New Rule on Registration Process for Rice Export Launched

The Vietnam Food Association (VFA) has announced a new regulation on the registration process for rice export contracts in the second half this year.

 

Under the regulations, domestic enterprises have to submit their rice export contracts to the association for approval, said Truong Thanh Phong chairman of VFA.

 

Phong added that the export price in these contracts must match with the association’s offered level at the date of signing and that the delivery period is within two months of the signing date.

 

The move aims to reduce risks for domestic enterprises in the context of the fluctuating global rice market and to stabilize the domestic rice market and local food security.

 

Rice exporters are also requested to attach inventory reports while submitting their contract registration profile to the association, and the stockpiled rice volume must be 50 per cent at least of the total registered amount. The centralized export contracts are excluded.

 

In the new regulations, VFA also emphasized that it will not approve the export contracts in which Vietnamese enterprises sell rice to the foreign importers who can use the imported rice to sell back to the centralized markets.

 

Vietnam is estimated to have exported 4.28 million tons of rice in the past seven months, earning US$1.98 billion, up 46.3 per cent in volume and 4.4 per cent in value against the same period last year.

 

Export prices of Vietnamese rice have recently climbed as demand from foreign customers is predicted to increase in the remaining months of this year.

 

The Philippines plan to import 700,000 more tons of rice from Vietnam, raising the total rice export volume that the Philippines purchased from Vietnam to 2.2 million tons. Malaysia, meanwhile, will import an additional 150,000 tons of rice from Vietnam for storage. (Saigon Economic Times)