Ensure balance between rice export and food security

	Trade ministry proposes resuming rice exports
	Ministry proposes limiting rice exports to 400,000 tonnes per month
	Temporary suspension of rice exports given thumbs-up

Chart: T. Binh

Passive businesses

According to the General Department of Customs, in the process of implementing Decision 1106 / QD-BCT of the Ministry of Industry and Trade, businesses are not proactive in business plans.

Statistics of the Customs agency show that in 2019, there were 257 enterprises participating in rice exports, with a total of more than 6.37 million tons and turnover of over USD 2.8 billion.

According to areport bythe Ministry of Industry and Trade, as of March 27, 2020, the total amount of rice of member enterprises of Vietnam Food Association signed contracts but 1,574 million tons have not been delivered yet (enterprises outside the association is 910 tons), of which 1,385 million tonshave to be delivered from now until May 31, 2020.

Thus, it can be seen that in the immediate and long-term period, the demand for rice export of Vietnamese enterprises is very high, with 257 enterprises participating in exports (in 2019), while the total volume is exported. In April 2020, according to the decision of the Ministry of Industry and Trade, it was only 400,000 tons, which led to many enterprises being unable to register export declarations.

Therefore, if the current quota management rules (especially monthly quotas and enterprises registering their declarations in advance, are allowed to export before the end of their quotas), it will lead to passive enterprises. In deciding a business plan, facing many risks when exporting, not daring to sign a contract with a partner before being sure that it can register for export, the case of signing a contract may be fined for not delivering goods under contract and may incur other costs.

In addition, businesses also suffer losses due to failing to take advantage of business opportunities, in the context of rising international rice prices due to consumption and living needs of countries affected by the pandemic.

The above risks, along with not being able to register export declarations, have also been pressing for businesses recently.

Businesses "suspend" selling rice to reserve but are ready for export

Another inadequacy in regulating rice exports and ensuring national food security is the fact that many businesses have won the national rice reserve bid without signing contracts, but they turn into registering export declarations.

In Official Letter No. 2412 / BCT-XNK dated April 6, 2020 of the Ministry of Industry and Trade to the Prime Minister, there are recommendations including the State Capital Management Committee cooperates with the Ministry of Finance to urge and direct the corporation. The Northern Food Company (Vinafood 1) and its member companies give priority to immediately signing contracts for the number of winning bids at regional State Archives according to the bidding results.

However, although the Ministry of Finance has bid 178,000 tons (in the plan to reserve 190,000 tons of rice in 2020), there are currently 26 enterprises that have approved the winning results and announced that they have refused to sign the contract, amounting to 170,300 tons, of which 7,700 tons have been contracted.

The total amount of rice that businesses did not provide for national reserves was up to 96% of the total amount of winning rice.

Notably, four of the winning businesses provided rice for national reserves but they did not do their joband turned to register rice export declarations according to quotas in April.

They are: Northern Food Corporation, open export registration form for nearly 7,200 tons;

Phat Tai Co., Ltd, opening export registration form of 13,630 tons;

My Tuong Joint Stock Company, opening a registration form for exporting 10,650 tons;

Thuan Minh Import Export Joint Stock Company opened a registration form for exporting 8,630 tons.

In Official Letter No. 4355 / BTC-QLG dated April 10, 2020 to the Ministry of Industry and Trade, the Ministry of Finance saidthe above-mentioned inadequacies when making rice exports according to quotas (according to Decision 1106 later-PV).

National rice stock slack 182,300 tons

Regarding the purchase of 190,000 tons of national reserve rice in 2020, on February 12, 2020, the General Department of State Reserve issued a Decision approving the plan to select contractors to buy national rice of 2020 with the following contents:form of buying through open bidding in the country.

Quality standards: Long grain rice, 15% broken, which is milled from the harvested grain of the Winter-Spring crop in the south of 2020 ensures the quality standards as prescribed in Circular No. 78/2019 / TT-BTC dated November 12, 2019 of the Minister of Finance on national technical standards for rice.

The purchase price is at the maximum price approved by the Minister of Finance.

Bid opening on March 12, 2020, deadline for importing rice before June 15, 2020.

As a result, until April 16, 2020, out of 190,000 tons of rice held for bidding, the contract was only 7,700 tons (3,280 tons were stored).

The remaining 182,300 tons failed to sign contracts and had to re-organize the bidding (including 12,000 tons of unsuccessful bids and 170,300 tons of winning contractor, but refused to sign the contract).

For the amount of rice that the contractor refuses to sign the contract, the regional Department of Foreign Affairs is carrying out the procedures for collecting bid security of the contractor in accordance with the Bidding Law to submit to the State Budget.

Rice exports to Philippines in 2019 surge Vietnam shipped 884 94 million USD worth of rice to the Philippines in 2019

In order to ensure the completion of the plan for the purchase of national reserve rice in 2020, on April 16, 2020, the General Department of State Reserve issued a Decision approving the contractor selection plan to re-bid 182,300 tons of rice in the form of open bidding, the time to open the bidding on May 12, 2020, the deadline for importing rice before June 30, 2020.