Minister Do Duc Duy: Must clarify why Vietnamese rice prices drop more sharply than other countries

On the morning of March 4, Minister of Agriculture and Environment Do Duc Duy chaired the conference on rice production and consumption in the Mekong Delta, with the participation of many Ministries, branches, localities, businesses, and associations in the rice industry.

Why did Vietnamese rice prices fall deeply?

After listening to the reports and discussions, Minister Do Duc Duy issued an analysis of the current market situation. In 2024, with many favorable factors, Vietnam's rice industry had hot growth. "This leads to the adjustment of the market in 2025; the hotter the growth, the deeper the adjustment," said the Minister.

However, from a panoramic view, the problem is that when the supply increases and the demand decreases, rice export prices in many countries also decrease according to the trend, but the price of Vietnamese rice has fallen more deeply.

According to the Minister, this may come from the partner side or may be unfair competition in the industry. "This phenomenon needs to be clarified, especially when traders and intermediaries may be reducing farmers' profit, affecting their psychology," Minister Do Duc Duy directed at the conference.

Returning to the issue of rice prices down in recent times, Minister Do Duc Duy said that short-term and long-term solutions are needed to cope with the immediate difficulties and maintain the sustainable development of the rice industry in the future.

In the long run, the leader of the Ministry of Agriculture and Environment offered five solutions. First, improve production structure and product quality. Accordingly, switch more strongly to high-quality rice products. Especially for the area of expansion and crop increase, priority should be given to the development of high-quality rice varieties.

The Minister also affirmed that the Ministry of Agriculture and Environment will continue to implement the 1 million ha of high-quality, low-emission rice project and research drought-resistant, salinity-resistant, and pest-tolerant rice varieties to respond to climate change.

Second, enhance deep processing and diversify products; convert from raw exports to deep processing products. This is an important direction to increase added value for rice products.

Third, promote investment in infrastructure and logistics. Thereby, improving the system of warehouses, storage, transportation, and logistics to reduce shipping costs and optimize supply chains.

Fourth, build a sustainable and environmentally friendly rice brand. Along with that, focus on developing demanding but potential markets such as Japan, the EU, and the US.

Finally, expand and diversify the market by increasing exports to new markets such as the Middle East, Africa, and high-quality markets. Promote the negotiation of FTAs ​​with these markets and develop Government-level cooperation agreements to take advantage of export opportunities.

According to the Minister of Agriculture and Environment, all solutions should be carefully calculated to ensure positive impacts and avoid negative impacts, especially for farmers and the business community.

"We need to be cautious but must be assertive, responsive, and sure to be able to effectively respond to the current export market situation," emphasized Minister Do Duc Duy.

Specific solutions

With the above-mentioned directions, Minister Do Duc Duy has conveyed to units under the Ministry of Agriculture and Environment, the relevant Ministries and branches, as well as localities and businesses, eight specific solutions for the rice industry.

First, do not adjust this year's production plan; the Mekong Delta localities will ensure output and area as planned.

Second, sustainably develop the high-quality rice production model. The Ministry will effectively implement the project of 1 million ha of high-quality, low-emission rice in the Mekong Delta. The goal is to reduce emissions in the production process, thereby helping to reduce costs and increase profits for farmers.

Minister Do Duc Duy also praised Kien Giang for being proactive and flexible to effectively implement this project with an area of 69,299 ha.

Third, closely monitor the fluctuations of the international rice market, from large exporting countries to strong import markets. Along with that is to grasp new and potential markets. "The Ministry will regularly update rice production and export so that localities and businesses can adjust in time," shared Minister Do Duc Duy.

The next two solutions are researching and applying scientific and technological advances to rice production and processing and improving the rice storage and storage system.

Sixth, strengthen the information and dissemination about the production plan and market situation. Seventh, promote export markets and strengthen production links.

The head of the agriculture and environment sector emphasized, "The Ministry will coordinate with relevant Ministries and branches to set up interdisciplinary inspection delegations to assess the situation of rice production, purchasing, and export. It is necessary to create a healthy competitive environment between businesses and protect large businesses capable of closely linking with farmers and local governments.".

And the eighth solution is to ensure credit to support farmers and businesses. According to the Minister, credit procedures should be simplified so that businesses and farmers can easily access and use capital for production.

Synchronous and drastic

Exchanging with Ministries and branches, Minister Do Duc Duy said that the agencies need to offer synchronous and drastic solutions for Vietnam's rice industry to develop sustainably, improve value, and affirm its position in the international market.

Sharing at the conference, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that the Ministry is looking for new markets and negotiating with old markets to ensure long-term rice export. At the same time, the Deputy Minister of Industry and Trade also made requirements on adjusting the structure of quality and types of rice, focusing on high-quality types.

Agreeing with the solution of diversifying the market, Deputy Minister of Foreign Affairs Nguyen Minh Hang gave more information about the upcoming months from March to May, which are the peak of India's rice harvest, so the agricultural sector needs to take appropriate preparation measures.

The female Deputy Minister of Foreign Affairs also mentioned attracting more investment in agriculture, both from domestic and international enterprises, and the foreign affairs sector will actively support the Ministry of Agriculture and Environment on this issue.

Concluding, Minister Do Duc Duy asked the Ministry of Finance to create favorable conditions for businesses to refund tax, creating a clear mechanism for import-export activities. Along with that, assess the situation of rice imports from Cambodia and research and offer alternative solutions.

The Ministry of Foreign Affairs strengthens the capture and transmission of market information as well as agricultural product policies of countries. Meanwhile, localities need to drastically direct the sustainable development of the rice industry, including the project of 1 million ha of high-quality, low-emission rice in the Mekong Delta.

Regarding the price issue, Minister Do Duc Duy said that this is a normal adjustment, so dissemination is needed to continue production, not automatically convert crops.

In particular, the Minister emphasized that localities must strengthen the inspection, examination, and supervision of activities of traders and focal businesses. "This is necessary to avoid price squeezing for farmers in difficult times," he said.

Finally, the Minister emphasized, "I would like to affirm that we do not need to 'rescue' the rice industry but must act resolutely and flexibly. The market will recover when solutions to support businesses and farmers are implemented effectively."