Seeking new markets for rice exports

Data from the Ministry of Agriculture and Environment (MAE) shows that Vietnam shipped 750,000 tons of rice worth $366.1 million in July. Exports totaled 5.5 million tons over the first seven months of the year, valued at $2.81 billion, up 3.1 per cent in volume but down 15.9 per cent in value compared to the same period of 2024.

New markets of promise

At the recent “Promoting Agro-Forestry-Fisheries Exports 2025” conference, organized by the MAE, Mr. Do Ha Nam, Chairman of the Vietnam Food Association (VFA), said the results of the first seven months put Vietnam on track to export some 8.8 million tons of rice this year, after which it would temporarily edge past Thailand to claim second place globally in rice export volumes, behind India.

“Vietnamese rice has now built a strong brand and is highly sought after in many markets, with demand outstripping supply,” Mr. Nam said. “The average export price stands at $514 per ton, revealing that clear progress is being made.” He called on the MAE and other agencies to help businesses capitalize on this momentum and expand into new markets such as Japan, South Korea, and Africa.

Mr. Nam added that Vietnamese rice exporters are increasingly targeting Africa, a promising but high-risk market due to slow payments. In the long term, he stressed the importance of developing high-quality rice varieties and specialized farming zones. He also highlighted the premium ST25 rice, praised by overseas Vietnamese as among the world’s best, saying it enhances Vietnam’s global image.

The Philippines remained Vietnam’s top rice buyer in the first seven months, accounting for 42.6 per cent of total exports. Ghana and Côte d’Ivoire followed, with market shares of 11.1 per cent and 10.6 per cent. Among Vietnam’s 15 largest rice markets, Bangladesh saw the fastest growth, surging 188.2-times, while Malaysia recorded the sharpest decline, down 58.5 per cent.

Uncertainty looms

However, one issue raised by the VFA is that the Philippines has announced plans to suspend rice imports within the next 60 days. This poses a significant challenge for Vietnamese exporters, given the Philippines is currently their largest market, accounting for about 40-45 per cent of annual rice export revenue. The suspension would stall pending contracts, leading to large stockpiles and liquidity pressure.

To mitigate these risks, the VFA has proposed several support measures for businesses, including access to low-interest credit, extended repayment deadlines, and the creation of storage facilities to hold rice until exports resume, avoiding distress sales. It also requested clear guidance on the rice varieties covered by the temporary ban. In addition, the Association urged the Ministry of Industry and Trade to send a diplomatic note to the Philippine Department of Agriculture, seeking solutions to ease difficulties and ensure Vietnamese exporters can continue shipping rice. Regarding VAT policy, the VFA called on ministries and agencies to quickly remove barriers and create more favorable conditions for rice exports.

Despite the Philippines’ import pause, businesses believe the overall impact on exports will not be severe, as more than 70 per cent of the summer-autumn crop has already been sold. From September to October, Vietnam has little to no harvest, meaning selling pressure remains limited. Mr. Nguyen Van Thanh, Director of the Phuoc Thanh IV Trading-Production Co., Ltd., added that Philippine rice import policies change frequently, and Vietnamese exporters are already used to adapting.

Speaking at the conference, Deputy Minister of Foreign Affairs Nguyen Minh Hang agreed with the MAE that from now until year’s end, agriculture, forestry, and fisheries exports, including rice, will continue to face a host of challenges. Global food prices have been trending upwards, but rice prices have declined and are expected to continue falling over the next one to two years. Many countries could introduce restrictions or sudden quotas on imports, causing unpredictable market fluctuations.

In response, Deputy Minister Hang put forward several recommendations: maintaining growth momentum in major markets while diversifying to reduce risk; tapping deeper into high-grade rice demand in the EU and Japan; and intensifying trade promotion and branding in new markets. She also emphasized the need for stronger coordination between the three ministries of Foreign Affairs, Industry and Trade, and Agriculture and Environment, to seize opportunities and safeguard export growth.

Building a sustainable foundation

According to the Plant Production and Protection Department under the MAE, as of the end of July, Vietnam had planted 1.2 million ha of summer rice, down 10,500 ha from the same period last year.

Total rice cultivation in 2025 is projected at about 7.03 million ha, with yields averaging 6.16 tons per ha, resulting in an estimated output of 43.14 million tons, 323,000 tons less than in 2024. This year’s harvest is expected to not only meet domestic food demand but also secure over 8.5 million tons for export.

Given the production outlook, Mr. Ngo Hong Phong, Director of the Department of Quality, Processing, and Market Development at MAE, advised rice-producing localities and businesses to closely monitor demand and market trends to adjust production and exports as required.

He added that the Prime Minister has directed the MAE to ensure that Mekong Delta provinces meet planned rice acreage and output. At the same time, the government is prioritizing the effective implementation of the “One Million Hectares of High Quality and Low-Emission Rice Associated with Green Growth in the Mekong Delta By 2030” program, while scaling up low-emission farming practices to cut costs and boost farmer incomes.

In addition, the Prime Minister has tasked ministries with drafting new criteria and conditions for rice trading and import-export enterprises, giving priority and incentives to businesses with integrated supply chains, product procurement contracts, and modern storage and logistics systems. The aim is to reduce farmers’ reliance on middlemen and prevent price manipulation.

“At the core of exports is production, and the foundation of production is raw material zones,” stressed Mr. Bui Ba Bong, Chairman of the Vietnam Rice Industry Association (VIETRISA). “Vietnam has a strong advantage, as the leading rice producer in Southeast Asia, approaching global standards and making remarkable progress. The ‘super raw material zone’ program - 1 million ha of high-quality, low-emission rice in the Mekong Delta - is being effectively implemented.”

He added that the 1 million ha model could be expanded to other localities, safeguarding national food security while enhancing export competitiveness. Production zones under this model will carry the “Green and Low-Emission Vietnam Rice” label. Vietnam has already exported its first shipment under this brand to Japan. Therefore, he proposed that, following the success of the inaugural International Rice Festival in 2023, the second edition should be held in 2026.