AsemconnectVietnam - The Ministry of Industry and Trade (MoIT) has issued Instruction 07/CT-BCT dated August 15, 2023 on intensifying market information and trade promotion to boost rice exports while stabilizing the domestic market, ensuring the interests of rice farmers.

Ensuring market stability
Complex changes in the global rice market have affected the production and export of Vietnamese rice.
Data from the General Department of Vietnam Customs show that Vietnam exported 660,738 tonnes of rice in July earning US$362.66 million, up 6.9 percent in volume and 6.4 percent in value compared with June. In the first seven months, rice exports reached nearly 4.9 million tonnes in volume, up 20.1 percent year-on-year, and US$2.62 billion in value, up 31.4 percent.
While Vietnamese rice businesses see major export opportunities, increases in global prices may affect domestic retail prices and the consumer price index (CPI) of 2023.
In this context, to balance exports and domestic sales as well as to ensure the interests of rice farmers, the MoIT has assigned the Vietnam Directorate of Market Surveillance to providing guidance for local market surveillance officials to tighten coordination with relevant authorities in controlling rice supply and prices to prevent speculation and unreasonable pricing. Controls must be tightened to prevent trade in rice products of unclear origin.
The Vietnam Directorate of Market Surveillance is also responsible for coordinating with the Agency of Foreign Trade in monitoring the implementation of regulations on rice exports in accordance with the Government’s Decree 107/2018/ND-CP dated August 15, 2018.
Creating favorable legal framework
In the context of complex changes in rice exports, the Agency of Foreign Trade is responsible for coordinating with relevant units to accelerate the complete drafting of amendments and supplements to Decree 107/2018/ND-CP for submission to the Government in the third quarter of this year as guided by the Prime Minister.
At the same time, the agency should coordinate with relevant units to keep a close watch on changes in the global rice market as well as domestic rice production, supply and demand, and propose measures to ensure effective management of rice exports in the new situation.
Instruction 07/CT-BCT indicates that the Agency of Foreign Trade should continue guiding the Vietnam Food Association and rice businesses to seriously implement Decree 107/2018/ND-CP. Specifically, the association and businesses should report periodically on the volume of rice in stock, as well as the signing and implementation of rice export contracts. They should purchase commercial paddy and rice to ensure the balance between exports and domestic sales, and maintain the minimum reserve for circulation to stabilize the domestic rice market and ensure national food security.
The Department of Legal Affairs has been assigned to coordinating with the Agency of Foreign Trade to complete the drafting of amendments and supplements to Decree 107/2018/ND-CP, and to monitor the implementation of regulations on rice exports in accordance with this decree.
The Vietnam Trade Promotion Agency is responsible for arranging funds for rice trade promotion programs under the annual National Trade Promotion Program, especially those enabling traders to take advantage of free trade agreements to which Vietnam is a signatory, aiming to promote exports to new markets and enhance Vietnamese rice competitiveness.
Stabilizing domestic market
Domestic rice prices remain relatively stable despite recent increases in global prices. Assoc. Prof., Dr. Ngo Tri Long, economist, said this stability reflects the MoIT’s suitable management policy and its timely guidance, which have enabled Vietnam to benefit from increases in global rice prices while ensuring stable domestic prices. The ministry has asked localities and businesses to continue market stabilization programs.
Under the MoIT’s guidance, the Domestic Markets Department is responsible for keeping a close watch on market situation and guide the Industry and Trade Departments of centrally-run cities and provinces to ensure product quality and supply-demand balance in the domestic rice market, contributing to stabilizing rice prices in particular and food prices in general, ensuring national food security.
The Industry and Trade Departments of centrally-run cities and provinces are responsible for guiding businesses participating in market stabilization programs to ensure sufficient supply; strictly dealing with speculation and unreasonable pricing; and guiding rice exporters to maintain reserve for supply when necessary.
The Vietnam Food Association should keep track of changes in the global rice market and forecast the demand of importing markets. The association should also keep a close watch on the domestic market (paddy and rice prices, and the volume of rice in stock), and coordinate with relevant units of the MoIT to propose measures to ensure food security and rice export efficiency.
Source: Ven.vn