As Vietnam expects growth in its feed sector in 2002, localmillers, who are keen-on small shipments, are finding supplies from China a goodalternative to Indian supplies, said John Lindblom ASA's regional director for SoutheastAsia.

He said Vietnam had contracted for about 10,000 tons ofChinese soy meal, all for December shipment. "This is the first ever documentedpurchase of Chinese soy meal by Vietnam," Lindblom told Reuters in an interview.

Southeast Asian buyers, who find financing panamaxsizedcargoes from the United States and South America difficult, turn to India for soy mealsupplies during the November to March period due to the lower freight and India's capacityto supply small cargoes.

According to the ASA, Vietnam's soy' meal. imports areexpected to rise to at least 550,000 tons in 2002 from 530,000 tons in 2001. Commercialfeed production is expected to rise to 2.8 million tons from 2.6 million in 2001