Competition for produce heats up at border

The Ministry of Industry and Trade has ordered border provinces to report on any difficulties that food wholesalers have had in purchasing agricultural produce, following reports that Chinese traders are buying up substantial quantities of meat, seafood, eggs and other products.

However, it was difficult to confirm the rumours since no official statistics were yet available on the number of Chinese traders active in these areas, or on the volumes of Vietnamese agricultural products they were purchasing, said Deputy Minister of Agriculture and Rural Development Diep Kinh Tan.

Nong Quang Tam, deputy head of the check-point at the Huu Nghi International Border Gate in the northern province of Lang Son, said over 1,000 Chinese nationals had been permitted to enter Viet Nam via the border gate, with about half declaring commercial purposes.

Minister of Agriculture and Rural Development Cao Duc Phat said that it was normal and lawful for Chinese traders to do business in these areas.

However, Vietnamese traders have complained that Chinese traders were competing with them to buy products and then shipping them back across the border without paying export taxes.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa said the law limited foreign traders who purchase local goods for export to one of four classes.

The first was foreign traders without a commercial presence in Viet Nam who had a right to export goods under Government Decree 90/2007/ND-CP. These foreign traders were required to obtain certificates that they had registered export and import rights to buy Vietnamese goods for export from registered Vietnamese traders.

The second were foreign traders with a commercial presence in Viet Nam and export rights under Decree No 23/2007/ND-CP. They would have a right to purchase goods in Viet Nam for export, and would be named in the customs declaration as the exporter.

The third were the representative offices of foreign traders which were allowed to oversee the execution of export contracts signed with Vietnamese partners as stipulated in Decree No 72/2006/ND-CP.

And the fourth was foreign traders undertaking normal market research. According to regulations, after researching the market, foreign traders would have permission to sign contracts with Viet Nam’s partners to purchase and export goods.

Traders in these four classes who violated regulations while purchasing goods in Viet Nam would be fined, Thoa said, reiterating that all exports via border gates were subject to export taxes and fees as regulated. Only individuals bringing a limited quantity of goods across the border were exempt from these taxes, she said.

The ministry would investigate allegations that Chinese traders were exporting via border gates without paying export taxes and would fine violators, Thoa said. — VNS

Tags: Vietnam imports