Vietnam Accelerates Premium and Organic Rice Strategy
Vietnam is advancing a national strategy to build a "modern, sustainable and high-value" agricultural sector, with a focus on organic and specialty rice. The effort, supported by the FAO, aims to meet rising demand in Japan, South Korea, and Europe. This positions Vietnam to directly challenge Thailand's traditional dominance in the premium rice market.
- Under its "Strategy on Development of Vietnam's Rice Export Markets until 2030," the government aims to reduce total export volume to around 4 million tonnes by 2030, but with a target turnover of USD 2.62 billion, by focusing on higher-value grains. - In the first half of 2025, Vietnam surpassed Thailand to become the world's second-largest rice exporter, shipping 4.72 million metric tons. The Philippines, Indonesia, and Malaysia are its largest import markets. - Concurrently, Thai rice exports have faced challenges, declining 27.3% in the first half of 2025 due to competition from India's pricing and the strengthening Thai baht impacting price competitiveness. Industry leaders in Thailand are urging for investment in new rice varieties to meet evolving buyer standards. - A key part of Vietnam's strategy is the "One Million Hectares of High-Quality, Low-Carbon Rice" initiative, which is a flagship program supported by the FAO to transform the rice sector towards climate-responsive growth. - The strategy sets specific targets for the composition of rice exports by 2030: fragrant, japonica, and specialty rice will account for 45% of exports, while low- and medium-grade white rice will be reduced to just 10%. - Vietnam is also focused on brand building, with a goal for 40% of its exported rice to be sold under a national brand name by 2030. This initiative is part of a broader push to move away from raw exports and increase the added value of Vietnamese rice. - The Food and Agriculture Organization (FAO) is actively supporting Vietnam's transition with projects focused on nature-based solutions and biological pesticides to reduce dependence on chemical inputs and enhance the competitiveness of agricultural products, particularly rice. - To support these goals, the Ministry of Industry and Trade is expanding trade negotiations, dismantling logistical hurdles, and encouraging exporters to upgrade processing facilities to meet the standards of discerning markets.
