HCMC – The Ministry of Industry and Trade (MOIT) has written to the prime minister proposing amending Decree 107/2018/ND-CP on rice exports.

The ministry said Vietnam usually exports 6-6.5 million tons of rice annually while statistics from the General Department of Vietnam Customs showed that the nation imported one million tons of rice last year for food and beverage production, increasingly competing with domestic products and affecting local farmers.

The draft on amending Decree 107 brings new regulations on rice import management. The ministry will join hands with the Ministry of Agricultural and Rural Development (MARD) and the Ministry of Finance to manage rice imports. 

They were also tasked with reporting the results of the import management measures to the PM.

Meanwhile, the General Department of Vietnam Customs will send updates on rice imports to the MOIT monthly, quarterly and yearly or as required by the ministry.

The draft aims to enhance the legal framework and eliminate the flaws of Decree 107, requiring rice merchants to report on rice import agreements and the amount of rice in stock every quarter and year.

On the export side, the MARD said Vietnam would be able to ship some 6.8-7 million tons of rice this year if rice exports in November and December remain over 400,000 tons per month.

Meanwhile, the Vietnam Food Association reported that Vietnamese rice prices have risen by US$30 per ton on average since India limited rice exports. Vietnam’s 5% broken rice now sells for US$428 per ton, and Vietnam’s 5% broken rice is for US$408 per ton.

In the short term, Vietnam’s rice prices would continue to stay high thanks to a strong demand fueled by economic and political turbulence, market observers said, adding that exporters should grasp the opportunity to expand to new markets.