THE ENTERPRISES OF RICE MIXED ARE “TRADITIONAL”

Some conditions “bind legs” rice export enterprises have been removed by the Ministry of Industry and Trade. According to many experts, this is a positive move of the Ministry of Industry and Trade by abolishing this regulation, contributing to removing difficulties for enterprises, promoting rice export in the context of current difficulties.

Restricting rice exporters has made many disadvantages for enterprises. Photo: Phan Thu.
“Cry bad, bad”

Vietnam’s export of rice has been difficult for a long time; in addition to the fact that the market is falling, purchasing power has led to large supply, there are a number of other causes, including policy issues. A leader of the Ministry of Industry and Trade acknowledged that in the past few years a series of policies were issued which directly or indirectly affected the behavior of the rice market actors. However, the policies designed also revealed many inadequacies and failed to achieve the expected results, including regulations on conditions for traders to export rice …

Many rice exporters have “cried badly” when the Ministry of Industry and Trade issued Decision No. 6139 / QD-BCT on the plan for traders to export rice based on Decree 109/2010 / ND-CP on Rice export business and some other decrees. Decision No. 6139 has controlled only 150 rice exporters; Specifying areas for investment in the construction of warehouses and milling and rice milling facilities to meet the conditions for rice export business in 20 provinces and centrally-run cities; Defining criteria for rice export achievement. According to Decision 6139, the rice market immediately narrowed from more than 200 exporters to 150 clues.

In fact, the time of rice export in 2010 is disturbed, many businesses fling the market, even Vietnamese enterprises compete in the world market. In this regard, the control of wholesale export by the Ministry of Industry and Commerce is reasonable. However, in the context of integration, this condition is invisible to make difficulties and restrict the development of enterprises. The fact is that with Vien Phu Trading Joint Stock Company in Ca Mau or private enterprise Co May in Dong Thap is the best evidence.

For private companies, the conditions such as having huge warehouses, large capacity factories … are a big obstacle for the small and medium sized rice companies. Therefore, this company has been entrusted export through a large company in Can Tho. However, it is worth mentioning that when entrusting for other businesses, private companies Co May must pay a trust fee of 40 VND / kg to the entrusted unit. In addition, in order to ensure the brand of rice to foreign consumers, the company also has to set up a company in Singapore to import the May Grain rice through the trustee. As a result, the company is taking a detour, accepting to pay high costs, reducing profits and many other risks to export rice products brand. Meanwhile, if the rice is directly exported, it does not have to spend on the cost.

The case of Vien Phu Trading Joint Stock Company is not better. According to the business leaders, the brand of Hoa Phuong organic rice also encountered many difficulties when it can not overcome the “door” conditions to be licensed for export. Therefore, the company signed a contract worth a large export of organic rice to Russia but not get export license.

DN is “rescued”

Difficulties of enterprises have been received by the Ministry of Industry and Trade when the Ministry of Agriculture and Rural Development has issued Official Letter No. 8768 / BCT-XNK, requesting the Government to consider and permit the abolition of the plan on rice exporters, promulgated together with Decision Defined 6139 / QD-BCT in September-2016. Later, Deputy Prime Minister Trinh Dinh Dung directed the Ministry of Industry and Trade to consider abolishing the master plan on rice exporters.

With the commitment “Industry and Commerce will take the lead in the reform of administrative procedures”, late afternoon 4-1-2017, Minister of Industry and Trade Tran Tuan Anh signed the Decision 6139 / QD-BCT. . The Ministry of Industry and Commerce said that the abolition of these criteria and conditions to remove the business conditions does not comply with the provisions of the Investment Law 2014, ensuring the transparency of institutions and the environment. Businesses create favorable conditions for enterprises to invest in the rice export business and increase the consumption of paddy and rice for farmers. In addition, in the context of the difficult export market situation, competition drastically, the abolition of this regulation contributed to removing difficulties for businesses, promote rice export.

Mr. Pham Tat Thang, Senior Research Advisor of the Trade Research Institute under the Ministry of Industry and Trade, said that the abolition of rice export trading conditions was necessary. In fact, the above mentioned difficulties of representatives of some enterprises have shown that it is reasonable. “This is a wise decision but it is not enough,” Thang said, adding that more regulations should be developed to create a link between farmers, businesses and distribution systems. High quality rice is exported to the markets, serving the specific target group and for exporting rice in the future. ”

Concurrent with the above opinion, the person directly involved in the mission (in November 2016) to learn Cambodian experience in construction