The number of rice exporters in Vietnam, currently at over 200, would be sharply reduced, if a decree on management of rice trading prepared by the Ministry of Industry and Trade is approved by the Government.
The 29-article draft decree, which was discussed by state officials, economic experts and rice producers and traders at a recent seminar in Ho Chi Minh City, concentrates on reorganizing activities of rice trading and export by setting stricter conditions for rice exporters to disqualify many enterprises.
It requires rice exporters to have storehouses of their own with a minimum storing capacity of 5,000 tons of rice, plus other processing facilities such as milling plants of an output of least 10 tons of rice per hour. In addition, they must stockpile a rice amount equivalent to 20 percent of the exported rice volume during the previous six months.
Rice exporters would be suspended from rice export in three or six months or even banned from export if they make false declarations on rice prices, fail to perform signed contracts, conduct exportation after receiving notification on suspension of rice export, or export
rice of poor quality, causing harms to the prestige of other exporters. Exporters that make no shipments for 12 consecutive months would have their licenses revoked.
Speaking at the seminar, Professor Vo Tong Xuan, a high-profile agronomist, stressed that criteria must be set in a way that ensure the utmost benefits for farmers. “I think rice traders must be forced to establish stable rice material areas by signing purchase contracts with farmers,” he said.
While most participants in the seminar agreed with strict requirements laid down on rice traders, some still worried about the role of the Vietnam Food Association which was defined in Article 23 of the draft decree, stipulating that exporters still have to register with the association for a permit to ship rice abroad. According to experts, the role should be given to the Ministry of Industry and Trade as it is hard to ensure that the association will treat non-members and members alike
If the Government approves the decree, it will be the first to manage farm produce exports in the country.-