The Ministry of Industry and Trade issues urgent directives regarding rice exports and domestic market stabilisation.

DNHN - The Ministry of Industry and Commerce has just issued Directive No. 07/CT-BCT, dated August 15, 2023, regarding the strengthening of market information, trade promotion, the development of the rice export market, and the stabilisation of the domestic

To manage rice export to ensure the target of rice consumption, commodity rice, and the interests of rice growers; balance export and domestic consumption, ensure minimum circulation reserve as prescribed; ensure effective export; while implementing the Prime Minister's instruction in Official Dispatch No. 610/CD-TTg dated July 3, 2023, on intensifying the implementation of tasks and solutions to promote rice production and export and the Directive.

General Department of Market Management: Directing local market management forces to strengthen coordination with local authorities to closely monitor the situation of rice prices, inspect and control business establishments, wholesale and retail outlets, markets, supermarkets, trade centres, and warehouses to control supply, selling prices, prevent violations of price listing, speculation, and hoarding, and establish unreasonable prices for rice products. Increase inspection efforts and prohibit the transport and trade of rice of unknown origin. Organisations and individuals who violate the law must be dealt with according to the law.

Coordinate with the Department of Import-Export to inspect the implementation of the law on rice export business by the provisions of the Government's Decree No. 107/2018/ND-CP dated August 15, 2018, on rice export business.

Import-Export Department: To assume primary responsibility for, and coordinate with relevant units in, urgently finalising the draught Decree amending and supplementing Decree No. 107/2018/ND-CP dated 15 August 2018 of the Government. on rice export business, to be submitted to the Government in the third quarter of 2023 by the directives of the Prime Minister in Directive No. 24/CT-TTg and of the Government's leaders in Document No. 491/VPCP-KTTH

Assume primary responsibility for and coordinate with functional units within the Ministry of Agriculture and Rural Development, the Ministry of Finance, the Vietnam Food Association, the Departments of Foreign Market, the Trade Office, and Vietnam Trade Office Branches in other nations. Countries and territories closely monitor developments in the global rice market; coordinate to monitor the situation of rice production, supply and demand fluctuations, and domestic market prices of paddy and rice; and advise and propose solutions to serve rice export management in the new environment.

Assume primary responsibility for and coordinate with ministries, branches, localities, relevant units, and functional agencies under the Ministry and the Vietnam Food Association in inspecting and enforcing the law on rice export business according to regulations. according to Decree No. 107/2018/ND-CP.

Assume primary responsibility for and coordinate with the Departments of Foreign Markets in synthesising information from the Vietnam Trade Office in foreign countries on the global rice market and trade, movements, mechanisms, and policies of rice-producing and exporting nations.

Lead the implementation of the Prime Minister's Decision No. 583/QD-TTg dated May 26, 2023, approving the Strategy to develop Vietnam's rice export market to 2030.

Assume primary responsibility for, and coordinate promotion efforts with, the Trade Promotion Agency, the Departments of Foreign Markets, the Trade Office, and Vietnam Trade Office Branches in other countries and territories, as well as the Vietnam Food Association. Promote trade and rice products to consolidate and grow the market.

Lead and collaborate with the Vietnam Food Association and rice exporters to collect data, provide direction, and enhance production and business capacity, negotiation, signing, and implementation capabilities. Executing export contracts, promptly updating the status of rice exports, and, if necessary, assisting traders with problem resolution.

Continue to urge the Vietnam Food Association and rice export traders to strictly comply with the provisions of Decree No. 107/2018/ND-CP regarding: i) implementing the periodical reporting regime on the amount of paddy and rice in stock, the situation of signing and executing rice export contracts; ii) purchasing paddy, commodity rice to ensure the balance between export and domestic consumption; and iii) maintaining the prescribed level of circulation reserve, contributing to stifling inflation.

Allocate funds for rice trade promotion programmes in the annual National Trade Promotion Programme, particularly rice trade promotion programmes by market signals. To diversify, dominate new and potential markets, and increase competitiveness, we must create the conditions for businesses to effectively exploit the benefits of the Free Trade Agreements (FTAs) to which our country is a party. about the Vietnamese rice industry.

Assume primary responsibility for and coordinate with the Import-Export Department, the Departments of Foreign Markets, and other related agencies and organisations in promoting activities to promote and introduce Vietnamese rice exporters' products to distributors. distribution both domestically and internationally.

Trade Remedy Department: Carry out activities to warn about the possibility of being investigated for trade remedies, combat the evasion of trade remedies, and assist rice exporters if importing countries investigate. to implement trade remedies and combat trade remedy evasion within the scope of their responsibilities and authority.

Department of Multilateral Trade Policy: Coordinate with the Import-Export and Foreign Market Departments during the negotiation process at bilateral and multilateral forums to negotiate market opening and non-tariff measures. related to rice products to remove obstacles and create favourable conditions for the export of rice from Vietnam. At the same time, use the process of reviewing the implemented Agreements to propose to partners that they open more markets and increase tariff quotas for Vietnam's rice products.

Building an ecosystem to assist the rice industry in making effective use of FTAs; up-to-date information on advantages, challenges, and issues to be considered for Vietnam's rice exports to markets where Vietnam has signed and joined bilateral and multilateral agreements.

Legal Department: Coordinate with the Import-Export Department to finalise and submit to the Government the draught Decree amending and supplementing Government Decree No. 107/2018/ND-CP dated August 15, 2018, on rice export business.

As per Decree No. 107/2018/ND-CP, coordinating with the Department of Import-Export to implement inspection and enforcement of the law on rice export business.

Department of Asia-African Markets, Department of Europe-American Markets

Directing the Vietnam Trade Office in other countries to closely monitor information on the market situation, movements, mechanisms, and policies about the export and import of rice in the host country; Post information on the Ministry of Industry and Trade's web portal and notify the Import-Export Department and relevant agencies and units to coordinate and implement the work of regulation, administration, and support expeditiously. necessary. The Vietnam Trade Office in the host country has actively updated the seasonal situation, particularly for rice production and export markets (such as India, Thailand, Pakistan, Cambodia, the United States, etc.). The production season, the price of rice consumed on the local market, the export situation and policy actions relating to the volatile global food market; regular or irregular information regarding the Import-Export Department and the Departments of Foreign Markets.

Monitor the implementation and expeditiously advance negotiations to renew the signed Memorandum of Understanding on rice trade; increase the search for opportunities to sign rice trade agreements with new and potential markets. Preside over monitoring and assisting designated focal enterprises in implementing the Rice Trade Memorandum of Understanding and other rice export traders in their pursuit of opportunities to promote rice exports to markets.

Directing the Trade Office in countries and territories to coordinate with Trade Promotion Offices and Centres to introduce Vietnamese products; introducing Vietnamese products, strengthening the marketing of rice products, and deploying activities to promote Vietnamese rice products in foreign markets, particularly with high-quality, high-value-added rice varieties to penetrate niche markets.

Actively coordinate with the Import-Export Department and relevant agencies and units to strengthen trade promotion and promotion of Vietnam's rice products and the rice export capacity of Vietnamese traders; concurrently, carry out other related coordination activities to promptly regulate, administer, handle problems, and support rice import and export business activities of traders in the event of an emergency.

Department of Internal Revenue

Monitoring the market situation closely and proactively directing the local Department of Industry and Trade to have a plan to prepare the supply, ensure the quality, and balance the supply and demand of rice products on the domestic market will help stabilise rice prices in particular and food prices in general, thereby ensuring national food security.

According to their assigned functions and responsibilities, the units under the relevant Ministry actively coordinate to accomplish the aforementioned tasks.

Departments of Industry and Trade of provinces and cities governed centrally: Coordinate with local Departments of Agriculture and Rural Development to review the status of local rice and rice production and provide the Ministry of Industry and Trade with information on output and varieties. rice, rice commodity backlog, and expected yield and output in the region.

Demanding that enterprises participating in the Market Stabilisation Programme in the area have plans for the source of paddy and rice products to ensure market supply from now until the end of the year; rigorously addressing cases of speculation, illegal profiteering, and excessively high paddy and rice prices, which are causing instability on the domestic market.

Instructing rice export businesses in the region to maintain a sufficient amount of rice and rice in reserve to stabilise the market and be prepared to supply the market as needed.

Promote rice production and export and ensure food security by proactively coordinating with Ministry of Industry and Trade units to keep them apprised of emerging local situations and proposing relevant solutions.

Continue carrying out relevant duties as outlined in Decree No. 107/2018/ND-CP and carry out duties outlined in Directive No. 24/CT-TTg on enhancing the inspection and supervision of production activities. Export, circulation, and consumption of rice and rice in the area, and the maintenance of the minimum circulating reserve level of rice export traders by regulations; rigorously handle cases of speculation and illegal profiteering that drive up rice prices unreasonably, cause domestic market instability, and damage the reputation of Vietnamese rice on the international market.

Vietnam Food Association: Closely monitor the situation of the global rice market, forecast import demand of the markets; developments in the domestic market situation (prices of paddy, domestic rice, rice inventories, etc.), and actively coordinate with functional units of the Ministry of Industry and Trade to propose measures to ensure food security and rice export efficiency.

Focusing on enhancing the communication of the global rice market situation to export members and relevant localities, ensuring accurate and timely information, and contributing to the establishment of a foundation for orientation activities. the production and commercial activities of merchants and producers.

Instruct the members of the Association to strictly implement the periodic and ad hoc reporting regime, as well as the provisions of Decree No. 107/2018/ND-CP.

Proactively propose to the Ministry of Industry and Trade market-specific trade promotion programmes and strategies for each market. The Vietnam Food Association supports and coordinates rice export traders' approaches to each market based on the market characteristics, business and import methods of their partners.

Rice export business traders

By Decree No. 107/2018 ND-CP, strictly implement the periodic and ad hoc reporting regime and maintain the minimum circulation reserve.

Actively monitor the global rice trade situation, the movements of exporting countries, and the consumption needs of importing countries, and consult with the Association to develop a plan to organise production, trade, and negotiation to maximise export efficiency.

Participate actively in the local market stabilisation programme, contributing to the stabilisation of domestic rice and rice prices and ensuring national food security.

Develop step-by-step plans to improve production and business capacity; build and foster a cadre of officials and employees engaged in professional import-export operations, market work, and marketing; focusing on training and fostering to improve skills in capturing and utilising market information, negotiating, signing, and implementing contracts, and resolving international commercial disputes.

Anh Nguyen