More firms issued licenses for rice exports
As many as 42 firms have been licensed to export rice to foreign markets thanks to the Government’s Decree 107/2018 on rice export businesses, said Tran Thanh Hai, deputy head of the Import and Export Department at the Ministry of Industry and Trade.
Since the adoption of Decree 107, local rice firms have found it easier to export their products to foreign markets and enjoy relaxed requirements for rice exporters, Hai was quoted by VietnamPlus news site.
The department also confirmed that Decree 107, replacing the earlier Decree 109/2010, is expected to make business operations easier for rice traders.
This is a breakthrough for regulations and policies related to firms’ rice export activities, Hai said, adding that the decree has created significant change in the way the food staple is exported.
Most rice-trading barriers, especially those affecting small traders, have been removed, opening up export opportunities.
Under the decree, the regulation requiring firms to own at least one warehouse and a milling facility to obtain a license to ship rice abroad has been lifted. Traders can rent these facilities instead, helping firms save on costs.
Apart from this, the regulation on rice export contract registrations was also abolished based on enterprises’ requests because of their anxiety over their business information being leaked.
As such, the new regulation allows traders who do not need rice export licenses to ship organic rice and parboiled rice abroad. Small firms that fail to meet requirements to export popular rice types can now reach out to global markets if they focus on shipping specific types of rice.