Paddy rice market in Vietnam

Earlier Report Observations

The paddy rice market in Vietnam demonstrated relative stability from 2018 to 2023, with annual volumes fluctuating between 42 900 and 44 600 thousand metric tons. This period was defined by a strategic shift toward high-quality rice production, driven by the anticipation and implementation of the EU-Vietnam Free Trade Agreement (EVFTA) from August 2020. Government policies, notably the 'three reductions, three increases' program, focused on raising yields and economic efficiency, which helped maintain production levels despite occasional weather challenges like salinity intrusion in the Mekong Delta.

External events periodically influenced domestic market volumes. The COVID-19 pandemic in 2020 disrupted supply chains but also increased global demand for food reserves, prompting the government to implement temporary export controls to stabilize the domestic supply. Subsequent years saw significant external drivers: falling international rice prices in 2021 contrasted with a surge in 2022 and 2023 due to geopolitical tensions from the Russia-Ukraine war and export restrictions by India, which opened new opportunities for Vietnamese rice abroad and affected domestic availability.

The market structure evolved with the entry of new branded products and stricter international standards. In 2022, Loc Troi Group successfully exported its own branded 'Com VietNam Rice' to the EU, marking a move toward value-added exports. Strict EU regulations on pesticide residues and traceability accelerated investments in sustainable farming and electronic origin tracking. By 2024, a new government mechanism for managing mandatory rice reserves aimed to increase market flexibility, coinciding with a notable rise in imports to meet domestic and strategic reserve needs.

Production paddy rice in Vietnam

In kind, 2017-2020, K t

Vietnam was one of the world's top producers of paddy rice from 2017 to 2020, ranking fifth globally by production volume during this period.

Top producers of paddy rice, 2017-2020

World map of production of paddy rice, 2017-2020

Vietnam's paddy rice production declined for the second year in a row. In 2020, the country produced 42,765 thousand tons, marking a 1.7% decrease compared to 2019. Production peaked in 2018 at 44,046 thousand tons, which also saw the largest annual increase of 3.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of decline, Vietnam's paddy rice production value rebounded in 2020. Output was valued at 20,561 million US dollars, up 25.5% from the previous year. Over the 2017-2020 period, production value fell by 15.1%, with a compound annual growth rate of -5.3%. The lowest value was recorded in 2019 at 16,387 million US dollars, while the largest decline occurred in 2018 with a 26.4% drop.

Annual dynamics of production in Vietnam in value, 2017-2020, M $ US

Exports paddy rice from Vietnam

Exports in kind, K t

Vietnam's paddy rice exports increased for the third consecutive year. In 2020, the country exported 4.3 thousand tons, a 0.6% rise from 2019. From 2017 to 2020, exports grew by 120.3%, equivalent to an annualized rate of 30.1%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K t

From 2017 to 2020, Vietnam's paddy rice export structure was dominated by the Philippines, which accounted for 71.5% of total shipments, with numerous smaller partners making up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, M $ US

Vietnam's paddy rice export value increased for the second year in a row. In 2020, exports amounted to 2.1 million US dollars, showing a sharp year-on-year rise of 28.3%. Over the 2017-2020 period, export value grew by 87%, with a compound annual growth rate of 23.2%. The lowest value was recorded in 2018 at 1.1 million US dollars, which also saw the largest decline of 2.1%. The largest increase occurred in 2019 with a 48.8% jump.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, M $ US

During 2017-2020, the Philippines held the dominant position in Vietnam's paddy rice export value, representing 71.3% of total flows, while the rest was distributed among various smaller destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports paddy rice to Vietnam

Imports in kind, K t

Import volumes showed significant volatility during these years. In 2018, imports hit a low of 28.2 thousand tons, with the largest decline of 13.3% that year. By 2020, imports peaked at 152.3 thousand tons, a 435.8% increase from 2019, resulting in a 5.4-fold difference between the high and low points.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K t

From 2017 to 2020, Cambodia and China accounted for the majority of Vietnam's paddy rice imports by volume, with other markets playing a less significant role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, M $ US

Import values exhibited irregular changes, reflecting a volatile market. In 2019, imports reached their lowest point at 16.8 million US dollars, with the largest decline of 21.6% that year. By 2020, imports surged to 102.6 million US dollars, a steep 509.4% year-on-year increase, creating a 6.1-fold difference between the high and low values.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, M $ US

Throughout 2017-2020, Cambodia and China concentrated most of Vietnam's paddy rice import value, while other markets were individually less important.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020