Vietnam Rice Market Facing Market Fluctuations

Vietnam's rice market is currently facing challenges as global supply surpluses and reduced import demand have led to declining export volumes and falling prices. The Mekong Delta, in its peak winter-spring harvest season, is seeing a notable drop in rice purchasing prices compared to 2024. In response, Prime Minister Pham Minh Chinh has called for coordinated efforts to manage the rice supply-demand balance effectively.

Global Market Impact on Vietnam's Rice Exports

In the early months of 2025, the global rice trade showed complex dynamics, with a surplus in world supply and lower import demand from major markets. Countries are cautious in stocking and purchasing rice, contributing to a prolonged slowdown in the market. Vietnam's rice export prices have fallen consistently, adding pressure to the domestic market as harvests peak in the Mekong Delta.

Government Initiatives to Support Rice Sector

Prime Minister Chinh has issued a directive to various ministries and local authorities to closely monitor market developments and policy changes in both export and import markets. Key directives include:

• The Minister of Agriculture and Environment must ensure planned rice output and production area in the Mekong Delta, focusing on timely harvesting and managing saltwater intrusion risks.
• The Ministry of Industry and Trade is tasked with enhancing the implementation of the "Vietnam Rice Export Market Development Strategy by 2030." This includes forming an inter-agency inspection team to oversee rice procurement, import, and export activities.
• The State Bank of Vietnam is exploring ways to expand credit quotas and loan terms for enterprises involved in rice storage and trading, especially during periods of low market prices.
• The Ministry of Finance is expected to facilitate the early refund of export taxes to support rice trading businesses and streamline customs procedures for export enterprises.

Summary: Key Government Actions and Market Focus

Looking Forward

Vietnam's coordinated strategy involves both short-term market stabilization and long-term development of high-quality, resilient rice varieties. By maintaining a balanced approach, the country aims to strengthen its position in the global rice market while supporting domestic farmers and ensuring food security.