An Overview of the Market

Vietnam's rice industry has grown significantly due to concerted efforts in research, production, and trade. This success is attributed to the development and distribution of high-quality rice seeds, a sentiment echoed by the former Minister of Agriculture and Rural Development.

Quality and Resilience in Rice Varieties

The Chairman of the International Rice Research Institute (IRRI) emphasises the need for resilient, low-emission, and high-quality rice varieties that can adapt to climate change. Research is crucial to help farmers achieve higher selling prices. For example, IRRI is developing rice varieties with a low glycemic index that are suitable for individuals with or at risk of diabetes. Additionally, IRRI is working on varieties with higher protein content, drought and salt tolerance, flood resilience, and other valuable traits.

Major Achievements in Rice Research

The Director of the Vietnam Academy of Agricultural Sciences attributes the remarkable development in Vietnam's rice industry to three significant achievements: diversification in plant genetic research, a research workforce matching regional standards, and robust growth of the domestic seed industry. The director also suggests that businesses should commission research from institutes to develop new products that best meet their objectives. Each firm has different foundations in terms of rice varieties, capabilities, and investment goals, making tailored research essential.

Challenges in Public-Private Partnerships

Public-private partnerships (PPP) face challenges due to Government Decree No. 70/2018/ND-CP, which regulates the management and use of state property formed through scientific and technological tasks using state funds. The Chairwoman of the Board of Directors of the Vietnam Seed Group (Vinaseed) highlights that this regulation hinders the transfer of exclusive rice varieties to businesses. Companies face delays and resource mobilisation difficulties as they await transfer approvals after variety recognition.

Addressing Research and Ownership Challenges

The Director of MARD's Department of Science, Technology, and Environment acknowledges the decree's obstacles to research institutes in transferring varieties to businesses. However, recent changes in intellectual property law have eased some bottlenecks by granting a variety of ownership upon registration. The Deputy Minister of Agriculture and Rural Development confirms that the ministry prioritises high-quality seed production, major export products, and the development of varieties with high yield, quality, disease resistance, and climate adaptability.

Export Performance

In the first half of 2024, Vietnam exported 4.7 million tonnes of rice, marking a 10.4% increase in volume and a 32% increase in value year-on-year. According to the General Department of Vietnam Customs, the average export price of rice increased by over 18% compared to the same period last year.

Vietnam's rice industry is thriving due to quality seed development and practical research. Despite challenges in public-private partnerships, the sector continues to grow with support from government policies and advancements in rice variety research. Exporters should stay informed about these developments to leverage opportunities in the global rice market.