Vietnam ministry promises to reduce business barriers for rice exporters.

The Ministry of Industry and Trade (MOIT) had promised to reduce business preconditions to pave the way for more companies to export rice. However, businesses have complained that barriers to their market entry still exist. The legal document is described as setting too many barriers that prevent businesses from exporting rice. The requirements on having storehouses with a minimum capacity of 5,000 tons and having at least one husking workshop with the capacity of 10 tons per hour at minimum cannot be satisfied by many enterprises, especially small-scale ones with limited financial capability. MOIT, which is drafting a decree to replace Decree 109, has promised that it will remove the barriers by easing requirements on storehouse capacity and setting no requirements on the minimum capacity of husking workshops. The requirements on having storehouses with a minimum capacity of 5,000 tons and having at least one husking workshop with the capacity of 10 tons per hour at minimum cannot be satisfied by many enterprises, especially small-scale ones with limited financial capability. Meanwhile, businesses will have the right to export special types of rice without having to meet business conditions and get certificates. MOIT believes that with the new regulations, more businesses will be able to join rice exporters, thus helping boost rice exports and push up rice consumption. The number of rice exporters is estimated to increase by 60-70 percent.