What are regulations on determination and announcement of directed paddy rice in Vietnam?

What are regulations on determination and announcement of directed paddy rice in Vietnam?

Pursuant to Article 14 of the Decree 107/2018/NĐ-CP stipulating determination and announcement of directed paddy rice in Vietnam as follows:

1. The Ministry of Finance shall take charge and cooperate with the Ministry of Agriculture and Rural Development to promulgate the regulations on and provide guiding methods for surveying and determining production costs and calculating the cost price of commodity paddy as the basis for the People’s Committees of provinces to determine and announce the estimated average cost price in their provinces or cities from the beginning of each crop in the year.

2. Based on the estimated average cost price for each crop announced by the People's Committees of provinces, the Ministry of Finance shall take charge and cooperate with the Ministry of Agriculture and Rural Development in examining, reviewing and determining the estimated average cost price for each crop in the entire production sector.

3. Based on the estimated average cost price for each crop, the Ministry of Finance shall determine and announce the directed paddy price at the beginning of the crop as the basis for stabilizing the commodity rice on the market to guarantee the average profit of rice growers under current policy.

What are regulations on stabilization of domestic rice prices in Vietnam?

Pursuant to Article 15 of the Decree 107/2018/NĐ-CP stipulating stabilization of domestic rice prices in Vietnam as follows:

1. The measures for stabilizing rice prices shall be announced and applied in accordance with the law on prices.

2. If the rice prices increases too high without reasons, the exporters shall organize a rice distribution system for providing stored rice and rice circulation reserves, with the aim to stabilize the domestic market as guided by the competent authority.

3. If the rice prices decrease too low without reasons and are inconsistent with the directed paddy rice specified in Article 14 hereof, the Ministry of Agriculture and Rural Development shall take charge and cooperate with Ministry of Finance, Ministry of Industry and Trade, Vietnam State Bank and Vietnam Food Association in sending the market regulation measures to the Prime Minister for consideration and approval, with the aim to limit the damage for processors.

4. The exporters shall implement the measures for stabilizing the rice prices specified in this Article and may have arising expenses offset under the decision and guidance of the competent authority.

What are regulations on joint production, consumption and establishment of raw materials area in Vietnam?

Pursuant to Article 16 of the Decree 107/2018/NĐ-CP stipulating joint production, consumption and establishment of raw materials area in Vietnam as follows:

1. Exporters are encouraged to establish raw materials area (hereinafter referred to as “raw materials area”) or cooperate with the processors in establishing such area under the following forms:

a. The raw materials area under the management and use of the trader shall be established on the rice production area, which is handed over or leased by the State or contributed as capital by household or entities in form of land use right or land lease right for the rice production purpose in accordance with law on land.

b. The policy on encouraging and developing cooperation and joint production associated with the consumption of agricultural products and building of large field.

c. Signing the agreement on joint production and rice consumption with the rice growers or the representatives of rice growers in accordance with the guidance of Ministry of Agriculture and Rural Development and law regulations.

d. Other forms as prescribed in the regulations and guidance of competent authorities.

2. A trader establishing the raw materials area as prescribed in clause 1 of this Article shall be considered and prioritized to:

a. Participate in the trade promotion programs, develop and promote the images and brands of domestic and foreign products and enterprises.

b. Apportion the implementation targets of the G2G contracts.

c. Participate in the State’s procurement of temporary stored rice.

3. The Ministry of Agriculture and Rural Development shall take charge and cooperate with relevant agencies in reviewing, promulgating or sending the mechanism and policy on encouragement and support for the establishment of raw materials area to the Government or Prime Minister for promulgation.

Best regards!