Rectifying the purchase of agricultural products

Update: 3/17/2014

From 7-6 , FDI will not be held commodity purchasing networks in Vietnam for export , including the opening venue for purchasing goods exported .
Mr. Nguyen Dinh Bich , trade experts Trade Research Institute , Ministry of Industry and Trade , said the new circular of this provision of foreign invested enterprises ( FDI ) is the export licensing authority only direct buy goods from merchants Vietnam is to correct the procurement system in the country towards more healthy .
According to Circular takes effect from the date 08/2013/TT-BCT 7-6 , FDI will not be held commodity purchasing networks in Vietnam for export , including the opening venue for purchasing commodity exports .
Although many businesses that FDI Circular 08 takes effect will cause inequality and discrimination between the business of this type of business , and the risk of farmers will be forced to buy only when prices is devoted to domestic enterprises .
However, some expert opinion that the above provisions are necessary in the context of agricultural raw materials markets are inherently unstable over time .
Indeed, in recent years , the FDI , foreign traders purchase agricultural production massively , regardless of quality , size and types as well as adversely affecting the exports of agricultural products to Vietnam overseas amid stiff competition today . Many foreign traders in Vietnam lease land for rice cultivation , fruit , and other agricultural products .. and advocating for farmers to expand the area . But when they are no longer in demand, the market does not attract more customers , they are willing to " go finish coat " and consequently farmers suffered .
According to the Ministry of Agriculture and Rural Development , in the coffee sector , the FDI has purchased nearly 60 % of the total coffee production of the country , equivalent to 600,000 tons per year . Similar to the pepper industry , though only 7 FDI enterprises operating in Vietnam pepper exports , but their exports accounted for 36.5 % of total goods exports in 2012.
According to Mr. Nguyen Viet Vinh , general secretary of the Association Vietnam Coffee and Cocoa ( Vicofa ) , specifically in the coffee industry , many FDI enterprises operating in Vietnam are still in a " eating away at it " , not investment in the production of raw materials , there is no long -term strategy for the development of domestic material , though in the investment licenses of FDI enterprises have clearly defined functions .
Meanwhile , domestic enterprises to invest in the materials , support to farmers from seed to agricultural supplies , when to harvest , farmers now sell for a higher price sales FDI domestic industry .
" FDI buy high price because they do not give investment costs for the raw materials ," said Vinh evidence . In fact in the coffee industry , many FDI enterprises still buy raw materials to make a profit out quickly without investing the material .
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