China has tightened control over rice imports

Nguyen Van Don, director of Viet Hung Company in Tien Giang province, which has been exporting rice to China for years, is worried about the new policy about rice imports from ASEAN member countries.

From January 1, 2019, rice exports to China will not only have to bear high tax which as applied on July 1, 2018, but also satisfy a series of strict requirements. Product samples must be tested by national inspection units. 

If Vietnamese exporters cannot present legal documents, Chinese agencies will refuse to grant certificates to export rice to China.

Vietnamese enterprises are capable of satisfying all the requirements but they have to fulfill all the procedures within a short time, Don said. 

So, rice exporters may have a tough year in 2019 if exports to China get stuck.

Since July 1, 2018, China has taxed 40-50 percent on all rice products imported from Southeast Asia, including Vietnam. Broken rice is taxed 5 percent.

Ta Quang Kien from the Ministry of Agriculture and Rural Development (MARD) has confirmed that the Chinese agencies have tightened control over rice imports. 

However, MARD has successfully negotiated with Chinese agencies and obtained an agreement on delaying the application of the new regulation until mid-2019.

The biggest concern for Vietnam, according to Kien, is the small scale of agricultural production. It is difficult to restructure production, which is an obstacle to efforts to reduce costs and increase traceability.

According to the General Department of Customs (GDC), in 2017, Vietnam exported $8.7 billion worth of farm produce to China, including $1 billion worth of rice. In the first 10 months of 2018, Vietnam exported 1.24 million tons to the market, worth $640 million.

Analysts noted that rice exports to China have decreased recently, but Vietnam’s rice is still in the No 1 position, amounting to 50 percent of China’s total rice imports. 

There have also been big changes in the rice products exported to the market. While white and sticky rice exports have decreased, fragrant and parboiling rice is on the rise.

In related news, Vietnam's rice brand logo was launched on the occasion of the Vietnam Rice Festival organised in Long An province. A national rice brand is part of a strategic program which aims to enhance the value of Vietnam’s rice in the world market.

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