The extension of the memorandum of understanding was signed here on Tuesday between Trade Minister Gita Wirjawan and his Vietnamese counter part Vu Huy Hoang.
Gita said the new agreement is to forestall possible shortage in the country`s rice stocks considering condition in the world rice market and prices.
The agreement will provide alternative source of rice supply to support the country`s food security , he said.
Similar agreements have been signed by Indonesia with other major rice producing countries in ASEAN including Cambodia and Thailand, he said.
Indonesia , therefore, will not depend on one country in the event of imports being needed, he said, adding "we would not be dictated in prices."
He said imports may be needed as a last resort to maintain price stability on the domestic market.
He said Indonesia`s trade with Vietnam has continued to increase growing by 18 percent over the period of 2007-2011 .
In the last three years the trade volume grew significantly from US$2.11 billion in 2009 to US$4.7 billion in 2011.
(SYS/H-ASG/A014)
Editor: Suryanto
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