Vietnam's New Rice Export Rules
Vietnam is implementing new regulations for rice exporters that are expected to favor larger, better-capitalized firms. Analysts warn that smaller traders could be squeezed out of the market due to stricter licensing, volume thresholds, and traceability requirements. The policy is seen as a response to demands from quality-conscious buyers in Europe and Japan.
- Vietnam's long-term strategy, approved by Deputy Prime Minister Le Minh Khai, aims to reduce annual rice exports to approximately 4 million tons by 2030, a significant decrease from the 7.1 million tons shipped in 2022. This policy prioritizes higher value over volume, targeting an export turnover of about $2.62 billion by 2030. - By 2030, the country plans for fragrant, japonica, and specialty rice to constitute 45% of exports, with an additional 10% coming from high-value products like organic and parboiled rice. This move is designed to increase market share in developed countries and ensure at least 25% of exported rice carries a national brand. - A key regulatory change under the proposed amendment to Decree 107 would require exporters to own, rather than lease, storage and milling facilities. Critics argue this could reinstate significant market entry barriers for small and medium-sized enterprises, which were previously eased in 2018. - As of early 2025, under Decree 01/2025/ND-CP, even companies that entrust rice exports to a licensed third party must now secure their own Rice Export Certificate. This closes a loophole previously used by smaller firms to access international markets without meeting the full licensing criteria. - The Philippines remains Vietnam's largest single market, accounting for 45% of its shipments in 2022. However, Vietnam's strategy includes diversifying its markets, with a 2030 goal of exporting 55% to Asia, 23% to Africa, 8% to Europe, and 5% to the U.S. - To meet the demands of premium markets, Vietnam is accelerating its "One Million Hectares of High-Quality, Low-Emission Rice" program. This initiative supports the cultivation of varieties like ST25, which has sold for up to $1,200 per ton in Europe, and low-emission Japonica rice. - The new regulations are partly a response to stringent international standards, such as the Codex Alimentarius Commission's rules (STAN 198-1995), which mandate criteria like a maximum of 15% moisture content and specific limits on impurities. Exporters to the EU and Japan also need to provide certifications for organic products and detailed traceability records. - Competitively, Vietnam surpassed Thailand to become the world's second-largest rice exporter in the first half of 2025, shipping 4.72 million tonnes, behind only India. This shift was influenced by the strengthening Thai baht and higher production costs in Thailand, which made Vietnamese rice more price-competitive in key markets.
