Phân tích thị trường lúa gạo

Table of Contents I INTRODUCTION 1.1 Ratio/ Background 1.2 Objectives .5 1.3 Methodology II MAIN CONTENT .8 2.1 Vietnam’s rice exporting overview 2.2 Vietnam’s rice production and export performance .10 2.3 Export rice by market 14 2.4 Other countries’ rice export performance compares to Vietnam 16 2.5 Policy of destination countries which influence Vietnam’s rice export 17 2.5.1 European Union Market 17 2.5.2 China market 19 2.5.3 The Philippines Market 20 2.5.4 Singapore Market 21 2.6 Recommendation policy to increase the advantages of Vietnam’s rice export .21 III CONCLUSION 24 Analysis of Vietnam rice export performace REFERENCES .25 Market and Price Analysis Groupwork Group M&PA 0|Page I INTRODUCTION 1.1 Ratio/ Background Food is a primary requirement for human to stay alive and a basic need to fulfill other necessities No countries can maintain their economic growth without solving food security issues (Timmer in Azziz 2006) From all types of foods that human consumed, rice is the most widely consumed staple food of human population As a cereal grain that originally coming from Asia and Africa, rice is the third largest worldwide agricultural production after sugarcane and maize in 2014 (FAOSTAT 2017) Seeing the important role rice has and added with technology development, a lot of countries have already planted this commodity considering their ability to grow and broader consumer scope According to FAO (2016), most of major paddy producers are in Asia, led by China, India, Indonesia, Bangladesh, Vietnam, so the consumers 1|Page Figure Production of Rice, paddy : top 10 producers (average 1994-2016) Source : Food and Agriculture Organization of the United State On the other side, in term of international trade, the main players in rice global market are a bit different with those from production/ consumption According to Cendrowski (2013), there are less than 8% of rice produced traded internationally One of the reasons is the two largest rice producers (China and India) consume the majority of the rice they produced, leaving only little to be traded internationally According to FAO (2017), the top exporters of rice are included Thailand, Vietnam, India, Pakistan and United States while China, Myanmar, Australia, Paraguay and Uruguay estimated to lift their export in the future The importer countries, on the other hand, are including many countries, mainly in Asia, such as Bangladesh, the Philippines, Indonesia, Malaysia, Saudi Arabia, Iran, Iraq with particular China (Mainland), in the future, forecasted include this category too Vietnam was an importer of rice in 1980s, but has transformed to be one of the top exporter of rice since 1990s Since then, rice has played an important role in 2|Page Vietnam’s economic growth, such as stabilizing national consumption, source of employment as well as increase national revenue through international trade mechanism The average yield for paddy in Vietnam is currently 4.3 tons/ha with led by Mekong Delta and Red Delta area At the same time, in international trade scheme, Vietnam has a comparative advantage in term of cost-competitiveness and the exchange rate According to Worldstopexports.com, in 2016 Vietnam was the top fifth rice exporter country in term of dollar value which worth around $1,6 billion or 8% of total rice export Hence, realizing the important role of rice in the Vietnam’s economy as well as the global market, the analysis about Vietnam’s rice export is needed to be done 1.2 Objectives The contribution of Vietnam's economic reform in 1986 is considerable and paved the way for the country to implement its trade liberalization policy and to establish trading relations with over 150 countries By investigating the Vietnamese trade pattern with the world, we are able to track the precise trade trajectory of the country in several specific periods, which also enables relevant trade policy recommendations to be formulated for policy makers Exports play an important role in Vietnamese trade, helping to increase the national GDP and to improve the position of Vietnamese firms in the global value chain Such an improvement of Vietnam's position in the global value chain means being higher in the chain rather than carrying out simple processing at the low-end If the production factors which include labor, capital, and fixed assets are analyzed in relation to firms' exports, plausible assessments of Vietnamese firms' contributions to the global chain can be determined It should be also noted that the country's trade policy reform has affected the structure of Vietnam's exports during periods, has been subject to the effect of the volatile world's trading market and the effect of an emerging giant exporter such as China Through this assignment, we will solve some target: The history of the developing of VietNam rice export The trend of Vietnam’s rice export The Vietnam’s rice export compare to competitors in the global rice market 3|Page Some policies about import of Vietnam’s export partners The recommended policy to increase the competitive advantage of Vietnam’s rice export in global trade scale 1.3 Methodology The dissertation studies export trade of a single country namely Vietnam Vietnam, a small and emerging country in South East Asia, has been implementing its economic reforms and trade liberalization for nearly 30 years Opening up its domestic market, it is an important tool for the country to benefit and to create trade relationships with over 150 country partners both developed and developing However, stimulus factors for the country's trade may change for subjective and objective reasons The effect of regional and global economic integration on the export trade of country members may change from positive to negative or vice versa particularly if a country is considering opening its market to a larger market association This paper will analyze by using the secondary data The data will be collected from various sources to support the paper, such as FAO (Food and Agricultural Organization) database, database of General Statistics Office of Vietnam, WTO (World Trade Organization) database, related journal and other The data will be analyzed using descriptive analysis method The diversity of Vietnam's export products and the destination markets include almost all countries of the world We have used the synthesized database of the GSO, which demonstrates a structural change of Vietnamese exports between 1986 and 2012 4|Page We applied a qualitative methodology which is helpful in depicting a complete picture of Vietnam' exports Moreover, for firms' exports, we also show determinant factors in the table of descriptive statistics, which summarizes a sample of sub-populations that the sample of three export sectors The qualitative method we applied in the dissertation was to carry out a literature review In fact, our contribution to the dissertation is to develop or continue a current branch of research We show our findings rather than replicating of previous authors' ideas As such, this dissertation mentions the two main strands of literature on the gravity model of export trade including theoretical and empirical papers This model criticizes and reviews the overall trade pattern of any country pair in so far as each country differs from the other because of the effect of the two main factors the national income and the transport cost proxy, which is the geographical distance For quantitative methodology, our dissertation used export trade data at country and firm level to test hypotheses for each determinant including firm and sector effects Unlike the qualitative method, the quantitative method allows us to draw conclusion about the whole population providing the sample of sufficiently large Since firms' export intensity strictly lies in the unit interval, we transformed it into the type of logit then attempted with the OLS and quantile regression methods 5|Page II MAIN CONTENT 2.1 Vietnam’s rice exporting overview The break-up of the Soviet Union and the fall of communism in the Central and Eastern Europe bloc in the 1980s had negative consequences for other communist countries in South Eastern Asia including Vietnam The country was faced with the diplemma when the Western countries did not open up their economic relationship with Vietnam but followed the embargo policy of the United States of America The shortcomings of the centrally planned and closed economy pushed Vietnam to the brink of bankruptcy The country was also facing a major economic crisis in 1986 when the highest rate of hyperinflation reached 775% and there was still three-digit inflation for a further two years For ten years following the country's independence in 1975 until the economic reforms in 1986, Vietnam's international trade relations were mainly confined to the countries of Socialist Republic bloc and covered some capitalist countries including Japan, France, Sweden and India Meanwhile, export products were mainly manufactured from various natural resources such as coal, chromium, cement and some agricultural products Foreign trade payment was made in Ruble, which was then converted into US dollar In 1985, the country's export trade with the Socialist Republic countries bloc earned 425.8 million Rubles and 272.7 million Rubles were earned through trade with some capitalist countries The year 1986 when the leaders of Vietnam's VCP launched a series of economic renovations including the organizational and personnel structure, administrative system, economic and political system is considered as a turning point of the Vietnamese economy Specifically, these fundamental changes applied to the country's economy constitute a transition from a centrally planned economy to a socialist-oriented market economy The opened position of the VCP on the country's economy is shown by the 6|Page Government's acceptance of a multi-sector economy including the state-owned sector, collective sector, domestic private-capitalist sector, foreign-owned sector Following the VCP guideline of 1986 whereby Vietnam was to aim to be on friendly term with the countries of the world, since then it has started to integrate into the world economy Figure Exports of rice from Myanmar, Thailand and Vietnam (1961 – 2011) Source : Food and Agriculture Organization of the United State Some economic indicators such as GDP, trade revenue, the FDI attraction index confirm how much Vietnam's economy has been transformed since 1986 From 1986 to 2012, the contribution of exports in GDP rose dramatically peaking at 73.5% in 2012 In particular, export revenue in 2012 reached 114.5 billion USD, which corresponds to 145 times the country's export revenue in 1986 Moreover, the number of Vietnam's importing partners also rose annually from 33 in 1986 to a peak of 220 in 2002 Figure Evolution of Vietnamese trade and its country partners, 1986-2012 600000 250 400000 200 200000 150 -400000 50 1988 1987 -200000 100 7|Page Exports (real million USD) Imports (real million USD) Balance (real million USD) Number of importing country partner Source: Export, Import and number of destination markets data for 1986-2012 GSO 2.2 Vietnam’s rice production and export performance Vietnamese export structure has been dramatically transformed and demonstrates a deeper integration of Vietnam into the world economy Most countries in the world finds the process of globalization and economic integration to be an important opportunity to develop its production, trade network far beyond its own borders and in the end the national economy According to Hanh V T (2015), Vietnam, almost 30 years following Doi Moi, has made outstanding progress in trade with a very impressive gain in export revenue of 114.5 billion USD (at 2012 value) Especially, the number of Vietnam' trading partners reached 220 countries in 2009 starting from 33 partner countries in 1986 marking a large step towards integration Trade liberalization, at the same time, also encourages multilateral and bilateral trade agreements between Vietnam and other major economic associations such as, ASEAN, EU and WTO as well as with single country 8000 7902.5 7761.2 7800 50000 7816.2 7830.6 45000 7655.4 7600 7400 7400.2 7329.2 7324.8 7437.2 7489.4 25000 20000 15000 10000 7000 6800 35000 30000 7207.4 7200 40000 5000 2005 Total Production (Thous Tons) 2006 2007 2008 2009 2010 Total Planted area (Thous Ha) 2011 2012 2013 2014 2015 Figure Total planted paddy area from 2005 to 2015 Source : General Statistics office of Vietnam Export rate is related to how much the product can be produced and consumed by the people in one country As one of the top rice producing countries, Vietnam’s total paddy field area experience a little bit fluctuation every year Figure shows how the fluctuation happened, but the trend itself is increasing In 2005, total planted area was 7,329.2 thousands Ha while ten years later in 2015, the area became around 8|Page 7,830.5 thousand Ha At the same time with the fluctuation of total land, the rice production is fluctuating too as it is showed by blue line in Figure In 2005, total production of rice was 35,832.9 thousands ton, while in 2015 it became almost 10 times more in term of quantities, around 45,105.5 thousands ton Meanwhile, in the export side, according to data appeared in Figure 5, from 2010 till 2016, quantity of Vietnam’s rice export has a trend that leaning toward declining The decrease not only in term quantity, but also the value of the export itself This phenomenon can be happened caused by various factors and purpose One of the factors is according to sggpnews.org.vn citing to Ministry of Industry and Trade in October 2017, Vietnam would gradually reduce rice export volume and increase the quality This word actually perceives the low expextations of Vietnam’s rice export in 2016 (as it can be seen in Figure 3), although in fact, the Vietnam’s rice export took a positive turn in the end of 2017 with export volume around 5,9 to million tons 9000 8000 7000 4000 8019.45 6892.96 7116 3500 6587.07 6331.47 6582.32 6000 3000 4809.31 5000 2500 2000 4000 1500 3000 2000 1000 1000 500 2010 2011 2012 2013 Value (Million USD 2014 2015 2016 Quantity (1000 tons) Figure Total value and quantity of Vietnam’s rice export from 2010 to 2016 Source : General Statistics office of Vietnam 9|Page Other; Rice (100% broken); Fragrant rice; 22 White rice (10-25% broken); 65 Figure Export rice type in 2016 Source : General Department of Customs in Thang (2017) In 2016, majority rice export of Vietnam were white rice 10%-25% broken rate The white rate accounted around 65% from the total export volume (Figure 6) The rank was followed by fragrant rice, rice 100% broken and other Thang (2017) said actually the volume of broken rice has decreased significantly compared to what happened in 2015 Mostly rice 100% broken was exported to China market and the increasing in good quality rice marked an export raising in stricter market compared to previous, such as USA, Japan and EU The top five rice exporters, Thailand, Vietnam, India, Pakistan, and the U.S., account for 85% of global net trade Despite current uncertainties regarding the impact of Thailand’s pledging scheme and other rice policies into the future, the country with its production resources and strong focus on quality and branding is expected to remain the top global rice exporter over the baseline period Slower rice export growth is expected for Vietnam and the U.S due to area limitations, and irrigation constraints in the case of the U.S India will surpass Vietnam and replace the latter as the second top rice exporter over the same period Cambodia and Myanmar are projected to increase rice exports steadily as production continues to exceed consumption; and it is interesting to note that the rice export volumes of both countries are projected to catch up with the declining U.S export levels by the end of the baseline period, at around 2.1 million metric tons (mmt) Global net rice exports are projected to grow by 9.3 mmt over the baseline period Aggregated net exports of India, Vietnam, Myanmar, and Cambodia will grow by 9.9 mmt while those of Thailand and the U.S will contract by 1.7 mmt Figure shows the changes in world export shares of major 10 | P a g e exporting countries, indicating that Thailand’s share increases from 24% to 35%; U.S.’ share increases from 6% to 10%; while India’s share contracts from 22% to 10% Figure World Rice Net Export Share Source : Wailes and Chavez (2012) Foreign exchange rate is an important factor affecting prices in global rice trade because international rice prices are quoted in US dollars Under normal condition, if the local currency of a rice exporter is appreciating relative to the US dollar, its rice export price (in US dollars) will increase which in turn will weaken its competitiveness in the global rice market On the other hand, if an importing country’s local currency is appreciating relative to the US dollar, its rice import price (in US dollars) decreases which puts less burden on its local economy The reverse is true for both cases Figure8 show the exchange rate indices for selected major rice exporters such as Vietnam, Thailand and India Since the index is based on US$ per Local Currency Unit, an upward line means the local currency is appreciating relative to the US dollar and a downward line means the opposite Figure also indicates that Vietnam’s local currency is expected to depreciate over the baseline thus improving its export competitiveness in the global rice market relative to Thailand and India 11 | P a g e Figure Nominal Exchange Rate Index for major Rice Exporters (US$/Local Currency) Source : Wailes and Chavez (2012) 2.3 Export rice by market Most of the best quality product is exported to difficult market such as USA, Japan and EU while the lower quality goes to Asian countries According to General Department of Vietnam Customs in 2016, Japonia rice type, a round clammy rice variety, exported almost 30% to Switzerland, Japan and UAE each 13%, China 8% and 6% to Mongolia Figure Destination of Vietnam Japonica export in 2016 Source: General Department of Vietnam Customs, 2016 Second type is white rice The most exported type of Vietnam’s rice in recent year, white rice is one of the indicate long rice group Mainly imported countries are The Philippines with 27% of all exported, followed by China (16%), Indonesia (14%), Singapore (10%) and Malaysia (9%) The top three importing countries for white rice accounted for nearly 60% These markets are famous for big demand with less strict rule to enter which mean they able to recieve low quality rice and much lower price compared to the first variety, Japonia rice 12 | P a g e Figure 10 Destination of Vietnam white rice export in 2016 Source: General Department of Vietnam Customs, 2016 Figure 11 Destination of Vietnam Aromatic export in 2016 Source: General Department of Customs, 2016 Third type is aromatic rice which has a significat growth in recent year This type has a high level of protein with long and small shape The imported countries are included Singapore (22%), China (18%), Hongkong (14%), US (11%), and Malaysia (6%) And the last variety is sticky rice A special rice with non disgetive gluten content, sticky rice cultivated in a lot of countries with Laos produced most of them, almost 85% of total sticky rice production in the world Vietnam’s sticky rice main destiation country is China which record more than 50% in recent year In 2016, The imported countries are China (57%), Singapore (25%), Taiwan (5%), Hongkong (4%), and Malaysia (3%) 13 | P a g e Figure 12 Destination of Vietnam sticky rice export in 2016 Source: General Department of Vietnam Customs, 2016 2.4 Other countries’ rice export performance compares to Vietnam 12000000 10000000 8010925 68929597112000 5968586 5250000 6000000 464200045580004735170 38130004063000 3240932 4000000 8000000 2000000 2002 2003 2004 2005 Thailand India 2006 2007 2008 2009 2010 2011 2012 Vietnam United States of America Figure 13 Total export quantity from top rice exporter countries (tons) Source : Food and Agriculture Organization of the United Station Vietnam’s export in 2002-2012 as it can be seen in Figure 13, has a positive trend The export quantity has a better performance compare to Thailand, India and US Meanwhile in Figure 14, total value of rice export keep increasing in 2002-2012 All four countries, overal have a positive trend in that 10 years The total value of Vietnam’s rice export has a positive trend Comparing Vietnam’s rice exsport performance to the other, Vietnam’s rice value still slightly low Vietnam has more advantage in rice export in compare to India and US, but at the same time, as we can see in the Figure 14, the difference value between these countries is not as big as in the quantity of export proposionally 14 | P a g e 7000 6000 5000 4000 3000 2000 1000725 719 950 2002 2003 2004 1407 1275 1489 2005 2006 2007 Thailand India 2895 2666 2008 2009 3249 2010 3656 3673 2011 2012 Vietnam United States of America Figure 14 Total value rice export from top rice exporter countries (millions USD) Source : Food and Agriculture Organization of the United Station 2.5 Policy of destination countries which influence Vietnam’s rice export 2.5.1 European Union Market To enter EU market, there are strict requirements for products that related to food safety, pesticides using level, contaminants, GMO (Genetically Modified Organism), food control, labelling and etc A quality standard is stricter in EU market and it often affect a lot of export country to enter EU market, including Vietnam There are a lot of cases concerning this issues, such as Vietnam’s rice that is got reject by EU market authorites because of pesticide using level 2.5.1.1 Food safety: Traceability, hygiene and control Food safety is a key issue in EU food legislation The General Food Law is the legislative framework regulation for food safety in the EU To guarantee food safety and to allow appropriate action in cases of unsafe food, food products must be traceable throughout the entire supply chain, and risks of contamination must be limited One important aspect involved in controlling food-safety hazards is defining critical control points (HACCP) by implementing food-management principles Another important aspect involves subjecting food products to official controls Products that are not considered safe will be denied access to the EU Products that are new in the European food market (e.g those not widely consumed prior to 1997) are considered ‘novel foods’ and have specific legislation 15 | P a g e 2.5.1.2 Limited use of pesticides The EU has set maximum residue levels (MRLs) for pesticides in and on food products Strict compliance with MRLs and the prevention of microbial contamination are preconditions for entering the European market Products containing illegal pesticides or excessive amounts of other residues will be withdrawn from the EU market Note that the MRLs applied by buyers in several Members States are stricter than those specified in EU legislation 2.5.1.3 Contaminants Contaminants are substances that have not been intentionally added to food, but which may be present as a result of the various stages during production, packaging, transport or holding To avoid negative impact on the quality of food and risks to human health, the EU has set limits for several contaminants These limits include heavy metals and mycotoxins, which are natural by-products of mould and very common on grains and pulses cultivated in humid climates 2.5.1.4 No GMOs The European Union adopts a very cautious stance towards genetically modified organisms (GMOs) Only a few genetically modified grain varieties have been authorized for soybeans, rapeseed and maize, and they are used primarily in the animal feed sector For human consumption, most food businesses choose not to sell GM food at all 2.5.1.5 Control of food imported to the EU To ensure food safety and avoid environmental damage, the EU has restricted the use of certain chemicals (MRLs) in several Regulations and Directives Your products will be subjected to official controls, which are conducted in order to ensure that all food marketed in the EU is safe (i.e in compliance with the requirements applicable to particular products) There are three types of checks:  Documentary checks  Identity checks  Physical checks In the event of repeated non-compliance of specific products originating from particular countries, the EU can decide to conduct more intensive controls or impose 16 | P a g e emergency measures Although controls can be carried out at all stages of import and marketing in the EU, most take place at the points of entry into the EU 2.5.1.6 Labelling Food placed on the EU market must conform to the following legislation with regard to food labelling:  Generic name and, if applicable, its treatment;  List of ingredients, including allergens;  Net quantity;  Date of minimum durability;  Special conditions for keeping or use;  Name and address of the manufacturer, packager or importer;  Place of origin;  Lot marking on pre-packaged foodstuffs Novel food and genetically modified foods require additional labelling (e.g with regard to composition, nutritional value, intended use asnd materials that may have health implications and/or raise ethical concerns) Besides all factors above, there are issues like organic/niche market, fair trade agreement, social and environmental pratices, certification as guarantee, and etc 2.5.2 China market According to the Ministry of Agriculture and Rural Development, Vietnam exported 2.8 million tonnes of rice valued USD1.2 billion in the first six months of 2017 Both the volume and value increased by 6.3% and 4.9% respectively compared to last year China continues to be Vietnam's top importer in recent year In the first five months in 2017, Vietnam exported 1.1 million tonnes of rice to China for USD 488m as demands from China is huge Chinese traders often buy rice directly from the firms' storage and then imported into China via border gates or commissioned another importer They also re-export the rice to other countries As the biggest rice consumption country, although China is the biggest rice production, China has to import rice each year Concerning food trade, China has some food regulatory to ensure quality and safety of imported food items There are 17 | P a g e many cases in China border concerning a large amount of food imported returned or destroyed to lack of compliance or irregularity in food quality First, the exporter stakeholder had to register with the State Certification and Accreditation Administration (CAA) as well as other safety requirement if needed Second, it is stated for exporter stakeholder to complete documentation and pre-import licensing (dairy/poultry product) China has strict and complex documentation requirements for the majority of food products imported into the country Before the shipment of products, it is required to submit documents on products’ quality, quarantine, origin, and import control, along with a detailed packaging list and a description of the packaging material, among other documents The documentation requirements vary between products and product categories, but in general they are:  Commercial invoice  A detailed packaging list  Bill of lading  Certificate for export from country of origin  Hygiene / Health certificate  Certificate of bottling date (for drinks)  Certificate of free sale  Sample of original label  Sample of Chinese label  Inspection certificate Food items subject to import tariff quotas such as wheat, corn, rice, and sugar are required to obtain the Agricultural Products Import Tariff Quotas Certificate 2.5.3 The Philippines Market The Philippines is country with the biggest rice import rate This country is one of top Vietnam’s rice impoter with overcome 27% of Vietnam’s white rice export Import Regulations for Food Products such as rice in The Philippines is a little bit different with other products The Philippines signatory to the World Trade Organization and has lifted quantitative restrictions (QRs) on imports of food products except for rice Tariff-Rate Quotas (TRQs) still remain on a number of sensitive products such as corn, poultry meat, pork, sugar and coffee Minimum Access 18 | P a g e Volumes (MAV) has been established for these commodities The GRP opened its rice market in 2002 when it allowed the private sector, mainly traders, to import rice Prior to this, the National Food Authority (NFA) was the sole importer of rice The NFA expanded rice importation to include farmer groups although this sector was inexperienced in rice importation, and therefore, was unable to fill the allocation it was given Private sector rice imports are assessed a 50-percent tariff rate and import licenses are regulated by the NFA Imports by the NFA, on the other hand, usually for buffer stock purposes, are imported duty-free In 2005, the GRP completed negotiations with other WTO members for the extension of its quantitative restrictions on rice According to The Philippine Food Fortification Law of 2000 or RA 8976 became effective on November 7, 2005 All staple foods –- rice, sugar, flour, salt and cooking oil will require fortification by law 2.5.4 Singapore Market In Singapore, rice of all description is a controlled item under the Price Control (Rice) Order 1990 of the Price Control Act The Government requires an importer to apply for a licence, obtainable from Enterprise Singapore (the administrative arm of the Rice Stockpile Scheme (RSS)) The Enterprise issues licences for importers, processes import permits and enforces the import and stockpile obligations by importers The management of the rice stockpile scheme as well as the licensing of both the stockpile and non-stockpile rice importers is under the control of Enterprise Singapore, a statutory Board under the supervision of the Ministry of Trade & Industry Under the RSS, all White Rice, Basmati Rice, Ponni Rice and Parboiled Rice are classified as stockpile grade rice Importers of white rice, basmati rice, ponni rice and parboiled rice for local distribution must join the RSS as licensed stockpile participants Stockpile participants have to pre-commit on the quantity that they wish to import monthly for local distribution This monthly amount is known as the Monthly Import Quantity (MIQ) which can be adjusted under certain conditions and notice period, driven by market forces The minimum MIQ for white rice is 50 tonnes There is no minimum MIQ for basmati rice, ponni rice and parboiled rice 19 | P a g e Rice of all descriptions is declared to be a controlled item under the Price Control Act (Chapter 244) and the Price Control (Rice) Order 1990 As such, no person shall import the item unless he has a valid licence issued by Enterprise Singapore If the conditions are met, the Licence will be prepared for submission to Assistant Price Controller for approval Upon approval from the Assistant Price Controller, a lifetime licence will be issued to the importer Generally, it would take three to five working days to process the application 2.6 Recommendation policy to increase the advantages of Vietnam’s rice export It has been proved that production cost of agriculture product will always increase following time It can be happened because of many factors, such as decreasing land fertility land, land tax scheme, minimum wage of labor, etc Relying on cost-competitiveness is not the best option for Vietnam’s rice export Demont M and Rutsaert P (2017) said that although Vietnam is one of the biggest rice exporters, there is an urgent need to restructure the sector Restructuration in here means to transform the quantity based producer to a credibel producer of quality rice There are three strategies that they suggest They are embodying sustainability in the product through certified sustainable production labels, internalizing sustainable production standards through vertical coordination and disembodying sustainability through book and claim certificate trading A little bit different with Demont M and Rutsaert, Kompas T (2010) emphasize more in Vietnam’s rice policy He noted that although an export measures of Vietnam’s rice policy will favor some poor people in rural household to access better consumption, a free trade scheme will generate to the largest welfare and increase household saving as a whole Thang (2017) in his research highlighted the quality of the rice He stated that the low quality and low recognize brand level make Vietnam’s rice has a lower price compared to Thailand and India According to the Vietnam Food Association (VFA) in the first four months in 2016, 95% rice containers were rejected by importers Mainly countries that reject the rice stated some reasons One of them is the level of fertilizers and pesticides using that above the allowed level This phenomenon made Vietnam’s rice hard to enter a high export requirements countries These strict countries even 20 | P a g e forbid all the rice with chemical containing In the end, the recommendation is the necessities of farmers to encouraged a little bit faster to change their variaties to a better ones as well as using less chemical A better production will led to more market share of rice, including non-easy market such as USA, Japan, EU Lord (2002) suggests that macroeconomic and microeconomic factors determining the competitiveness of Vietnam’s exports have become increasingly important since the mid-1990s As the dependency of export-oriented production processes on foreign direct investment for capital and technologies has risen, the importance of micro and macro-economic policies and regulations and institutions affecting the business environment have grown Vietnam’s prospects for export growth largely depends on the ability to attract foreign direct investment and technologies that permit it to use efficient infrastructure and modern methods for the productions of products and services directed at the global marketplace Yet weak external demand conditions and unfavorable factors affecting Vietnam’s international competitiveness could undermine the sustainability of the country’s strong export growth prospects A fundamental requirement for effective policy-making by the public sector and investment decision-making by the private sector is the availability of detailed and current statistical information Vietnam and other Asian countries generally export similar types of products, implying a relatively low level of complementarity opportunities for intra-regional trade within the Southeast Asia region and with China, including rice The similarity of the exports by Vietnam and other Asian countries suggests that, by developing cross-border production facilities and benefiting from economies of scale, exporters could improve their export performance in the world market Moreover, the promotion of FDI activities in these activities would help to shift the focus of foreign investors to industries having a sustainable impact on production patterns by changing technologies and improving worker skills Lord’s research resulted confirm expectations about the relatively high income-elasticities of export demand for Vietnam’s exports and, as such, the more favorable demand likely to exist in the US and Chinese markets for exports of Vietnam than that in the Japanese, EU and ASEAN-5 markets From a policy perspective, the long-term sustainability of Vietnam’s international competitiveness 21 | P a g e associated with real exchange rate movements will depend on the Government’s ability to maintain tight monetary and fiscal policies that ensure low inflation and prevent any further erosion in Vietnam’s export competitiveness These recommendations basically are made to increase the advantage of Vietnam’s rice export Most of researchs concerning Vietnam’s rice export are around increasing the quality and the quantity of the price, increasing the living standard of the local farmer, etc These process are realized not easy steps But a challenge is an urgent path to growth III CONCLUSION Every country finds the process of globalization and economic integration to be an important opportunity to develop its production and trade network far beyond its own borders For a small and developing country such as Vietnam, especially which had erroneously pursued a centralized state planning model, trade liberalization and economic integration eventually became an inevitable option For the nearly 30 years since the country began its economic reforms, Vietnam has retained its comparative advantage because of its lower labor costs Moreover, Vietnam’s integration in the region and in the world has been bringing a lot of opportunities for its goods Vietnam can exploit benefits from participating in AFTA and other trade agreements Processed agricultural products have been gaining a good position in various markets as well Particularly, the implementation of the Vietnam-US trade agreement will bring a surge in Vietnamese exports to this big market owing to a sharp reduction in tariffs and an increase in foreign investments in Vietnam As a very specific economic sector, rice exports have raised the question as to whether the large economic size of importing countries determines the direction of 22 | P a g e rice exports trade In international trade scheme, Vietnam has a comparative advantage in term of cost-competitiveness and the exchange rate Vietnam was the top fifth rice exporter country in term of dollar value which worth around $1,6 billion or 8% of total rice export From 2010 till 2016, quantity of Vietnam’s rice export has a trend that leaning toward declining The decrease not only in term quantity, but also the value of the export itself Most of the better quality export to difficult market such as USA, Japan and EU while the lower quality goes to Asian countries According to General Department of Vietnam Customs in 2016, Japonia rice type exported almost 30% to Switzerland, 27% white rice exported to The Philippines, 22% aromatic rice exported to Singapore, and the last, 57% sticky rice exported to China There are a lot of recommendations from researches All of them have similarities, they are increasing the quality and the quantity of the price, increasing the living standard of the local farmer, etc REFERENCES  Azziz A A (2006) Analisis Impor Beras Serta Pengaruhnya Terhadap Harga Beras dalam Negeri Bogor (ID) : Bogor Agricultural University  Cendrowski S (2013) The Rice Rush Online : http://fortune.com/2013/07/25/therice-rush/ Accessed at February 2018  Food and Agricultural Organization of the United Nations (2017) Rice Market Monitor (Production, International Trade, Rice Utilization and Domestic Prices) Volume XX Issue No July 2017  Lord M J 2002 Vietnam’s Export Competitiveness : Trade and Macroeconomic Policy Linkages World Bank : Asian Development Bank World’s Top Exports (2018) Rice Export by Country Online http://www.worldstopexports.com/rice-exports-country/ Accessed at March 2018  :  General Statistics office of Vietnam Exports and imports of goods Online : https://www.gso.gov.vn/ Accessed at April 2018 Saigon Giau Phong Online Vietnam to Decrease Rice Export Volume, Increase Value Online : http://m.sggpnews.org.vn/business/vietnam-to-decrease-rice-export-volumeincrease-value-70589.html Accessed at April 2018  UkrAgroConsult Vietnam Rice Exports Beat Low Expectations in 2017 Online : http://www.blackseagrain.net/novosti/vietnam-rice-exports-beat-low-expectations-in-2017 Accessed at April 2018  23 | P a g e Food and Agriculture Organization of United Nations FAOSTAT Online at : http://www.fao.org/faostat/en/#data/ Accessed at April 2018   Demont M and Rutsaert P 2017 Restructuring the Vietnamese Rice Sector : Towards Increasing Sustainability Manila (PH) : International Rice Research Institute (IRRI)  Kompas T et al 2010 The Effects of Rice Export Policy on Regional Income, Prices and the Poor: A Bottom-up regional CGE model for Vietnam Canberra (AU) : Crawford School of Economics and Government  Thang T C 2017 Current Status of Vietnam Rice Export Quality Hanoi (VN) : Institute of Policy and Strategy for Agriculture and Rural Development  Wailes E J and Chavez E C 2012 World Rice Outlook : International Rice Baseline with Deterministic and Stochastic Projections, 2012-2021 Arkansas (US) : University of Arkansas  CBI (Centre for The Promotion of Imports from Developing) : Ministry of Foreign Affairs What requirements should grains and pulses comply with to be allowed on the European market? Online at : https://bit.ly/2qsLaoP Accessed at April 2018  China Briefing 2017 Exporting Food Products to China : A Step by Step Guide Online at : https://bit.ly/2rqCDpM Accessed at April 2018 USDA (United States Department of Agricultur) Foreign Agricultural Service – Global Agricultural Information Network Philippines’ Food and Agricultural Import Regulations and Standards Narrative Online at : https://bit.ly/1X3WWiL Accessed at April 2018   Singapore Customs Enterprise Singapore (ESG) – Import and Export of Rice Online at : https://bit.ly/2qrJ5uo Accesed at April 2018 24 | P a g e