Businesses excited as rice export prices increase again

Farmers are stepping up rice harvesting in the hope that yields will increase.

Price increase due to tight supply

According to the Vietnam Food Association (VFA), the price of 5% broken rice in Vietnam as of May 15 fluctuated from 398 to 402 USD/ton, higher than the price of India (382 to 386 USD/ton) and Pakistan (389 to 393 USD/ton). This is considered the highest price since April, showing a clear sign of recovery after a series of deep declines at the beginning of the year.

In the high-end segment, OM5451 and OM18 rice are being traded at prices ranging from 500 to 530 USD/ton. In particular, specialty rice varieties such as ST25 or organic rice continue to maintain high prices, ranging from 800 to 1,200 USD/ton. Therefore, the average export price of Vietnamese rice is currently maintained at over 500 USD/ton (equivalent to about 12,000 VND/kg).

Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Company Limited, said that the current recovery in rice prices is largely due to supply and demand factors. The Winter-Spring crop, the largest rice crop of the year, has entered its final stage, with only about 10-15% of rice remaining in the fields. Meanwhile, the Summer-Autumn crop is not expected to start harvesting until July-August, making short-term supply relatively limited.

At the same time, demand from major import markets such as the Philippines, China, Africa and the Middle East is showing signs of recovery after a period of temporary suspension of trading to monitor price fluctuations. Currently, demand for rice has not decreased, but buyers are just waiting for reasonable prices and responses from major exporting countries.

According to Mr. Thanh, although the current export price of rice is profitable for businesses and farmers, many businesses are still in no hurry to close orders. “The current price is profitable but not really attractive. Businesses are expecting the market to continue to improve, especially in the mid-range and high-end rice segment, which will increase in price in the near future, only then will businesses release their products to the market,” Mr. Thanh said.

Enterprises apply technology in rice harvesting in the West.

According to rice exporting enterprises, they have been proactively stockpiling goods since the period when rice prices were low, thereby being more proactive in negotiating with partners and coming up with more flexible sales strategies.

Mr. Ho Phuoc Tuan, Director of Long Thanh Agricultural Products Export Company, said that the company is currently implementing previously signed contracts, because there is no new supply from the Winter-Spring crop, so it has to take rice from the warehouse or buy rice from the people. With the current price increase, the company has only just broken even. Therefore, in the near future, the company expects the export price of rice to increase to 13,500 VND/kg before selling. If it does not increase, the company will choose to continue storing, bear the cost of preservation and interest, and wait for a better price before selling.

Philippine market leads export momentum

According to the report of the Ministry of Industry and Trade , the Philippines continues to be Vietnam's largest rice export market with a stable import volume of 3 - 4 million tons per year. It is forecasted that in 2025, the country will import about 4.35 million tons of rice from Vietnam. This is a traditional and open market, accounting for 80 - 85% of the total rice imported by the Philippines.

Mr. Phung Van Thanh, Trade Counselor (Vietnam Trade Office in the Philippines) said that the reason why Vietnamese rice maintains its leading position in this market is due to its consistent quality, competitive price and stable supply capacity. The close geographical distance and long-term trade relations between businesses of the two countries are also advantages that help Vietnamese rice gain the trust of Filipino consumers. Although competitors such as India and Thailand are boosting exports, Vietnamese rice still maintains its position thanks to its stability and suitability to consumer tastes here.

According to the General Department of Customs, in the first four months of 2025, Vietnam exported more than 3.4 million tons of rice, reaching a turnover of 1.76 billion USD, up 8.1% in volume but down 13.3% in value compared to the same period in 2024. The reason is that the average export price decreased by about 20%, down to about 517 USD/ton. However, since the end of April, prices have shown signs of recovery.

High-end rice products at supermarket chains are discounted to stimulate consumption.

In addition to the Philippines market, potential markets such as Ivory Coast, Ghana and especially Bangladesh are increasing their imports of Vietnamese rice. Of which, the export value to Bangladesh increased dramatically by nearly 518 times compared to the same period, showing the attraction of the quality and increasingly diverse types of Vietnamese rice.

Assessing the prospects for rice exports in the coming time, a representative of the Ministry of Industry and Trade said that despite many fluctuations in the world market, Vietnamese rice still maintains its competitive advantage thanks to its stable quality and high adaptability of domestic enterprises. In the context that the supply from major exporting countries such as India and Thailand can be affected by weather and management policies, Vietnam needs to proactively follow market developments to develop flexible management strategies, while continuing to expand the market and exploit emerging markets well.

In addition, the Ministry of Industry and Trade also recommends that businesses take advantage of opportunities from free trade agreements (FTAs) to enhance competitiveness, improve the quality of exported rice, and meet increasingly high standards from international partners. Stabilizing production, ensuring the supply chain, improving quality and tracing the origin of products will be the key for Vietnamese rice to continue expanding its market share in the global market.

( According to https://baotintuc.vn/thi-truong-tien-te/doanh-nghiep-phankhoikhi-gia-gao-xuat-khau-tang-tro-lai-20250516142626992.htm )

Source: https://baoapbac.vn/kinh-te/202505/doanh-nghiep-phan-khoi-khi-gia-gao-xuat-khau-tang-tro-lai-1042815/