Complaints over expensive rice export licences
A discussion about ways to loosen Decree 109 on rice export has been held by the UK-based organisation Oxfam and Vietnam Chamber of Commerce and Industry (VCCI) on February 22.
The regulations stipulate that once a company has a rice export certificate, it must export at least 10,000 tonnes of rice a year. ADC Company hopes that rice export contracts will be auctioned. Currently, big companies have most of the contracts and give the good ones to their familiar smaller companies. Other companies have to take risky contracts just to meet the quota.
Dang Thi Lien, director of Long An Food Company said the specific measurements of a required material area should be scraped so that firms can be more flexible to improve rice quality and meet social and environmental responsibilities.
Several experts said they could understand that the government might tighten the regulations on rice exports for food security, but Vietnam doesn't have to worry about food shortages. If the government doesn't change the regulations, farmers may continue to pursue quantity despite the cheap prices instead of quality.
However, the process should be considered carefully to avoid chaos. Tran Tien Khai from the University of Economics Ho Chi Minh City, agreed and said that government should also take lessons from the dwindling exports of shrimp, catfish and dragon fruits.
Meanwhile, Director of VCCI in Can Tho City Vo Hung Dung said there was no reason to blame small companies. He thinks only dumping by big companies could affect the market that's why there was a need to create a fair arena for all businesses.
The Ministry of Industry and Trade recently signed a decision to abolish a limit the number of rice export companies at 150.
Co May rice in HCM City
The regulations stipulate that once a company has a rice export certificate, it must export at least 10,000 tonnes of rice a year. ADC Company hopes that rice export contracts will be auctioned. Currently, big companies have most of the contracts and give the good ones to their familiar smaller companies. Other companies have to take risky contracts just to meet the quota.
Dang Thi Lien, director of Long An Food Company said the specific measurements of a required material area should be scraped so that firms can be more flexible to improve rice quality and meet social and environmental responsibilities.
Several experts said they could understand that the government might tighten the regulations on rice exports for food security, but Vietnam doesn't have to worry about food shortages. If the government doesn't change the regulations, farmers may continue to pursue quantity despite the cheap prices instead of quality.
However, the process should be considered carefully to avoid chaos. Tran Tien Khai from the University of Economics Ho Chi Minh City, agreed and said that government should also take lessons from the dwindling exports of shrimp, catfish and dragon fruits.
Meanwhile, Director of VCCI in Can Tho City Vo Hung Dung said there was no reason to blame small companies. He thinks only dumping by big companies could affect the market that's why there was a need to create a fair arena for all businesses.
The Ministry of Industry and Trade recently signed a decision to abolish a limit the number of rice export companies at 150.
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