Vietnamese rice prices has increased again following the government's directive

According to traders in the food industry, the export price of rice has been increasing in recent days. Mr. Do Ha Nam, the newly appointed Chairman of the Vietnam Food Association (VFA), shared that at one point, the export price of Vietnamese rice had dropped to 435-440 USD per ton, but as of March 21, it had risen to 470 USD per ton.

Due to the increase in export rice prices, the price of paddy has stabilized and is showing signs of rising again. Mr. Le Van Sua, a farmer from Rach May hamlet, Tuyen Binh commune, Vinh Hung district, Long An, mentioned that the price of OM18 paddy is currently being purchased directly by traders at the field at 6,500-6,600 VND per kilogram, a slight increase compared to mid-March. With this price, although profits have decreased compared to the 2023-2024 winter-spring season, Mr. Sua's family, with 4 hectares of land cultivated in the 2024-2025 winter-spring season, expects to achieve a total profit of about 100 million VND.

Several rice industry traders believe that the main factor behind the recent increase in rice prices is the decisive and timely direction from the Government. This includes large capital allocation with favorable interest rates and extended periods, which allows businesses to gather enough resources to purchase rice from farmers. Additionally, the implementation of national rice reserve purchases as per regulations has also contributed to this rise.

Mr. Do Ha Nam confirmed that after the government's guidance and management, the export rice price increased within just one day. This demonstrates that with the coordination of the Government, the involvement of various ministries and sectors, and the spirit of cooperation and unity among businesses, Vietnam’s rice industry is fully capable of standing firm against the considerable pressures from the international market.

In addition, the Vietnamese rice industry is actively working on restructuring its rice varieties. This effort is helping to better meet the demands of various markets and has allowed Vietnamese rice to remain strong despite the intense price competition, particularly in the regular and low-grade rice segments.

Mr. Do Ha Nam mentioned that since the beginning of this year, some types of Vietnamese rice have continued to perform very well in the market, commanding high prices. One of the notable examples is sticky rice. Last year, the export price of sticky rice was around 480 USD per ton, but this year, it has risen to 570-580 USD per ton. Vietnam’s sticky rice exports have now reached approximately 1 million tons.

When it comes to ST25 rice, a premium variety, there has been an exceptionally high demand from Chinese customers, with prices reaching as high as 780-790 USD per ton. Despite these impressive prices, Vietnamese businesses are still struggling to meet the demand.

According to Mr. Do Ha Nam, over the past few years, the Asian market has dominated Vietnam's rice exports, accounting for 72% of total rice exports. Key markets include the Philippines, China, Malaysia, and Indonesia. In comparison, exports to Africa make up only 18% of the total volume. Meanwhile, markets in Europe, the US, and Australia still represent a relatively small portion of Vietnam’s rice export market share.

In the first two months of this year, when facing price challenges due to a significant reduction in rice imports from the Philippines and Indonesia, many Vietnamese businesses turned to increasing rice exports to Africa. This strategic shift resulted in a remarkable surge in rice exports to several African countries. Specifically, Côte d'Ivoire reached 213,000 tons, an increase of 1,237%; Ghana reached 112,000 tons, up 318%,...

Rice exports to some Asian and European markets also experienced impressive growth, with China increasing its imports by 281%. Even more striking were the markets that saw explosive growth in export volumes, such as Bangladesh, which skyrocketed by 37,806%, and Turkey, which surged by 21,270%.

As for the Philippines, which remains Vietnam's largest rice export market, the export value to this country has decreased compared to the same period in 2024 due to a sharp drop in export prices. However, the volume of rice exported to the Philippines still saw a positive growth of 9.4%, reaching 547,000 tons in the first two months of the year. This increase in volume despite the lower prices indicates that the demand for rice in the Philippines is still rising, and traders in the country continue to prioritize purchasing Vietnamese rice.

$ 1 = VND 25.370 - Source: Vietcombank.