Rice exporters in Vietnam are seeking new export markets as Philippines is planning to further extend its rice import ban. The Philippine Department of Agriculture recently announced that it may extend the rice import suspension through the end of 2025, beyond the previously stated period of September and October. This new move by the Philippines government has prompted rice exporters from Vietnam to find new alternatives and reconsider their strategies.
Vietnam’s Rice Exporters are Expanding into Africa
With Philippines and Indonesia expanding their rice import ban, rice exporters from Vietnam are now expanding their market into Africa, where demand for rice is rising rapidly. Vietnam’s rice industry is facing one of its toughest challenges in years as two major markets, the Philippines and Indonesia, have sharply cut imports, forcing exporters to scramble for alternative buyers. Many firms are now pivoting to Africa, where demand for Vietnamese rice is unexpectedly rising.
For several years, the Philippines and Indonesia have been the largest buyer of Vietnam’s rice exports, however after the rice import ban in Philippines Vietnamese rice shipments to the Philippines in September plummeted by 93.3 per cent in volume and 92.6 per cent in value compared with August. Similarly, Indonesia, the second-largest importer, also tightened its import quotas, causing widespread contract delays and cancellations. As a result, Vietnam’s overall rice exports in September dropped to just 466,800 tonnes, worth $232.38 million, down nearly 47 per cent on-month. Around 500,000 tonnes of rice remains stuck at ports, leaving exporters in limbo. Currently, Vietnam’s rice exports are mainly aromatic varieties, with limited supply of white rice.
Vietnam Food Association (VFA) has urged firms to avoid panic selling, as current rice prices in Vietnam have dropped to VND (Vietnamese Dong)10,000–11,000 ($0.37-0.41) per kilogram, which were earlier priced at VND13,000–14,000 (US$0.49-0.53) per kilogram.