Việt Nam proposes credit rating system for rice exporters

Việt Nam proposes credit rating system for rice exporters

The proposal, outlined in a draft decree on rice export business to replace Decree 107/2018 and Decree 01/2025, marks the first time such a credit rating mechanism has been suggested.

A worker carrying a bag of rice. The Ministry of Industry and Trade has proposed a credit rating system for rice exporters to be introduced as a key criterion for selecting companies to participate in government-to-government contracting and for export quota allocation. — VNA/VNS Photo Thanh Bình

The Ministry of Industry and Trade has proposed a credit rating system for rice exporters to be introduced as a key criterion for selecting companies to participate in government-to-government contracting and for export quota allocation.

The proposal, outlined in a draft decree on rice export business to replace Government Decree 107/2018 and Decree 01/2025, marks the first time such a credit rating mechanism has been suggested.

Exporters would be rated on a 100-point scale covering factors like credit ranking, tax compliance, customs record, supply chain partnership with farmers, brand development, export performance, inventory, and reporting. 

Logistics capacity, workplace safety, fire protection, disaster preparedness, and warehouse standards would also be taken into account under the proposal.

Ratings would be classified into five categories, from 'very high' (80-100 points) to 'very low' (0-19 points).

The Ministry of Industry and Trade will establish a council to access and publish the creditworthiness of rice exporters. These ratings would serve as a basis for allocating contracts and quotas, replacing the current system of even allocation.

Ratings would help enhance prestige of rice exporters, improve competitive advantages and consolidate brands of Vietnamese rice in the international market, the ministry said.

However, a trader warned that the system could favour large exporters with advanced logistics and management, leaving smaller and newer players at a disadvantage. An independent supervision mechanism to ensure fairness in evaluation will likely be needed.

The draft also proposes opening up rice exports to foreign-invested enterprises, providing that they meet prerequisites and obtain licences. 

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