Vietnam premier orders race to boost rice exports, build national brand

The directive issued by the Government Office on Monday was meant to solidify Vietnam's position as the world’s second-largest rice exporter and increase the sector’s added value.

Recent data from the Thai Rice Exporters Association revealed that Vietnam surpassed Thailand to become the second-largest rice exporter globally in the first half of this year.

This achievement highlighted a significant shift in Vietnam’s rice export strategy, from prioritizing volume to enhancing value, creating a stronger competitive edge in the global market.

Despite its current success, Vietnam’s rice industry still faces major challenges, from climate change impacts such as drought and saltwater intrusion that threaten yields, to regulatory and technical barriers in demanding markets like the European Union and Japan.

Additionally, with weakening global demand and aggressive price competition from rival exporters, Vietnam’s price advantage is at risk.

To counter this, it is necessary to build a long-term strategy focused on value rather than volume – transitioning toward high-quality and organic rice exports backed by robust traceability and brand development.

The government leader has tasked the Ministry of Agriculture and Environment with acting swiftly and strategically in collaboration with relevant agencies.

Key initiatives include promoting rice export growth, implementing traceability systems, and building a national rice brand.

The prime minister also urged the ministry to expedite the implementation of a sustainable development plan for one million hectares of low-emission, high-quality rice cultivation in the Mekong Delta region by 2030.

Vietnam aims to export rice worth US$5.7bn in 2025

Vietnam exported 5.5 million metric tons of rice worth $2.81 billion between January and July, up 3.1 percent in volume but down nearly 16 percent in value year on year, according to the ministry.

The Philippines remained Vietnam’s largest rice buyer, accounting for nearly 43 percent of the latter’s total rice exports.

Ghana and Ivory Coast followed, making up 11.1 percent and 10.6 percent of the total, respectively.

Among Vietnam’s top 15 rice importers, Bangladesh reported the most dramatic growth in value, 188 times higher than the previous year, while the export price to Malaysia plummeted 58.5 percent.

This year, the ministry set an ambitious rice export revenue target of $5.7 billion.

However, estimates made in June showed total earnings may fall slightly short, reaching around $5.5 billion in 2025.

To meet its export target, the ministry plans to maintain current market shares while expanding Vietnam's footprint in the fragrant rice segment, especially in the U.S., where Thailand and India are dominant players.

Efforts are also underway to shift toward high-potential markets such as the EU, South Korea, Japan, and Singapore, particularly for processed rice products like noodles, vermicelli, and pho.

To support these efforts, Vietnam is exploring ways to reduce logistics costs, facilitating the exports of fragrant and white rice varieties to Ghana, Ivory Coast, and the UAE.