Vietnam overtakes Thailand to become world's 2nd-largest rice exporter

From January to June, India led global rice exports with 11.68 million metric tons, up 36.5 percent year on year.

Vietnam followed with 4.72 million metric tons, a 3.5-percent increase, while Thailand fell to third with 3.73 million metric tons, a 27.3-percent decline.

Pakistan and the U.S. exported 2.76 million metric tons and 1.4 million metric tons, respectively, both posting sharp drops.

Iraq and the U.S. were Thailand’s top rice buyers, importing 582,703 and 430,603 metric tons, accounting for 15.6 percent and 7.4 percent of Thailand's total exports.

African countries collectively bought 359,031 metric tons of Thai rice, while China imported 332,183 metric tons.

Charoen Laothamatas, president of the Thai Rice Exporters Association, said Thailand’s rice export value in the first half of 2025 was estimated at 75.57 billion baht (US$2.3 billion), down 36.4 percent from the same period last year.

The association forecasts that Thailand’s rice exports may exceed 600,000 metric tons in July, as several countries, such as Iraq, China, Japan, and some African nations increased their rice orders, but that may be due to falling rice prices.

Rice prices are expected to continue to fall, as exporters are cutting prices to stay competitive amid abundant global supply and weakening demand.

According to Thailand’s The Nation, Thai rice exporters are downplaying the immediate impact of the 19-percent U.S. tariff on imported goods, which came into effect on August 1.

However, they are more concerned about the oversupply of white rice and a possible shift in Japan's import focus toward the U.S..

Rice remains a significant Thai agricultural export to the U.S., where Thailand currently holds the largest market share, particularly for premium jasmine rice.

Charoen said that the new duty would merely slow down the expected loss of jasmine rice market share to Vietnamese varieties like ST21, which are similarly priced.

However, he warned that if Vietnam increases its rice production by tenfold, making rice even cheaper, Thai rice may lose further ground.

“So, don't be too happy when rice prices are high. It's better to have a moderate price and sell a large volume," he added.

According to Vietnam’s Ministry of Agriculture and Environment, the country exported an estimated 750,000 metric tons of rice in July, earning $366.1 million.

Total exports for the first seven months reached 5.5 million metric tons worth $2.81 billion, up 3.1 percent in volume but down 15.9 percent in value versus last year due to lower prices.

The average export price during the January-July period was just $514 per metric ton, a sharp 18.4-percent decline compared to the same period in 2024.

The Philippines remained Vietnam’s largest rice buyer, accounting for 42.6 percent of total export value, though revenues from the market during the first half of 2025 dropped 13.5 percent year on year.

Meanwhile, African markets showed impressive growth.

Vietnam’s rice exports to Ghana expanded 53.5 percent, and those to Ivory Coast nearly doubled, up 96.6 percent.

Among Vietnam’s top 15 rice buyers, Bangladesh saw the largest surge in export value, up 188 times year on year, while Malaysia recorded the steepest decline at 58.5 percent.

Despite maintaining its No. 2 position, Vietnam's rice sector faces mounting pressure from the global price downturn, which is squeezing both revenue and profits.

Speaking to Tuoi Tre (Youth) newspaper, Do Ha Nam, chairman of the Vietnam Food Association, acknowledged that the gap between Vietnam and Thailand is not large, but the shift reflects the former's growing distinction in the global market.

“While prices are falling and many exporters are losing markets, Vietnamese rice remains favored in countries and regions like the Philippines, Africa, and China,” Nam said.

He added that Vietnam’s average export price in the past six months was $517 per metric ton, well above the $400 average of most competitors.

Nam suggested Thailand’s decline may be linked to challenges in its Hom Mali rice exports, exacerbated by new U.S. tariffs.