Rice exports hit new record
The Ministry of Industry and Trade said that Vietnam's rice export output in 2024 will increase by 12%, while turnover will increase by 23% compared to 2023. The average export price of rice will reach 627 USD/ton, up 16.7% over the previous year, bringing a large source of foreign currency to the economy.
Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department - commented: "The average export price of Vietnamese rice is improving day by day, affirming the quality and added value of the product."
The achievements of the rice industry last year were not only an increase in quantity but also a step forward in quality. Vietnam has focused on high-quality rice varieties such as fragrant rice and specialty rice, meeting the strict standards of international markets. Rice varieties such as Dai Thom 8, OM 18 and ST lines are increasingly popular, creating a Vietnamese rice brand on the world map.
Many challenges
According to the forecast of the US Department of Agriculture (USDA), the global rice supply this year will increase significantly, with output expected to reach a record of more than 530 million tons, an increase of 3.1 million tons compared to the previous forecast. The domestic rice industry will face fierce competition pressure when India lifts the export ban and removes the rice export tax. This leads to abundant global supply, creating downward pressure on prices.
Exports to China fell sharply last year to just 250,000 tonnes, down 71% from 2023. This reflects China’s self-sufficiency strategy, along with stricter requirements on quality and packaging. In that context, quality and brand will be the decisive factors in helping Vietnamese rice maintain its market position.
Notably, in early 2025, rice export prices plummeted. According to the Vietnam Food Association, as of January 16, 2025, the price of 5% broken rice was only 419 USD/ton, down more than 230 USD/ton compared to the same period last year. The main reason is believed to be that India boosted exports after lifting trade restrictions, along with a decline in consumption demand as many major importing countries such as the Philippines and China entered the Tet holiday.
Faced with this situation, export enterprises need to be more proactive and flexible in their business strategies. To minimize the impact of fluctuations in rice prices, Mr. Nguyen Phuong Lam - Director of the Vietnam Federation of Commerce and Industry, Mekong Delta Branch, proposed: "The Ministry of Agriculture and Rural Development and the State Bank need to implement credit policies to support enterprises in purchasing rice. This will not only help stabilize prices, but also ensure benefits for farmers."
Experts believe that the price drop will not last long. Traditional markets will soon sign contracts again thanks to the advantages of quality, competitive prices and convenient transportation of Vietnamese rice. In fact, our country is building a different rice industry, focusing on high quality instead of low output. This orientation not only helps improve economic value but also enhances the position of Vietnamese rice in the international market.
