Vietnam considers joining OPEC-style rice cartel

Vietnam can join a rice cartel whose model is similar to the Organization of Petroleum Exporting Countries (OPEC) if the future organization ensures the harmonization of interests of both Vietnam and the international community, local newspaper Labor on Tuesday quoted a local official as saying.
To join an organization of rice exporting countries (OREC), Vietnam should answer some questions: "Can OREC's orientations satisfy the viewpoint of the Vietnamese government? Does OREC share with us the same viewpoint about the international responsibility? Can Vietnam fulfill its responsibilities when joining the organization?," said Deputy Minister of Industry and Trade Nguyen Cam Tu.
Vietnam should ensure national food security, economic development, and interests of rice growers, while helping ensure the world's food supply and prevent food crises, he said.
On April 30, in response to spiraling rice price, Thailand highlighted an idea to establish OREC. But he idea was criticized by the Philippines, a major rice importer.
On Tuesday, Thailand's foreign minister said his country was dropping plans to create a Southeast Asian rice cartel.
The rice exports of Thailand and Vietnam account for some 40 percent of the world's total annual export of rice. If Cambodia, Laos and Myanmar are also included in the future OREC, the percentage will rise over 50 percent, according to reports of the five countries.
Cambodia, Vietnam and Thailand last year exported a total of 16 million tons of rice: Cambodia 1.5 million tons; Vietnam 5 million tons; and Thailand 9.5 million tons.
Thailand and Vietnam alone control more than 40 percent of world rice exports, according to the UN Food and Agriculture Organization.