The Vietnam Food Association said the global demand for rice is falling while the country still has a large rice stockpile.
Local farmers are about to harvest their summer crop, putting a downward pressure on prices, the association said Thursday. It has already stockpiled 1 million tons of rice from the winter-spring crop.
According to the association, Vietnam will export 700,000 tons of rice this month, raising the total export volume in the first half of 2010 to 3.35 million tons, down 8 percent from a year ago.
General Secretary Huynh Minh Hue said local companies exported 712,000 tons of rice in May at an average price of US$414.74 per ton.
Vietnam, the world's second-largest rice exporter after Thailand, is aiming to export six million tons of rice this year.