The Government’s recently-issued Decree 107 has mostly received a warm welcome from rice exporters as its provisions enable them to improve their competitive edge and expand export markets. However, there are still concerns regarding the decree.
Decree No.107 allows enterprises to export an unlimited amount of rice without owning storages and milling plants. The provision is believed to diversify products and encourage competition among rice producers. However, concerns have risen over the possibility of unhealthy competition from scam companies.
The decree affirms the State’s role in regulating the market and implies that enterprises must push their own efforts in order to grow. However, many firms worry that by removing floor price and price registration, as well as providing more liberal regulations may result in underselling, which will only go on to further affect rice quality and export values.
The Ministry of Industry and Trade admits that the decree poses a huge challenge for heads of rice export firms. However, this challenge is common for any market looking to grow.
The Ministry of Industry and Trade also affirms that the decree has set out clear roles for state management authorities and enterprises. Specifically, the State will continue providing legal assistance, forecasting market trends, assessing risks, and regulating prices. Meanwhile, firms should be on their own in developing products and markets. –VNA
