Credit Rating System Proposed for Vietnamese Rice Exporters
The Ministry of Industry and Trade has officially proposed a comprehensive credit rating system for rice exporters to be introduced as a primary criterion for selecting companies for government-to-government (G2G) contracts and for the crucial allocation of export quotas.
This proposal, detailed in a draft decree intended to replace existing regulations (Government Decree 107/2018 and Decree 01/2025), marks the first time such a credit rating mechanism has been formally suggested for the Vietnamese rice trade.
The proposed system involves rating exporters on a 100-point scale, which will cover a wide range of operational and financial factors.
Key areas for evaluation include the company’s established credit ranking, its history of tax compliance, customs record, the strength of its supply chain partnerships with local farmers, and efforts in brand development within international markets.
Furthermore, performance metrics such as overall export volume, inventory management efficiency, and timely reporting will also be scrutinized.
The rating system is designed to be holistic, extending its evaluation criteria to include logistics capacity, adherence to workplace safety standards, fire protection protocols, disaster preparedness measures, and the quality of warehouse standards.
The overall ratings would be classified into five distinct categories, ranging from ‘very high’ (80-100 points) to ‘very low’ (0-19 points), providing a clear and standardized measure of a rice exporter’s reliability and capability to fulfill large contracts effectively.
Enhancing Market Prestige and Allocating Quotas
The credit rating mechanism is viewed by the Ministry as a vital tool for professionalizing the industry, enhancing the prestige of Vietnam’s rice exporters, and improving their competitive advantages in the global marketplace.
The Ministry of Industry and Trade plans to establish an independent council specifically tasked with accessing, evaluating, and publicly publishing the creditworthiness of all registered rice exporters.
These official ratings would serve as the fundamental basis for allocating both G2G contracts and overall export quotas, replacing the less efficient and less transparent current system of equal or even allocation.
The ministry believes that adopting a merit-based system will significantly enhance the reputation and prestige of Vietnam’s rice exporters, thereby improving their competitive advantages and actively helping to consolidate the brand image of Vietnamese rice in the highly competitive international market.
By prioritizing high-rated exporters, the government aims to ensure that export commitments are consistently met with high standards of quality and reliability.
However, this shift is not without concerns. One industry trader cautioned that the proposed system could inadvertently favor large, established exporters who already possess advanced logistics, extensive capital, and sophisticated management systems, potentially leaving smaller and newer players at a significant competitive disadvantage, threatening the diversity of rice exporters.
To mitigate this risk and ensure equitable implementation, an independent supervision mechanism to guarantee fairness in the evaluation and allocation process will likely be required.
Liberalization and Industry Oversight
In addition to the rating system, the draft decree introduces a major proposal for liberalization and emphasizes the need for stricter oversight of all entities involved in the rice export business.
A significant element of the new draft decree is the proposal to open up rice exports to foreign-invested enterprises (FIEs).
Under the new regulations, FIEs would be permitted to participate in the rice export market, provided that they successfully meet all stipulated prerequisites and obtain the necessary operating licenses.
This move is intended to inject more capital, technology, and advanced management practices into the sector, further boosting Vietnam’s competitive standing among international rice exporters.
However, the liberalization comes with a reinforced focus on meeting regulatory standards.
The overall intent of the draft decree is to streamline the rice export business environment while ensuring all participants, whether domestic rice exporters or new foreign entrants, adhere to a high level of operational and ethical conduct.
By using a credit rating system and setting clear entry requirements for FIEs, the Ministry is aiming to create a highly regulated, merit-based framework that promotes efficiency, quality, and accountability across the entire Vietnamese rice supply chain, securing the nation’s position as a reliable, premium global supplier.
