Rice packaging for export (Photo: VNA)

HCM City (VNA) – New regulations included in Decree No.107/2018 ND-CP have helped cut down costs for businesses in market engagement activities and created strong motivation for the improvement of their trading capacity and the promotion of rice exports, said business representatives at a conference in Ho Chi Minh City on November 1.

The decree, which took effect from October 1, 2018, replaces Decree No.109/2010/ND-CP and focuses on regulating rice trading and exports.

Representatives of the businesses held that Decree No.107 encourages the production and export of high quality rice with high added value, contributing to implementing the restructuring of the rice sector and improving the status of Vietnam’s rice trademark in both domestic and foreign markets.

Pham Thai Binh, General Director of Can Tho’s Trung An company, said that rice firms are delighted at the decree’s new regulations as it is another step towards the completion of a legal framework for rice trading and export in an open and transparent manner.

It helps businesses build their plans and strategies, including material region, rice standards, and food safety.

Binh said that enterprises have also become more active in investing in processing facilities.

Deputy Minister of Industry and Trade Tran Quoc Khanh said that Decree No.107 is a breakthrough in institutional policy regarding rice export activities, removing difficulties and creating a smoother environment for rice firms, thus creating a significant change in export mindsets.

Clarifying some of the new contents of Decree No.107, he said that business conditions for the rice industry have been simplified. Businesses who wish to engage in rice trading activities no longer need to own storage or milling facilities, nor register export orders at the Vietnam Food Association or keep a minimum rice stock equivalent to 50 percent of the registered volume.

The rice reserve total for businesses has also been reduced to 5 percent of the firm’s total export volume over the previous six months, down from the previous 10 percent.

Decree No.107 also stipulates additional regulations on the responsibilities of ministries, sectors, and localities in rice export management. –VNA