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Rice exports over quota: Potential risks
16/11/2022
Vietnam's rice exports after years of standing in second place, then in 2013 was down to third place behind India and Thailand.

 
Forecast rice exports in 2014 will continue to be difficult , so , according to the Vietnam Food Association ( VFA ) , 2014 will encourage the export quota and border trade ( quota ) . However, the over -quota exports must be closely managed .

Rice exports in 2013 of Vietnam reduced both the volume and value of production is only 6,681 million tonnes , down 1.038 million tons ( 13.45 % ) , collected about 2,893 billion U.S. dollars FOB ( down more than 16 % ) . The average export price of $ 433.07 / ton , down $ 13.79 / t over the same period . According to VFA , despite 6 months of the year exceeded export records but the last months , not imported Indonesia , Philippines and Malaysia imports fell last year to lower exports .

However, according to Truong Thanh Phong , VFA chairman , though reduced rice exports in 2013 but has achieved the goal of all goods consumed in civil and domestic rice prices stable , profitable farmers . However, rice exports in 2013 still exist many problems such as the amount of canceled contracts is too large compared to registration , to over 50 % ; situation by lowering the price competition between firms quality still exist affect the prestige of Vietnam's rice .

2014 forecast of U.S. Department of Agriculture ( USDA ) and the Food and Agriculture UN ( FAO ) show that the higher rate of consumption than production , but still in world rice situation excess supply and prices continue to decline due to pressure to sell off the inventory exhaust from Thailand . According to Truong Thanh Phong , very difficult to make a prediction for the market far in 2014 , however , the general perception 2014 " extremely difficult " by the large excess , the fierce market competition , and especially serious price is likely to fall further . VFA in 2014 is expected to export 6.5 million tonnes to 7 will consume and timely cargo of rice farmers .

2013 , Asia remained the largest export market of Vietnam , in which the Chinese market accounted for a large amount of export quota and non-quota . 2013 quota export to China is estimated at about 1.4 to 1.5 million tons , up sharply in 2012 ( about 400,000 tonnes in 2012 ) . VFA -quota export rice price hikes due to higher traffic at border purchase price of domestic exports despite lower quality products . The Chinese traders also prefer this form of trade quotas and so do not need to pay taxes , higher interest than the official importer . Under the VFA , in 2014 the Asian countries , especially China and is still an important export markets of Vietnam , both in the volume and cross-border trade .

According to Mr. Lam Anh Tuan , Director Thinh Phat Co., Ltd. ( Ben Tre province ) , in the world supply situation , the trade surplus is an advantage border of Vietnam , especially for the Chinese market . Cross-border exports offset export quota for this year , so even if plus exports fell but both the export quota , export volumes have reached more than 8 million tons , contributing to increase the amount of rice consumption in the country . Therefore, the State should have policies to promote better management of this kind of commercial development , especially the determination of whether the export quota for the export of rice .

At the conference , several concurring opinions to encourage the development of border trade , however, need to closely manage this type of trade . Mr. Truong Thanh Phong said the border trade is good and there is no reason to prohibit . However, trading activities across borders unofficial always potential risks . Chinese traders buy rice Vietnam over quota , usually pretty easy in terms of quality , this will make cross-border rice quality is poor, in the long run will reduce the prestige of Vietnam's rice .

On the other hand commercial fraud as VAT evasion ... often happens with this type of business , causing losses to the state and inequality businesses export quota ... Therefore , the need to develop mechanisms appropriate management , and now we have not controlled this type of trade . Mr. Truong Thanh Phong said VFA has asked the Ministry of Finance , Ministry of Industry and Commerce jointly examine cross-border trade and rapid mechanism for effective control over the export of rice quota .

According to Dang Loan
New Hanoi