return icon Vietnamnet.vn

VN Gov't urged to break up monopoly of big food corporations

VietNamNet Bridge - Vietnam needs a strong national rice brand. But to do this, it is necessary to eliminate the monopoly enjoyed by the two largest food corporations.

VietNamNet Bridge - Vietnam needs a strong national rice brand. But to do this, it is necessary to eliminate the monopoly enjoyed by the two largest food corporations.

 


{keywords}

 

 

CASRAD, the Research Center for Development and Agricultural System, has warned that Vietnamese rice exporters have been facing big problems in the last two years with exports down in both quantity and value. 

As the world market has become unstable and the competition is getting stiffer, Vietnam has been gradually losing its advantage in low export price. As Vietnamese farmers cannot enjoy large benefits in the value chain, they don’t want to continue growing rice.

According to CASRAD director Dao The Anh, there are 200 medium and large enterprises joining the export network. However, the enterprises do not export rice under their private brands, because they depend heavily on contracts that Vinafood 1 (the Northern Food Corporation) and Vinafood 2 (Southern Food Corporation) obtain through bidding. 

In other words, the ‘rice pots’ of the companies depend on jobs assigned to them by the two big rice exporters, who are the only Vietnamese enterprises that can attend international bids.

Anh pointed out that the current policy on concentrating power on two big exporters eliminates private enterprises’ dynamism and their ability to compete on quality. 

To implement the strategy on high quality rice, enterprises have no other choice than looking for export markets and making an appropriate investment in marketing. Private enterprises can do this, provided that they can play in a leveling playing field with two state-owned food corporations.

Currently, rice export rely on Vinafood 1 and Vinafood 2, which hold 60-70 percent of the export market share.

The big problem is, according to experts, the monopoly is not based on the corporations’ ability to control rice quality and growing areas. 

The current management policy is only suitable to the export of rice in large quantity which does not require high-quality exports such as government-to-government contracts.

“The conductors of rice value chains must be the enterprises or the cooperatives which have clear development strategies based on quality,” Anh noted.

“They must not be the enterprises which just focus on providing rice under government-to-government contracts or exporting low-cost rice,” he commented.

Experts say there are still many things that need to be done to be able to build a strong national brand. One of the most urgent is to establish a rice production association of Vietnam or reform the existing Vietnam Food Association (VFA) into an organization which represents rice producers and traders. VFA now is an organization of rice exporters.

PL TPHCM


MORE NEWS

Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.

VIETNAM BUSINESS NEWS OCTOBER 4

Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.

VIETNAM NEWS HEADLINES OCTOBER 4

Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.
back_to_top