VietNamNet Bridge – Deputy director of the Ministry of Industry and Trade's Department of Mountainous Area Trade Nguyen Van Hoi spoke to Tuoi tre (Youth) newspaper about plans to speed up exports of farm produce to China.


This problem has existed for many years, is it correct in saying that the Vietnamese side always loses out?


Photo: SGGP
This is partly because there are a limited number of coach stations and there is inadequate infrastructure at the Tan Thanh border gate area to cope with the increased number of trucks crossing the border, that went from 36,000 in 2009 to 42,000 in 2010, excluding 51,000 entering the country.


Another reason is that the Chinese side has a regulation that Vietnamese products exported to China must be packaged to a certain standard. Products such as Vietnamese dragon fruit are packaged in line with these standards so they receive customs clearance quickly. However, many products are not correctly packaged before they reach the border gate, so truck drivers have to count and package them there and then, which is a time-consuming process that causes congestion. The quality of products like watermelons and bananas drops during the 3-5 day delay and Chinese traders often make use of this to force farmers to sell their products on the cheap. If we persuade Vietnamese traders to package their goods in accordance with these standards, around 250 trucks could potentially cross the border each day.

Has the ministry taken any measures to help businesses deal with this problem?


We have carried out research and proposed measures to help traders and reduce congestion at border gates since 2009. The most important measure is a mechanism relating to information and management over products exported from Viet Nam to neighbouring countries. We have a master plan and the Prime Minister has approved a border trade promotion programme, including a mechanism to support domestic traders who export fruit to China.


Under a guidance circular, traders that wish to sell Vietnamese products in bordering countries will receive Government support in the form of reimbursement for costs incurred such as rent, utility bills and advertising. The ministry is trying to implement the mechanism more effectively in 2011.


How will infrastructure be improved to ensure that congestion is reduced?


China's demand for Vietnamese fruit and farm produce has increased strongly. Roads to the Tan Thanh border gate have been upgraded and plans to expand stations and warehouses are being implemented. The People's Committee of Lang Son Province has decided to reclaim 4,300 square metres of land so the provincial Department of Customs has more space to check products at the Tan Thanh border gate, up to 500 trucks per day. The ministry will also encourage businesses to increase the capacity of warehouses and land along borders to prevent congestion.


In addition, the ministry will encourage traders to package their products in line with standards to ensure fast customs clearance. It proposed the establishment of an association of fruit traders with Chinese partners to increase solidarity and share information to increase prices and create favourable conditions for negotiations, thus helping to improve export efficiency.


For a long-term solution, the ministry has entrusted the department to implement the planning of a warehouse and land system at northern border gates and a product distribution system from production areas.


VietNamNet/Viet Nam News