- Vietnam’s rice exports rose 10% YoY in H1 2026, supported by strong demand from China and Iraq.
- Lower export prices reduced overall export earnings despite higher shipments.
Vietnam exported 5.2 million tonnes (mnt) of rice during the first six months of 2026, up 10% y-o-y, supported by strong demand from major Asian markets and rapidly growing shipments to the Middle East. Export revenue, however, declined 2.5% to $2.4 billion as the average export price fell 11.3% to $459.6/t.
The Philippines remained Vietnam’s largest rice export market, accounting for 45% of total shipments, while China recorded the strongest growth among major buyers.
China emerges as key growth market
Vietnam’s rice exports to China surged 87% y-o-y to more than 1 mnt during the first half of 2026, lifting the country’s share of Vietnam’s total rice exports to 19.4%, the highest level recorded in recent years.
China has traditionally been a major destination for Vietnam’s fragrant rice varieties, particularly ST25 and glutinous rice. Import demand also tends to strengthen when global rice prices soften, contributing to the sharp increase in purchases during the first half of the year.
The significant rise in shipments highlights China’s growing importance in Vietnam’s rice export programme and provides greater market diversification beyond the Philippines, which continues to dominate overall exports.
Iraq emerges as rapidly growing destination
Iraq also recorded exceptional growth, with imports of Vietnamese rice increasing 132.4 times compared with the same period last year, placing the country among Vietnam’s 15 largest rice export destinations.
The Middle East has traditionally relied heavily on Thai rice. However, ongoing regional conflicts have disrupted Thailand’s exports to the region, creating opportunities for Vietnamese suppliers to strengthen their presence and capture additional demand.
Stronger shipments to Iraq and other Middle Eastern markets could help Vietnam diversify its export destinations while enhancing the presence and reputation of Vietnamese rice in international markets.
Vietnamese rice prices edge higher
According to the Ministry of Agriculture and Environment (MAE), Vietnamese rice export prices increased by $3-8/t in early July. Jasmine rice rose by $8 to $520/t, while 5% broken fragrant rice gained $5 to $510/t.
Rice prices across other major Asian exporters, including India, Pakistan and Myanmar, also increased by $2-7/t, indicating broader firmness in the regional rice market.
The MAE expects prices to continue rising as El Niño intensifies, potentially posing risks to global food production and supplies.
Outlook
Vietnam’s rice export outlook remains supported by strong shipment volumes and expanding demand from China and emerging markets such as Iraq. While the decline in average export prices has weighed on overall revenue, continued diversification into the Middle East could reduce dependence on traditional Asian buyers and create additional opportunities for Vietnamese exporters.
In the near term, developments in global rice prices, weather conditions, geopolitical disruptions and demand from major importing countries will remain key factors influencing Vietnam’s export performance.
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