- At the proposals of the Minister of Trade and the Minister of Agriculture and Rural Development,

Article 1.- To ratify the 1999 rice export quota of 3.9 million tons, which is allocated as follows:

a/ Southern provinces: 2.7 million tons (including State enterprises, that cover also the major rice exporting enterprises being members of the Central

Food Corporation, and enterprises of different economic sectors located on the provincial/municipal territories).

b/ Centrally-run companies: 1.0 million tons.

c/ Foreign-invested companies operating in the field of rice production and processing for export: 50,000 tons.

d/ Enterprises beside the main rice exporters, which find new customers and/or markets: 50,000 tons.

e/ Northern provinces: 100,000 tons.

To allocate a quota of 3.24 million tons in the first phase for the above-said objects for implementation as from January 1st, l999 (according to Appendix No. 1 attached to this Decision).

The further allocation of the 1999 rice export quota shall be considered by the end of September 1999, on the basis of the concrete situation of agricultural production, domestic and foreign markets, and results of the fulfilment of quota already allocated in the first phase.

The Ministry of Trade is assigned to coordinate with the Control Board to keep the total rice export volume of the provinces and enterprises (mentioned in Appendix I) in the first quarter of 1999 at about 1 million tons.

Basing themselves on the market demand, the situation of the conclusion of rice export contracts by enterprises, the Ministry of Trade and the Control Board shall report to the Prime Minister for the prompt adjustment the above-said rice export, volume in the first quarter of 1999.

Article 2.- On the allocation of quotas to enterprises:

a/ The allocation and adjustment of rice export quotas (within the total quotas already allocated to the province) to the major rice exporting enterprises located in the provinces and cities, including enterprises being members of the Central Food Corporations shall be considered and decided by the presidents of the provincial/municipal People's Committees on a case-by-case basis.

The presidents of the People’s Committees of the provinces and centrally-run cities shall not allocate quotas to enterprises other than those authorized as the major rice exporters.

b/ The allocation and adjustment of quotas for foreign-invested enterprises operating in the field of rice production and processing shall be considered and decided by the Minister of Trade on the basis of the Prime Minister’s directing principles in Document No. 1182/CP-KTTH of October 6, 1998 and Document No. 304/VPCP-QHQT-m of November 6, 1998.

c/ The allocation of rice export quotas to objects mentioned in Point d, Article 1 of this Decision shall be considered by the Ministry of Trade before submission to the Prime Minister for decision.

d/ Basing themselves on the rice production situation in the northern provinces, the Ministry of Trade and the Ministry of Agriculture and Rural Development shall, after consideration, propose the Prime Minister to allow enterprises in Northern Vietnam to participate in rice export according to the

quotas set in Point e, Article 1 of this Decision.

Article 3.- For the countries where rice import is assigned exclusively to only one organization of such countries, the Ministry of Trade shall work out a plan and submit it to the Prime Minister for negotiating, signing governmental agreements and assigning one or several enterprises to sign specific contracts; the Ministry of Trade and the Control Board shall take joint responsibility for allocating quotas for the implementation of such contracts to the major rice exporting enterprises in a transparent and fair manner.

For the countries where free rice export is allowed, the Vietnamese major rice exporting enterprises are allowed to take initiative in signing contracts for the direct sale or sale through companies of third countries, according to the allocated quotas and the price bracket set by the Ministry of Trade.

Article 4.- For the export of rice under the Government’s plans on debt repayment and payment for import goods, the Government's regulations on bidding shall apply in cases where bidding cannot be organized, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in elaborating a plan and notifying it to the Ministry of Trade so that the latter may allocate quotas to the major rice exporting enterprises according to the total quotas already allocated to localities and enterprises.

Article 5.- To approve the 1999 quotas for import of fertilizer of various kinds as follows:

- Urea fertilizer: 1,650,000 tons;

- SA fertilizer: 270,000 tons;

- DAP fertilizer: 300,000 tons;

- Potassium fertilizer: 310,000 tons

The above- mentioned quotas for import of fertilizer of various kinds shall be allocated to localities and centrally-run enterprises stated in Appendix II enclosed herewith for implementation as from January 1st, 1999.

The fertilizer importing enterprises shall take self-responsibility for the efficiency of fertilizer import; the State shall not make up for any losses incurred.

Article 6.- The Ministry of Industry shall have to direct the NPK fertilizer-producing enterprises to ensure the full and timely supply of this fertilizer for agricultural production, provided that the selling price of the home-made NPK is not higher than that of the imported NPK.

The Ministry of Agriculture and Rural Development shall assume the prime responsibility and coordinate with the relevant branches in monitoring the production and supply of NPK fertilizer by the domestic production establishments; in cases where the domestic fertilizer production fails to meet the above-said requirements, the Ministry of Agriculture and Rural Development shall together with the Ministry of Trade, promptly report to the Prime Minister on measures for additional import so as to ensure the supply and demand and stabilize the domestic fertilizer prices.

Article 7.- For fertilizers of special types (micro-biological fertilizers, leaf fertilizers) which have not yet been produced in the country but permitted to be used in Vietnam, enterprises having appropriate business lines registration shall be entitled to import them according to their production and business demands.

For chemical fertilizers used as raw materials for the production of composite fertilizers, enterprises having production permits, certificates of registration of products’ quality and trademarks as currently prescribed by law, shall be allowed to directly import such fertilizers in service of their production activities. The specific types and import volume of fertilizers shall be considered and decided by the Ministry of Trade according to the enterprises’ production demand.

Article 8.- To allow the cooperation with foreign fertilizer producers for the establishment of fertilizer reserve warehouses to ensure the regular supply of fertilizers for production.

The establishment of such warehouses must be detailed in a plan to be submitted to the Ministry of Trade and the General Department of Customs for consideration and further submission to the Prime Minister for decision.

Article 9.- The adjustment and addition of enterprises to act as major rice exporters or fertilizer importers shall be decided by the Prime Minister at the proposals of the provincial/municipal People's Committees and on the basis of the appraisal by the Ministry of Trade and the Ministry of Agriculture and Rural Development.

Article 10.- Basing themselves on this Decision and the list of major enterprises allowed by the Prime Minister to engage in direct export of rice and import of fertilizers, the presidents of the provincial/municipal People 's Committees shall issue decisions to allocate specific quotas for rice export and fertilizer import to the major rice exporting and fertilizer importing enterprises located in their respective provinces or cities, then notify the Ministry of Trade, the General Department of Customs, the State Bank of Vietnam, the Ministry of Finance and the Ministry of Planing and Investment thereof for coordination in directing the implementation.

Article 11.- Basing itself on this Decision, decisions of the presidents of the provincial/municipal People's Committees (to allocate rice export or fertilizer import quotas to the major enterprises allowed to export rice or import fertilizers in their respective provinces or cities) as well as the Trade Ministry's guidance on the rice export schedule, the General Department of Customs shall provide guidance for the border customs stations in the clearance of customs procedures for goods import and export.

Article 12.- The rice export and fertilizer import quotas allocated in 1998 shall cease to be effective by the end of December 31, 1998.

For contracts which are negotiated based on the 1998 quotas, the negotiation is allowed to continue and the quotas thereof shall be accounted into the 1999 quotas.

Article 13.- The Ministry of Trade, the Ministry of Agriculture and Rural Development and the Control Board shall coordinate with the provincial/municipal People's Committees in closely directing the management and guiding the export tempo suited to the commodity rice volume in each harvest, thus ensuring the full and prompt consumption of commodity rice for farmers and food security, not causing any price fluctuation on the domestic market, efficiently exporting, and promptly supplying materials and services for agricultural production.

Article 14.- The State Bank shall direct the commercial banks in arranging capital sources for the provision of full and timely loans to enterprises to buy rice and import fertilizers under this Decision.

State enterprises being the major rice exporters and fertilizer importers, including enterprises being members of the Food Corporations, are allowed to use properties created from loan capital as securities for bank loans. The commercial banks shall, when considering the provision of loans to member

enterprises of the Food Corporations, be entitled to apply the lending limits according to Point a, Clause 1, Article 79 of the Law on Credit Institutions.

Article15.- To apply the following measures to support rice trading activities in the first 6 months of 1999:

- The Ministry of Finance shall apply a tax rate of zero per cent for the export of assorted rice as from January 1st, 1999.

- To assign some major rice exporting enterprises, mainly in the provinces with high commodity rice output, and the Food Corporations (as mentioned in Appendix III enclosed herewith) to buy about 1 million tons of rice at the harvest of Spring-Winter crop as reserve for export, thus ensuring the timely purchase of commodity rice and keeping the flooring buying price of rice in the Winter-Spring crop not bellow 1,650 dong/kg.

The Government Pricing Commission and the Ministry of Agriculture and Rural Development shall consult the presidents of the provincial/municipal People's Committees to provide detailed guidance for rice purchase at the above-said flooring price.

The Ministry of Agriculture and Rural Development, the presidents of the provincial/municipal People's Committees shall direct enterprises to purchase 1 million tons of rice as mentioned above in the period of from February 1st to March 31st, 1999. The commercial banks shall provide loans to enterprises at common interest rates. To allow the use of price stabilizing fund to cover 100 per cent of lending interest rates for 2 months so that enterprises may effect the above-mentioned temporary reserve; the fund for covering interest rates shall be allocated directly to enterprises, based on their bank loans already used for the purchase of 1 million tons of rice as mentioned above. The State Bank of Vietnam and the Government Pricing Commission shall provide detailed guidance on the allocation of fund to cover interest rates.

Article 16.- This Decision takes effect after its signing. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the president of the People’s Committees of the provinces and centrally-run cities shall have to guide the implementation of this Decision.

(Issued together with Decision No. 250/1998/QD-TTg of December 24, 1998 of the Prime Minister)

Unit:1,000 tons