Vietnam PM approves to fully resume rice exports from May

On the afternoon of April 28, 2020, at a virtual Government’s meeting on rice export with the participation of leaders of 13 provinces in the Mekong Delta, major food corporations and groups, and related ministries, Prime Minister Nguyen Xuan Phuc agreed with the proposal of the Ministry of Industry and Trade to resume rice exports from May 1, 2020.

Photo: Prime Minister Nguyen Xuan Phuc chaired virtual Government meeting on rice export

Speaking at the opening of the meeting, Prime Minister said that in 2020, Vietnam plans to export 6 million tons of rice. Due to the COVID-19 pandemic and natural disasters, many countries have stopped exporting rice to prevent food shortages. As a result, Vietnam’s policy was to limit export while reviewing the production situation of the Winter-Spring and Summer-Autumn crops, to firstly ensure food security for 100 million people of the country in case of emergency, which was a necessary action.

In the past few days, the Prime Minister sent delegations from the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development to monitor the situation of provinces and listen to the provinces' reflection on rice production in their localities.

It was praiseworthy that in the context of severe drought and saltwater intrusion in the Mekong Delta, thanks to the determination of localities and the direction of the Government, farmers were instructed to plant rice earlier than normal. Gain season is predicted for Vietnam’s rice production.

According to the Ministry of Industry and Trade’s report at the meeting, production in 2020 is estimated at 43.5 million tons of paddy. Particularly in the Mekong Delta, 1.54 million hectares of Winter-Spring crop have been harvested, output is estimated at 10.8 million tons of paddy. After deducting local consumption and reserves, the surplus output for export this year is about 13.54 million tons of paddy, or about 6.5-6.7 million tons of grain.

After listening to the report of the inter-ministerial working group presented by the Ministry of Industry and Trade, the Prime Minister agreed with the Ministry of Industry and Trade's proposal to resume rice exports from May 2020. Accordingly, from May 1, 2020 for rice export activities will return to normal, complying with Decree No. 107/2018/ND-CP of the Government on rice export. The Prime Minister requested to continue strictly implementing rice export activities through international border gates (road, rail, sea, inland waterway and air transport).

The Prime Minister assigned the Ministry of Industry and Trade to assume the prime responsibility and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance and the General Department of Vietnam Customs in directing and facilitating rice exports in May, June and the subsequent months, ensuring interests of producers and businesses. The Ministry of Finance was assigned to purchase sufficient rice for national reserves.

The Ministry of Industry and Trade shall assume the prime responsibility and coordinate with the concerned ministries in regularly monitoring the situation of production, consumption, reserves and exports. If rice export affects national food security, the Ministry was requested to immediately report to the Prime Minister for appropriate handling measures.

During the administration process, the Ministries need to listen to opinions of major rice producing localities, large rice producing enterprises and the people. The Ministry of Industry and Trade shall regularly urge rice exporters to strictly abide by provisions of Decree 107 in reserving at least 5% for local circulation.

At the same time, the 20 largest rice exporters were requested to sign an agreement with at least one supermarket system to ensure a 5% circulation reserve when required. The Ministry of Industry and Trade may revoke the certificate of eligibility for rice export for businesses which fail to comply with such requirement.

The Ministry of Industry and Trade shall review Resolution 107 to propose amendments and address weaknesses that have arisen in practice.

The Ministry of Finance shall review mechanism and policy difficulties and problems, and carry out bidding for national rice reserves. The Ministry of Finance was assigned to direct the General Department of Vietnam Customs to create favorable conditions for rice export.

The Ministry of Agriculture and Rural Development shall be responsible for directing the development of Vietnamese rice brand. Rice traders and investors need to cooperate in this matter.

The National Steering Committee 389, the Ministry of Finance, the Ministry of Defense, the Ministry of Public Security, and the Ministry of Industry and Trade shall direct the functional forces to strengthen inspection, control and strictly handle cross-border smuggling of rice.

People's Committees of provinces and centrally-run cities shall direct Industry and Trade Departments at provincial levels to intensify the urge, supervision and inspection to maintain the minimum circulation reserve of 5% of rice exporters in the respective areas, and fully held accountability to the Prime Minister on this issue.