The Vietnam’s Minister of Industry and Trade, Vu Huy Hoang, and Bangladesh’s Minister of Food and Food and Disaster Management, Muhammad Abdur Razzak, signed a memorandum of understanding (MOU) on rice trading in Hanoi on April 18.  

The trade relationship between Vietnam and Bangladesh has developed well. Two-way trade turnover between the two countries is estimated to reach US$288 million in 2010. Vietnam mainly exports rice, steel, cotton, machinery, equipment, plastics and mobile phones to Bangladesh, and rice accounts for 46 percent of total exports.

Although Bangladesh is the world’s fourth largest rice producer with annual production of more than 30 million tonnes, it still has a shortage of rice due to its booming population, frequent natural disasters, and crop failures. The country had to import 2-3 million tonnes of food in 2009.

Vietnam exported more than 350,000 tonnes of rice to Bangladesh in 2010 and earned nearly US$120 million.

The MOU will provide legal framework for the two countries to develop a strategic partnership and establish a stable rice trading relationship. Vietnam is one of the world’s leading rice suppliers and plays an active role in ensuring food security in the region and the world.

Source: VOV