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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

12/PM also emphasizes the reduction of inappropriate trade procedures for exports of
goods in order to enhance the exportation of the country’s products.

The government also supports the origins of products according to decree no.
228/PM and the recommendation no. 588/MOIC by the provision and facilitation of
certification of the origins of products to obtain benefits from privileged products
from the importing countries. A good example of this is the export of Kao Kai Noi
(Lao Indigenous glutinous rice) to the EU market, which also obtain a good price from
having the certificate of origins.

Furthermore, decree no. 15/PM highlights trade competition by the prevention
of monopoly in any opportunity. This is because the government wants to promote
fair trade and prevent the domination of trade in the value chain in all circumstances
to protect all actors in the value chain, particularly producers.

In addition to this, the recommended order no. 332/MOIC also emphasizes the
monitoring and inspection of an opportunity to increase price in inappropriate ways
by traders, wholesalers, and retailers in all circumstances. This purpose is to ensure
the fairness of trading in the country, particularly in difficult situations such as having
natural disasters, etc., and the reduction of an effect on citizens’ purchasing power
and living condition.

3.3.3. Viet Nam

- Managing domestic rice market

Management and trading of rice in the domestic market: The State implements
the policy on liberalizing the domestic rice market. The price of rice has been changed
according to the market mechanism and the relationship between supply and demand.
The Government has carried out actions to stabilize the market, stabilize food prices,
keep rice prices in order to improve accessibility to food for low-income consumers,
and secure supply. Besides, the National Reserve also plays an important role in storing
rice for use in case of food shortage. In the 2009 – 2018 period, the Government
purchased 1.699 million tons of rice and 0.804 million tons of paddy (converted to
3.307 million tons of paddy, equivalent to 20,532 billion VND). Thereby, ensuring a
stable supply to support and relieve localities damaged by natural disasters, achieve
the goals of hunger eradication and poverty reduction, social security, and foreign
aid.

Development of rice distribution system: The Ministry of Industry and Trade
has approved the master plan to develop a nationwide market network toward 2025,
with an orientation toward 2035 29, securing food and rice consumption. A system of
markets, trade centers, and shops has been established in all regions of the country.
The State also encourages enterprises to develop a convenient distribution system
to improve rice access by consumers. Accordingly, supporting rice traders to link up
with farmers to build raw material areas, build large fields, sign contracts to purchase
commodity rice in a timely manner and at favorable prices for producers.

29 Decision no.6481/QD-BCT on 26/06/2012, Decision no.3705/QD-BCT in 2017 on the addition of wholesale markets,
grade I market under the “Masterplan on the development of national market network toward 2025, orientation
toward 2030” by the Ministry of Industry and Trade, Decree 114/2009/ND-CP, amendment on Decree 02/2003/ND-
CP on market development and management.

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