Debate surrounds proposal to abolish rice export licensing

Concern that “anyone can become an exporter”

Regarding the draft by the Ministry of Finance proposing to abolish business licenses for 58 sectors across various fields as regulated in the 2025 Investment Law, including rice export licensing, two opposing viewpoints have emerged in the Mekong Delta.

Some large rice export enterprises do not agree with this proposal. According to them, abolishing rice export licensing would mean any enterprise can become an “exporter.” This would lead to a “leveling” between well-invested companies and those lacking a solid foundation.

Businessman Pham Thai Binh, Chairman of the Board of two companies specializing in rice export, said that the proposal to abolish rice export business conditions is very timely and appropriate. However, in the long term, it may leave the rice sector behind.

He emphasized that rice is a special commodity, closely associated with the livelihoods of nearly 20 million farmers for many centuries and is also linked to national security. When barriers to market entry are removed, enterprises can export without investing in milling and processing plants or raw material areas, and may not even need to pay attention to rice farmers.

This creates a paradox where enterprises that invest methodically and act responsibly toward the sector must compete with exporters who do not share the same foundation.

Therefore, he recommended that, instead of abolishing rice export licensing, authorities should reduce unnecessary administrative procedures while maintaining a sufficiently robust control system to protect the sector. At the same time, it is necessary to select “leading enterprises” to implement the one-million-hectare high-quality, low-emission rice project, linking exporters’ responsibilities to farmers and the entire sector.

Creating opportunities for small and medium enterprises

In contrast, many enterprises, especially small and medium-sized ones, support the proposal to abolish rice export licensing or suggest reopening the entrusted export mechanism.

Nguyen Van Chung, a member of the Board of Directors of JCC Food Corporation, said that concerns about price dumping when more enterprises join the export market are not convincing.

According to him, large enterprises are those with sufficient financial capacity to carry out large contracts and take the initiative in pricing. Meanwhile, small and medium enterprises must carefully calculate every cost and profit to maintain stable orders, so they are unlikely to engage in price dumping.

Mr. Chung also noted that abolishing rice export licensing conditions would help expand the number of enterprises participating in the market, thereby increasing output channels and raising rice prices.

“Small and medium enterprises have market opportunities, but the entrusted export mechanism has been closed since last year, making it difficult for them,” Mr. Chung said.

Another enterprise (requesting anonymity) said that although each small and medium enterprise exports only a small quantity, with thousands of enterprises, if each sells one container, the total volume could reach 1,000 containers, which is a significant figure.

Sharing the same view, Le Van Vu, Director of Vu Phat International Co., Ltd., said: “When there are more sellers, there will be more buyers of paddy and rice, creating competition so farmers are not forced into low prices. Currently, relying on enterprises with licenses means only a limited number of buyers. Enterprises without licenses only operate at a minimal level. A larger number of participants can move a greater volume of rice.”

Maintaining credibility to avoid being “eliminated”

Whether rice export licensing is abolished or not, enterprises believe that the deciding factors for survival in the market remain credibility and product quality. In reality, international customers have high-quality requirements and even conduct on-site inspections of factories. Therefore, enterprises that want to survive and retain customers must prioritize quality above all. Those that do not perform well will be eliminated by market rules without the need for state intervention.

“International markets require competition based on credibility. Even if a company has a license but lacks credibility, customers will leave. The important thing is that enterprises must know how to adjust themselves if they want to survive,” said an anonymous business representative.

To regulate the export market, enterprises propose reconsidering the export floor price tool in a flexible manner, referencing price levels in major exporting countries such as Thailand and Cambodia, thereby regulating the market when necessary.

In addition, the suspension of the entrusted export mechanism since mid-2025 is considered to be narrowing opportunities for small and medium enterprises, even though they could significantly contribute to the sector's total export turnover.

It can be seen that the proposal to abolish rice export licensing has become a focal issue attracting the attention of the rice business community. Opinions from enterprises, along with statistical data and sectoral planning, will serve as an important basis for authorities to develop appropriate policies in the near future.