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On November 12, 2014, at Riverside Palace Convention Center, Ho Chi Minh City, “Conference to sign and implement a cooperation program between Mekong Delta Housing Development Commercial Joint Stock Bank (MHB) and VINAFOOD II to promote promote link building between components in the production and supply chain of rice in the Mekong Delta region”.
Mr. Huynh Nam Dung – Chairman of the Board of Directors of MHB and Mr. Pham Hoang Ha – Chairman of the Board of Members of VINAFOOD II signed the cooperation agreement. The guests attending the ceremony included Mr. Vo Trong Huu – Member of the Steering Committee for the Southwest region, Mr. Nguyen Hong Minh – Deputy Director of the Southern branch of the State Bank of Vietnam, the Board of Directors of Vinafood 2 and more than 30 member units. members, Board of Directors of MHB and Directors of branches in 13 provinces in the Mekong Delta.
At the signing ceremony, Mr. Huynh The Nang – General Director of Vinafood 2 mentioned outstanding achievements in rice production and business in Vietnam. However, in addition, Mr. Nang also emphasized that the rice market gradually showed signs of not keeping pace with development needs such as farmers not following the market mechanism; the practice of trading in the form of buying in the field and selling it at home, farmers sell rice immediately after harvesting to pay the prescribed fees, prepare for the next crop, as well as other expenses; The distribution system of input materials still has to go through agents…, which creates a big risk in terms of quality as well as the price of goods. One of the main difficulties for the current rice business is that the quantity of commodity rice produced is uneven between seasons in the year while the world market demand is “out of phase” with the rice harvest season.
In order to stabilize the rice market, in order to protect the reasonable interests of farmers directly producing rice, the Government as well as local authorities in the past few years have implemented many measures to regulate the supply of rice. demand and stabilize the market. These interventions have greatly contributed to the stabilization of the rice market in recent years. But these are only urgent measures, so, like all administrative measures, they often have some negative effects and still have limited effectiveness.
Mr. Huynh The Nang – General Director of VINAFOOD II speaking at the ceremony. Mr. Nang emphasized that the current requirement is to have a change in quality in the rice production-supply-trading chain. The focus of this program is to create a sustainable link between the participants in the link chain, ensuring the harmony between the legitimate interests of farmers and other actors in the process from planting, production to circulation and consumption of rice.
The main components in the production chain under the scheme of Vinafood 2 include: farmers – people who directly produce rice; private enterprises (limited companies, individual business households) – collecting, processing, supplying, and exporting food trading companies. This is a rational natural division, based on social efficiency and the filtering laws of the market.
Farmers who directly produce rice need to be assured of a legitimate and stable source of income and promote voluntary association for supply and purchase services in production as in the model of “Field large sample”.
Household businesses, private limited companies dealing in food are the units that directly affect the pace of rice purchasing of farmers, stemming from the pace of rice export of import and export companies. rice exports. Therefore, these units need to be reorganized into associations and groups so that they have a legitimate position in trading relations, through business regulations and laws, and are facilitated. access to bank loans.
Food import and export companies need to focus on finding external markets and export partners. If the export is difficult or the export price is low, it will not be enough for the smooth flow of rice in the entire rice market. At the same time, through economic contracts of Vinafood 2 member units with other components in the production and supply chain, which is the circulation and trading of rice, to reorganize them according to the market order in terms of prices. , quality and direction of the Government.
The decision of MHB and VINAFOOD II to implement a strategic cooperation program, in order to promote the building of linkages between stakeholders in the rice production, supply and trading chain in the Mekong Delta region is expected to protect protect legitimate interests and facilitate linkages of farmers and different stakeholders in the process from production and service provision to circulation and consumption of rice.
Speaking at the ceremony, Mr. Huynh Nam Dung, Chairman of MHB’s Board of Directors, said that by participating in the association program, rice farmers in the region will be guaranteed stable and profitable output. Households and purchasing companies will be guaranteed to access bank loans and government support policies (if any) in the most convenient and safe way. At the same time, the production cost of exported rice will be reduced by saving intermediary costs, contributing to regulating the market price of rice according to the Government’s policy.
Tang Phan Duy Phuc.