What’s the role of Saigon Food?
The VFA executive also defended Vinafood 2’s sale of rice via a Singapore subsidiary, the “Saigon Food Co.” Vinafood 2 set up Saigon Food under the Government’s development strategy and with the approval by the Ministry of Planning and Investment, Tri said. It’s a 100 percent state-owned firm with investment capital of $800,000. Local newspapers, led by Tien Phong, have pounced on evidence that Vinafood 2 on August 26 sold rice cheaply to Saigon Food, which then immediately cut an export deal with an African buyer for an undisclosed price. The $2 million consignment, purchased by Saigon Food for $406 per tonne, left Ben Nghe Port in HCM City City on August 27. Tri said that the thing that needs to be clarified here is that Vinafood 2 did not sell rice for less than the floor price. There’s no need to clarify why Vinafood 2 did not sell directly to the African party. In many cases, Tri emphasized, a Singaporean company will have better advantages in negotiating with the partners than a
