Sharp decline in rice export prices

According to the Ministry of Agriculture and Environment, in February 2025, the rice export volume reached about 560,000 tonnes worth US$288.2 million, bringing the total rice export volume and value in the first two months of 2025 to 1.1 million tonnes and US$613 million, representing a 5.9 percent increase in volume but a 13.6 percent decrease in value compared to the same period in 2024.

The Vietnam Food Association (VFA) reported that, in the first two months of 2025, the average rice export price was estimated at 553.6 USD per tonne, down 18.3 percent year-on-year.

The Ministry of Industry and Trade has been promoting and will continue to stimulate rice exports Photo: Can Dung

Vietnam’s rice is facing increased competition in the international market, as India lifted the ban on white rice exports since September 2024, which has put high pressure on other exporting countries, especially for the low-grade white rice. Meanwhile, cheap rice from Pakistan and Myanmar continues to dominate price-sensitive markets like Africa and the Middle East, while Thailand’s fragrant rice maintains its high-end position, putting competitive pressure on the high-quality rice segment.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan at a recent meeting said 2024 saw a significant success in rice exports, with a record production of over nine million tonnes, and the export prices also reached its highest level ever.

However, since early 2025, rice exports began to slow down and the export prices declined. According to Deputy Minister Tan, in addition to maintaining traditional markets, businesses should make greater efforts to explore new markets, and adjust the structure and types of export products, focusing on high-quality rice.

Vietnam is renowned for its high-quality, special ST25 rice variety

In the near future, the Ministry of Industry and Trade (MoIT) will organize a specialized conference on rice exports, and also implement Decree 01/2025/ND-CP dated January 1, 2025, which amends Decree 107/2018/ND-CP on rice export business.

MoIT’s involvement

To ease the difficulties in rice exports, on March 5th, the Prime Minister signed a dispatch No.21/CD-TTg featuring the management to ensure a rice supply-demand balance in light of developments in the global and domestic markets.

Accordingly, the Government leader required the MoIT to continue to lead and intensify the implementation of tasks and solutions outlined in the “Vietnam Rice Export Market Development Strategy by 2030,” and coordinate with the Minister of Agriculture and Environment and chairpersons of provincial People’s Committees to establish an inter-agency inspection team to monitor the implementation of rice procurement, import, and export activities, thus contributing to the stabilization of the market, especially the mandatory reserve requirements under Decree No.107/2018/NĐ-CP.

It is important to strengthen trade promotion and boost exports to major markets, potential markets, and those with significant room for growth, such as the US, the EU, Japan, China, the Middle East, Africa, and ASEAN, through signed free trade agreements or bilateral agreements.

In addition, the MoIT will establish trade promotion delegations in traditional rice export markets, such as the Philippines, Indonesia, China, as well as potential markets to boost exports. The ministry plans to meet with the VFA and export businesses in March 2025 to organize trade promotion programs in the Philippines and China, at the same time, actively monitoring global rice trade and market trends, including those of competitors, to promptly take appropriate measures. It will also coordinate with the Ministry of Agriculture and Environment, localities, and enterprises to effectively implement Decree No.01/2025/ND-CP dated January 1, 2025 on rice export.