Vietnam parliament blasts ministers on rice exports

Vietnam FlagHanoi - Vietnamese National Assembly deputies Thursday criticized the government's poor handling of rice exports in early 2008, continuing three days of sharp queries over the issue.

Vietnam's government, worried about food security, capped rice exports in March just as prices were soaring on the world market, leading to large losses in export revenue and financial difficulties for millions of farmers. The issue arose repeatedly at the National Assembly over the last three days, with deputies questioning the ministers of agriculture and trade and, Thursday, Prime Minister Nguyen Tan Dung.

"The government has to take responsibility, as they did not supply timely information, or explain clearly to the Vietnamese people why they decided to stop exporting rice at that time," said National Assembly Deputy Duong Trung Quoc.

Rice prices on the world market reached 1,200 dollars per ton in the second quarter of 2008, while Vietnamese export firms were barred from signing new contracts. Prices dropped as low as 360 dollars per ton in the third quarter, when the government allowed firms to resume signing export contracts.

Deputies said that despite government anxieties, Vietnam had never faced rice shortages.

Minister of Trade and Industry Vu Huy Hoan defended the government's decision Wednesday, saying it was difficult to manage rice prices on a large scale, especially at a time when countries reported large-scale shortages of rice and prices were increasing rapidly.

Hoan said that, in Vietnam, storms and floods early in the year led to expectations of a low spring harvest, forcing the government to halt export to ensure domestic supplies. He accepted partial responsibility for the government's inaccurate forecasting.

But some deputies did not accept the government's explanation.

"The Minister of Trade and Industry accepted only part of his responsibility for the slow response while rice prices were falling," Le Thi Dung, who represents a Mekong Delta rice farming district, said on the floor of the National Assembly on Wednesday. "We are not satisfied."

On Tuesday, Nguyen Hong Dieu, who also represents the Mekong Delta, asked Minister of Agriculture and Rural Development Cao Duc Phat why exports were halted at a time when Vietnam had plenty of rice for export.

"The ministers still put the emphasis on justifying themselves, rather than presenting the facts," said Quoc. "Even though the Prime Minister and his ministers admitted their mistakes, everything is still working in the same mechanism, nothing will change." (dpa)

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