited Vietnam in September 2014 ? We were speculating here about BrahMos.

Larsen & Toubro (L&T) has landed a $99.7-million contract from Vietnam Border Guard to design, construct and supply high-speed patrol vessels.

The contract also provides for L&T to transfer design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard.

The high-speed patrol vessels are purpose-built for controlling and protecting sea security and sovereignty, detecting illegal activities such as smuggling, and undertaking search and rescue missions.

According to B. Kannan, Managing Director and CEO of L&T Ship-building Ltd., the contract provides for supply of 12 vessels. These would be delivered over 30 months, he added.

``They have given us their requirements,’’ he said. He was hopeful that the two sides would freeze the design within the next six months.

A combination of factors - ranging from its track record to design capability and execution skills - had clinched the deal in favour of L&T, he added.

[A_Gupta]

NEW DELHI: India has held a range of talks on the sale of indigenously developed surface-to-air Akash missile and supersonic Brahmos missile to Vietnam, the government today said.

"India and Vietnam share a strategic partnership. Defence cooperation, including supply of defence equipment, is an important aspect of this partnership.

"Both countries have held discussions on range of issues in this regard," Subhash Bhamre, Minister of State in the Ministry of Defence said ..

Read more at:
http://economictimes.indiatimes.com/art ... aign=cppst

[A_Gupta]

http://www.theepochtimes.com/n3/2238471 ... ense-ties/
Asian Power Play: India and Vietnam Strengthen Defense Ties
India trains Vietnamese officers on its soil, offers Vietnam a supersonic missile and other military aid

[NRao]

Defence is effective strategic area of cooperation with India: Vietnam President

[Philip]

Amid China Threat, Vietnam Pitches For Strong Maritime Ties With India
Thursday, March 01, 2018
By: NDTV
Amid increasing Chinese assertiveness in the region, Vietnamese President Tran Dai Quang has made a strong pitch for deepening Indo-Vietnam maritime connectivity in the strategically critical sea lanes as he embarks on a significant state visit to India.

Tran, who will arrive in India on March 2 on a three-day state visit, also feels that India and Vietnam are "blessed" with strategic locations in South Asia and South East Asia, respectively, and there is immense potential for the two countries to cooperate in different areas.

"Furthermore, both countries are endowed with advantages to develop maritime economy. In this regard, we could increase information exchange and share experience in formulating maritime strategies," Tran told PTI in an interview.

His call for deepening Indo-Vietnam maritime connectivity assumes significance as the US, Japan and a number of other countries have pitched for a greater role for India in the Indo-Pacific region, apparently to contain China's growing influence.

The Vietnamese president also called for enhancing trade and aerial connectivity between the two countries.

He said both countries have forged a high level of political trust through mutual visits at the high and lower levels, and worked closely for effective implementation of the signed agreements, particularly the Joint Vision Statement on Defense Cooperation for 2015 2020.

"In order to achieve the target of USD 15 billion of bilateral trade turnover by 2020, both sides need to promote investment in areas where India s advantages coincide with Vietnam's demands, step up aviation and maritime connectivity, and reduce and work towards abolition of the trade barriers so as to create favorable conditions for the two-way trade," Tran said in the email interview.

The strong pitch by the Vietnamese president for increased aviation and maritime connectivity with India may not go down well with China, which is in conflict with Vietnam and several other countries in the region, including Brunei and the Philippines over maritime claims in the South China Sea.

The presidential visit comes just over a month after Vietnamese Prime Minister Nguyen Xuan Phuc's trip to India as one of the chief guests for the Republic Day parade.

Tran also identified defence, security and trade as effective strategic areas of cooperation.

"India and Vietnam are blessed with strategic locations in South Asia and South East Asia, respectively, aside from young population, large workforce, huge markets and rapid economic growth. Hence, the two countries may promote cooperation in such areas as production, manufacturing, infrastructure development, renewable energy, information technology...and new technology application such as biotechnology, green agriculture, nano technology, new materials, among others," he said.

He also asserted that Indian initiatives, including 'Make in India', 'Digital India' and '100 Smart Cities', and India's achievements in developing a knowledge economy offer multiple opportunities for cooperation, investment and doing business for enterprises of both countries.

http://www.defencenews.in/article/Amid- ... dia-536717

[Rony]

Deputy Political Commissar of military region 7, General Nguyen Minh Hoang talking about situation in East Sea

In the afternoon of 7-10, responding to the interest of voters in District 7 (Ho Chi Minh City) about the situation of the East Sea and Tu Chinh beach, Major General Nguyen Minh Hoang, Member of the National Assembly, Deputy Political Commissar of Military Region 7 spent about 15 minutes to frankly share a lot of information.

The National Assembly Deputies Group met with voters before the 8th Session of the National Assembly XIV, in addition to Major General Nguyen Minh Hoang, there was also delegate To Thi Bich Chau, Chairman of the Vietnam Fatherland Front Committee of Ho Chi Minh City.

At the meeting, voters in District 7 expressed their interest in the situation of the East Sea, especially at the current Tu Chinh beach, voters want to know the information to take action to show their patriotism properly.

Answering the voters, Major General Nguyen Minh Hoang affirmed that Vietnam has sufficient historical and legal grounds to declare that Tu Chinh beach belongs to Vietnam. According to the 1982 International Convention on the Law of the Sea, coastal states have exclusive economic zones from the baseline out to 200 nautical miles. China is not a sovereign coastal state up to Tu Chinh beach. They are just pretending to be their sovereignty in the Spratlys and Paracel Islands, to calculate 200 nautical miles from these two archipelagos. But this excuse is unreasonable because the Spratlys and Spratlys have never been Chinese.

According to Major General Nguyen Minh Hoang, the oil plots in Tu Chinh are still under normal exploration. Currently China has more than 40 ships with geological ocean, but the Vietnamese side also brought 50 ships to defend sovereignty.

Major General Nguyen Minh Hoang said that if our forces fired first, they would fall into China's vicious conspiracy to launch an invasion of the sea.

The Major-General shared further that Vietnam and China have a good tradition of diplomatic relations, but because of China's ambition to monopolize the South China Sea, the relationship between the two countries is chipped. Vietnam is struggling with a political and diplomatic path.

“Someone asked if we were willing to sue China, were we willing to fight China or not. These are all possible, but not what we expected, ”Major General Nguyen Minh Hoang said.

According to the Major General, Vietnam will use all political and diplomatic measures, when it has used all these measures and still cannot preserve its sovereignty, then the lawsuit will be taken. But at present, diplomatic measures are still workable, Vietnam has resorted to the level that the Minister of Foreign Affairs opposes to the United Nations and there are still measures at a higher level than the Prime Minister, the President. nationality.

“That means that all political and diplomatic measures must be used, the international will also realize that Vietnam respects peace, Vietnam has dealt with international disputes by diplomatic politics, then spread it out internationally. Vietnam is not in a hurry to do this, "Major General Nguyen Minh Hoang explained.

He further analyzed, Vietnam does not want to fall into the conspiracy of the forces, they want us to confront them to benefit. Heaven was born we were neighbors with China. The problem is how to maintain both state diplomacy and sovereignty at the same time. If a war occurred, the people were miserable, and the side that won, the people suffered, and the economic damage was clearly seen in the countries still in the war.

The representative emphasized that up to now, we are still preserving very well the sovereignty right at sea, especially in Tu Chinh beach. “The party and the state pay special attention to this issue. Voters are assured that when there is a problem, there will be official information to join with the army in protecting the national sovereignty, ”said Major General Nguyen Minh Hoang.

[Manish_P]

Vietnam buys Indian rice for first time in decades

Vietnam, the world’s third biggest exporter of rice, has started buying the grain from rival India for the first time in decades after local prices jumped to their highest in nine years amid limited domestic supplies, four industry officials told Reuters.

The purchases highlight tightening supplies in Asia, which could lift rice prices in 2021 and even force traditional buyers of rice from Thailand and Vietnam to switch to India - the world’s biggest exporter of the grain. Indian traders have been contracted to export 70,000 tonnes of 100% broken rice for January and February shipments at around $310 per tonne on a free-on-board (FOB) basis, the industry officials say.

Vietnam’s 5% broken rice is offered around $500-$505 per tonne, significantly higher compared to Indian prices of $381-$387.

Traders in Vietnam said the rice from India had been stockpiled in government reserves since 2016-17 and its relatively cheap price reflected low quality.
“The rice quality is so poor that it is not good for direct consumption for humans, but only for producing animal feeds and beer,” said a rice trader based in Ho Chi Minh City

Good news for our agriculture sector, amidst the doom and gloom of COVID

Request the knowledgeable to confirm that the rice we are exporting to them is the lower quality variant?

[sanman]

Interesting documentary on the origin and rise of Vingroup