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Ministers promise to examine accusations that Vinafood 2 dumped rice
Under questioning by NA deputies, Industry and Trade Minister Vu Huy Hoang said he has “no information” about charges that state-owned Vinafood 2 sold rice for less than the posted export price.
The charges have been widely reported by Vietnamese papers, which have suggested abuse of power by the food exporting giant.
Minister of Agriculture and Rural Development Cao Duc Phat said he had not read the Vietnam Food Association (VFA) report on the matter, but promised to join forces with relevant ministries to ensure proper supervision.
Three deputies raised questions on November 18 about rice exports, especially about rice export management by the Vietnam Food Association (VFA) and about the establishment of subsidiaries by the Southern Food Corporation (Vinafood 2).
Deputy Le Thanh Liem (Long An) asked Hoang if there were any reasons, other than concern about food security, behind the Industry and Trade Ministry’s order to stop exporting rice in 2008. At that time, Liem recalled, the world rice price was on the increase. The deputy from the upper Delta had heard, he said, that the order was partially because VFA had signed export contracts to sell rice at low prices and then, as prices rose, it wished to avoid having to deliver. Liem asked the minister to check the information.
Liem also questioned if Vinafood 2’s Singapore subsidiary was established to create unhealthy competition with other rice exporters, at the expense of farmers.
Minister Hoang confirmed that in 2008, the Government ordered a pause in rice exports in order to ensure national food security. He had no official information, Hoang said, whether VFA for some reason played a role in the decision on stopping rice exports.
Regarding the Vinafood subsidiary, Hoang called this an Agriculture Ministry (MARD) issue and asked that the question be answered by its minister, Cao Duc Phat. Speaking generally, he added, Vietnam encourages enterprises to make investments abroad, especially when this gives them a business advantage.
Vinafood 2’s establishment of the Singapore company must have been approved by both MARD and Ministry of Planning and Planning, he added.
MARD Minister Phat stressed that the subsidiary in Singapore belongs to Vinafood 2, and it is a state owned enterprise, not a business set up by some individuals to seek profit.
Phat said he knows that some Vietnamese media have denounced the subsidiary of Vinafood 2 selling rice for less than the posted export floor price. He recalled that VFA had explained that it was true that the company sold rice at the low price, but this had been approved by the industry association.
However, Phat admitted that his ministry has not examined the report by VFA.
“We will join forces with the Ministry of Industry and Trade to keep strict control over the operation of the company,” Phat promised.
Ha Yen
vietnamnet
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