Despite being the leading rice exporter in the world, in recent years, Vietnam’s rice manufacturing and exporting still face difficulties and challenges. But a new plan is expected to be a great help. The Vietnam Business Forum reports.

Decision 6139/QD-BCT on the planning of rice exporters issued recently by the Ministry of Industry and Trade is attracting much attention. After several ineffective measures to manage and control the export of rice, this plan is expected to help overcome difficulties and ensure stability and sustainability in rice production and exports.

Specifically, this plan identifies that from 2015, Vietnam will have a maximum number of 150 rice exporters, associate them with major areas of rice production, and gradually consolidate and develop these rice export businesses.

The plan proposes three criteria to be eligible for certification, namely: for rice warehouses and rice husking facilities to be located in planned areas; having rice material areas; and cooperating with farmers in rice production and purchases. The criteria and conditions for maintaining the certificate include the export performance and material area, and cooperation with rice producers, as specified in the plan.

In addition, the plan also assigns tasks for relevant ministries, agencies and localities, Vietnam Food Association and rice export traders to implement the master plan.

Compared to Decree 109/2010/ND-CP issued previously, some criteria in the new planning are loosened. Accordingly, if a rice exporter fails to reach 10,000 tonnes in the first year, it can maintain the certificate by increasing the export in the next year so that the total export volume in the two years reaches 20,000 tonnes. The number of traders can be a maximum of 150 instead of 100 as specified in Decree 109/2010/ND-CP.

The new planning is tighter in the way that the trader must have its own material areas or have cooperation with rice farmers. Traders must be confirmed by provincial leaders in written documents on the material areas or cooperative links and orders with rice farmers. As directed by the Government, the priority criteria to consider rice export traders is to have the construction plan to build material areas which is the factor to ensure sustainable development, in line with actual requirements.

In the process of granting certificates, the Ministry of Industry and Trade issued a letter to the Department of Trade and Industry to propose the test and validation for merchants in accordance with Circular 12 of the Ministry of Agriculture and Rural Development on grain storage and milling facilities, including traders filing applications before to the Ministry of Industry and Trade. On the basis of collecting the dossiers, the Ministry of Industry and Trade will consider, classify and grant certificates under the criteria in the planning. If the number of records exceeds the indicators, the granting will be done under the criteria priority.

Despite being the leading rice exporter in the world, in recent years, Vietnam’s rice manufacturing and exporting still face difficulties and great challenges and requires solutions. Data of Vietnam Food Association showed that in the first 8 months, Vietnam’s rice exports reached 4.7 million tonnes, for an export value of around two billion USD. Compared to the same period in 2012, Vietnam's rice exports fell in both quantity and value.-VNA