DECISION

ON THE MANAGEMENT OF RICE EXPORT AND FERTILIZER IMPORT IN THE YEAR 2000

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
At the proposals of the Minister of Trade and Minister of Agriculture and Rural Development,

DECIDES

I. ON THE RICE EXPORT

Article 1.- To approve the orientated rice export quota for the year 2000 at the level of 4.30 million tons, excluding rice produced in the Northern and Central Vietnam, which shall be allocated as follows:

a/ Designated rice exporting enterprises in the Mekong river delta provinces and Ho Chi Minh City shall be given 2.90 million tons (including designated rice exporting State enterprises under the People's Committees of the Mekong river delta provinces and Ho Chi Minh City, designated rice exporting enterprises being members of the Southern Food Corporation, and designated enterprises of other economic sectors in such localities).

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c/ For undesignated enterprises (of all economic sectors) that hale found new markets: 0.20 million tons.

The orientated quotas specified in Points a and b of this Article shall be allocated at one time for performance as from January 1^st, 2000 (according to Appendix 01 enclosed herewith).

Article 2. - Regarding the allocation of rice export quotas for the year 2000:

a/ The allocation and readjustment of rice export quotas to units mentioned in Clause a, Article 1 of this Decision shall be considered and decided by the presidents of the People's Committees of the provinces and centrally-run cities within the total orientated quota allocated to such provinces and centrally-run cities. The presidents of the People's Committees of the provinces and centrally-run cities shall allocate quotas only to designated rice exporting enterprises.

The consigned export shall comply with Article 9, Section 2, Chapter 1, the Government’s Decree No.57/1998/ND-CP of July 31, 1998. The Ministry of Trade shall provide general guidance for implementation.

b/ The allocation and readjustment of quotas for the units mentioned in Clause b, Article 1 of this Decision shall be specifically decided by the Ministry of Trade after consulting the Ministry of Agriculture and Rural Development.

c/ The Ministry of Trade is assigned to consider and allow undesignated rice exporting enterprises that have found new outlets to export rice on the basis of specific contracts with good prices and commercial conditions.

Article 3.- Export of rice produced in the provinces of Northern and Central Vietnam:

To encourage export of rice produced in the provinces of Northern and Central Vietnam. Enterprises of all economic sectors that have their own customers and markets shall be allowed to export rice at ports in Northern and Central Vietnam. The Ministry of Trade shall provide specific guidance on the basis of ensuring the stability of the domestic consumption market and export efficiency.

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In order to stabilize and sustain the concentrated markets, the Ministry of Trade shall assume the prime responsibility and coordinate with the Steering Committee for Rice Export and Fertilizer Import Management (set up under the Prime Minister's Decision No.20/1999/QD-TTg of February 13, 1999) and the Vietnam Food Association in nominating designated enterprises to represent them in conducting transactions, signing contracts and allocating quotas for the performance of such contracts to the designated rice exporting enterprises, ensuring publicity and efficiency.

The Ministry of Trade is assigned to soon proceed with the signing of Governmental agreements with the above-said concentrated markets, in order to gradually increase the volume of Vietnamese rice exported directly thereto.

Article 5. - For rice exported under plans for debt repayment, aids and/or payment for the Government’s import goods, the Ministry of Planning and Investment is assigned to coordinate with the Ministry of Finance in specifically allocating quotas therefor and notifying the Ministry of Trade thereof, so that the latter can allocate them to the designated enterprises that act as representatives in conducting transactions and signing contracts with each country. The Ministry of Trade, the Steering Committee for Rice Export and Fertilizer Import Management and the Vietnam Food Association shall organize the assignment of the already signed contracts to the designated rice exporting enterprises, ensuring publicity and efficiency.

II. ON THE FERTILIZER IMPORT

Article 6.- The designated enterprises of different economic sectors engaged in the fertilizer import business that import fertilizer of various kinds shall be allowed to sell imported fertilizer in Vietnam according to the production and business demand and shall have to take self-responsibility for their fertilizer trading efficiency, the State shall not subsidize losses.

The Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Trade in publicizing the demand for assorted fertilizers of each crop, each region and the fertilizer prices on the world market, so that enterprises can take initiatives in devising their plans for appropriate and efficient fertilizer import and trading.

Article 7.- The import of NPK, calcined phosphate and/or superphosphate may be effected only from April 1^st, 2000, after the import tax rate(s) (or surtax rate(s)) applicable to such kinds of fertilizer are readjusted. The Ministry of Finance and the Government Pricing Committee are assigned to propose as soon as possible such import tax rate(s) for surtax rate(s)) to the Prime Minister for decision for implementation from April 1^st, 2000.

III. ORGANIZATION OF IMPLEMENTATION

Article 8.- Basing themselves on this Decision, the presidents of the People's Committees of the Mekong river delta provinces and Ho Chi Minh City shall issue decisions to allocate rice export quotas to the designated rice exporting enterprises in their respective localities as specified in Clause a, Article 1 of this Decision and notify the Ministry of Trade, the Ministry of Agriculture and Rural Development, the Steering Committee for Rice Export and Fertilizer Import Management, the General Department of Customs and the concerned agencies thereof for coordinated management.

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Article 9.- The presidents of the provincial/municipal People's Committees and the ministers shall base themselves on the orientated rice export quotas allocated to them and demands for assorted fertilizers (under the Ministry of Agriculture and Rural Development's guidance) to personally manage the rice export and fertilizer import by their attached enterprises, in order to ensure the timely purchase of the whole commercial rice volume at prices lucrative to peasants, the observance of the floor price announced by the Government, and the stability of prices of food and fertilizer of all kinds on the domestic market as well as efficient export and import thereof.

Article 10.- The rice export quotas and fertilizer import limits allocated in 1999 shall be effective till the end of December 31, 1999.

The 1999 contracts, which have been being performed, shall be allowed for continued performance and counted into the 2000 quotas.

Article 11. - The Steering Committee for Rice Export and Fertilizer Import Management is assigned to coordinate with the Vietnam Food Association and the Government Pricing Committee in publicizing and providing guides to the world market situation and prices; synthesizing and guiding transaction prices for reference by enterprises, in order to ensure business efficiency and avoid the state of being imposed with unfair prices.

Article12.- Basing itself on this Decision in decisions of the presidents of the People's Committee of the concerned provinces aid centrally-run cities or the Minister of Trade on allocation of specific rice export quotas to enterprises, the General Department of Customs shall provide general guidance to the local customs authorities for carrying out the export procedures.

Article13.- The State Bank shall direct the commercial banks to arrange capital sources and ensure sufficient and timely loans for enterprises to purchase paddy and rice and import fertilizer. In cases where commercial banks have not enough capital sources, the State Bank shall devise measures to support such commercial banks to acquire enough lending capital source.

Article14.- The Government Pricing Committee shall coordinate with the Ministry of Agriculture and Rural Development, the State Bank of Vietnam and the Ministry of Finance in studying the production situation and proposing the Prime Minister to decide the floor price level before the harvest and the financial mechanism to ensure the observance of the approved floor price level.

Article 15. - The Ministers of Agriculture and Rural Development, Trade, Planning and Investment, and Finance, the Governor of the State Bank of Vietnam, the Director of the Government Pricing Committee, the presidents of the People's Committees of the concerned provinces and centrally-run cities, the Head of the Steering Committee for Rice Export and Fertilizer Import Management and the Chairman of the Vietnam Food Association shall have to periodically report the result of rice export and fertilizer import to the Prime Minister and propose necessary measures to satisfy demand for fertilizer for production and to purchase the whole commercial paddy volume from peasants.

Article16.- This Decision takes effect after its signing. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the provinces and centrally-run cities shall hale to guide and implement this Decision.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Cong Tan