As India has lifted the ban on rice exports, Vietnamese businesses need to focus on niche markets while building a high-quality rice brand.
Pressure from increasing world rice supply
According to data from the US Department of Agriculture, in just the first two months of 2025, the supply to the world rice market reached a record 532.7 million tons. The main reason is that India - the world's largest rice exporter - lifted its export ban. This has created fierce competitive pressure, especially in the low-quality rice segment, thereby directly affecting major rice exporting countries such as Vietnam and Thailand.
According to Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production - Trading Company Limited, a company specializing in rice export, shared: "The return of Indian rice is like an earthquake, especially in the white rice segment, which is their strength and also our main product. However, I believe that this impact is only temporary, because 80% of Vietnam's exported rice belongs to the high-quality segment."
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| Experts say Vietnamese businesses need to focus on niche markets and at the same time build a brand of high-quality Vietnamese rice. |
According to data from the Ministry of Agriculture and Environment, in the first two months of 2025, Vietnam exported 1.1 million tons of rice, up 5.9% over the same period last year. However, the export value only reached 613 million USD, down 13%. This shows that the average export price of Vietnam's rice has decreased significantly, clearly reflecting competitive pressure from India.
Not only facing competitive pressure on prices, the Vietnamese rice industry also has to adapt to increasingly stringent requirements from the international market. Major markets such as the EU and the US require products to meet standards on sustainable development, emission reduction and traceability.
"This is an inevitable trend of the market, and we cannot stand aside," said Ms. Le Thi Huong, a rice industry expert.
"However, the transition from traditional production to green, smart production requires large investment costs and a change in farmers' mindset. Along with that, the 1 million hectare high-quality, low-emission rice project in the Mekong Delta is a step in the right direction, but requires more drastic investment and implementation," Ms. Huong emphasized.
Businesses need to proactively seek niche markets
In the difficult context, there are still positive signs for the Vietnamese rice industry. White rice, which accounts for the majority of the market share (71%), targets mass markets such as the Philippines, Indonesia and Africa, with competitive prices. Meanwhile, premium fragrant rice varieties such as Jasmine, ST24, ST25 (19% market share) conquer demanding markets such as the EU, the United States and Japan, where value is paramount. This diversity, along with demand from China (5-6 million tons/year) and the Philippines (4.5-4.7 million tons) expected to increase from the second quarter of 2025, are also factors supporting the recovery of Vietnamese rice prices.
"We believe that with the quality of fragrant rice and specialty rice that has been affirmed in the international market, Vietnam still has many opportunities to maintain and expand its market share in high-end markets," Mr. Nguyen Van Thanh added.
According to rice industry expert Le Thi Huong, diversifying export markets, focusing on niche markets and building a high-quality Vietnamese rice brand are the keys to improving the industry's competitiveness.
"To overcome challenges and take advantage of opportunities, the Vietnamese rice industry needs to have synchronous solutions. First of all, it is necessary to promote production restructuring, improve product quality and added value. Second, it is necessary to strengthen trade promotion, expand export markets, especially niche markets. Third, there is a need for effective support policies for farmers and businesses, helping them access capital, technology and markets," Ms. Huong analyzed.
Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association (VFA), said that in 2023, Vietnam will export over 8 million tons, and in 2024, it will reach about 9 million tons. This affirms that Vietnamese enterprises have proactively sought markets and produced commercial rice, so there is no need to worry about consumption issues.
| In the export market, Vietnam's rice export prices today (March 10) are stable compared to the weekend. According to the Vietnam Food Association (VFA), currently 5% standard rice is at 389 USD/ton; 25% broken rice is at 364 USD/ton; 100% broken rice is at 307 USD/ton. |
Source: https://congthuong.vn/an-do-cho-xuat-khau-gao-doanh-nghiep-ung-pho-ra-sao-377599.html
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