Vietnam’s rice market remains stable but poised for potential growth, experts suggest, as demand for the staple crop exhibits significant resilience amid abundant supply. Đỗ Hà Nam, Vice Chairman of the Vietnam Food Association (VFA), reported strong export figures, noting Vietnam has already shipped over one million tonnes of rice during the first two months of 2025. This early success is especially attributed to the current winter-spring harvest, which produces some of the highest-quality rice of the year.
"This season is fundamentally important for importers, as they ramp up purchases to secure adequate supplies before market conditions shift," Nam explained. He emphasized the need for countries with substantial import needs to resume trading soon, highlighting the risks of missing out on seasonal opportunities.
V. Subramanian, co-founder of SSricenews, echoed Nam's predictions at a recent conference held in Ho Chi Minh City. He pointed out increasing demand from nations like Malaysia, China, and several African countries, indicating the likelihood of a trade boom in the coming months. The anticipated upswing reflects both regional and global market trends.
According to Đỗ Đức Duy, Minister of Agriculture and Environment, the current state of the rice market is one of adjustment. He referred to the fluctuations as normal for agricultural commodities, reitereting the government's commitment to maintaining stability. "Our ministry is closely monitoring the situation and is prepared to implement policies to balance supply and demand effectively," Duy stated.
The Vietnamese rice industry is set to uphold its export target of approximately 7.8 million tonnes for 2025. Minister Duy has urged businesses to actively expand their presence not only in traditional markets but also to explore high-potential regions such as the United States, the European Union, the Middle East, and Africa.
"It’s imperative for enterprises to comply with rice export regulations and to increase their production capacity to meet growing demand effectively," he added. Minister Duy underscored the significance of strengthening partnerships among farmers, operators, and exporters to stabilize the production chain.
Bùi Trung Thướng, Vietnamese Trade Counsellor in India, remarked on the current rice price range of USD $390-420 per tonne, which has decreased from last year’s peak of USD $700 per tonne. He termed this pricing structure as reasonable, beneficial for both exporters and importers alike.
Several key elements are contributing to this favorable price stability, according to Thướng. The global rice market is anticipated to see production levels increase by 10 million tonnes, coinciding with enhanced utilization of rice for ethanol production and industrial applications. With nearly half the world’s population relying on rice as their primary food source, steady demand remains firmly embedded.
Given these promising dynamics, Thướng has encouraged Vietnamese exports to bolster their global competitiveness by diversifying markets and sales channels. He stressed the importance of focusing on high-quality rice varieties and establishing geographical indications to strengthen Vietnam’s reputation internationally. Firms are also advised to minimize reliance on government-to-government deals and shift toward private sector engagement.
Meanwhile, as part of its support for the rice industry, the State Bank of Vietnam (SBV) has recently issued directives to commercial banks to bolster financial backing for rice production, purchasing, and export activities focusing on the Mekong Delta. An official communication from the SBV on March 5 urged banks to prioritize loan provisions and support for stakeholders involved in the rice sectors.
Commercial banks have been encouraged to reassess loan limitations and terms as they pertain to businesses with experience and infrastructure for rice processing and storage. The simplification of loan application processes and enhanced access to credit has been pinpointed as key to achieving operational improvements within the industry.
The SBV’s lending program aims to promote the production, processing, and consumption of high-quality, low-emission rice. Strategic partnerships between banks and businesses are deemed necessary to facilitate effective communication of financial policies relevant to rice exports.
With forward-looking strategies and collaborative efforts between the government and the private sector, Vietnam’s rice market holds potential for significant rebounds and stable growth. The focus now rests on maintaining competitive pricing, enhancing production capacity, and scaling market access, ensuring the Vietnamese rice sector thrives both domestically and internationally.