According to the Ministry of Industry and Trade, in the first three months of 2014, Vietnam's rice exports to Africa in general and to the Ivory Coast and Angola in particular faced more difficulties than the same period in 2013 due to the fierce competition of cheap rice from Thailand and India.
Following the Vietnam Food Association, Vietnam’s turnover of rice exports to Africa have dropped by nearly 63 %, accounting for only about 7 % of the country’s total global exports.
Ministry of Industry and Trade said payment procedures are the biggest difficulties in exports to African markets. Due to limited financial capacity, African importers often proposed deferred payment from 30 to 90 days and refused to open L/C due to high fees.
Another drawback is lack information about markets and partners from the two sides.. Therefore, to avoid risks, Vietnam businesses often export rice through international intermediaries, but this will inturns make prices up and competitiveness down.