Why is Vietnam importing rice?
Despite being one of the world’s largest rice producers, Vietnam is projected to become the second-largest rice importer in the world this year, according to the United States Department of Agriculture (USDA). This prediction has surprised many, but it reflects the complex and flexible production and trade strategies of the country’s rice industry.
Mr. Do Ha Nam, Chairman of the Vietnam Food Association (VFA), explained that Vietnam’s rice imports are not due to supply shortages, as in other countries, but to meet the domestic food processing demands and ensure stable supply for export during the lean season.
Over the years, Vietnam has shifted its focus to producing high-quality rice to cater to demanding markets. However, the domestic processing industry, which manufactures products like vermicelli, rice noodles, rice paper, and pho, requires low-cost rice with a high starch content. Cambodia currently meets this demand very well at reasonable prices. As a result, in the first two months of this year, Vietnam imported approximately 1.1 million tons of Cambodian rice, equivalent to 600,000 tons of processed rice.
This move not only addresses temporary supply challenges but also leverages trade relationships, allowing Vietnamese businesses more flexibility in fulfilling large orders.
The “import-to-export” strategy is shaping a flexible trade model, with businesses acting as central coordinators of supply and demand. The paradox of being both a significant exporter and importer showcases the agility of modern agriculture and signals an important shift: from mass production to sustainable value chain development and from “high quantity” to “high-quality” rice.
Rice export surpasses Thailand
Vietnam has solidified its position as one of the top three rice exporters globally, alongside India and Thailand. According to the USDA, Vietnam is projected to export up to 7.9 million tons of rice this year, surpassing Thailand (7 million tons) and second only to India (24.5 million tons).
The growth in Vietnamese rice exports is driven by the sustained demand from traditional markets like the Philippines and the return of China as a major buyer. Additionally, African countries are expected to be among the largest importers of Vietnamese rice this year.
Vietnam is a leading rice exporter worldwide. Image: IT.
According to the Vietnam Food Association (VFA), Vietnamese rice maintains its competitiveness in the international market concerning price. For instance, 5% broken rice is currently priced at around $397 per ton, which is lower than Thai rice but higher than Indian and Pakistani rice.
In the first four months of this year, rice exports reached approximately $1.75 billion, a 14.3% decrease compared to the same period in 2024. While export volume tends to decrease, export value remains high due to increased shipments of high-quality rice, such as fragrant and specialty rice. Notably, ST25, a renowned Vietnamese specialty rice variety, has achieved an export price of up to $1,200 per ton, far surpassing other premium fragrant rice varieties in the international market.
Unlocking Vietnam’s Rice Export Miracle
This year, Vietnam is expected to export approximately 9 million tons of rice, a record-breaking figure despite no increase in cultivation area or yield.
Why the Vietnamese Rice Industry is ‘Leaving $5 Billion on the Table’ Annually
“Rice will be an increasingly scarce commodity globally due to the impact of extreme climate change, and the resilience of many countries is non-existent. If the rice industry continues as it is, Vietnam will lose out on approximately $5 billion each year,” said Pham Thai Binh, Chairman of Trung An Hi-Tech Agriculture Joint Stock Company.
The Rice Trade: Vietnam Secures Second Place as Indonesia’s Top Rice Supplier
The Central Statistics Agency of Indonesia (BPS) has revealed that Vietnam was the second-largest rice exporter to Indonesia during the first eight months of 2024. This news underscores Vietnam’s prominent role in meeting Indonesia’s rice demands and highlights the robust trade relationship between these two nations.
The Rising Price of Rice: Forecasting Record-Breaking Exports
The price of Vietnamese rice is surging once again, reclaiming its position as the most expensive in the world. Despite this, traditional partners have surprisingly announced their intention to import even larger volumes than initially anticipated, suggesting that rice exports could break records in both volume and value this year.
The Price of Vietnamese Rice Soars to the Highest Globally
The unexpected surge in rice imports from traditional partners, exceeding businesses’ initial projections, has stimulated domestic market demand. As a result, Vietnamese rice prices have soared, reclaiming their position as the world’s highest.
