Vietnam's central bank instructs more lending to rice sector amid sharp price drops

By Lan Do
Mon, March 10, 2025 | 9:31 pm GMT+7

Vietnam's central bank has directed commercial banks to promptly meet the loan needs of individuals and businesses involved in producing, processing, purchasing, temporarily storing, and consuming rice in 2025, particularly in the Mekong Delta.

Vietnam’s rice exports in February were 560,000 tons or $288.2 million, down 13.6% in value year-on-year, according to the agriculture ministry.

The average export price during the first two months of the year was $553.60 per ton, down 18.3% compared to the same period last year.

The average export price for rice in Jan-Feb 2025 was $553.60 per ton, down 18.3% year-on-year. Photo courtesy of the government's news portal.

The average export price for rice in Jan-Feb 2025 was $553.60 per ton, down 18.3% year-on-year. Photo courtesy of the government's news portal.

The Vietnam Food Association (VFA) attributed the sharp decline in rice prices to India lifting its export restrictions and expected bumper crop yields, along with increased rice production in Vietnam, Thailand, and Pakistan. This has significantly boosted the global rice supply for 2025.

Following Prime Minister Pham Minh Chinh's direction on March 4 regarding managing the balance between rice supply and demand amidst global and domestic market developments, the State Bank of Vietnam on March 5 instructed commercial banks and SBV branches in areas 13, 14, and 15 to implement a series of measures to support rice production and export.

Commercial banks are required to balance capital sources and meet the loan needs of individuals and enterprises engaged in rice production, processing, purchasing, temporary storage, and export in 2025.

This includes especially the purchase of commodity rice from the 2025 winter-spring crop in the Mekong Delta. Banks should ensure that individuals and businesses with effective plans and full legal compliance are not hindered by cumbersome loan procedures.

The SBV encourages banks to consider increasing loan limits and terms for businesses with the experience and capacity to purchase, process, export, and store rice. This will help facilitate medium- and long-term credit to support investments in rice storage, processing, and preservation.

The central bank also instructed commercial banks to reduce operating costs, apply information technology, and implement other measures to lower lending interest rates.

Banks should be willing to share part of their profits to support individuals and businesses in accessing credit, which will stimulate production, particularly in the rice sector, it stated.

Commercial banks should also offer preferential interest rates and simplify loan procedures and collateral requirements to support rice producers, processors, and exporters in meeting seasonal demands, the SBV noted.

It emphasized the continuation of credit policies for agricultural and rural development. The focus will be on financing rice production models, from farming to processing and consumption.

The loan program for linking production, processing, and consumption of high-quality, low-emission rice products in the Mekong Delta, as outlined in a prime ministerial decision dated November 27, 2023, will also be promoted.

The SBV encourages banks and businesses to coordinate with the Vietnam Food Association and the Vietnam Rice Industry Association to share information about credit policies and help businesses access financing when necessary.

Thailand has also taken action in response to falling rice prices. Thailand is reportedly seeking cooperation with India and Vietnam to find ways to tackle falling rice prices, Commerce Minister Pichai Naripthaphan said on Thursday, amid simmering protests by local farmers calling for more support from the government.

Thailand is in talks with both countries to reduce competition, hoping to create a balance in rice prices in the global market and help farmers have stable income, Pichai told the parliament.

"We have already discussed it, but we are waiting for another meeting to see how much we can do about this," he said of talks with India and Vietnam.

Paddy prices in Thailand dropped by 30% year-on-year to an average of about 8,600 baht per ton last month, according to the Commerce Ministry. Growers are calling for the government to help them sell rice at higher prices.

Thailand, the world's second-largest rice exporter, is likely to be hit hard by the resumption of rice exports by India, with the ministry expecting a 24% year-on-year decline in rice exports to 7.5 million tons this year.

Area 13 comprises of four provinces Tien Giang, Long An, Ben Tre, and Tra Vinh. Area 14 refers to five provinces and cities Can Tho, Hau Giang, Soc Trang, Bac Lieu, and Vinh Long. Area 15 includes Kien Giang, An Giang, Dong Thap, and Ca Mau.

Comments (0)
  • Read More
Vietnam mulls opening door for private investment in small modular reactors

Vietnam mulls opening door for private investment in small modular reactors

Vietnam’s Ministry of Industry and Trade has drafted a parliamentary resolution that, for the first time, would allow private companies to participate in the development of small modular nuclear reactors (SMRs).

Energy - Fri, October 17, 2025 | 4:37 pm GMT+7

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido Group (HoSE: KDC), a leading food company in Vietnam, has approved a plan to divest the firm's remaining 49% stake in its affiliate Kido Frozen Food JSC (Kido Foods).

Companies - Fri, October 17, 2025 | 4:25 pm GMT+7

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang, a Party Central Committee member and Party chief of Quang Tri province, has been appointed Party chief of Danang for the 2025-2030 term - the highest position in the city, central Vietnam's economic hub.

Politics - Fri, October 17, 2025 | 4:17 pm GMT+7

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

Multi-sector conglomerate T&T Group is developing a model eco-urban complex in Ha Tinh province and plans to build a massive 236-hectare urban area in neighboring Nghe An, with an aim to reshape north-central Vietnam's urban landscape.

Investing - Fri, October 17, 2025 | 2:44 pm GMT+7

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.

Investing - Fri, October 17, 2025 | 2:09 pm GMT+7

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance has reaffirmed its position as the No. 1 non-life insurer in Vietnam, with total revenue increasing nearly 1.4 times in the first nine months of 2025 and pre-tax profit more than doubling year-on-year - surpassing its full-year targets for both revenue and profit.

Companies - Fri, October 17, 2025 | 9:08 am GMT+7

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.

Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.

Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.

Energy - Thu, October 16, 2025 | 9:04 pm GMT+7

Vietnam to soon raise taxpayers' personal deduction: official

Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Finance - Thu, October 16, 2025 | 6:25 pm GMT+7

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.

Economy - Thu, October 16, 2025 | 4:36 pm GMT+7

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.

Finance - Thu, October 16, 2025 | 3:35 pm GMT+7

Law No. 56 a major policy breakthrough for Vietnam's stock market development

Law No. 56 a major policy breakthrough for Vietnam's stock market development

The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.

Finance - Thu, October 16, 2025 | 2:30 pm GMT+7

WHA Group breaks ground on smart technology industrial zone in central Vietnam

WHA Group breaks ground on smart technology industrial zone in central Vietnam

Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.

Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.

Companies - Thu, October 16, 2025 | 12:06 pm GMT+7

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.

Companies - Thu, October 16, 2025 | 8:41 am GMT+7