Singapore has its first agreement on rice trade, why choose Vietnam?

The recent signing of an agreement on stable and sustainable rice trade by Singapore and Vietnam is a move that not only benefits both countries, but also lays the foundation for coordination to ensure supply chains and food security in the region.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (right) and Singaporean Minister for Sustainable Development and Environment and Minister in charge of Trade Relations Grace Fu exchanged a Memorandum of Understanding on rice trade cooperation on the sidelines of the APEC Summit on October 30. (Source: VNA)

Singapore is a small country, with 90% of its food imported from abroad. Therefore, to ensure food security, the country advocates diversifying food supplies from many partner countries.

The recent signing of an agreement on stable and sustainable rice trade by Singapore and Vietnam is a move that not only benefits both countries, but also lays the foundation for coordination to ensure supply chains and food security in the region.

This is the lion island's first Memorandum of Understanding (MOC) on rice trade and Vietnam has become the first partner in the context of many other rice markets that are also very potential for Singapore.

According to Mr. Cao Xuan Thang, Vietnam Trade Counselor in Singapore, there are several factors that make Singapore choose Vietnam. Firstly, every year Singapore has to import about 350,000 - 400,000 tons of rice. Vietnam is one of the three largest rice exporters to Singapore, with a fairly stable annual rice output and increasingly high quality rice, becoming more and more known and trusted by Singaporean consumers.

Therefore, signing the first MOC on rice with Vietnam will help Singapore ensure sustainable supply, stabilize prices and reduce supply chain risks.

Second, the Comprehensive Strategic Partnership helps Vietnam and Singapore cooperate very closely in many areas such as trade, investment, logistics, energy, green technology... Vietnam's political trust and policy stability help Singapore confidently choose Vietnam as its first partner in the field of food security.

Third, Vietnam and Singapore are geographically close, with rapidly developing logistics and seaport infrastructure, especially the convenient connection of the Vietnam-Singapore maritime route, which shortens transportation time and reduces costs, creating a competitive advantage for Vietnam.

Fourth , both countries have strategies towards a green, clean and transparent agricultural supply chain. Vietnam is shifting to producing high-quality rice, reducing carbon emissions, in line with Singapore's food security policy, so the rice MOC is also strategic for sustainable development and regional food security.

Finally, Singapore often chooses potential partners to build models, so the rice MOC with Vietnam could be the first step for Singapore to demonstrate its role in building an ASEAN food security network, in which Vietnam will play the role of a production and supply hub.

In fact, the ever-improving quality and competitive price advantage help Vietnamese rice meet the strict standards of this island nation. It is not difficult to see people buying Vietnamese rice at large supermarkets in Singapore. When asked quickly at the checkout counter why she chose Vietnamese rice, a female customer shared that she really liked Vietnamese rice because Vietnamese rice is delicious, sticky and fragrant.

Singapore is a regional and world transit hub, so accessing the Singapore market is not only accessing a market with a population of 6 million people and about 15 million tourists per year, but it is also a gateway for exporting to other markets around the world.

Mr. Cao Xuan Thang emphasized that in order to take advantage of the cooperation relationship between Vietnam and Singapore, Vietnamese enterprises need to focus on continuing to improve the productivity and quality of rice products, from the seed stage, to cultivation and processing technology, building product brands, business brands, improving packaging designs, building supply chains to ensure stable productivity and quality, reduce production costs, and increase competitiveness in the international market.

Besides, converting production towards green - clean - transparent is also a plus point to help businesses meet consumption trends in the coming time.

Source: https://baoquocte.vn/singapore-co-thoa-thuan-dau-tien-ve-thuong-mai-gao-vi-sao-chon-viet-nam-333035.html