MoIT supports enterprises in exporting rice to Bangladesh

 The price of exported rice has been in a consistent decline since the start of 2025.  India’s decision to lift its ban on white rice exports is the main driver of this downturn, which has resulted in a significant rise in global supply.  China has yet to return as a significant buyer, while demand from Vietnam’s traditional rice-importing partners, such as the Philippines and Indonesia, remains insufficient.

 Minister of Industry and Trade Nguyen Hong Dien indicated that the global rice production will likely increase by approximately 10 million tons in comparison to 2024 during the routine government meeting on the morning of March 5. This development is expected to exacerbate the imbalance between supply and demand.  Minister Dien has stated that the decrease in rice export prices is not specific to Vietnam; it is also taking place in other significant rice-exporting nations.  For example, the export price of Indian rice reached its lowest level in 20 months on March 2.  In Thailand, the Thai Rice Exporters Association has predicted a decrease in rice exports of over 30% during the first quarter of 2025 in comparison to the same period last year.

 Minister Nguyen Hong Dien pledged to collaborate with the Southern Food Corporation (Vinafood 2) and rice-exporting businesses to execute a contract for the export of 100,000 tons of white rice to Bangladesh in response to this circumstance. This initiative will provide farmers with increased rice procurement, thereby supporting them.  Furthermore, the Ministry of Industry and Trade will promptly initiate trade promotion initiatives in critical rice-exporting markets, including the Philippines and China, by organizing a meeting with the Vietnam Food Association and key enterprises in March 2025.

 Vietnam’s main rice export market has been the Philippines for an extended period.  The territory was responsible for more than 46% of Vietnam’s total rice exports in 2024.  Indonesia and Malaysia followed, with market shares exceeding 13% and 7%, respectively.  Vietnam’s paddy exports to the Philippines have consistently exceeded USD 1 billion since the early 2010s.  In 2023, this figure had increased to USD 1.7 billion, and in 2024, it soared to USD 2.6 billion.  The Philippines continues to be a critical market, contributing significantly to Vietnam’s rice export industry, which achieved a record-breaking 9 million tons in 2024 and generated USD 5.67 billion in revenue.

 The government has mandated that Vietnam’s total export development for the year 2025 must reach 12%. To achieve this, one of the primary measures is to maintain rice exports.  This objective has been verified in the initial two months of 2025, during which the total trade turnover was estimated to be USD 126.7 billion.  Exports alone accounted for approximately USD 64.3 billion of this, representing an 8.4% increase.  The trade balance remained in surplus, with a positive trade difference of USD 1.9 billion.

 The Ministry of Industry and Trade issued Directive No. 06/CT-BCT on March 4, instructing the Import-Export Department, the Department of Industry, the Department of Chemicals, and the Petroleum and Coal Department to collaborate with other ministries and agencies to address the challenges faced by domestic producers, exporters, and foreign-invested enterprises.  The directive’s objective is to remove impediments to production and trade and facilitate the expansion of exports.

 The ministry has also instructed provincial and municipal Departments of Industry and Trade, particularly those in regions with frequent agricultural exports, to routinely update information from northern border provinces.  These updates will assist farmers, production facilities, and businesses that are engaged in the processing and export of agricultural products and fresh fruit in proactively managing their production, packaging, logistics, and export plans.  The objective of this proactive strategy is to prevent congestion at border crossings and to mitigate other potential disruptions.

Vietnam’s export performance was once again characterized by agriculture, forestry, and fisheries, which generated USD 9.38 billion in revenue during the first two months of 2025, an 8.3% increase from the same period in 2024, according to statistics from the Ministry of Finance.  Agricultural exports alone accounted for USD 4.89 billion, representing a 4.5% increase within this category.

 Numerous agricultural commodities have experienced substantial growth.  This is particularly noteworthy, as Vietnam exported 284,000 tons of coffee in the first two months of 2025, resulting in a revenue of USD 1.58 billion.  Although the volume of exports decreased by 28.4% in comparison to the same period in 2024, the total export value increased by 26.2%, which is indicative of a significant rise in global coffee prices.