Vietnam Faces Rice Market Challenges Amid Global Price Slump

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Vietnam's rice industry is grappling with a challenging period as a combination of increased global supply and dwindling demand has led to a sharp decline in rice prices. The situation has prompted Prime Minister Pham Minh Chinh to issue Directive No. 21/CD-TTg on 4th March, addressing the urgent need to balance rice supply and demand. The directive aims to stabilise the domestic market while capitalising on export opportunities, ensuring that both farmers and businesses benefit fairly.

 

Farmers across the Mekong Delta, including provinces like Tien Giang, find themselves in a precarious situation. Despite a strong harvest, the selling price for their rice has plummeted. Nguyen Van Minh, a farmer from Tien Giang Province, described how promised prices of 6,800 VND per kilogramme at the season’s start collapsed to 5,100 VND by harvest time, forcing farmers to accept losses.

 

The price drop is largely attributed to a record-high expected global rice production of 532.7 million tonnes in 2025, with total supply reaching 712.15 million tonnes. However, global trade is predicted to decline to 58.5 million tonnes, exacerbating the pressure on rice-exporting countries like Vietnam.

 

To address these challenges, the Prime Minister's directive sets out measures such as monitoring global market trends, revising current trade regulations, and encouraging modernised production and storage methods. The Ministry of Industry and Trade and the Ministry of Finance are directed to refine policies to support businesses engaged in rice trade, particularly those impacted by fluctuating prices.

 

 

 

In tandem, the Ministry of Agriculture aims to enhance rice quality by promoting high-quality strains and diversifying rice products to meet international demands. Key export markets include the US, EU, China, and Africa, with targeted efforts to boost market presence.

 

Financial strategies are also being considered to provide businesses with the necessary resources to manage stock effectively and avoid the pitfalls of selling at low prices. This includes potential tax incentives and credit extensions.

 

By proactively adapting its strategies, the Vietnamese government hopes to safeguard the agricultural sector's sustainability and protect farmers' livelihoods amid challenging global economic conditions, reported Nhan Dan.

 

-- 2025-03-17