A Record-Breaking Year for Vietnamese Rice

Vietnam achieved exceptional success in its rice exports in 2024. According to the Ministry of Agriculture and Rural Development, the country exported 9 million tonnes of rice, valued at USD 5,7 billion, reflecting an 11 percent rise in volume and a 24 percent increase in value compared to 2023. The average export price was USD 0,60 per kg, setting a new benchmark.

Globally, Vietnam ranked third among rice exporters, behind India’s 17 million tonnes and Thailand’s 10 million tonnes, which marked a six-year high. Strong demand from markets like the Philippines and Indonesia played a significant role in Vietnam’s growth.

Shifts in the Global Market Pose New Challenges

While 2024 was a record-breaking year, 2025 may present hurdles for Vietnam’s rice industry. India’s lifting of its export ban on non-basmati white rice is forecast to add 22 million tonnes to global supply in 2025, an increase of 5 million tonnes compared to 2024. This influx is expected to weigh down global prices.

By December 2024, Vietnamese rice prices had already fallen:

• Five percent broken rice: Dropped to USD 0,485 per kg, the lowest in 19 months.
• 25 percent broken rice: Declined to USD 0,459 per kg.
• 100 percent broken rice: Fell to USD 0,388 per kg.

These price drops are tied to reduced demand, including the Philippines temporarily halting imports in anticipation of its winter-spring crop and expectations of a larger Indian harvest.

Focusing on Quality to Stay Competitive

Vietnam is shifting its focus toward producing premium and fragrant rice varieties to remain competitive in an increasingly crowded market. The Vietnam Food Association (VFA) has highlighted several key strategies to adapt to these challenges:

• Supporting Exporters: Financial assistance through loans and tax refunds to help exporters manage costs.
• Expanding Market Reach: Using free trade agreements (FTAs) to access new international markets.
• Investing in Quality: Improving rice standards and building strong global brands to differentiate Vietnamese products.

Deputy Director Nguyễn Thị Thu Hương also emphasized sustainable farming practices and developing high-quality rice plantations to enhance Vietnam’s competitiveness globally.

Turning Challenges into Growth Opportunities

Although global supply is expected to rise, Vietnam’s focus on quality offers a clear path forward. By strengthening its reputation for premium rice, exploring new markets, and enhancing branding efforts, Vietnam can weather the challenges of 2025 while positioning itself for long-term growth. Strategic adjustments now will allow the industry to maintain its strong standing in global markets.









Click here to reach our trading platfrom CMBroker