Vietnamese rice exports stall as Philippines bans imports
Vietnam’s rice market faces pressure after the Philippines, its largest buyer, suspended imports for 60 days. Traders in the Mekong Delta are purchasing cautiously, despite competitive prices of \$399/ton for 5% broken rice. Authorities urge diversification toward Africa, the Middle East, and FTA partners. Exports may rebound, topping 8 million tons in 2025.
Rice traders are keeping their purchases from farmers to a minimum after the Philippines, a key market, suspended all imports.
Hang, a trader in the Mekong Delta Province of An Giang, a major rice-growing area, bought only a few tons last week compared to the usual hundreds of tons.
Exporters are also taking a cautious approach in trading.
“Prices remain low, but we dare not buy much,” Nguyen Chi Thanh, director of export company Angimex’s rice division, said.
Since Sep. 1 the Philippines, Vietnam’s largest rice export market, has suspended buying for 60 days to protect local farmers.
With the country typically accounting for more than 40% of Vietnam’s rice exports, the sudden suspension has led to caution in rice procurement in the Mekong Delta.
On the global market, Vietnam’s 5% broken rice is being offered at $399 per ton, higher than the same variety from Thailand and India.
This price gap has increased competitive pressure, especially as demand weakens and buyers turn to cheaper alternatives.
Local authorities have advised exporters to observe caution amid the global uncertainty.
In the Mekong Delta province of Vinh Long, where many companies export to the Philippines, the Department of Industry and Trade has issued an urgent notice, telling them to be patient and watch market developments.
It advised them to diversify markets to reduce risks.
Vietnam exported 6.3 million tons of rice worth $3.17 billion in the first eight months of the year, according to the Ministry of Industry and Trade,
Export volumes rose slightly, but their value fell nearly 18% due to lower prices.
The Philippines purchased 2.6 million tons to remain the largest buyer.
On Sep. 1 the ministry also warned businesses to closely track developments and avoid relying too heavily on a single market.
It stressed the need to expand to China, Indonesia, Malaysia, and countries in Africa and the Middle East.
Prime Minister Pham Minh Chinh on Tuesday called for diversifying markets to ensure food security amid rice export fluctuations.
He also instructed the State Bank of Vietnam to expand credit for enterprises involved rice production and trading and the Ministry of Industry and Trade to ensure expansion to countries that have free trade agreements with Vietnam such as the U.S., South Korea and the E.U.
Analysts said Vietnam’s higher prices compared to Thailand and India reduce its competitiveness but do not mean losing market share.
Major clients continue to place orders thanks to consistent quality and reliable delivery.
Some analysts said opportunities could arise in Africa and the Middle East as supplies from Thailand and India are hampered by weather and policy barriers.
Despite the setback in the Philippines market, Vietnam’s rice exports are expected to top eight million tons this year, maintaining its position as the world’s second largest exporter behind India.
Exporters expect prices to rebound by year-end as global demand picks up and the Philippines resumes imports.
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Source : VN Express
