Vietnam's rice industry faces supply-demand dilemma: insiders
The Vietnamese rice industry is grappling with a dilemma: whether to expand its export markets despite the risk of insufficient domestic supply, or to refrain from expanding, which could lead to price pressure, according to insiders.

Farmers in Vietnam's Mekong Delta region harvest rice. Photo courtesy of Vietnam News Agency.
At a seminar titled "Positioning Vietnamese Rice in the New Era," organized by the Vietnam Food Association (VFA) on Friday, VFA chairman Do Ha Nam highlighted the surge in Vietnam’s rice exports to 7.5 million tons in 2022 and over 9.18 million tons in 2024 from 6 million tons in the previous years, generating over $5.7 billion in revenue.
The total rice exports in the first quarter of this year were estimated at 2.25 million tons, up 2% year-on-year.
In addition to domestic production, Vietnamese businesses also imported rice from Cambodia for export, with approximately 3 million tons in 2023 and an estimated 3.8 million tons in 2024, Nam added.
“We have no surplus rice available for sale. Both global supply and demand are on the rise, but production has not been able to keep pace with demand, leading to rising prices,” he said.
When asked whether Vietnam should expand its markets, the VFA chairman acknowledged that while Vietnam has lost its share of the Indonesian market, it has been gradually strengthening its position in traditional markets like the Philippines and Africa, thanks to its superior product quality and competitive pricing.
"Vietnamese businesses have altered their production practices and conducted more thorough market research," Nam explained.
As a result, Vietnam’s rice export markets have become more diverse, covering Asia and Africa (18%); the Middle East (2%); Europe, America, and Oceania (4%). Asia remains the dominant market, accounting for around 72% of total exports.
Nam emphasized that while expanding export markets is crucial to stabilize sales of Vietnamese rice, it is important to tailor strategies for each specific market. For regions like Africa, factors such as payment terms (e.g., debt or extended payment schedules), financial impact, and credit limits must be considered.
Nguyen Anh Phong, deputy director of the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), under the Ministry of Agriculture and Environment, commented: “Vietnam has been quick to capture rice markets, and Vietnamese businesses are agile in identifying the most advantageous market segments.”
“The ministry consistently creates the best environment for businesses, offering support in storage, rice varieties, quality control, and market access negotiations,” he added.
Phong also highlighted the growing demand for high-quality branded rice, noting that businesses are playing a key role in shaping the market and defining the value of Vietnam’s rice supply chain.
According to Phong, Vietnamese businesses are actively seeking new potential markets. The Ministry of Agriculture and Environment has tasked the institute with reviewing and analyzing new markets, identifying which types of rice can be introduced, assessing competitors, and determining how to capture more market share.
“We have a program to develop one million hectares of high-quality, low-emission rice. In negotiations with other countries regarding rice exports, we emphasize that Vietnam is the first country in the world to produce high-quality, low-emission rice on a large scale. This is a powerful marketing tool for premium markets,” he said.
Removing obstacles for enterprises
As one of Vietnam's leading export sectors, the rice industry faces financial challenges, tax refund issues, and logistics infrastructure gaps.
At the conference, the VFA representative urged government agencies to provide support through financial policies and infrastructure development to facilitate the export of food products, including rice.
Vietnam aims to continue improving the quality and value of its rice exports, focusing on reducing the share of low and medium-grade white rice, while increasing the proportion of fragrant, Japonica, and specialty rice, he added.
By 2025, the share of low and medium-grade white rice is expected to be reduced to no more than 15%, while fragrant, Japonica, and specialty rice will make up about 40%. By 2030, these targets will become even more ambitious, with about 10% and 45%, respectively.
Nam stressed that Vietnam needs to continue enhancing rice quality and diversifying its products to create a competitive edge in the global market. Building an effective rice value chain, from production to consumption, is essential to increasing added value for farmers and businesses. Close coordination between regulators, businesses, and farmers is critical to ensuring the interests of all stakeholders.
To achieve these goals, the VFA leader recommended that the Ministry of Agriculture and Environment continue implementing policies to support the development of production areas, rice variety research, and trade promotion.
The State Bank of Vietnam should consider offering more unsecured loans to rice businesses, and the Ministry of Finance should provide clearer guidance on VAT refund procedures to support enterprises.
The Ministry of Industry and Trade should increase its export-related information, adjust import-export management, analyze market trends, and negotiate market access, while the Ministry of Construction should accelerate the development of Cai Cui port and upgrade the Quan Chanh Bo canal in the Mekong Delta to facilitate exports.
Nam also called on local governments to continue planning and developing specialized production areas, assess soil conditions, and attract investment in rice processing.
- Read More
Vietnamese firms dominate green two-wheeler market
With steady growth over the years and a breakthrough in the first half of 2025, Vietnam’s electric motorbike market is expanding rapidly, with domestic companies taking the lead in this green transition.
Economy - Fri, July 18, 2025 | 11:46 am GMT+7
Vietnam's stock market status upgrade to be strong boost to fund industry
The upgrade of Vietnam’s stock market status from “frontier” to “emerging” will have positive impacts on the market in general and the fund industry in particular, according to regulators and investment funds.
Finance - Fri, July 18, 2025 | 11:12 am GMT+7
Vietnam government's investment arm SCIC receives $326 mln in dividends, profit distributions in 2024
The State Capital Investment Corporation (SCIC), Vietnam’s government investment arm, received VND8.5 trillion ($325.5 million) in dividends and profit distributions from 43 companies within its portfolio in 2024, according to its latest report.
Companies - Fri, July 18, 2025 | 8:26 am GMT+7
HCMC, Astana International Financial Center promote cooperation to develop Vietnam’s international financial center
Vietnam and Kazakhstan are focusing on strengthening cooperation in the financial sector, particularly between Ho Chi Minh City and the Astana International Financial Center (AIFC), located in Kazakhstan's capital.
Finance - Thu, July 17, 2025 | 11:52 pm GMT+7
FTSE Russell praises Vietnam for strong reform efforts
Representatives of FTSE Russell, a member of the London Stock Exchange Group, on Thursday said they highly evaluate Vietnam's strong reform efforts and commit to continue accompanying the country in the process of market modernization.
Finance - Thu, July 17, 2025 | 11:40 pm GMT+7
Developer of Southeast Asia’s largest exhibition center has new CEO
Tran Mai Hoa, chairwoman of Vincom Retail - the retail arm of Vietnamese private conglomerate Vingroup, has been appointed as new CEO of Vietnam Exhibition Fair Center JSC (VEFAC).
Companies - Thu, July 17, 2025 | 9:35 pm GMT+7
Vietnam’s offshore oil field produces first commercial oil ahead of schedule
The Kinh Ngu Trang-Kinh Ngu Trang Nam (White Whale-White Whale South or KNT-KTN) oil field, located in Block 09-2/09 off Vietnam's southern coast, welcomed its first oil flow on Monday, one day ahead of schedule.
Economy - Thu, July 17, 2025 | 4:03 pm GMT+7
Leading developer Becamex vows to develop eco-industrial parks in Vietnam
Becamex IDC Corp, a leading urban and industrial park developer based in Ho Chi Minh City, is committed to integrating international sustainability standards into the practical operations of its industrial parks in Vietnam, said CEO Nguyen Hoan Vu.
Industrial real estate - Thu, July 17, 2025 | 3:49 pm GMT+7
Northern Vietnam province to address traffic problem for Foxconn’s plant
Authorities in Vietnam’s northern province of Bac Ninh are working to resolve traffic congestion around the Quang Chau Industrial Park in response to concerns raised by Foxconn, a Taiwanese electronics giant and key supplier to Apple.
Companies - Thu, July 17, 2025 | 3:33 pm GMT+7
China firm plans wind power blade manufacturing project in central Vietnam
China's Zhuzhou Times New Material Technology Co., Ltd is proposing a wind power blade manufacturing project in the south-central coastal province of Khanh Hoa.
Energy - Thu, July 17, 2025 | 3:20 pm GMT+7
Investor awareness key to Vietnam’s stock market status upgrade: regulator
The Investor introduces the speech by Vu Thi Chan Phuong, chairwoman of the State Securities Commission (SSC), at the seminar "Raising investor awareness towards stock market status upgrade" in Hanoi on Thursday.
Finance - Thu, July 17, 2025 | 11:58 am GMT+7
S Korean firm apologizes for employee's assault in Hanoi
South Korea's Segyung Hi-Tech, with a subsidiary in the northern Vietnam province of Bac Ninh, on Wednesday issued a formal apology for its employee making an assault on two Vietnamese women in Hanoi.
Companies - Thu, July 17, 2025 | 10:23 am GMT+7
Vietnam’ steel giant Hoa Phat reports 30% profit surge in Q2
Vietnam’s largest steelmaker, Hoa Phat Group, posted after-tax profit of VND4.3 trillion ($164.4 million) in Q2/2025, up nearly 30% compared to both Q2/2024 and Q1/2025.
Companies - Thu, July 17, 2025 | 9:43 am GMT+7
Vietnam's fund management industry has chance to make breakthrough development: exec
Tax incentive policies will help people have confidence in investment funds and create a habit of long-term and disciplined investment, writes Nguyen Hang Nga, general director of Vietcombank Fund Management Company Limited (VCBF), a joint venture between state-controlled Vietcombank and Franklin Templeton Investments (FTI).
Consulting - Thu, July 17, 2025 | 8:52 am GMT+7
The Investor's seminar 'Raising investor awareness towards stock market status upgrade' is taking place
The Investor and its Vietnamese-language sister Nhadautu.vn will hold a seminar titled “Raising investor awareness towards stock market status upgrade” in Hanoi on Thursday, July 17.
Finance - Thu, July 17, 2025 | 7:30 am GMT+7
Chinese firms seek to develop smart urban areas in Vietnam
Hong Kong-headquartered CCC Infrastructure Co. and Shenzhen-based Hero Group wish to implement real estate projects in Vietnam, including investments in smart urban areas in the northern province of Bac Ninh and the southern province of Tay Ninh.
Real Estate - Wed, July 16, 2025 | 10:25 pm GMT+7