As the Mekong Delta enters peak harvest season, a global rice surplus has driven prices to new lows. In response, Prime Minister Pham Minh Chinh has directed ministries, local authorities, and businesses to implement a series of measures to balance rice supply and demand while preventing price manipulation.

Global surplus and declining demand hit Vietnam’s rice exports

In an official notice regarding rice market regulation, the Prime Minister’s Office highlighted that global rice trade has been volatile in early 2025.

A surplus in global supply, coupled with declining demand from key importers, has led to a prolonged drop in rice export prices, with no immediate signs of recovery.

As a result, Vietnam’s rice exports have weakened in the first two months of 2025, following a continuous decline in export prices.

Meanwhile, with Mekong Delta provinces harvesting in full swing, domestic rice purchasing prices have dropped significantly compared to the same period last year.

Ensuring production stability and market regulation

To stabilize supply and demand in the domestic rice market while ensuring sustainable rice production and exports, the Prime Minister has tasked ministries, local governments, and businesses with closely monitoring policy changes and market trends in major rice-exporting and importing countries.

The Ministry of Agriculture and Environment has been instructed to:

Ensure Mekong Delta farmers maintain planned rice acreage and output.

Support the timely harvest of the Winter-Spring crop and expand one million hectares of high-quality rice production.

Coordinate with agencies to track global market developments, particularly policy adjustments by major rice exporters such as India and

Thailand and identify new potential buyers for Vietnamese rice.

Meanwhile, the Ministry of Industry and Trade has been directed to:

Implement the Vietnam Rice Export Market Development Strategy through 2030.

Lead an inter-agency task force to inspect rice purchasing, export, and stockpiling activities, ensuring compliance with Decree 107 on mandatory rice reserves.

Promote trade and expand exports to large and emerging markets.

Review and propose amendments to Decree 107 and Decree 01 in Q2 2025 to:

Introduce new criteria for rice exporters, prioritizing firms with strong supply chain linkages, modern storage, and logistics infrastructure.

Reduce market dependence on small traders who pressure farmers with low purchase prices.

Develop a trust rating system for rice exporters to enhance market transparency.

Financial and trade policy support for rice businesses

To stabilize the rice market, the Prime Minister has directed the State Bank of Vietnam to:

Expand credit quotas and loan durations for businesses with storage facilities, enabling them to purchase and stockpile rice during market downturns.

Instruct commercial banks to provide low-interest loans to farmers and exporters, facilitating Winter-Spring crop purchases in the Mekong Delta.

Additionally, the Ministry of Finance has been tasked with:

Fast-tracking VAT refunds for rice exporters.

Streamlining customs clearance to accelerate rice shipments.

Developing a national rice reserve plan for 2025, ensuring rapid intervention if rice prices fluctuate further.

Preventing price manipulation and unfair competition

To protect farmers from exploitative pricing, the Prime Minister has instructed provincial and city governments to:

Reassure farmers about the stability of the rice market and encourage them to proceed with the Summer-Autumn crop as planned.

Strengthen market surveillance, inspect rice trading activities, and crack down on price manipulation by traders and businesses.

Ensure fair competition among rice-exporting enterprises.

Lastly, the Prime Minister has urged trade associations, corporations, and rice exporters to actively seek new markets, secure contracts with traditional buyers, and increase rice stockpiling to support farmers during this difficult period.

Tam An