Economists and agricultural experts think that it is necessary to adopt more appropriate policies, to make changes in the operation mechanism of rice export to increase more benefits for farmers and improve the export of rice. Instead of being representative of a group of enterprises, VFA should also pay attention to the rights and benefits of the farmers.

Mr. Nguyen Duc Nhat, Director, Development and Policies Research Center (DEPOCEN) said that VFA must be representative for enterprises and farmers:

Recently, we carried out a research on rice as request of Central Institute for Economic Management; that revealed some notable points in the operational mechanism of export of rice.

While the aims and objectives of Thai Rice Exporters Association are representative of all players in production and trading of rice (enterprises and farmers), VFA just serves for the enterprises under VFA. Therefore, who will coordinate and pay attention to the benefits of the anti-VFA-enterprises and farmers?

Moreover, Vietnam Government and Ministries, Industries have issued many regulations relating to trading of rice, the typical one is the circular on export and trading of rice. The aim of the document is to produce and trade rice in a systematic way. However, there are some regulations such as it is mandatory for the enterprise to have a store with capacity of 5.000 tones, or a grinding factory with capacity of 10 tones per hour, limiting the number of enterprises that have intention to participate into the industry. We can say that somehow, the policies create monopoly in export of rice.

Thailand has recently paid attention to Vietnam in the area of export of rice. It is the increase in Vietnam export of rice that makes them worried. Thailand analyzed ten reasons that could make improvement in the rice export of Vietnam. The main reason is that Vietnam centrally operates and manages that create the agreement among the enterprises in export of rice.

In conclusion, the current operation of export of rice is inherited from the past, and we need to evaluate objectively when looking at the roles of VFA. In my opinion, it is impossible to effectively export rice without the leadership of VFA. However, instead of being representative of a group of enterprises, VFA should pay attention to the benefits of all members in producing and trading chain of rice.

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