The government has targeted exports of 3.9 million tonnes for the year, slightly up from 1998's figure of 3.8 million tonnes. The renamed Vietnam Food Association (VFA), previously known as the Vietnam Rice Export Association, put exports for the first six months in 1999 at 2.62 million tonnes.

It did not provide a comparative figure for the same period last year. One VFA official said some 326,900 tonnes of rice had been shipped from Vietnam in the first 20 days of July, and that he expected the total figure for the month to reach 400,000-450,000 tonnes. Vietnamese rice stocks remained ample, but traders said there had beenno major deals signed in recent weeks, with most contracts hovering between 5,000-7,000 tonnes. They have put quotations for Vietnam's five percent and 25 percent broken grades this week at $232-236 and $209-213 per tonne, FOB Saigon Port, respectively.

Traders said private Indonesian dealers were buying small quantities of Vietnamese rice with payments being made through telegraphic transfers rather than opening letters of credit. Although risky, this enabled deals to be executed rapidly with fast payment, they added.

"Indonesia is still a potential market for Vietnam rice this year even though there have not yet been any major deals," one trader said by telephone. He added that Vietnam would ship 600,000 tonnes of rice during August and September, with 250,000 tonnes leaving the country in each month during the last quarter.