The Vietnam Chamber of Commerce and Industry has submitted comments on the Draft Decree amending a number of articles in Decree No. 107/201 and Decree No 01/202 regarding rice export activities. The key points highlight the potential hindrances these regulations may pose to businesses.
According to VCCI, on May 4, 2025, the Politburo issued Resolution No. 68, focusing on developing the private economy. It emphasized reducing administrative interventions and removing unnecessary barriers to market access to ensure a favorable business environment.
Ownership of Warehouses: A Barrier to Market Entry
<pular regulations stipulate that rice exporters must own storage facilities for paddy and rice. VCCI argues this could limit new entrants, especially small and medium-sized companies, as building or purchasing storage facilities demands substantial financial resources.
The rationale behind requiring owned storage is questionable, as leasing facilities could equally meet the objective of ensuring operational capacity and storage availability. VCCI suggests this requirement be revisited, promoting a more flexible and less restrictive business environment.
Maintaining a Minimum Stockpile: Unnecessary Burden
Under the Draft, new traders are required to maintain a minimum stock of 1, tons of rice within 4 days of certification. VCCI sees this as an unduly burdensome, necessitating significant capital and storage costs, thus hindering market entry.
The Chamber argues this regulation may not effectively address concerns about market competition or the impact on farmers’ income. Instead, it could lead to increased operational costs for businesses, making them less competitive.</P.