Ministry denies rice licence costs $20,000

HÀ NỘI – The Ministry of Industry and Trade has denied reports that a rice company had to pay US$20,000 for a rice export licence.

Late in February, local media reported that Ngô Văn Nam, general director of ADC Company Ltd, said at a conference on proposed amendments to a decree on rice exports that it “costs no less than $20,000” to obtain a licence.

The ministry decided to set up a team to verify the accuracy of this information, and directed relevant authorities to report to the ministry.

After working with the HCM City-based company and Ngô Văn Nam, the ministry said it had not received  any request for a rice export licence from ADC Company Ltd.

Ngô Văn Nam confirmed that he and his company did not apply for a rice export licence.

He also claimed the media did not accurately report his comments and said he would work with press agencies to explain and clarify the misrepresentation.

A November 4, 2010, Government’s Decree 109/2010/NĐ-CP on rice exports was aimed at re-organizing the export business by setting up minimum requirements for long-term investment in rice production and export. The decree required rice exporters to have at least one warehouse with a capacity to store 5,000 tonnes of paddy, and a mill with a minimum capacity of 10 tonnes of paddy per hour.

However, besides the positive effects, implementation of the regulation has revealed some inadequacies. The ministry has proposed to the Prime Minister to amend and supplement the decree.

Within its authority, in January this year, the ministry issued a decision to abolish the regulations on conditions for rice export and business, including a limit of 150 on the number of exporters allowed, regulations on construction investment, warehouses and milling stations. – VNS