17 August 2023

Institutional perfection; Market development; strengthen control checks... are the solutions the Ministry of Industry and Trade is implementing to manage rice exports.

Global market is complicated

Information from the Import-Export Department - Ministry of Industry and Trade, over the past time, the global food trade situation has been complicated and unpredictable due to the impact of many factors such as the ban on rice exports in some countries (India, UAE, Russia); the El Niño phenomenon negatively affects food and grain production in many areas; geopolitical developments are still complicated (Russia announces its withdrawal from the Black Sea grain deal)... This has had a strong impact on the global supply of rice production, raising concerns about world food security issues as well as affecting the economic recovery trend of many countries when inflation has not improved.

According to the Ministry of Agriculture and Rural Development, in 2023, the country will plant 7.1 million hectares, the average yield will reach 6.07 tons / ha, the output will reach over 43.1 million tons, an increase of 452,000 tons compared to 2022. With the above expected rice production, in addition to ensuring domestic food security, processing, breeding, and animal husbandry, Vietnam can export over 7.5 million tons of rice in 2023.

In the first 7 months of 2023, the country has exported 4.83 million tons, leaving about 2.67 million tons for export in the remaining 5 months of 2023.

As the unit responsible for the state management of rice trade, in the context of unpredictable developments of the global market, at the same time, implementing the direction of the Prime Minister in Public Power No. 610/CĐ-TTg dated July 3, 2023 on strengthening the implementation of tasks and solutions to promote production, rice export and the Prime Minister's Directive No. 24/CT-TTg dated August 5, 2023 on firmly ensuring national food security and promoting sustainable rice production and export in the current period, the Ministry of Industry and Trade has requested the Vietnam Food Association and traders to strictly implement the provisions of Decree 107/2018/ND-CP.

In particular, regularly maintain the minimum level of circulating reserves, ensure the balance of export and domestic consumption, contribute to stabilizing the price of paddy and rice in the domestic market and report on the situation of grain and rice inventory, the situation of signing contracts and performing export contracts according to current regulations. At the same time, actively follow the situation of the global trade market to organize appropriate production and negotiation plans, ensuring export efficiency.

In order to closely coordinate between ministries, sectors, localities, food associations and traders, the Ministry of Industry and Trade chaired and coordinated with the Ministry of Agriculture and Rural Development and Can Tho City to organize a conference on rice export management on August 4. On that basis, we agreed to drastically implement a group of solutions to ensure supply, stabilize domestic food prices and facilitate and limit risks for rice export business activities in the last months of the year.

In order to balance supply and demand, stabilize prices, and ensure food security in the country, the Ministry of Industry and Trade has requested the People's Committee of localities to fulfill the responsibilities specified in Decree No. 107/2018/ND-CP.

Accordingly, direct the Department of Industry and Trade to urge enterprises participating in the Market Stabilization Program in the locality to have plans on the source of paddy and rice to ensure supply to the market from now until the end of the year. Instruct rice exporters in the area to maintain the amount of paddy and rice reserves to stabilize the market according to regulations to be ready to supply to the market when necessary.

In addition, direct market management forces to strengthen coordination with local authorities to closely monitor the situation, inspect and supervise the production, circulation and consumption of rice and rice in the locality and the maintenance of the minimum circulating reserve level of rice exporting traders according to regulations; strictly handle cases of speculation and illicit profiteering, pushing up rice prices unreasonably, causing instability in the domestic market.

Firmly ensure national food security and promote sustainable rice production and export

In order to continue implementing the tasks assigned in Public Power No. 610/CĐ-TTg and Directive No. 24/CT-TTg of the Prime Minister on firmly ensuring national food security and promoting sustainable rice production and export in the current period, The Minister of Industry and Trade has issued Directive No. 07/CT-BCT dated August 15, 2023 on strengthening market information, trade promotion, developing rice export markets and stabilizing the domestic market in the current period. Accordingly, assigning tasks to functional units under the Ministry of Industry and Trade, local Departments of Industry and Trade, Vietnam Food Association and traders to focus on implementing solution groups.

Specifically, regarding institutional improvement, urgently review and complete the Decree amending and supplementing the Government's Decree No. 107/2018/ND-CP on export business in order to complete the legal corridor for the rice export mechanism, creating a transparent, fair and favorable business environment for rice exporters.

For the search, information and market development, continue to closely monitor the situation of the world rice trade market, the moves of major producing and exporting countries and promptly inform ministries, branches, Vietnam Food Association, rice export traders to take the initiative,  regulate rice production, trading and export activities, ensuring suitability and efficiency.

At the same time, assume the prime responsibility for, and coordinate with relevant agencies in, implementing trade programs and activities, product promotion and rice trade promotion suitable to the new situation to raise the value of Vietnamese rice products. Coordinate with the Ministry of Foreign Affairs and the Ministry of Agriculture and Rural Development to make good use of the preferential mechanisms of FTAs to which our country is a member to actively negotiate with partners to diversify export markets, occupy new and potential markets and improve competitiveness for Vietnam's rice industry.

In addition, guide and support rice traders to improve their production and business capacity; ability to negotiate, conclude and perform export contracts and effectively handle international commercial disputes.

At the same time, continue to promote trade promotion activities, flexibly and effectively combine traditional and online trade forms to promote cooperation in rice trade with traditional markets (such as the Philippines, Indonesia, Africa, China) and exploit niche markets with fragrant rice, High quality rice that we have penetrated in recent years (such as EU, Korea, USA, North America ...).

The Ministry of Industry and Trade is coordinating with the Vietnam Food Association to raise awareness of traders about the provisions of multilateral and bilateral cooperation mechanisms that our country has signed to make the most of tariff quotas for Vietnam.  For inspection and supervision, the Ministry of Industry and Trade has been and will continue to assume the prime responsibility for, and coordinate with ministries, sectors, localities and the Vietnam Food Association in, inspecting and enforcing the law on rice export business as prescribed in the Government's Decree No. 107/2018/ND-CP dated August 15, 2018 on rice export business.

The Ministry of Industry and Trade also instructed local market management forces to strengthen coordination with local authorities to closely monitor the rice price situation, inspect and control business establishments, wholesale and retail hubs, markets, supermarkets, trade centers, etc.

Warehouses aim to control supply and selling prices, prevent violations of price listing, speculation, picking goods, unreasonable pricing of rice. Strengthen inspection and prevent the transportation and trading of rice of unknown origin and origin. Strictly handle violating organizations and individuals according to the provisions of law.

Currently, the Ministry of Industry and Trade is continuing to closely coordinate with ministries, sectors and localities to closely monitor the market situation, promptly grasp difficulties of rice producers and exporters to coordinate in proposing solutions to overcome difficulties,  facilitating rice export activities from now until the end of the year.

Source: congthuong.vn