Private sector invited to Vietnam rice summit
HO CHI MINH CITY - The private sector will be represented at a rice convention planned by Thailand and Vietnam in the middle of this month, said Somkid Jatusripitak, caretaker deputy prime minister.
The venue has not been chosen but would likely be in Vietnam, Dr Somkid said after holding talks with Truong Dihn Tuyen, Vietnam's trade minister, at the Apec meetings in Ho Chi Minh City.
The world's two largest rice exporters aim to use the convention to expand co-operation in rice trading and investment in order to stabilise world prices and curb price-cutting competition by exporters from both countries.
Past conventions had focused only on exchanges of information, said Dr Somkid, adding that some Thai businesses were interested in joint ventures in the rice business in Vietnam.
''Probably, there will be more co-operation [leading to an impact] in the international market,'' said Dr Somkid, who is also the acting commerce minister.
The value of rice shipments from Thailand to international markets dropped by 13% last year to US$2.3 billion, largely because the country's prices were higher than those quoted by competitors.
Domestic rice prices have also been inflated in recent years by government price intervention programmes.
In the first four months of this year, Thailand's rice exports were worth $738 million, down 3.6% from the same period last year.
Thailand and Vietnam have also announced plans to set up a joint trade and investment committee focusing on increasing Thai investment in Vietnam. The emphasis would be in industries, such as textiles and garments, in which Thailand is becoming less competitive in world markets because of higher production and labour costs.
At the meetings that ended yesterday, ministers from the 21-member Asia Pacific Economic Co-operation forum agreed on a goal to further reduce business transaction costs by 5% by 2010.
They said that the group, which envisages a full free trade system by 2020, had already succeeded in cutting transaction costs among members by 5% over the past five years.
By Phusadee Arunmas - The Bangkok Post - June 3, 2006.
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