VCCI calls for overhaul of Vietnam’s rice export licensing system
Vietnam’s top business federation says proposed rules for centralized rice export contracts would favor established traders and restrict market entry. VCCI recommends reserving 10%–15% of contract volumes for open tenders or qualified new and smaller exporters.
VCCI challenges incumbent advantage
The Vietnam Chamber of Commerce and Industry (VCCI) has called for major changes to draft regulations governing the country’s rice import and export business. In comments submitted on August 4, 2026, the federation said the proposed mechanism for appointing lead traders and rotating exporters under centralized contracts creates a substantial barrier for new entrants and small and medium-sized enterprises.
According to VnEconomy, the Ministry of Industry and Trade would base appointments and entrusted export allocations primarily on performance during the previous 2 years and on credit scores that also depend on historical export volumes. VCCI described this as a “closed loop”: a company needs an export record to obtain a large allocation, but it must already have been appointed as a lead trader to build a record in markets covered by memoranda or trade agreements. VCCI warned that this could concentrate access to key markets among a small group of companies with established market shares, even when newer traders meet operating requirements and have developed sustainable production chains.
Appointment and allocation rules lack clarity
VCCI also identified gaps in the proposed appointment process. The drafts do not specify quantitative conditions for selecting a single lead trader rather than 2 or more rotating traders. They provide no transparent basis for establishing the initial rotation order, whether by credit score, volume or another measure. If every appointed lead trader refuses a transaction, the Ministry may select another company, but the proposal contains no specific selection criteria.
The rules would allocate one-third of the rice covered by a centralized contract to traders that did not sign it directly. However, VCCI said the draft does not explain whether this portion would be divided equally or according to credit rankings. The federation argued that these omissions give the appointing authority excessive discretion and create a risk of permission-based decision-making. It proposed clear quantitative standards for single and multiple appointments, published rotation principles, transparent replacement criteria and an explicit allocation formula.
Open quota proposed for smaller exporters
To widen participation, VCCI recommended reserving 10%–15% of total volume under centralized contracts for public tenders or separate allocation to new traders and small and medium-sized companies that have established genuine production and purchase agreements. The proposal would give qualified challengers a route into centralized markets without requiring the historical volumes that can only be accumulated after gaining access.
VCCI separately urged the government to remove circulating reserves from the trader credit-scoring system. Under the draft circular, reserves exceeding 25% of export volume during the preceding 6 months would earn the maximum 40 out of 100 points, although the draft decree requires a minimum reserve of only 5%. VCCI said exporters could tie up working capital and incur additional warehousing and preservation costs while receiving no guarantee of a corresponding export allocation. Companies denied quotas could then face excessive inventories and cash-flow pressure.
Supply-chain performance as an alternative
The federation argued that rice held by farmers or traders remains part of the country’s available reserves and is already monitored through reporting by local authorities and the Ministry of Agriculture and Environment. Requiring exporters to hold larger physical stocks in their own warehouses would therefore add logistics and storage costs and could reduce the value captured from Vietnamese rice.
Instead of rewarding inventories above the statutory minimum, VCCI wants credit assessments to emphasize the development of production linkages and product-purchase commitments, a criterion already included in the draft decree. The debate will determine whether access to centralized rice contracts remains strongly linked to past export scale or becomes more open to smaller companies with verified supply relationships.
