Farmers are the core force of the national economy and play an important role in providing food and foodstuffs and other essential products for daily use and export, contributing greatly to the country’s total GDP.

Among the commodities that are exported, many farm products are put on the list of Vietnam’s key export products, with a yearly export turnover of US$1 billion or more. However, it is a curious paradox that farmers and agricultural production are often at risk from instability.

For example, if farmers fail to export their rice, they will be blamed for the poor quality of their product. The Vietnamese Government has come up with solutions to support farmers but many problems have arisen from the implementation of these solutions, badly affecting farmers.

It has been six months since the Government decided to provide loans and interest subsidies on loans to help farmers purchase machinery and equipment, materials for agricultural production and build houses but many have complained that they could not access these incentives.

Some farmers say that they can only learn from such incentives over the radio or on television, not from other sources in the areas where they are living. Many farmers find it difficult to access bank loans due to complex procedures, as they are required to produce invoices for purchased goods to meet lending regulations or to explain their business plans to banks.

The Government has directed food businesses to purchase rice from farmers at the ceiling price of VND3,800 per kilogram and will compensate farmers if they cannot sell their rice at that price. However, farmers in the Mekong Delta provinces have complained that they always sell their rice at a price which is much lower than the ceiling price and get no compensation from the State.

Around 11-13 percent of the 38 million tonnes of food, which farmers produce, are lost every year. Even worst,  management agencies are unable to control the quality of fertilizers but still fine farmers for selling low-quality products.

In recent days, the media have reported that many agents are putting heavy pressure on farmers and businesses over the price of rice for export and causing them great losses. To support farmers, the Government has offered them loans with preferential interest rates to buy new equipment to preserve farm products. One month ago, the Prime Minister asked the Southern Food Corporation to purchase 500,000 tonnes of rice from farmers to maintain rice prices on the market and ensure the farmers make a reasonable profit of at least 30 percent.

The Government has also authorised the Ministry of Industry and Trade to draft new regulations for the management of rice exports, in which the ministry plays the key role. Farmers and rice exporters hope that with these new regulations, Vietnamese rice will secure a firm foothold in the international market.