Vietnam News Agency quoted a Trade Ministry official who urged rice exporters not to sign any more rice-export contracts this year.

Vietnam is the world's second-biggest rice-exporting country, behind only Thailand and with an average export volume of 5 million tonnes.

Nguyen Dang Chi, deputy chief of the Trade Ministry's Export Department, estimates that 2.2 million tonnes of rice will have been exported in the first half of the year, fully half of this year's target.

Current contracts for rice delivery in the second half will maintain that pace, so the goal of rice growers is to assure stable production and delivery on existing contracts, not to increase export volume any further.

Chi said land area under rice cultivation was decreasing, because of industrialisation and urbanisation. In northern delta areas, many farmers have given up rice growing altogether in favour of more consistently lucrative crops.

Future supplies will be subject to changes in the weather and fluctuations in both the global market and the domestic price.

Chi expects supplies will be consistent with export plans for the rest of the year but said no new rice-export contracts were urged, because of risks posed by possible flooding or price fluctuations.

The government is being cautious and will leave any further decision on rice exports to the end of the third quarter, said Chi.

Meanwhile, he explained that the pause in rice exports would not affect farmers negatively. Rice prices have risen 18 per cent this year, and farmers are likely to reap a profit of 5.1 trillion dong (Bt10.97 billion) by filling current export contracts.

While the cost of growing rice is estimated to be 1,450 dong per kilogram, farmers can currently sell at 2,750 dong/kg, guaranteeing them an 80-per-cent margin, according to Finance Ministry data.