Enterprises not exporting rice regularly to lose licenses
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Rice exporters will have their licenses canceled if they fail to ship for a long time.
Out of 205 businesses with export licenses, 39 have not exported the grain since December 2019.
The Ministry of Industry and Trade said: “Many traders have no rice market or capacity to export. This along with the impact of the Covid-19 pandemic means they have not been able to export rice for nearly two years.”
Under further changes to a decree, the ministry wants local authorities which issue rice export licenses to strengthen inspection of business conditions.
Vietnam exported 5.7 million tons of rice worth $3 billion in the first 11 months of this year, year-on-year increases of 0.8 percent and 7.3 percent.
The country is unlikely to achieve the export target of 6.5 million tons this year, the Vietnam Food Association said, predicting that even next year exports would only be around 6.3 million tons.
Questions & Answers
Q.Which businesses will face license cancellation according to the new regulation?
Which businesses will face license cancellation according to the new regulation?
Rice exporters who fail to ship for an extended period will have their licenses cancelled. Specifically, 39 out of 205 businesses with export licenses have not exported the grain since December 2019.
Q.What reasons has the Ministry of Industry and Trade given for businesses not exporting rice?
What reasons has the Ministry of Industry and Trade given for businesses not exporting rice?
The Ministry cited that many traders lack a rice market or the capacity to export. This, combined with the effects of the Covid-19 pandemic, has prevented them from exporting rice for nearly two years.
Q.What is the expected rice export volume for this year and next year?
What is the expected rice export volume for this year and next year?
This year's export target of 6.5 million tons is unlikely to be met. The Vietnam Food Association predicts that exports will only be around 6.3 million tons next year.
Q.What changes are being introduced regarding the inspection of rice export businesses?
What changes are being introduced regarding the inspection of rice export businesses?
Further changes to a decree mean the Ministry of Industry and Trade wants local authorities, responsible for issuing licenses, to strengthen their inspection of business conditions for rice exporters.
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