Vietnam signs MoU to help ensure food security in Bangladesh

Vietnam is willing to provide Bangladesh with long-term supply of rice to ensure food security in the country, Prime Minister Nguyen Tan Dung said in Hanoi on Monday.

The Vietnamese premier made the assurance when he received Bangladesh's Food and Disaster Management Minister Dr Abdur Razzaque, who is on a visit to Vietnam.

He also said Vietnam's consistent policy is to promote ties with Bangladesh in various areas, particularly in economic relations, trade and investment, according to a Vietnam News Agency.

Meanwhile, Bangladesh and Vietnam signed a Memorandum of Understanding (MoU) on Monday in Hanoi to ensure food security of the two countries and rice trade.

Food Minister Abdur Razzaque and Vietnam's Industry and Trade Minister Dr Vu Huy Hoang signed the MoU on behalf of the respective governments, says a food ministry press release issued yesterday.

Razzaque's visit opened the prospect of fresh cooperation in trade and agriculture between the two countries, the premier said adding that the signing of the agreement on rice trade was an example of such prospect.

Dung highlighted the fact that trade turnover between the two countries remained low at $ 400 million last year, leaving lots of untapped potential, especially in investment.

He recommended a joint-government committee of Bangladesh and Vietnam to figure out specific and practical measures to further enhance trade links.

Razzaque said Bangladesh, with a population of over 150 million, wanted Vietnamese enterprises to invest in the country, particularly in agricultural processing.

Before signing the MoU, the Bangladesh delegation was warmly received by the industry and trade minister of Vietnam.

“This [MoU] will help ensure stabilisation of the rice market and lessen any adverse effects of climate change, disasters and crop failure in either country,” said Vietnam's trade Minister Hoang, predicting that trade and economic relations between the two countries would reach new heights.

Bilateral trade between Bangladesh and Vietnam reached $ 288 million last year, up 250 percent compared to 2009, according to the Vietnam's ministry of industry and trade.

Vietnam's exports to Bangladesh were rice, steel, fibre and fabric, machines and devices, plastic materials, and cell-phones.

Rice has emerged as the biggest item traded, reaching a volume of $ 120 million in 2010, equivalent to 350,000 tonnes. Vietnam is also gearing up to produce parboiled rice for export to Bangladesh.

In 2009, Bangladesh imported between 2-3 million tonnes of rice to ensure food security due to a rapid increase in population and natural disasters.