Seeking opinions on amending Decree 107 on rice export business: Ensuring sustainable export goals

Important documents for rice export activities

Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice export business has been implemented for more than 4 years and has had a positive impact on rice export business.

Specifically, according to the Ministry of Industry and Trade, the issuance of the Decree and guiding documents have completed the legal framework for rice export management. In the period from the end of 2018 until now, although most of the time was affected by the Covid-19 epidemic, the impact of social distancing in a certain time, the rice export management of the Ministry of Industry and Trade and other ministries, The industry has always closely followed and thoroughly grasped the objectives and principles of rice export management in accordance with the Decree, which has contributed to ensuring food security, stabilizing the domestic market, promoting production and export development. sustainable rice, enhancing the position and prestige of Vietnam's rice exports.

Decree 107 has created favorable conditions for rice export activities

Implementing the provisions of the Decree, the Ministry of Industry and Trade has strengthened market information, focused on solving difficulties, problems and barriers arising in markets to create favorable conditions for export. In addition, strengthening activities to promote, trade and promote rice trade. The Ministry of Industry and Trade also provides the local Department of Industry and Trade with the weekly newsletter on the agricultural, forestry and fishery market on the website of the Ministry of Industry and Trade, advising on changes in policy implementation in some markets. large schools such as China, the United States, Japan ...

The Ministry of Industry and Trade concurrently develops and submits to the Prime Minister for approval the Strategy to develop Vietnam's rice export market for the period 2017 - 2020, with a vision to 2030. In particular, proactively provide more information on Vietnam's rice export market. the situation of rice supply and demand in the country and in the world, warn businesses so that when trading and negotiating export contracts, they ensure efficiency.

Together with the Ministry of Industry and Trade, rice export traders and the Vietnam Food Association have made efforts to promote exports, consolidate and expand markets, and promptly consume commodity rice at reasonable prices. benefits for farmers in the context of difficult world market competition, complicated and unpredictable developments, fierce competition, not beneficial to Vietnam's gao export.

In the period from 2019 to now, although the export volume tends to decrease slightly, the export turnover has always grown due to the increase in the average export price.

According to data from the General Department of Customs, Vietnam's rice exports in October 2022 reached 713,546 tons, worth $341,064 million, up 22.3% in volume and 23.9% in value over the same month. September 2022.

October 2022 has become the month with the highest export volume of rice in the history of our country's rice industry. Severe weather in many Asian countries is putting rice supplies in short supply, while India's 20% tax on all its rice exports has helped boost Vietnam's rice export market.

In October 2022, Vietnam's 5% broken rice price also averaged $425-430/ton, the highest level since November last year. The high average export price of Vietnamese rice is also due to the recent shift in Vietnam's rice exports to the segment of fragrant rice and high-quality rice.

According to the Commodity Exchange of Vietnam (MXV), with the favorable context for the rice industry in international trade and domestic demand being boosted at the end of the year, the uptrend may continue until the end of December.

Some limitations need to be modified

According to the Ministry of Industry and Trade, besides the positive results mentioned above, in the process of implementing the Decree also revealed a number of issues that need to be considered and amended.

Specifically, Clause 2, Clause 3, Clause 4, Article 24 of Decree No. 107/2018/ND-CP stipulates that traders make quarterly and annual reports on the signing and performance of export contracts. rice exports, the actual situation of traders' inventories. However, in the past time, many rice exporters have not seriously performed their reporting responsibilities as prescribed, such as: failing to report, reporting incomplete content as prescribed, reporting but not reporting. often… This has caused a lot of difficulties for rice export operations.

Or, Clause 6, Article 24 of Decree No. 107/2018/ND-CP stipulates: “Traders who report untruthfully or fail to comply with the reporting regime as prescribed in this Article shall not affect policies. the priority specified in Clause Article 16 of this Decree until the trader terminates or corrects the violation”. Thus, traders who violate reporting obligations are not entitled to policies such as participating in promotion programs, building and promoting images and brands at home and abroad, not only to perform concentrated rice export contracts or participate in the State's program to buy rice and temporarily stored rice.

In the new context, markets are privatized, concentrated rice export contract transactions are still very small, the funds for image promotion and trade promotion are insignificant, regardless of the media enterprises. Reports and businesses do not report, so the provisions of Decree 107/2018/ND-CP can hardly be considered as "sanctions" to force traders to perform reporting obligations. Regulatory agencies can only call and encourage traders to voluntarily comply.

Relevant information and data (cultivated area, output of each type of rice, quantity of rice, rice in stock, exports, etc.), therefore, are often incomplete, authentic, and timely. , do not reflect reality, thereby causing a lot of difficulties for the operation and management of rice production and export, especially at a time when there is a risk of affecting food security.

Or, Article 5 of the Decree stipulates that the local Department of Industry and Trade shall assume the prime responsibility for, and coordinate with the Department of Agriculture and Rural Development and relevant agencies in, organizing post-inspection of warehouses, mills, mills and rice mills to meet the the trader's conditions for rice export business after the trader is granted the Certificate.

The actual implementation has revealed a number of limitations such as: delay in conducting post-inspection because it is not possible to determine which Department of Industry and Trade in the province/city is presiding over because rice exporters can declare their warehouses and facilities. rice mills in many localities to be granted certificates; The maintenance of business conditions of traders has not been paid attention and met, especially in terms of food hygiene and safety, fire prevention and fighting... but has not been timely monitored by the provincial Departments of Industry and Trade. , report.

Not to mention, the Departments of Industry and Trade of the provinces/cities have not been proactive in the state management to check and report on the maintenance of rice export business conditions, on the change of information, production capacity, etc. exports of traders in the area; mainly perform tasks when the Ministry of Industry and Trade detects the problem and has a document to direct. This is a practical matter that needs to be considered and revised…

Currently, Vietnam is an agricultural country mainly producing rice, applying advanced science and technology for production, reducing post-harvest losses. ensure food security, national reserves and set aside a certain amount for export. Every year, Vietnam spends about 6-6.5 million tons of rice for rice export. Therefore, when formulating Decree No. 107/2018/ND-CP, rice importation activities that are not within the scope of Decree 107/2018/ND-CP must be consistent with reality at the time of construction. decree.

However, under the impact of objective and subjective factors, Vietnam has imported some types of rice to serve domestic needs such as production of animal feed, production of beer, etc. higher quality rice for export. The export and import of rice in the market economy, with lower import prices in the country or domestically produced rice varieties that do not meet market demand is taking place. However, the import of rice is too much, but without adequate and timely management and statistics, it will affect domestic production, impact on Vietnam's rice production, and the lives of farmers. and indirectly affect food security…

Improving the efficiency and effectiveness of export management, ensuring the goal of sustainable and stable rice export

In that context, the Draft Decree amending and supplementing Decree No. 107/2018/ND-CP focuses on solving the following issues: the reporting regime of export contract statistics and contract performance rice export; check the conditions for rice export business; rice fortified with micronutrients; coordination with relevant ministries and branches, provincial-level People's Committees and relevant agencies to organize rice export management to ensure the principles specified in the Decree; implementing a trade promotion program according to a specific mechanism for rice products; export Commission; rice imports; Dossier of application for the Certificate of eligibility for rice export business.

The Drafting Board has drafted the Decree from the perspective of continuing to improve the legal framework strong enough to overcome the shortcomings and inadequacies arising, and to orient rice production and business activities. , contributing to improving the effectiveness and efficiency of export management, ensuring the goal of sustainable and stable rice export, meeting market requirements and the process of international economic integration.

Lan Phương 

The draft amendment has some notable points such as: Amending Clause 2, Article 5 as follows:

Local Departments of Industry and Trade have warehouses, mills and mills of rice and rice traders granted certificates of eligibility for rice export business, and coordinate with the Departments of Agriculture and Rural Development and relevant agencies. Responsible authorities: After inspecting warehouses, mills and rice processing facilities to meet the conditions of rice export business in the area of traders.

In the case where the trader's warehouses and mills and mills are located in different localities, the local Department of Industry and Trade where the warehouses, mills, mills and rice mills are located shall conduct post-inspection. local mills and mills and reports to the Ministry of Industry and Trade.

In case of doubting the authenticity of a trader's documents, information, and application for a license, the Ministry of Industry and Trade shall send a written request to the local Department of Industry and Trade to preside over inspecting and verifying warehouses and facilities. mill, mill rice, rice and send reports to the Ministry of Industry and Trade.

For the inspection of the trader's maintenance of meeting the export business conditions for rice after the trader is granted the Certificate: Within 30 days from the date the Ministry of Industry and Trade issues the Certificate of eligibility In case of rice export business, the Department of Industry and Trade shall conduct post-inspection according to regulations and report the inspection results to the Ministry of Industry and Trade in writing, enclosed with the inspection minutes and propose measures to handle violations (if any). ).

The draft also adds Article 10a on the management of rice imports as follows: When there is an increase in the amount of imported rice that threatens to affect domestic production, the Ministry of Industry and Trade shall assume the prime responsibility and coordinate with the Ministry of Agriculture and Development. In rural areas, the Ministry of Finance shall report to the Prime Minister to apply import management measures.

According to the data publication period, the General Department of Customs promptly reports to the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Agriculture and Rural Development on export results when there is a phenomenon of high rice export volume, which is dangerous. opportunities to affect national food security and propose appropriate management measures. In case when there is an increased amount of imported rice affecting domestic production, the General Department of Customs is responsible for reporting in detail to the Ministry of Industry and Trade on the quantity of imported rice according to the following criteria: quantity, value, categories, markets, export customers, importers; import border gate and propose appropriate management measures…

+ OTHER POST:

• Những năm qua, hoạt động xúc tiến thương mại mở rộng thị trường tiêu thụ trong nước và xuất khẩu nông sản của tỉnh Sơn La đã đạt được những kết quả nổi bật.(13.11.2022)
• Lack of orders, the market for plywood is in a state of (13.11.2022)
• Import and export turnover of goods reached 616 billion USD, about to surpass the record in 2021(13.11.2022)
• The export price of Vietnamese rice will be high until the end of 2022(13.11.2022)
• Center for import and export goods gathering: Improving the efficiency of Vietnam's logistics service industry(13.11.2022)
• 2 containers of products of Dong Dao Company are imported into the Nordic market(13.11.2022)