Nguyen Van Don, director of Viet Hung Co. Ltd., said he had voiced his opinion about this requirement at a recent meeting with representatives of the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade.
He said the current conditions set by Decree 109 issued in 2011, requiring rice traders to invest in infrastructure to get eligible for export, were reasonable. However, it is very difficult for traders to shoulder the stage of production, with both capital and expertise needed.
“Except the material zone requirement, we have no problem with the other conditions that will be added such as an annual export volume of over 10,000 tons in two consecutive years,” said Don.
A representative of Saigon Trading Group (Satra) expressed his concern over additional conditions for rice export as rice traders are now struggling with many problems.
“In the context of difficult export, setting extra requirements for infrastructure and material zone is even more difficult than granting rice export licenses in 2012,” he said.
In July, the Prime Minister requested the trade ministry to join hands with the agriculture ministry and relevant agencies to consider amending Decree 109/2010/ND-CP on rice trading and export in a bid to link production with processing.
The above agencies are asked to pass a rice exporters planning in which traders with material zones and those cooperating with farmers have the priority to become major rice exporters, while those who are simply traders are restricted for export. In addition, they have to draw up a roadmap to require major rice exporters to develop material zones or form partnership with rice farmers.