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Vietnamese rice still has many opportunities to boost exports tothe EU market in the near future. Source: Internet

Great export potential

On September 4, the Government issued Decree No. 103/2020/ND-CP regulating the certification of fragrant rice exported to the EU.

After that, on September 7, the Ministry of Agriculture and Rural Development issued a decision to guide enterprises on procedures for certification of fragrant rice exported to the EU, creating a foundation for businesses to produce and develop raw material areas.

Talking to the press on September 8, Nguyen NhuCuong, Director of the Department of Crop Production (MARD) said that the preparation of luggage to bring Vietnamese rice to the EU has been deployed by the MARDfora long time.

Immediately after the EU-Vietnam Free Trade Agreement (EVFTA) came into effect, the EU gave Vietnam a quota of 80,000 tonnes of rice per year (including 30,000 tonnes of milled rice, 20,000 tonnes of unmilled rice and 30,000 tonnes of fragrant rice).

The EU will fully open its doors to broken rice (this commitment helps Vietnam export an estimated 100,000 tonnes to the EU annually).

Currently, aromatic rice cultivation area in the Mekong Delta provinces annually reaches about 25% of total cultivated area, equivalent to about 1 million hectares, aromatic rice production is estimated at 5.5 million tonnes, equivalent to about 3, 5 million tonnes of fragrant rice.

Meanwhile, according to the EVFTA, the amount of fragrant rice exported to the EU enjoying preferential tariff quota is 30,000 tonnes, equivalent to 1.2% of the aromatic rice produced in the region. Therefore, the export potential of fragrant rice is still great.

"If EU regulations are well implemented and the export of 30,000 tonnes of fragrant rice in particular and 80,000 tonnes of rice in general under quotas to the EU with high selling prices, it will contribute to improving the efficiency of Vietnam's rice production,"Cuong said.

Review and supplement preferential rice varieties

Areport of the Ministry of Agriculture and Rural Development shows that every year, Vietnam exports from 6 to 6.5 million tonnes of rice, of which rice exports are mainly concentrated in the Mekong Delta.

With the EU alone, in 2019, Vietnam's rice export to the EU is 50,000 tons, worth 28.5 million Euros. Meanwhile, the EU's total rice imports are 2.3 million tonnes, with a turnover of 1.4 billion Euros. Compared to other ASEAN countries, Vietnam's rice export to the EU is only a sixth of that of Thailand, a tenth of Myanmar anda quarter of Cambodia.

Deputy Minister of Agriculture and Rural Development Le QuocDoanh said Vietnamese rice has great potential for export to the EU due toquota expansion.

According to the EVFTA, there are currently ninearomatic rice varieties exported to the EU that are eligible for tariff quotas including: Jasmine 85, ST5, ST20, Nang Hoa 9, VĐ 20, RVT, OM 4900, OM 5451, and Cho DaoResources.

“In the coming time, the MARD will coordinate with localities, organisationsand individuals exporting rice to review the list of fragrant rice varieties that are commonlygrown in production, and at the same time suit the consumption needs of EU to export, edit and supplement the list of fragrant rice exported to the EU to meet actual production requirements”, Nguyen NhuCuong added.

Deputy Minister Le QuocDoanh noted that right after the Government issued Decree 103/2020/ND-CP, the MARD quickly issued a decision on certification for rice exporters to this market.

Currently, there are threeunits submitting documents to the Ministry, the time to complete the certification within fivedays. Enterprises can submit registration documents through the Public Administration Service of the MARD, or by post. Enterprise certification will be completely free.

“Decree 103/2020/ND-CP takes effect from the date of signing, we recommend that businesses with fragrant rice listed in the EVFTA and having orders to export fragrant rice need to urgently send documents. The Department of Crop Production willquickly complete procedures for businesses andexport to the EU soon,” Deputy Minister Le QuocDoanh emphasised.