Recent studies show that, in the era of the global economy, logistics systems are very vulnerable [1] and affected by risks from many different origins [2]. Many scholars have pointed out that the abundant supply [3] and the fluctuations in market demand [4] can lead to significant risks in the process of operating logistics chains. According to Tang [5], the sudden occurrence of accidents and political conflicts can lead to the collapse of markets, resulting in heavy losses for the entire supply chain in general and the logistics system in particular. Many studies show that major damages caused by natural disasters will bring numerous challenges to the logistics industry [6] and require urgent emergency supplies [7,8].

It can be affirmed that managing risks in logistics activities in particular and the supply chain, in general, is a hot topic and receives increasing attention not only from the business community but also from academic researchers. This topic has not only been studied in detail [5,9], systematically analyzed by many scholars [2,10] but also has received many reviews as being of great significance in practice [11].

Export activities in general and rice exports in particular faced many difficulties and challenges, mainly due to the extremely complicated impact of the COVID-19 pandemic. From 2019 to the end of 2020, the COVID-19 epidemic significantly affected trade and service activities, especially the consumption and export of agricultural products. During that period of time, the export of rice to foreign markets was severely affected by the epidemic, causing many business orders to be canceled [12].

The full effect of the pandemic on global supply chains is not yet known. As the IMF is predicting a 3 percent contraction for the global economy in 2020, the expected recession will deliver a hit to demand and, thus, logistics companies, highlighting logistics’ exposure to trade, manufacturing and demand for goods [13]. Therefore, risk management in the supply chain in general and in the rice import-export industry in particular during the COVID-19 pandemic should be addressed with utmost priority.

Risks And Risk Management 

According to Harland [14], risk is a concept associated with uncertain events, hazards, or undesirable outcomes. Crichton [15], stated that risk is a probability of making a loss: this probability depends on three factors "hazard", "vulnerability" and "exposure". Recent studies indicate that the management of supply chain risk in general and the risk management in logistics systems, in particular, need a combination of many factors [16-18]. These include resources [19-21], relationship networks [22] and business performance [23]. In other words, risk management is structuring a process to minimize or mitigate the effects of risk [24].

To manage risks, many scholars have proposed many models from different approaches and scopes, including

• Managing risks from human and environmental impacts leading to disruption in the logistics chain [25-28]

• Operational risks control [29-31]

• Disaster management and emergencies [32,33]

• Risk analysis in logistics services [34,35]

The process that has received a great deal of agreement among researchers and is commonly used in risk studies [36], is the four-step process of Hallikas et al. [37]:

• Identifying risks

• Risks assessment

• Selecting and implementing actions to reduce the likelihood of risks and minimize impacts if risks occur

• Monitoring risks

Risk Of Supply Chain and Logistics System 

Supply chain risk is any risk of information flows, materials and products from the original supplier to delivering the initial product to the final consumer [9]. In a recent study, by dividing risks into three different groups, Christopher and Peck [38], listed 5 types of risks:

• Risks inside the company (process risks and monitor risks)

• Risks outside the company but within the supply chain network (supply risks and demand risks)

• Risks outside the supply chain network (environmental risks)

Globally, Manuj and Mentzer [39], divided risks into 8 categories:

• Supply risks

• Operational risks

• Demand risks

• Safety risks

• Microeconomic risks

• Political risks

• Competition risks

• Resource risks

As mentioned in the research of Punniyamoorthy et al. [40], logistics activities are an inseparable part of forming and contributing a large part to the value of the entire supply chain. In this paper, we reuse the model of the authors above, in which supply chain risk is divided into 6 types:

• Supplier side risks

• Manufacturer side risks

• Demand-side risks

• Logistics side risks

• Information risks

• Environmental risks

To provide an overview of the risks that may arise in logistics activities of rice import-export enterprises in Vietnam, we believe that the use of Punniyamoorthy et al.’s [40] research model will equip readers with a comprehensive view of the operation of the logistics system, especially when these activities are analyzed during the stages of the supply chain. Thereby, the assessment of the possibility, the extent of the impact and the proposed solutions for risks in logistics activities are also presented and analyzed in detail.

Export Rice Supply Chain and Mekong Delta Rice Supply Chain

According to Son [41], there exists a model of operating two export rice supply chains in practice.

• Model (1): The food import-export company buys raw rice from chain actors such as traders, farmers, millers and then manufactures the rice before exporting it to foreign customers

• Model (2): The import and export company plan to develop raw material areas and builds standard planting areas to serve export markets

Referring to the rice value chain model in the Mekong Delta [42], the authors analyzed the rice’s value through each link in the chain, in terms of the percentage of consumption volume. Explaining the cause of the low value-added of the whole chain, the author states that the rice supply chain in the Mekong Delta has also undergone many intermediaries.

In general, the Mekong Delta rice supply chain model has four stages as follows:

• Production

• Transportation

• Processing

• Consumption

Among those, factors involved in each activity include farmers, traders, millers, polishers and food companies [43].

It can be seen that supply chain management activities in the rice import and export enterprises in Vietnam have the participation and coordination of many components. The business itself is both a collector of input materials and a supplier of finished rice to foreign markets, which also has many risks. Those risks include risks in operation, risks in production, risks in logistics activities, both in the input and output logistics flows.

This study is a qualitative study conducted by developing a questionnaire for in-depth semi-structured interviews of current management personnel in rice import and export enterprises. The study was initially conducted by targeting one representative business based in An Giang province. However, during the implementation process, with the respondents' introduction, the writer extended the survey to three other enterprises by adapting the snowball sampling method. Participants interviewed in businesses are considered and selected according to the organizational and business characteristics of each enterprise, to obtain the most complete and accurate information. After that, the interview results are summarized and compared with previous research to identify risks in the supply chain in general and logistics activities in particular of rice import and export enterprises. This study was conducted through 3 main phases as follows:

Phase 1: Risks Identification

Through the analysis, the writer selects and uses the risk factors outlined in the study of Punniyamoorthy et al. [40] with the six risk factors mentioned in section 2.2 (46 observed variables) to identify risks in Vietnam's rice supply chain.

Phase 2: Risk Assessment 

Unlike most previous studies that only focused on identifying risks, the author used the Risk Assessment Matrix introduced by Farmer [43]. The matrix was later improved and reused in Ballard [44], in this paper. The severity of the risk can be quantitatively assessed through reflection on the matrix through in-depth interviews with companies’ representatives. In particular, the vertical axis indicates the likelihood of a risk; the horizontal axis indicates the level of danger when the corresponding risk occurs. This is an appropriate tool, providing an overview of the risk so that the planners and relevant departments can easily have appropriate solutions and recommendations.

Phase 3: Solutions 

From the analysis in the above two stages, the writer will discuss with the surveyed business representatives, propose approaches and remove possible risks.

We interviewed representatives at managerial positions at their company office from February 2020 to March 2020; the interview content followed the questionnaire built on the research of Punniyamoorthy et al. [40]. This includes personnel of the following businesses:

• A Giang Import-Export Joint Stock Company: is one of the leading enterprises in Vietnam with over 35 years of business experience in food, agricultural materials, trade and services

• A Giang Agriculture and Food Import Export Joint Stock Company: is an enterprise with multi-sector activities, of which three key areas are: processing and exporting food and aquatic products; production and consumption of animal feed; seafood

• Loc Troi Group Joint Stock Company: is the leading manufacturer and service provider of Vietnam's market in agriculture and rice import and export, with a sustainable value chain from research, production, trading, sales of seed products, plant protection products, bio-organic products

• A Giang Foodstuff Company: is an enterprise operating in areas such as processing and trading in food, foodstuff, flour, agricultural products, food trading, aquaculture, timber trading

RISKS IDENTIFICATION

Supplier Side Risks

Risk sources [40]:

• Poor quality of supplies

• Vague inspection/acceptance procedure of the supplier

• Short supplies

• Inflexibility of suppliers

• Non-availability of technical know-how such as methods of production, requirement special testing facility, tooling packing, etc.

• Inability of the supplier to furnish drawings, datasheets, etc.

• Sudden default of suppliers

• Dependency on a single supplier for critical and long cycle time items

• Frequent changes of critical material suppliers

• Frequent delays in material supply lead-time

• Intellectual property risk

• The complexity of critical material

Observed variables that occur compared to study [40]:

• Poor quality of supplies: When the demand for rice products in the market of importing countries tends to increase sharply during COVID-19, the surveyed enterprises have expanded their purchasing areas of input materials to meet such urgent needs. In some southern provinces, there were many problems with rice grain quality during the purchasing process. Many buyers (namely traders, storks, traders, etc.), intermediaries between farmers and rice import-export enterprises, maximize profits by "đấu gạo" (deliberately mixing secondary types of rice, poor quality) before delivering to the business

• Short supplies: During the period of the strong increase in rice demand and continuous fluctuations in markets, many companies face the risk of maintaining a stable supply in the short term and the rice supply for long contracts and customers who are foreign importing enterprises simultaneously

• Inflexibility of suppliers: To meet current demand and sustain rice export activities in the long term, businesses had to adopt measures such as suspending their offering to new customers and potential customers, focusing on meeting the needs of current orders instead. Many companies refuse to export rice under individual contracts despite being ordered in large quantities and competitive prices and giving priority to long-term customers with a long history of business trading at the same time

• Sudden default of suppliers: In the course of business, many suppliers have been in various unstable financial circumstances; in some severe cases, there even have been sudden defaults in some suppliers. Although the terms of the contract specify measures to handle in situations like these, the resolution often takes a long time, causing much damage to both the supplier and the rice exporter itself

• Frequent delays in material supply lead-time: In the past, when the demand for rice in the market suddenly increased, the price of rice also changed. Many intermediaries and traders buy rice in large quantities to create a "virtual shortage" caused by speculative accumulation and inflation in the market. Even though they have signed contracts with rice exporting enterprises, they still deliberately "hoarded rice", waiting for good moments, during which the rice’s price is resettled, before releasing rice to the market

The observed variables do not appear according to study [40]:

• Vague inspection/acceptance procedure of the supplier: As enterprises operating for many years in rice import and export in particular and other food products in general, enterprises participating in this study have extensive experience in establishing inspection/acceptance procedures with suppliers. Many terms of the contract also specify the rights and responsibilities of the parties

• Non-availability of technical know-how such as a method of production, requirement special testing facility, tooling packing, etc.: Before signing contracts, rice exporting enterprises all assessed the suppliers' capacity in different ways

• Inability of the supplier to furnish drawings, datasheets, etc.: Providing data records of rice products is one of the prerequisites between suppliers and rice exporters. These contents are specified in the two-party contract (between traders and rice exporting enterprises) or tripartite agreement (between farmers, traders and rice exporting enterprises)

• Dependency on a single supplier for critical and long cycle time items: From the North to the South, it can be said that Vietnam's rice production capacity is enormous, not only abundant for domestic supply but has also proved Vietnam's agricultural sector is capable of supplying a large amount of rice for many years. Therefore, the risk of relying on the sole supplier for a specific type of rice product almost does not exist in Vietnam

• Frequent changes of critical material suppliers: Along with developing systems of rice exporting enterprises, the establishment and growth of rice purchasing enterprises from “bạn hàng xáo” (previously used to be called traders or storks)., In the process of implementing rice supply contracts for rice exporting enterprises, these intermediaries have linked and created great stability in the market. Because of that, the occurrence of a scarcity of a few individuals buying rice as before has no longer happened. Rice exporters are no longer at risk of changing suppliers continually. In contrast, the fact that many suppliers are rice-buying enterprises in the market has contributed to increasing the input source choice for rice exporting enterprises

• Intellectual property risk: Because businesses operate mainly in commerce, therefore, intellectual products are not an essential factor determining the survival of the company

• The complexity of critical material: As analyzed above, rice is a common food that has been cultivated for a long time. Therefore, southern farmers have a lot of experience in and developing paddy rice. Thanks to the development of science and technology, which has been thoroughly applied in the stages of rice cultivation as well as the widespread popularity of modern information systems, it can be said that today's farmers are completely capable of supplying rice with the highest quality than ever before

Manufacturer Side Risks

• Disruption in production

• High level of process variation

• Variability in production cycle time

• Inadequate production capability

• Inflexibility in capacity

• Inflexibility in layout for free flow of materials

• Vague inspection and acceptance procedures

• Frequent product recall process

• Sharing of design and other documents with suppliers which may lead to loss of core competency

• Improper handling/maintenance of strategic warehouse/inventory

• Organization issues

Observed variables that occur compared to study [40]:

• Disruption in production: A production disruption may occur when a problem arises transporting raw materials from a supplier

• High level of process variation: Along with the deeper integration of economy and culture between countries and regions around the world. Currently, in addition to customers with a long history of trading in traditional markets such as Hong Kong and Singapore, Vietnamese rice exporters have also signed contracts and conducted rice trading with new markets such as Saudi Arabia, Central Asian countries and South Asia. In this market, demand for rice products also appears many new requirements, typically the consumption of paraffin-sprayed rice. To meet this demand, many businesses have had to apply new production processes and processing equipment. Besides, to improve production norms and the quality of rice grains, rice exporters must also regularly learn and apply modern techniques and equipment

• Variability in production cycle time: There are three rice harvest periods, among which rice has the highest yield and quality in the Winter-Spring crop and decreases in the Summer-Autumn and Winter-Autumn crops. Therefore, the production cycle of businesses also varies depending on the time of year. Adapting to the changes in nature and the demand from foreign markets is a big challenge for companies.

• Inflexibility in layout for the free flow of materials: Risks may arise when demand for particular rice, as analyzed above, paraffin-coated rice, for example. As a result, the rejection of orders from foreign importing enterprises is tough

• Frequent product recall process: Although it is not a common risk group, this is a group of risks that has many impacts on the enterprise's business operations. The process of product recall usually occurs when the rice has already been shipped abroad or occurs in the buyer's territory. Therefore, the resolution often requires cross-border cooperation, which also lasts for a long time with many costs and related procedures

• Sharing of design and other documents with suppliers, which may lead to loss of core competency: In the past, many senior employees in the company left for rival companies. When a senior manager leaves the company, the company loses a large number of customers. So besides building an internal document management system, the ability to "retain" long-term employees in the company is also a challenge for businesses in the rice export industry

The observed variables do not appear according to study [40]:

• Inadequate production capability: With the widespread development of rice exporting enterprises as both a direct supplier of rice to foreign markets and an intermediary to sell rice to other exporting enterprises, it can be said, the production capacity of rice exporting enterprises is huge. Also, the outsourcing trend in recent years has contributed significantly to solving productivity problems for domestic rice exporting enterprises

• Inflexibility in capacity: As analyzed above, mobilizing the businesses' capacity in the industry is extremely common in an open market today

• Vague inspection and acceptance procedures: As businesses operating in rice import and export, in general, enterprises in the industry have a lot of experience in concluding contracts that clearly define the rights and obligations of parties in goods inspection and acceptance procedures

• Improper handling/maintenance of strategic warehouse/inventory: Enterprises participating in the survey said that to operate an effective production system, the issues of warehouse maintenance and inventory management are jointly managed by many departments in the enterprise. Enterprises have built a process of checking and assessing their warehouses’ specific situations of the and goods in the warehouse, thereby proposing timely and effective handling solutions

• Organizational issues. Through the survey, businesses all said there was no corporate risk

• Unanticipated or very volatile customer

Demand-Side Risks

Risk sources [40]

• Large forecast error in demand

• Frequent delays in delivery to customers

• Receivables risk

• Change in customer preference

• Reputation risk

Observed variables that occur compared to [40] study:

• Unanticipated or very volatile customer: As analyzed in 1.1 and 1.4, when unforeseen problems such as the COVID-19 pandemic and political instability occur in the rice importing country, there is a high probability that an unexpected or unstable customer will occur

• Large forecast error in demand: In general, businesses have always had solutions such as organizing department-level meetings and among departments in public. However, in current big fluctuations, some businesses have not made accurate forecasts about market demand

• Frequent delays in delivery to customers: Sudden changes in weather or packaging errors are the leading causes of the risk of delayed delivery to customers

• Receivables risk: When customers are enterprises in countries that have import quota regulations, Vietnamese enterprises may face acceptance risks related to the import norms and deadlines specified in the importing country's licenses

The observed variables do not appear according to study [40]: 

• Change in customer preference: Rice is consumed as a major food source in many countries and territories. For that reason, customers often have loyal consumption and taste habits of a certain type of rice product

• Reputation risk: Businesses surveyed said that there was no reputation risk

Logistics Side Risks

Risk sources [40]

• Inadequate operation/financial strength of the carrier

• Storage issues

• Poor design of transportation network

• Wrong choice of mode of transportation

• Improper packaging and marking details

• Damages due to accident/improper stacking

• Delay in delivery time

   

Observed variables that occur compared to study [40]:

• Storage issues: Although not a high-frequency risk, but during the operation, businesses still suffer losses related to storage problems. The most common of which is loss and inventory management

• Poor design of transportation network: The surveyed businesses agreed that there is room for improvement in Vietnam's transportation network. It is the "bottlenecks" in the road transport system and inland waterways that increase domestic freight costs and time

• Wrong choice of mode of transportation: As an industry that uses many means of transportation, especially inland and inland waterway transports, rice import and export enterprises often have difficulties in transshipment. In many areas, the operation of ships depends on the ebb and flow of the tide, the new personnel not fluent in local terrain can make wrong decisions and choose the inappropriate mode of transport

• Improper packaging and marking details: Currently, the issue of printing packaging products containing rice is done in two common ways. The first method: rice exporters directly print or through intermediary companies supplying packaging. The second method: the importer appoints a packaging printing enterprise. The information appearing on the packaging is usually expressed in the importing country's language, many languages ​​are not common, making it difficult for the inspection process and may cause errors

• Delays in delivery time: Rice is typically a commodity transported by various means of transport before reaching the importing country, rice exporters are face challenges with goods being delayed before being delivered to the importers

The observed variables do not appear according to study [40]:

• Inadequate operation/financial strength of the carrier: Before deciding to select a shipping unit, rice exporters all conducted methods to assess the capacity and choose suitable carriers

• Damages due to accident/improper stacking: Businesses surveyed said no accidents were due to wrong cargo arrangements

Information [40]:

• Delayed or unavailability of the information and communication infrastructure, either within or outside the company

• Breakdown of external/internal information technology infrastructure

• Inadequate security of information system

• Wrong choice of communication/information sharing medium

Observed variables that occur compared to study [40]:

• Delayed or unavailability of the information and communication infrastructure, either within or outside the company: With a vast customer network in many countries and territories, some businesses may pose risks in the timely receipt and processing of new orders.

• 5.3. Inadequate security of information system: In dealing with partners, many hackers have created fake email accounts with addresses similar to customers' addresses. Thereby these subjects can access businesses and profit from illicit acts.

The observed variables do not appear according to study [40]:

• Breakdown of external/internal information technology infrastructure: With the increasingly modern development of the global information technology system and the interest in upgrading enterprises and infrastructure investments. The information on import-export enterprises has been completed

• Wrong choice of communication/information sharing medium: Businesses surveyed said that they do not face any risks in choosing information-sharing media

Environment Risks

Risk sources [40]:

• Policy uncertainty

• Macroeconomic uncertainty

• Uncertainty due to government laws/regulation

• Unstable society

• Non-availability of skilled manpower

• Act of God, war, terrorism, natural calamities and other forced majeure like strikes, riots, etc.

Observed variables that occur compared to study [40]: 

• Policy uncertainty: In previous years, due to the incomplete legal system, rice import-export enterprises faced many difficulties. In recent years, with support from the government, many inadequate regulations and "licenses" that are only limited to simple procedures have gradually been removed

• Act of God, war, terrorism, natural calamities and other forced majeure like strikes, riots, etc.: In the context of the climate change and COVID-19 pandemic, there are many changes in the adverse direction for farming activities today, the rice industry in general and the rice export industry in particular face many difficulties in the goal of sustainable development

The observed variables do not appear according to study [40]:

• Macroeconomic uncertainty: In recent years, Vietnam's economy has experienced great leaps and bounds, in which the macroeconomy has become more and more stable and continues its developing trend in the future

• Uncertainty due to government laws/regulation: Currently, the legal system and regulations are considered to be relatively complete, contributing to "promote" the activities of many businesses

• Unstable society: Political, defense and social stability are significant achievements in the cause of national development. Social stability is an important factor, ensuring sustainable supply for rice exporting enterprises

• Non-availability of skilled human resources: The enterprises participating in the survey have policies related to human resource training. The key positions in the business are arranged in succession. Besides, businesses also regularly send employees to take professional courses, actively study and disseminate new standards in production and trade

Thus, it can be seen that, as businesses operating in the field of food import and export in general and rice import and export in particular, the surveyed businesses are affected by all stages in the rice supply chain. The results of the study also showed many similarities with that of Punniyamoorthy et al. [40]. The risks that can arise in Vietnam's rice supply chain can also be divided into six groups as the above study. In particular, the most emerging are supplier-side risks and manufacturer-side risks. As the direct buyer of input rice and export manufactured rice, rice export enterprises often suffer from risks of unsatisfactory supply quality, short-term and inflexible supply, risks of sudden default of suppliers and risks of time delay in material supply. But in production, representatives of enterprises said that there were no risks such as limited production capacity, inflexible capacity, ambiguity in checking and acceptance procedures, risks in storage and handling of inventories and organizational risks. In the demand-side risks group and logistics side risks group, most of the risks mentioned in the study of Punniyamoorthy et al. [40] appeared. However, there is no risk in customers' tastes and reputation risks in the demand forecasting risk group, nor the logistics activities related to the carrier's financial strength and the risks of improper handling. Among information risks, surveyed enterprises said that enterprises often face information infrastructure risks and the possibility of information system insecurity. However, there are no risks associated with macroeconomic policies, laws, social instability and human resource risks.

Risk Assessment 

The survey results of enterprises are calculated by arithmetic mean method and summarized in the Table 1. 

Table 1: Risks assessment results by interviewing import-export enterprises

Source: Authors’ summarized interview results

Recommended Solutions

First, enterprises need to have measures to assess business capacity in general and financial capacity in particular for suppliers. Businesses should choose farmers, trading partners (traders) with prestige in the market and a long history of transactions. Also, rice exporters need to have precise terms in the contract, specifying the rights and obligations of suppliers to control quality and delivery time. In addition to the above, businesses should arrange on-the-spot personnel directly involved in the cultivation and management of rice grain quality before and during the purchase, avoiding the situation of rice farmers and excessive concentration of fertilizers and pesticides. Diversification of suppliers in the current business environment is also a measure to be taken. In addition to purchasing rice from traditional suppliers, businesses also need to develop a strategy to buy finished rice from domestic and foreign businesses with specific types of rice and limited cultivation areas.

Second, to limit production risks, businesses need to develop effective operating procedures to prevent disruptions in production and change pressures in operating processes and manufacturing cycles. Businesses need to register and ensure the international standards in their operations and production, such as the ISO 9000 Quality Management System and ISO 14000 Environmental Management System, to achieve acceptable agricultural production practices for Vietnamese agricultural and fishery products (VietGap) and global (GlobalGap). Enterprises should have contingency plans and train their staff to deal with problems that arise when the buyer refuses to receive the goods or when the product is recalled, safely and systematically managed.

Third, rice exporters need to make full use of the mass media and advice from leading experts to have accurate estimates of customer needs and demand changes. Businesses need to ensure an adequate supply of rice assigned by the Northern Food Corporation (Vinafood I) and the Southern Food Corporation (Vinafood II). This helps businesses fulfill their obligations to supply rice for international bidding contracts of the Vietnamese government and helps businesses improve their image in the market. By selecting a qualified transport unit, the business can ensure delivery obligations to the importer. Enterprises should regularly coordinate with state agencies such as the General Department of Customs and the Ministry of Industry and Trade to limit the risk of acceptance related to import quotas.

Fourth, logistics activities today are considered the "backbone" of many businesses, especially businesses operating in the field of trade. Rice exporters need to build a team of experienced logistics staff, outsourcing, or getting expert advice in many cases. Personnel in the company’s logistics department should be trained at the training facilities as prescribed, ensuring possession of professional certificates such as customs declaration certificates, IATA dangerous goods declaration certificates. Besides, modern technologies such as artificial intelligence in warehouse management and warehouse goods are also effective solutions. Packaging signers need to be standardized and perform post-inspection well. In case the information on rice packaging is in a foreign language, the enterprise should wait for confirmation from the importer.

Finally, it can be said that information is the "golden key" to help businesses achieve business efficiency. Every business need to constantly improve and upgrade the company’s information system besides building database security and encryption measures. Enterprises need to coordinate well with trade unions, state agencies such as the Ministry of Agriculture and Rural Development, Vietnam Food Association, Rice Institute, etc. to timely disseminate information and propose ideas when there are bad developments in the market. Timely solutions from the government and relevant agencies have helped businesses solve business problems in general and in rice import and export in particular.

In the context of an increasingly competitive market today, risk management should be considered an important factor determining the business’s survival. Being aware of and thoroughly assessing the frequency and impact of risks will help enterprises plan business strategies towards sustainable development. Rice has long been one of the key export sectors of Vietnam, this study hopes to help enterprises in the rice export industry have more research materials, offering managers a new way to approach and develop risk management strategies, as well as improving competitiveness and operational efficiency.

This research will be the premise for future studies, especially quantitative studies in building a model of measurement and control of risks in general business activities and import-export enterprises' business activities in particular.

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Recent studies show that, in the era of the global economy, logistics systems are very vulnerable [1] and affected by risks from many different origins [2]. Many scholars have pointed out that the abundant supply [3] and the fluctuations in market demand [4] can lead to significant risks in the process of operating logistics chains. According to Tang [5], the sudden occurrence of accidents and political conflicts can lead to the collapse of markets, resulting in heavy losses for the entire supply chain in general and the logistics system in particular. Many studies show that major damages caused by natural disasters will bring numerous challenges to the logistics industry [6] and require urgent emergency supplies [7,8].

It can be affirmed that managing risks in logistics activities in particular and the supply chain, in general, is a hot topic and receives increasing attention not only from the business community but also from academic researchers. This topic has not only been studied in detail [5,9], systematically analyzed by many scholars [2,10] but also has received many reviews as being of great significance in practice [11].

Export activities in general and rice exports in particular faced many difficulties and challenges, mainly due to the extremely complicated impact of the COVID-19 pandemic. From 2019 to the end of 2020, the COVID-19 epidemic significantly affected trade and service activities, especially the consumption and export of agricultural products. During that period of time, the export of rice to foreign markets was severely affected by the epidemic, causing many business orders to be canceled [12].

The full effect of the pandemic on global supply chains is not yet known. As the IMF is predicting a 3 percent contraction for the global economy in 2020, the expected recession will deliver a hit to demand and, thus, logistics companies, highlighting logistics’ exposure to trade, manufacturing and demand for goods [13]. Therefore, risk management in the supply chain in general and in the rice import-export industry in particular during the COVID-19 pandemic should be addressed with utmost priority.

Risks And Risk Management 

According to Harland [14], risk is a concept associated with uncertain events, hazards, or undesirable outcomes. Crichton [15], stated that risk is a probability of making a loss: this probability depends on three factors "hazard", "vulnerability" and "exposure". Recent studies indicate that the management of supply chain risk in general and the risk management in logistics systems, in particular, need a combination of many factors [16-18]. These include resources [19-21], relationship networks [22] and business performance [23]. In other words, risk management is structuring a process to minimize or mitigate the effects of risk [24].

To manage risks, many scholars have proposed many models from different approaches and scopes, including

• Managing risks from human and environmental impacts leading to disruption in the logistics chain [25-28]

• Operational risks control [29-31]

• Disaster management and emergencies [32,33]

• Risk analysis in logistics services [34,35]

The process that has received a great deal of agreement among researchers and is commonly used in risk studies [36], is the four-step process of Hallikas et al. [37]:

• Identifying risks

• Risks assessment

• Selecting and implementing actions to reduce the likelihood of risks and minimize impacts if risks occur

• Monitoring risks

Risk Of Supply Chain and Logistics System 

Supply chain risk is any risk of information flows, materials and products from the original supplier to delivering the initial product to the final consumer [9]. In a recent study, by dividing risks into three different groups, Christopher and Peck [38], listed 5 types of risks:

• Risks inside the company (process risks and monitor risks)

• Risks outside the company but within the supply chain network (supply risks and demand risks)

• Risks outside the supply chain network (environmental risks)

Globally, Manuj and Mentzer [39], divided risks into 8 categories:

• Supply risks

• Operational risks

• Demand risks

• Safety risks

• Microeconomic risks

• Political risks

• Competition risks

• Resource risks

As mentioned in the research of Punniyamoorthy et al. [40], logistics activities are an inseparable part of forming and contributing a large part to the value of the entire supply chain. In this paper, we reuse the model of the authors above, in which supply chain risk is divided into 6 types:

• Supplier side risks

• Manufacturer side risks

• Demand-side risks

• Logistics side risks

• Information risks

• Environmental risks

To provide an overview of the risks that may arise in logistics activities of rice import-export enterprises in Vietnam, we believe that the use of Punniyamoorthy et al.’s [40] research model will equip readers with a comprehensive view of the operation of the logistics system, especially when these activities are analyzed during the stages of the supply chain. Thereby, the assessment of the possibility, the extent of the impact and the proposed solutions for risks in logistics activities are also presented and analyzed in detail.

Export Rice Supply Chain and Mekong Delta Rice Supply Chain

According to Son [41], there exists a model of operating two export rice supply chains in practice.

• Model (1): The food import-export company buys raw rice from chain actors such as traders, farmers, millers and then manufactures the rice before exporting it to foreign customers

• Model (2): The import and export company plan to develop raw material areas and builds standard planting areas to serve export markets

Referring to the rice value chain model in the Mekong Delta [42], the authors analyzed the rice’s value through each link in the chain, in terms of the percentage of consumption volume. Explaining the cause of the low value-added of the whole chain, the author states that the rice supply chain in the Mekong Delta has also undergone many intermediaries.

In general, the Mekong Delta rice supply chain model has four stages as follows:

• Production

• Transportation

• Processing

• Consumption

Among those, factors involved in each activity include farmers, traders, millers, polishers and food companies [43].

It can be seen that supply chain management activities in the rice import and export enterprises in Vietnam have the participation and coordination of many components. The business itself is both a collector of input materials and a supplier of finished rice to foreign markets, which also has many risks. Those risks include risks in operation, risks in production, risks in logistics activities, both in the input and output logistics flows.

This study is a qualitative study conducted by developing a questionnaire for in-depth semi-structured interviews of current management personnel in rice import and export enterprises. The study was initially conducted by targeting one representative business based in An Giang province. However, during the implementation process, with the respondents' introduction, the writer extended the survey to three other enterprises by adapting the snowball sampling method. Participants interviewed in businesses are considered and selected according to the organizational and business characteristics of each enterprise, to obtain the most complete and accurate information. After that, the interview results are summarized and compared with previous research to identify risks in the supply chain in general and logistics activities in particular of rice import and export enterprises. This study was conducted through 3 main phases as follows:

Phase 1: Risks Identification

Through the analysis, the writer selects and uses the risk factors outlined in the study of Punniyamoorthy et al. [40] with the six risk factors mentioned in section 2.2 (46 observed variables) to identify risks in Vietnam's rice supply chain.

Phase 2: Risk Assessment 

Unlike most previous studies that only focused on identifying risks, the author used the Risk Assessment Matrix introduced by Farmer [43]. The matrix was later improved and reused in Ballard [44], in this paper. The severity of the risk can be quantitatively assessed through reflection on the matrix through in-depth interviews with companies’ representatives. In particular, the vertical axis indicates the likelihood of a risk; the horizontal axis indicates the level of danger when the corresponding risk occurs. This is an appropriate tool, providing an overview of the risk so that the planners and relevant departments can easily have appropriate solutions and recommendations.

Phase 3: Solutions 

From the analysis in the above two stages, the writer will discuss with the surveyed business representatives, propose approaches and remove possible risks.

We interviewed representatives at managerial positions at their company office from February 2020 to March 2020; the interview content followed the questionnaire built on the research of Punniyamoorthy et al. [40]. This includes personnel of the following businesses:

• A Giang Import-Export Joint Stock Company: is one of the leading enterprises in Vietnam with over 35 years of business experience in food, agricultural materials, trade and services

• A Giang Agriculture and Food Import Export Joint Stock Company: is an enterprise with multi-sector activities, of which three key areas are: processing and exporting food and aquatic products; production and consumption of animal feed; seafood

• Loc Troi Group Joint Stock Company: is the leading manufacturer and service provider of Vietnam's market in agriculture and rice import and export, with a sustainable value chain from research, production, trading, sales of seed products, plant protection products, bio-organic products

• A Giang Foodstuff Company: is an enterprise operating in areas such as processing and trading in food, foodstuff, flour, agricultural products, food trading, aquaculture, timber trading

RISKS IDENTIFICATION

Supplier Side Risks

Risk sources [40]:

• Poor quality of supplies

• Vague inspection/acceptance procedure of the supplier

• Short supplies

• Inflexibility of suppliers

• Non-availability of technical know-how such as methods of production, requirement special testing facility, tooling packing, etc.

• Inability of the supplier to furnish drawings, datasheets, etc.

• Sudden default of suppliers

• Dependency on a single supplier for critical and long cycle time items

• Frequent changes of critical material suppliers

• Frequent delays in material supply lead-time

• Intellectual property risk

• The complexity of critical material

Observed variables that occur compared to study [40]:

• Poor quality of supplies: When the demand for rice products in the market of importing countries tends to increase sharply during COVID-19, the surveyed enterprises have expanded their purchasing areas of input materials to meet such urgent needs. In some southern provinces, there were many problems with rice grain quality during the purchasing process. Many buyers (namely traders, storks, traders, etc.), intermediaries between farmers and rice import-export enterprises, maximize profits by "đấu gạo" (deliberately mixing secondary types of rice, poor quality) before delivering to the business

• Short supplies: During the period of the strong increase in rice demand and continuous fluctuations in markets, many companies face the risk of maintaining a stable supply in the short term and the rice supply for long contracts and customers who are foreign importing enterprises simultaneously

• Inflexibility of suppliers: To meet current demand and sustain rice export activities in the long term, businesses had to adopt measures such as suspending their offering to new customers and potential customers, focusing on meeting the needs of current orders instead. Many companies refuse to export rice under individual contracts despite being ordered in large quantities and competitive prices and giving priority to long-term customers with a long history of business trading at the same time

• Sudden default of suppliers: In the course of business, many suppliers have been in various unstable financial circumstances; in some severe cases, there even have been sudden defaults in some suppliers. Although the terms of the contract specify measures to handle in situations like these, the resolution often takes a long time, causing much damage to both the supplier and the rice exporter itself

• Frequent delays in material supply lead-time: In the past, when the demand for rice in the market suddenly increased, the price of rice also changed. Many intermediaries and traders buy rice in large quantities to create a "virtual shortage" caused by speculative accumulation and inflation in the market. Even though they have signed contracts with rice exporting enterprises, they still deliberately "hoarded rice", waiting for good moments, during which the rice’s price is resettled, before releasing rice to the market

The observed variables do not appear according to study [40]:

• Vague inspection/acceptance procedure of the supplier: As enterprises operating for many years in rice import and export in particular and other food products in general, enterprises participating in this study have extensive experience in establishing inspection/acceptance procedures with suppliers. Many terms of the contract also specify the rights and responsibilities of the parties

• Non-availability of technical know-how such as a method of production, requirement special testing facility, tooling packing, etc.: Before signing contracts, rice exporting enterprises all assessed the suppliers' capacity in different ways

• Inability of the supplier to furnish drawings, datasheets, etc.: Providing data records of rice products is one of the prerequisites between suppliers and rice exporters. These contents are specified in the two-party contract (between traders and rice exporting enterprises) or tripartite agreement (between farmers, traders and rice exporting enterprises)

• Dependency on a single supplier for critical and long cycle time items: From the North to the South, it can be said that Vietnam's rice production capacity is enormous, not only abundant for domestic supply but has also proved Vietnam's agricultural sector is capable of supplying a large amount of rice for many years. Therefore, the risk of relying on the sole supplier for a specific type of rice product almost does not exist in Vietnam

• Frequent changes of critical material suppliers: Along with developing systems of rice exporting enterprises, the establishment and growth of rice purchasing enterprises from “bạn hàng xáo” (previously used to be called traders or storks)., In the process of implementing rice supply contracts for rice exporting enterprises, these intermediaries have linked and created great stability in the market. Because of that, the occurrence of a scarcity of a few individuals buying rice as before has no longer happened. Rice exporters are no longer at risk of changing suppliers continually. In contrast, the fact that many suppliers are rice-buying enterprises in the market has contributed to increasing the input source choice for rice exporting enterprises

• Intellectual property risk: Because businesses operate mainly in commerce, therefore, intellectual products are not an essential factor determining the survival of the company

• The complexity of critical material: As analyzed above, rice is a common food that has been cultivated for a long time. Therefore, southern farmers have a lot of experience in and developing paddy rice. Thanks to the development of science and technology, which has been thoroughly applied in the stages of rice cultivation as well as the widespread popularity of modern information systems, it can be said that today's farmers are completely capable of supplying rice with the highest quality than ever before

Manufacturer Side Risks

• Disruption in production

• High level of process variation

• Variability in production cycle time

• Inadequate production capability

• Inflexibility in capacity

• Inflexibility in layout for free flow of materials

• Vague inspection and acceptance procedures

• Frequent product recall process

• Sharing of design and other documents with suppliers which may lead to loss of core competency

• Improper handling/maintenance of strategic warehouse/inventory

• Organization issues

Observed variables that occur compared to study [40]:

• Disruption in production: A production disruption may occur when a problem arises transporting raw materials from a supplier

• High level of process variation: Along with the deeper integration of economy and culture between countries and regions around the world. Currently, in addition to customers with a long history of trading in traditional markets such as Hong Kong and Singapore, Vietnamese rice exporters have also signed contracts and conducted rice trading with new markets such as Saudi Arabia, Central Asian countries and South Asia. In this market, demand for rice products also appears many new requirements, typically the consumption of paraffin-sprayed rice. To meet this demand, many businesses have had to apply new production processes and processing equipment. Besides, to improve production norms and the quality of rice grains, rice exporters must also regularly learn and apply modern techniques and equipment

• Variability in production cycle time: There are three rice harvest periods, among which rice has the highest yield and quality in the Winter-Spring crop and decreases in the Summer-Autumn and Winter-Autumn crops. Therefore, the production cycle of businesses also varies depending on the time of year. Adapting to the changes in nature and the demand from foreign markets is a big challenge for companies.

• Inflexibility in layout for the free flow of materials: Risks may arise when demand for particular rice, as analyzed above, paraffin-coated rice, for example. As a result, the rejection of orders from foreign importing enterprises is tough

• Frequent product recall process: Although it is not a common risk group, this is a group of risks that has many impacts on the enterprise's business operations. The process of product recall usually occurs when the rice has already been shipped abroad or occurs in the buyer's territory. Therefore, the resolution often requires cross-border cooperation, which also lasts for a long time with many costs and related procedures

• Sharing of design and other documents with suppliers, which may lead to loss of core competency: In the past, many senior employees in the company left for rival companies. When a senior manager leaves the company, the company loses a large number of customers. So besides building an internal document management system, the ability to "retain" long-term employees in the company is also a challenge for businesses in the rice export industry

The observed variables do not appear according to study [40]:

• Inadequate production capability: With the widespread development of rice exporting enterprises as both a direct supplier of rice to foreign markets and an intermediary to sell rice to other exporting enterprises, it can be said, the production capacity of rice exporting enterprises is huge. Also, the outsourcing trend in recent years has contributed significantly to solving productivity problems for domestic rice exporting enterprises

• Inflexibility in capacity: As analyzed above, mobilizing the businesses' capacity in the industry is extremely common in an open market today

• Vague inspection and acceptance procedures: As businesses operating in rice import and export, in general, enterprises in the industry have a lot of experience in concluding contracts that clearly define the rights and obligations of parties in goods inspection and acceptance procedures

• Improper handling/maintenance of strategic warehouse/inventory: Enterprises participating in the survey said that to operate an effective production system, the issues of warehouse maintenance and inventory management are jointly managed by many departments in the enterprise. Enterprises have built a process of checking and assessing their warehouses’ specific situations of the and goods in the warehouse, thereby proposing timely and effective handling solutions

• Organizational issues. Through the survey, businesses all said there was no corporate risk

• Unanticipated or very volatile customer

Demand-Side Risks

Risk sources [40]

• Large forecast error in demand

• Frequent delays in delivery to customers

• Receivables risk

• Change in customer preference

• Reputation risk

Observed variables that occur compared to [40] study:

• Unanticipated or very volatile customer: As analyzed in 1.1 and 1.4, when unforeseen problems such as the COVID-19 pandemic and political instability occur in the rice importing country, there is a high probability that an unexpected or unstable customer will occur

• Large forecast error in demand: In general, businesses have always had solutions such as organizing department-level meetings and among departments in public. However, in current big fluctuations, some businesses have not made accurate forecasts about market demand

• Frequent delays in delivery to customers: Sudden changes in weather or packaging errors are the leading causes of the risk of delayed delivery to customers

• Receivables risk: When customers are enterprises in countries that have import quota regulations, Vietnamese enterprises may face acceptance risks related to the import norms and deadlines specified in the importing country's licenses

The observed variables do not appear according to study [40]: 

• Change in customer preference: Rice is consumed as a major food source in many countries and territories. For that reason, customers often have loyal consumption and taste habits of a certain type of rice product

• Reputation risk: Businesses surveyed said that there was no reputation risk

Logistics Side Risks

Risk sources [40]

• Inadequate operation/financial strength of the carrier

• Storage issues

• Poor design of transportation network

• Wrong choice of mode of transportation

• Improper packaging and marking details

• Damages due to accident/improper stacking

• Delay in delivery time

   

Observed variables that occur compared to study [40]:

• Storage issues: Although not a high-frequency risk, but during the operation, businesses still suffer losses related to storage problems. The most common of which is loss and inventory management

• Poor design of transportation network: The surveyed businesses agreed that there is room for improvement in Vietnam's transportation network. It is the "bottlenecks" in the road transport system and inland waterways that increase domestic freight costs and time

• Wrong choice of mode of transportation: As an industry that uses many means of transportation, especially inland and inland waterway transports, rice import and export enterprises often have difficulties in transshipment. In many areas, the operation of ships depends on the ebb and flow of the tide, the new personnel not fluent in local terrain can make wrong decisions and choose the inappropriate mode of transport

• Improper packaging and marking details: Currently, the issue of printing packaging products containing rice is done in two common ways. The first method: rice exporters directly print or through intermediary companies supplying packaging. The second method: the importer appoints a packaging printing enterprise. The information appearing on the packaging is usually expressed in the importing country's language, many languages ​​are not common, making it difficult for the inspection process and may cause errors

• Delays in delivery time: Rice is typically a commodity transported by various means of transport before reaching the importing country, rice exporters are face challenges with goods being delayed before being delivered to the importers

The observed variables do not appear according to study [40]:

• Inadequate operation/financial strength of the carrier: Before deciding to select a shipping unit, rice exporters all conducted methods to assess the capacity and choose suitable carriers

• Damages due to accident/improper stacking: Businesses surveyed said no accidents were due to wrong cargo arrangements

Information [40]:

• Delayed or unavailability of the information and communication infrastructure, either within or outside the company

• Breakdown of external/internal information technology infrastructure

• Inadequate security of information system

• Wrong choice of communication/information sharing medium

Observed variables that occur compared to study [40]:

• Delayed or unavailability of the information and communication infrastructure, either within or outside the company: With a vast customer network in many countries and territories, some businesses may pose risks in the timely receipt and processing of new orders.

• 5.3. Inadequate security of information system: In dealing with partners, many hackers have created fake email accounts with addresses similar to customers' addresses. Thereby these subjects can access businesses and profit from illicit acts.

The observed variables do not appear according to study [40]:

• Breakdown of external/internal information technology infrastructure: With the increasingly modern development of the global information technology system and the interest in upgrading enterprises and infrastructure investments. The information on import-export enterprises has been completed

• Wrong choice of communication/information sharing medium: Businesses surveyed said that they do not face any risks in choosing information-sharing media

Environment Risks

Risk sources [40]:

• Policy uncertainty

• Macroeconomic uncertainty

• Uncertainty due to government laws/regulation

• Unstable society

• Non-availability of skilled manpower

• Act of God, war, terrorism, natural calamities and other forced majeure like strikes, riots, etc.

Observed variables that occur compared to study [40]: 

• Policy uncertainty: In previous years, due to the incomplete legal system, rice import-export enterprises faced many difficulties. In recent years, with support from the government, many inadequate regulations and "licenses" that are only limited to simple procedures have gradually been removed

• Act of God, war, terrorism, natural calamities and other forced majeure like strikes, riots, etc.: In the context of the climate change and COVID-19 pandemic, there are many changes in the adverse direction for farming activities today, the rice industry in general and the rice export industry in particular face many difficulties in the goal of sustainable development

The observed variables do not appear according to study [40]:

• Macroeconomic uncertainty: In recent years, Vietnam's economy has experienced great leaps and bounds, in which the macroeconomy has become more and more stable and continues its developing trend in the future

• Uncertainty due to government laws/regulation: Currently, the legal system and regulations are considered to be relatively complete, contributing to "promote" the activities of many businesses

• Unstable society: Political, defense and social stability are significant achievements in the cause of national development. Social stability is an important factor, ensuring sustainable supply for rice exporting enterprises

• Non-availability of skilled human resources: The enterprises participating in the survey have policies related to human resource training. The key positions in the business are arranged in succession. Besides, businesses also regularly send employees to take professional courses, actively study and disseminate new standards in production and trade

Thus, it can be seen that, as businesses operating in the field of food import and export in general and rice import and export in particular, the surveyed businesses are affected by all stages in the rice supply chain. The results of the study also showed many similarities with that of Punniyamoorthy et al. [40]. The risks that can arise in Vietnam's rice supply chain can also be divided into six groups as the above study. In particular, the most emerging are supplier-side risks and manufacturer-side risks. As the direct buyer of input rice and export manufactured rice, rice export enterprises often suffer from risks of unsatisfactory supply quality, short-term and inflexible supply, risks of sudden default of suppliers and risks of time delay in material supply. But in production, representatives of enterprises said that there were no risks such as limited production capacity, inflexible capacity, ambiguity in checking and acceptance procedures, risks in storage and handling of inventories and organizational risks. In the demand-side risks group and logistics side risks group, most of the risks mentioned in the study of Punniyamoorthy et al. [40] appeared. However, there is no risk in customers' tastes and reputation risks in the demand forecasting risk group, nor the logistics activities related to the carrier's financial strength and the risks of improper handling. Among information risks, surveyed enterprises said that enterprises often face information infrastructure risks and the possibility of information system insecurity. However, there are no risks associated with macroeconomic policies, laws, social instability and human resource risks.

Risk Assessment 

The survey results of enterprises are calculated by arithmetic mean method and summarized in the Table 1. 

Table 1: Risks assessment results by interviewing import-export enterprises

Source: Authors’ summarized interview results

Recommended Solutions

First, enterprises need to have measures to assess business capacity in general and financial capacity in particular for suppliers. Businesses should choose farmers, trading partners (traders) with prestige in the market and a long history of transactions. Also, rice exporters need to have precise terms in the contract, specifying the rights and obligations of suppliers to control quality and delivery time. In addition to the above, businesses should arrange on-the-spot personnel directly involved in the cultivation and management of rice grain quality before and during the purchase, avoiding the situation of rice farmers and excessive concentration of fertilizers and pesticides. Diversification of suppliers in the current business environment is also a measure to be taken. In addition to purchasing rice from traditional suppliers, businesses also need to develop a strategy to buy finished rice from domestic and foreign businesses with specific types of rice and limited cultivation areas.

Second, to limit production risks, businesses need to develop effective operating procedures to prevent disruptions in production and change pressures in operating processes and manufacturing cycles. Businesses need to register and ensure the international standards in their operations and production, such as the ISO 9000 Quality Management System and ISO 14000 Environmental Management System, to achieve acceptable agricultural production practices for Vietnamese agricultural and fishery products (VietGap) and global (GlobalGap). Enterprises should have contingency plans and train their staff to deal with problems that arise when the buyer refuses to receive the goods or when the product is recalled, safely and systematically managed.

Third, rice exporters need to make full use of the mass media and advice from leading experts to have accurate estimates of customer needs and demand changes. Businesses need to ensure an adequate supply of rice assigned by the Northern Food Corporation (Vinafood I) and the Southern Food Corporation (Vinafood II). This helps businesses fulfill their obligations to supply rice for international bidding contracts of the Vietnamese government and helps businesses improve their image in the market. By selecting a qualified transport unit, the business can ensure delivery obligations to the importer. Enterprises should regularly coordinate with state agencies such as the General Department of Customs and the Ministry of Industry and Trade to limit the risk of acceptance related to import quotas.

Fourth, logistics activities today are considered the "backbone" of many businesses, especially businesses operating in the field of trade. Rice exporters need to build a team of experienced logistics staff, outsourcing, or getting expert advice in many cases. Personnel in the company’s logistics department should be trained at the training facilities as prescribed, ensuring possession of professional certificates such as customs declaration certificates, IATA dangerous goods declaration certificates. Besides, modern technologies such as artificial intelligence in warehouse management and warehouse goods are also effective solutions. Packaging signers need to be standardized and perform post-inspection well. In case the information on rice packaging is in a foreign language, the enterprise should wait for confirmation from the importer.

Finally, it can be said that information is the "golden key" to help businesses achieve business efficiency. Every business need to constantly improve and upgrade the company’s information system besides building database security and encryption measures. Enterprises need to coordinate well with trade unions, state agencies such as the Ministry of Agriculture and Rural Development, Vietnam Food Association, Rice Institute, etc. to timely disseminate information and propose ideas when there are bad developments in the market. Timely solutions from the government and relevant agencies have helped businesses solve business problems in general and in rice import and export in particular.

In the context of an increasingly competitive market today, risk management should be considered an important factor determining the business’s survival. Being aware of and thoroughly assessing the frequency and impact of risks will help enterprises plan business strategies towards sustainable development. Rice has long been one of the key export sectors of Vietnam, this study hopes to help enterprises in the rice export industry have more research materials, offering managers a new way to approach and develop risk management strategies, as well as improving competitiveness and operational efficiency.

This research will be the premise for future studies, especially quantitative studies in building a model of measurement and control of risks in general business activities and import-export enterprises' business activities in particular.

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