- Rice export earnings declined 7.1% despite stable shipment volumes
- Philippines’ tighter rice imports have pressured Vietnam’s export prices
Vietnam’s rice sector may soon see a significant policy change as the Vietnamese Food Association has proposed introducing a minimum export price for rice alongside a floor price for domestic paddy purchases. The proposal is aimed at protecting farmers and exporters from declining rice prices while ensuring greater stability across the country’s rice market.
Minimum price proposal aims to protect farmers, exporters
Under the proposal, the association has recommended setting a minimum export price of US$500 per metric tonne for fragrant rice and a minimum domestic purchase price of 7,000 Vietnamese dong per kilogram for fresh paddy. Although current market prices remain above these proposed levels, the measure is intended to prevent excessive price declines and provide a safety net for both farmers and exporters.
The proposed mechanism is also expected to discourage price undercutting among exporters, helping maintain fair competition while supporting more stable incomes for rice growers. The recommendation comes as Vietnam’s rice exports face increasing pressure following tighter rice imports by the Philippines, the country’s largest overseas buyer. The reduced import demand has contributed to weaker export prices, prompting concerns over falling returns for both exporters and farmers.
By introducing a minimum export price, the association aims to limit further downward pressure on rice prices and support the overall stability of Vietnam’s rice trade.
Export volumes hold steady
Vietnam continues to maintain its position as the world’s third-largest rice exporter. During the first seven months of the year, the country exported 5.53 million metric tonnes of rice. However, despite stable export volumes, export earnings declined by 7.1%, reflecting the impact of lower international rice prices.
The proposed price floor is intended to address this imbalance by helping preserve export values while protecting stakeholders across the rice value chain.
Outlook
The proposal is currently awaiting government approval, and if approved, the minimum rice export price and domestic paddy purchase floor price will remain in effect until the end of 2026. The measure is expected to support greater price stability, discourage aggressive price competition among exporters, and strengthen income security for Vietnamese rice farmers. As Vietnam continues to face pressure from weaker export prices, the proposed price floor could help stabilise returns across the rice value chain while maintaining orderly market conditions through the remainder of 2026.
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