VietNamNet Bridge – In late 19th century and early 20th century, Vietnam was a major rice exporting country in Asia, together with Burma (now Myanmar). After prolonged wars, Vietnam has become the biggest rice importer in the world, with 500,000 to 1 million tons per year.

In 1989, after more than half a century of importing rice, Vietnam again became a rice exporter, with an extremely impressive number of 1.4 million tons. The country has been exporting from 3 to 4 million tons of rice annually and has retained the title "the world’s 2nd largest rice exporting country".

However, after 25 years, it is time for Vietnam to have a comprehensive look at its rice exports and rice exporting policies. For that reason, VietNamNet recently organized a roundtable discussion to discuss the quarter century of rice exports of Vietnam, with the participation of the following honorable guests:

- Prof. Dr. Vo Tong Xuan, agronomist, Rector of the Tay Do University in Can Tho - the largest city in the Mekong Delta, a former National Assembly deputy, former rector of the An Giang and Tan Tao universities.

- Dr. Vu Trong Khai, independent expert on agricultural economics, former headmaster of the School for Agriculture - Rural Development Personnel

- Mr. Nguyen Minh Nhi, former Chair of An Giang province.

From the left: Mr. Nguyen Minh Nhi, Dr. Vu Trong Khai and Prof. Vo Tong Xuan.

Milestones of Vietnamese rice

VietNamNet: Looking back on 25 years of export of rice, it would be a mistake if we did not mention the historical moment in 1989, the first year we exported rice again after 50 years, with 1.4 million tons of rice and a revenue of about $310 million. In the previous year 1988 Vietnam still had to import 500,000 tons of rice and earlier the country imported up to 1 million tons a year.

Prof. Dr. Vo Tong Xuan: At that time, the world was also in shortage of rice so it became a prominent event when Vietnam abruptly turned from a rice importer into a rice exporter. I still remember that after 1989, the Association of American Rice Millers invited me to attend their meeting in Florida to speak about Vietnam’s "overnight" magical change. Many international businesses were there to learn and to collaborate with Vietnam to bring our rice to the international market.

The most interesting thing was that they took me to the headquarters in Washington, to the technical room where 30 telex machines worked 24/7. The guide said, in this room, they received all the information about rice export deals throughout the world. They knew every detail about each rice shipment at every port worldwide. They told me that in 1989, Vietnam exported up to 1.89 million tons, not 1.4 million tons as Vietnam reported.

The world food industry recorded Vietnam’s rice exports in 1989 as a major event in the world. The leading rice trading company in the world, the Belgium-based Schepens Company,  also invited me to their headquarters and they were also interested in doing business with Vietnam.

Dr. Vu Trong Khai: Vietnam’s huge success originated from Resolution 10 of the Politburo in 1988 with a major change of recognizing "peasant households as single autonomous units".

Previously, we kept struggling with rice shortages and hunger. We not only had to import rice but also sold rice produced in the Mekong Delta to buy broken rice at cheaper prices. That was the situation in the late 1980s.

The change in policy has produced marvelous results, which shows that Vietnam’s potential in agriculture is enough to feed the nation and have a surplus for export. There is no mention of the policies to enhance production capacity. However, as that policy was issued quite late, we had to pay a high price.

If we "untied" the policies sooner, we would not have made costly investments to turn Dong Thap Muoi (Plain of Reeds) and the Long Xuyen Quadrangle into a granary that has affected the natural environment. The Dutch experts warned us to "maintain the precious natural ecology of the Mekong Delta and then promote it, first of all in tourism".

Now we cannot change the fact that, because of the nation's hunger, the slow "untying" policies we destroyed the rare natural ecology of Dong Thap Muoi and Long Xuyen Quadrangle. The price we paid for this was very expensive.

Mr. Nguyen Minh Nhi: The gains were clear and it had great significance during extremely difficult circumstances of the country at that time, when hunger lasted for 10 years. Thanks to the Doi Moi (Renovation) policy, in 1989 we had enough rice to eat and then export, from which the export volume increased continuously.

However, the losses were also huge. With that achievement, sometimes we were too excited and an official of the Ministry of Agriculture - Rural Development declared: "Vietnam maintains food security for the world". Meanwhile, later the export of rice reduced when rice quality for export, rice prices, and profit from rice export was not high, and did not match with the output. It is an extremely important thing that we have ignored.

Does Vietnam ensure food security for the world?

VietNamNet: The public opinion also wondered why Vietnam has the responsibility to "keep food security for the world", while Vietnamese farmers - who directly produce the rice - suffer losses and they were not helped by "the world".

Prof. Dr. Vu Trong Khai: Vietnam does not have such commitment. We have no obligation or binding with the "keeping of food security for the world." I knew that when he heard that statement, former Minister of Agriculture and Rural Development Le Huy Ngo said: "Do not force farmers to sacrifice in a nonsensical way!”

The world does not force Vietnam to hold that "responsibility" and nobody recognizes Vietnam’s "merit" of exporting a lot of rice at cheap prices.

Prof. Dr. Vo Tong Xuan: In a quarter century Vietnamese farmers produced a lot of rice and sold it at cheap prices to world consumers. However, it is due to Vietnam’s poor management and development policies, not because we intentionally "helped" the world. Meanwhile our rice producers are not treated satisfactorily when they engage in this task.

Mr. Nguyen Minh Nhi: This is an issue of economic management science rather than a general stance or moral ambiguity.

VietNamNet: A question to Prof. Vo Tong Xuan – some experts said that if we sell rice at current prices, the Vietnamese State is subsidizing foreign consumers. Could you explain this point?

Prof. Dr. Vo Tong Xuan: Vietnam’s rice prices today do not cover minimum costs. In the future, rice prices must fully cover the cost, especially the depreciation cost of irrigation works and transportation costs as other countries do. Rice farmers have to pay irrigation costs and water fees. This is an important adjustment to terminate state subsidies for rice buyers. Until now, rice buyers have been exempted from water costs.

Doing so, farmers would sell rice at high prices, as the Thai have been doing, and the state will collect water fees to finance the purchase of rice of the 20% of the population who are not farmers. If there is the political will to implement this strategy, Vietnamese rice will be sold at its true value.

To be continued…

VNN