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Vietnam 2009 Rice, Coffee Export Prices to Fall - Govt Report

Source: Reuters
17/12/2008

Hanoi, Dec 17 - Vietnam could export as much as 4.8 million tonnes of rice next year, similar to this year's shipments, and the average export price could fall 30 percent from this year, a government trade report said on Wednesday.

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The average price in 2009 could fall to $420 a tonne, free on board, cutting annual rice export revenue to $2 billion from an expected $2.9 billion this year, the Industry and Trade Ministry said in a report.

It forecast coffee exports next year from the world's second-largest producer would be similar to this year's 1.1 million tonnes, but the export price would average $1,700 a tonne, down 18 percent from 2008.

"Exports of agro-products such as coffee, pepper, furniture, seafood and minerals will face difficulty because demand will fall due to the economic recession, strengthening the trend of falling commodity prices," the report said.

The value of Vietnam's exports of all agricultural products next year would fall 7.4 percent from 2008 to $12.2 billion, the report released via the Industrial and Trade Information Centre said.

The forecasts were revised from last month, when the ministry said Vietnam would export 4.5 million tonnes of rice and 1.2 million tonnes of coffee.

The report left unchanged the projection for crude oil exports in 2009 of 12 million tonnes and for coal of 20 million tonnes.

The Southeast Asian country has projected exports in 2009 would grow 13 percent to $72.3 billion, slowing from growth of 32.8 percent this year.

Exports of $64 billion in 2008 would be the equivalent of around 85 percent of gross domestic product.

Government officials said exports were slowing because the global financial crisis had affected Vietnam's main buyers, the United State, Europe and Japan.

As a result, exports to Asian countries would account for 46.3 percent of overall exports in 2009 versus an expected 45.3 percent this year, while revenue from EU markets would make up 18.7 percent, down slightly from 18.9 percent.

Exports to the U.S. market next year would shrink to 19.1 percent of the total from 19.5 percent this year, the report said.



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