Rice export sets new record in 2024, but 2025 expected to be tough

Statistics from the Ministry of Agriculture and Rural Development showed that rice export totalled nine million tonnes, valued at US$5.7 billion in 2024, representing a rise of 11% in volume and 24% in value over 2023.

Average rice export prices also set a record high of more than US$600 per tonne this year.

Vietnam ranked third in the world in terms of rice exports, coming after India with an export volume of 17 million tonnes and Thailand with a six-year high export volume of 10 million tonnes, thanks to strong demand from Indonesia and the Philippines.

The Philippines is Vietnam’s largest rice import market with a volume of 3.6 million tonnes, accounting for 40% of the total rice exports and 79% of the Philippines’s total rice imports, with Indonesia and Malaysia following.

According to the Vietnam Food Association (VFA), the nation is developing a rice industry focusing on fragrant rice and high-quality rice, while gradually reducing its reliance on low-quality rice.

Looking ahead to 2025, VFA’s President Nguyen Ngoc Nam said that Vietnam’s rice export might face difficulties, including the resumption of export of India. India is forecast to export around 22 million tonnes of rice in 2025, five million tonnes higher than 2024.

Rice export prices of Vietnam dropped significantly in December, with the export price of five per cent broken rice seeing a decrease by US$17 from early December to US$485 per tonne, below that of Thai rice at US$501, putting it at the lowest level for the past 19 months.

Similarly, the prices of 25% broken rice and 100% prices also dropped to US$459 and US$388 per tonne respectively.

The drops in export prices reflect the changes in the global supply and demand, particularly when India lifted its export restrictions, on the expectation of a bumper harvest.

In addition, the Philippines' temporary halt of rice imports, awaiting the upcoming winter-spring crop, also helped lower Vietnam’s rice export prices.

Other factors concerning rice producers include the prediction that Indonesia too will reduce rice imports in 2025 and China has also significantly reduced rice imports in 2024, according to Nam.

To support rice exporters, Nam said supports in lending and tax refunds were needed.

Trade promotions should be strengthened to take advantage of free trade agreements (FTAs) to expand export markets as well as providing timely market updates to producers.

According to the Deputy Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, Nguyen Thi Thu Huong, the focus will be on developing high-quality rice plantation areas and promotion of sustainable agriculture models.

Huong also urged rice exporters to focus on improving rice quality and building brands to increase the competitiveness of Vietnamese rice. Despite slight drops in rice export prices due to increase in global supplies, Vietnamese rice would still have opportunity to compete based on quality, she stressed.