Complicated administrative procedures have brought difficulties for Vietnamese exporters, limiting their competitiveness.
Many local companies have said that they are facing challenges, such as shrimp companies who have had their products sent back due to not meeting export standards of that country.
Complicated administrative procedures have brought difficulties for Vietnamese exporters, limiting their competitiveness.
Customs agencies still required them to pay taxes which are nearly equal to the value of the goods. If exporters cannot afford their bank guaranteed loan payments, they will not be give extra time to prove that shipments were returned. As a result, a number of exporters have been forced to liquidate their products to avoid taxes.
Besides, exporters have to spend both time and money for taking test samples of batches. Nguyen Huu Dung, Vice Chairman of Vietnam Association of Seafood Exporters and Producers (VASEP) said, A-grade seafood firms have to also follow the rule: one batch is checked for every five. The waiting time to receive certificates from testing agencies is 7 to 10 days, reducing these businesses' competitiveness.
Exporters who need to wait for their loads to be inspected and quarantined before receiving a certificate, in line with Ministry of Finance's regulation No. 1, 2012 also feel the effects in the form of storage and power fees.
Troubles for rice exporters
According to Decree 109 on exports, by September 30 this year, rice exporters have to prove ownership of a paddies, milling and cleaning stations. Many of these companies are tying to get credit and attract investment for new equipment to keep up with foreign competitors. This has pushed some small to medium sized enterprises to the verge of bankruptcy.
Mai Thi Anh Tuyet, Director of An Giang Province’s Department of Industry and Trade, said that, in the current situation, the circular has caused difficulties for rice exporters because each will have to invest at least VND30-40 billion (USD1.42-USD1.9 million) for the required equipment system.
To date, many are still dealing with land transfer procedures, the construction of production units and machine installation. Moreover, rice exports have been falling since late 2011, while each individual company has been asked to export at least 10,000 tonnes per year.
Many rice exporters said the Ministry of Industry and Trade should not limit the number of rice exporters to 100, but allow eligible ones to export rice.
Under current regulations each rice exporter has to store an equivelant of 10% of the total amount of rice exported in the last six months.
According to some rice exporters, the Ministry of Industry and Trade should extend the time for them to complete all the requirements to June 2013, or at least December 31 of this year.
