Cross-Border Trade in Sticky Rice from Central Laos to North Central Vietnam

Sticky rice is widely consumed in Vietnam alongside conventional rice, as well as in processed foods. Though sticky rice is an established product in Quang Tri Province, the total output is currently not enough to supply the domestic demand within the province, let alone from other provinces. Given that Quang Tri has access through the Lao Bao Border Gate to one of the largest rice-producing provinces in Laos, where most production is sticky rice, and through the East-West Corridor to Northeast Thailand, which also produces large quantities of sticky rice, it has become a conduit for cross-border trade in this commodity. Nearly 29,000 t of sticky rice was imported through this gate in 2010. Almost all (95%) came through formal trade channels—labelled in Laos with a certificate of product origin, sold to registered enterprises in Vietnam with import permits, checked for food safety and quality standards, and subject to an annual quota. No duty was incurred on these quota imports. The remaining 5% entered in small lots via informal channels. Vietnam has many policies affecting the production and consumption of rice, which also have an impact on sticky rice production and distribution. These policies aim to ensure supply to the domestic market, improve the incomes of rice farmers, and increase foreign exchange earnings through exports. In this context, domestic production of sticky rice is likely to increase; hence the potential for expanding the cross-border trade from Laos is thought to be quite limited.