Vietnam’s Rice Exports Face Challenges in 2025 Amid Intensified Global Competition

Vietnam’s rice export sector is bracing for a challenging year in 2025 after achieving record-breaking success in 2024. Experts warn of mounting global market pressures, driven primarily by India’s return to the international rice trade, which could disrupt Vietnam’s growth trajectory.

India, having lifted its two-year export restrictions, has released substantial stockpiles into the market. This move is expected to intensify competition among major rice-exporting nations. Vietnamese exporters, who achieved an average export price of $627 per tonne in 2024—a 9% increase from the previous year—are now under pressure to maintain their market position.

According to Tran Thanh Hai, Deputy Director of the Import-Export Department at Vietnam's Ministry of Industry and Trade, India’s re-entry will likely exert downward pressure on global rice prices. Despite this, Vietnam aims to offset potential losses by focusing on product quality and strengthening its branding. The country has already demonstrated resilience by expanding into markets such as Indonesia and the Philippines.

Vietnam also sees opportunities in the Singaporean market, which showed strong growth in 2024. Exports surged 28.45% year-on-year, reaching SGD 128.9 million. Vietnam became Singapore’s largest rice supplier in the first half of the year, underscoring the potential of this high-value market.

However, experts highlight the need for improved marketing efforts to compete with nations like Thailand and Japan, which actively promote their rice brands and collaborate with distributors. A representative from the Vietnam Trade Office in Singapore emphasized the importance of enhancing competitiveness and product visibility to capture a larger share of the nearly 6-million-strong market.

To address these challenges, the Ministry of Industry and Trade is implementing several supportive measures. These include encouraging banks to offer financial assistance, expediting export tax refunds, and launching targeted promotional campaigns. The government is also working with businesses to maximize opportunities under new-generation free trade agreements, which have enabled Vietnamese rice to reach approximately 150 countries and territories.

Despite a promising performance in 2024, Vietnam’s rice exporters face an increasingly competitive global landscape in 2025. The industry’s success will hinge on strategic adaptability, continuous quality improvement, and innovative marketing approaches to distinguish Vietnamese rice in a crowded market.