UPDATE 1-Manila may buy 250,000 T rice mostly from Vietnam

* Vinafood 2, Daewoo submit lowest bids at tender

* Offers ranged between $468.50 to $570/tonne, C&F

* Another tender in December possible, says Manila official

MANILA, Nov 4 - Vinafood 2, Vietnam's largest rice exporter, is likely to win a contract to supply nearly two-thirds of the 250,000 tonnes of rice to the Philippines after submitting one of the two lowest bids at a state tender on Wednesday, officials said on Wednesday.

The Philippines, the world's largest rice importer, has moved early to secure 2010 supplies after typhoons hit farmlands in September and October.

Officials said another tender may be on the way, a move likely to boost prices at a time when other importers like Iraq and India are also buying grain overseas.

Korean trading firm Daewoo International Corp gave the lowest bid of $468.50 a tonne, including cost and freight, to supply 100,000 tonnes of 25-percent broken white rice, for arrival between January and April.

Daewoo said it will source the grain from Thailand and/or Vietnam.

Vinafood 2 gave the second-lowest bid of $480 a tonne, C&F, for 150,000 tonnes of the same rice grade for arrival in January, which traders say could open the window for another government-to-government deal between Manila and Hanoi.

The formal awarding of the tender is likely next week.

Vietnam's 25-percent grade was quoted at $400 per tonne on Wednesday, free on board basis, while Thailand's was at $530 a tonne.

GOVERNMENT DEALS

The Philippines bought 1.5 million tonnes of rice from Vietnam in an inter-government arrangement earlier this year, comprising nearly 85 percent of its total 2009 rice imports of 1.775 million tonnes.

Industry and government officials from Vietnam told Reuters last week Hanoi may start government-to-government discussions with Manila after Wednesday's tender and that Vietnam is ready to sell another 1.5 million tonnes of rice to the Philippines.

"It's possible that discussions for G-to-G between Vietnam and the Philippines can start. The tender was the best way to discover prices," said a Manila-based trader.

But Ludovico Jarina, deputy administrator at state grain agency National Food Authority, said another tender in December was possible if an inter-agency government committee decided that more imports were necessary.

"Prices are good now and hopefully this will hold for the rest of the year," Jarina told reporters.

Ten firms submitted bids at the tender but only six qualified after the bidding committee found the other four lacking in technical requirements.

NFA had set a budget of 6.366 billion pesos ($134 million), or around $536 a tonne, cost and freight, at current exchange rates, for the tender. The highest offer at the tender was $570 a tonne.

"By assumption, we will get the 100,000 tonnes and 150,000 tonnes will be awarded to Vinafood 2," Tae-Hyun Yun, manager at Daewoo International told Reuters, adding he was "surprised" that his company turned out to be the lowest bidder.

($1 = 47.54 pesos)