MoIT paves way for rice export comeback

Creating a favorable legal framework for businesses, developing new export markets, and strengthening brand building efforts are among the measures planned by the Ministry of Industry and Trade (MoIT) this year to deal with difficulties facing rice exports. 

Enhancing competitiveness

In 2016, Vietnam exported 4.88 million tonnes of rice worth US$2.2 billion, down 25.8 percent in volume and 21.2 percent in value compared with 2015. But the Vietnam Food Association is forecasting a resurgence of the rice market this year due to high demand from Asian and Middle Eastern countries. India is expected to be the world’s largest rice exporter. Thai rice exports are predicted to recover, and Vietnamese rice exports are expected to increase but still to fall short of previous levels.

Minister of Industry and Trade Tran Tuan Anh said Vietnam would continue to face difficulties in exporting rice due to oversupply. Therefore, enhancing the competitiveness of rice exporters is a must.

The MoIT has studied the strengths and limitations of domestic rice businesses in competition with rice exporters from other countries.

The minister spoke about measures proposed by the MoIT to smooth the way for rice exports. Earlier this year, the government accepted the ministry’s proposal to revoke the Planning of Rice Exporters. The MoIT is drafting amendments to Governmental Decree 109/2010/ND-CP to create favorable conditions for businesses to make the most of opportunities to boost rice exports.

It plans to support rice businesses in overcoming tariff and technical barriers so that they can boost exports

Brand building

Minister Tran Tuan Anh emphasized that the MoIT and concerned organizations are concentrating on building rice brands. The ministry is also encouraging rice businesses to boost production and ensure stable quality of products.

Specifically, rice businesses are encouraged to increase the output of high quality long-grain white rice (5-10 percent broken), and reduce the production of lower quality rice (15 percent broken); increase the percentage of fragrant, parboiled, Japonica and organic rice, and diversify products processed from rice for export to Europe and North America.

The MoIT is coordinating with the Ministry of Agriculture and Rural Development to promote the formation of large rice cultivation areas and to forge linkages between producers, traders, and logistics service providers. Research will be undertaken to create suitable products to each export market along with specific measures to ensure stable quality and enhance the competitiveness of products.

“In 2017, appropriate policy and institutional changes will be made to create large rice cultivation areas and facilitate the mechanization and automation of agricultural production, paving the way for successful building of Vietnamese rice brands,” Minister Tran Tuan Anh said.

The MoIT has set goals for 20 percent of the total volume of Vietnamese rice exports to go abroad under Vietnamese brands by 2020 and 50 percent by 2030.