The proposal to abolish rice export licenses is generating conflicting views between large-scale corporations and small and medium-sized enterprises (SMEs) wishing to enter the market.

Concerns that "anyone can be an exporter"

In relation to the Ministry of Finance's draft proposal to abolish business licenses for 58 sectors and trades regulated under the Law on Investment 2025—including rice export licenses—two opposing schools of thought have emerged in the Mekong Delta.

Several large-scale rice exporters disagree with the proposal. According to them, abolishing the license means any business can become an "exporter." This leads to an "equalization" between units that have invested systematically and enterprises lacking a foundational base.

Entrepreneur Pham Thai Binh—Chairman of the Board of two specialized rice exporting companies—argued that while the proposal to abolish business conditions is timely and appropriate, it could cause the rice industry to regress in the long term.

He emphasized that rice is a special commodity, closely tied to the lives of nearly 20 million farmers for centuries and linked to national security. When entry barriers are removed, businesses can participate in exporting without needing to invest in processing mills, raw material areas, or showing concern for rice growers.

This creates a paradox where responsible, well-invested enterprises must compete with exporters who do not share the same foundational commitments.

Therefore, he recommended that instead of abolishing the license, regulatory authorities should cut unnecessary administrative procedures while maintaining a control system strong enough to protect the industry. He also suggested selecting "eagle" enterprises to implement the 1-million-hectare high-quality, low-emission rice project, linking exporter responsibility to farmers and the entire sector.

Creating opportunities for SMEs

Conversely, many businesses—especially the SME sector—agree with the proposal to abolish the license or suggest reopening the entrusted export mechanism.

Mr. Nguyen Van Chung—a Board member of JCC Foodstuff Joint Stock Company—argued that fears of price dumping when more businesses enter the market are unconvincing.

According to him, large enterprises are the ones with enough financial capacity to execute major contracts and dictate selling prices. Meanwhile, SMEs usually calculate every cost and profit margin to maintain stable orders, making them unlikely to engage in dumping.

Mr. Chung also assessed that abolishing licensing conditions would expand the number of participating businesses, contributing to increased outlets and pushing rice prices higher.

"SMEs have the conditions to participate and there are many outlets, but the entrusted mechanism has been closed since last year, causing difficulties for these businesses," Mr. Chung stated.

Another business representative (wishing to remain anonymous) argued that although SMEs may not export in large volumes individually, if a thousand businesses each sell just one container, the total reaches 1,000 containers—which is significant.

Sharing this view, Mr. Le Van Vu—Director of Vu Phat International Co., Ltd.—said: "More sellers mean more buyers, creating competition so that farmers are not squeezed on prices. Currently, we depend on those with licenses; whether there are 100 or 150 licenses, there are only that many buyers. Businesses without licenses only do enough to get by. The majority will be able to carry a large volume of rice."

Maintaining reputation to avoid "elimination"

Regardless of whether the license is abolished, businesses agree that the deciding factor for survival remains reputation and product quality. In reality, international customers have high quality requirements and even visit factories directly for inspections. Therefore, businesses wanting to survive and retain long-term customers must prioritize "quality." Those who fail to perform well will be naturally eliminated by market laws without state intervention.

"International trade requires competing on reputation. If a business has a license but lacks integrity, customers will leave. It is important for businesses to self-adjust if they want to exist," a business representative noted.

To regulate the export market, businesses proposed re-evaluating the export floor price tool in a flexible manner, referencing the price levels of major exporters like Thailand or Cambodia to intervene when necessary.

Additionally, the cessation of the entrusted export mechanism since mid-2025 is seen as narrowing opportunities for SMEs, even though they are a force that could significantly contribute to the industry's total turnover.

The proposal to abolish rice export licenses has become a focal point of interest for the rice industry community. These opinions, combined with statistics and industry planning, will serve as an important basis for specialized agencies to issue appropriate management policies in the near future.

Source: Bao Nong nghiep va Moi truong