The Vietnamese government has ordered major rice exporter Vinafood II to speed up the construction of a rice storage system in the Mekong Delta to ensure its completion by mid 2012.
According to a statement published on the government website, various incentives will be offered to the project, including interest rate subsidies and land rental exemptions in five years.
The rice storage system will be capable of storing up to 4 million tons.
Vietnam, the second largest rice exporter in the world, does not have large enough storage facilities for its annual crops.
The Ministry of Agriculture and Rural Development said the Mekong Delta can produce 20 million tons of paddy rice a year. However, its storage capability is only 1.5 million tons or 30 percent of storage demand.