The Prime Minister requested increased credit and expansion of rice export markets

According to a directive issued on September 9th by Prime Minister Pham Minh Chinh, ministries, sectors, and localities are urged to promptly implement solutions to stabilize the market and promote rice production and export. The directive was issued amidst global uncertainties, particularly the Philippines – a market accounting for over 40% of Vietnam's rice supply – halting imports for two months starting September 1st.

Accordingly, the government leadership requested the State Bank of Vietnam to direct commercial banks to increase credit supply to businesses involved in rice production, processing, procurement, and export to help them seize opportunities and reduce risks. The Ministry of Finance is tasked with accelerating VAT refunds, reforming customs procedures, and purchasing rice for reserves to support farmers in resuming production.

The Ministry of Industry and Trade is tasked with maintaining traditional markets and expanding to countries with signed FTAs ​​such as the US, South Korea, and the EU through direct and online trade promotion channels. Vietnamese trade missions abroad must improve their understanding of regulations and identify potential barriers to protect business interests.

Can Tho farmers harvesting rice. Photo: Thanh Tran

The Ministry of Agriculture and Environment is responsible for developing specialized rice-growing areas, researching high-yield, high-quality varieties associated with the "Vietnamese rice" brand, investing in infrastructure for preservation and processing, applying digital technology and green production to enhance value. Localities must re-plan production, ensure the supply of materials, a rational variety structure, and link consumption along the value chain to stabilize output for farmers.

The government also requires close monitoring of export activities, promptly resolving obstacles and supporting businesses in the process of fulfilling contracts.

In the first eight months of the year, Vietnam exported 6.3 million tons of rice, earning $3.17 billion. Despite a slight increase in volume, export value decreased by nearly 18% due to a drop in average prices. The Philippines alone purchased 2.6 million tons, continuing its role as the largest customer. The temporary suspension of imports by the Philippines has led many businesses in the Mekong Delta to limit purchases and avoid large-scale stockpiling due to concerns about price and market risks.

Previously, the Ministry of Industry and Trade warned businesses against concentrating goods in a single market, urging them to proactively expand into China, Indonesia, Malaysia, Africa, and the Middle East. Businesses were also advised to increase long-term contracts, boost official exports, and improve traceability to meet the requirements of demanding markets.

Source: https://vnexpress.net/