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You want to export some fertilizer? ‘Get a quota,’ says MOIT
The Ministry of Industry and Trade (MOIT) has decided that enterprises must obtain quotas from the ministry if they wish to re-export fertilizer. Vietnamese companies call the decision “irrational interference with the market,” especially at a time that fertilizer is in abundant supply, reports Tien Phong newspaper. MOIT insists it made the right decision.
Exporters: MOIT’s quota creates difficulties for business
“An export quota is clearly just another license,” declares Vu Duy Hai, Chairman and General Director of Vinacam Company in HCM City.
For some time now, Hai explains, market mechanisms alone have well regulated the fertilizer business, and enterprises have decided their production and import volume. The State’s only intervention has been by setting tariffs.
At one time, Hai continues, the Government limited exports by setting a high export tariff, but since the export tariff was lowered to zero percent, enterprises have been free to export as much as they want. But now, suddenly, when businesses seek to export fertilizer, customs agencies are asking: “Where is your export quota?”, and businesses, exceedingly astonished, hurry to MOIT to ask for quotas.
Deputy Chairman of the Vietnam Fertilizer Association Nguyen Hac Thuy calls MOIT’s decision to put quotas on fertilizer exports a ‘very unreasonable decision’. The ministry no longer controls fertilizer imports. In fact, he continued, none of the ministries and agencies can say precisely how much fertilizer is in the country or whether it’s enough to meet the needs of Vietnamese farmers. They have to get that information from the Fertilizer Association. “So, why force enterprises to obtain export licenses?” Thuy asked.
Thuy complains that obtaining an export licence is a lot of trouble.
A large volume of fertilizer imported in 2008 has not yet been used, so businesses are considering re-exporting it to untie capital. Now, however, to export fertilizer they have to file a request with MOIT’s Import-Exports Department and wait for its approval.
Thuy said that it takes some 15-20 days to get the quota, during which time business opportunities could be missed.
Hai complained that the Import-Export Department has set many unreasonable requirements. For example, businesses are required to specify where they plan to export fertilizer, to show their contract and reveal how much fertilizer they have in stock.
Thuy is petitioning for immediate discontinuance of the quotas; [MOIT] ought not prolong this situation, he says. Fertilizer prices fluctuate every day, so enterprises will suffer losses if they cannot export products in a timely way.
MOIT: The market must be supervised
Luong Anh Quynh, Deputy Director of the Import-Export Department under MOIT, insists that her ministry is acting according to the law in its management of the fertilizer market. Citing Decree 12 on the implementation of the Commercial Law, Quynh said that enterprises which want to re-export an imported good must submit documents to MOIT for its approval.
“We operate under the market mechanism, but the State’s oversight is still necessary,” adds Deputy Minister of Industry and Trade Nguyen Cam Tu.
In contrast, Thuy argues that once the market is running under the market mechanism, it is illogical for MOIT hang on to management powers over exports. If anything, he adds, it is the job of the Ministry of Agriculture and Rural Development, not MOIT, to ensure that there’s enough fertilizer to meet the needs of domestic agriculture production
vietnamnet, tp
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