Vietnam has surpassed Thailand in rice exports. The Prime Minister urges immediate action to strengthen its competitive edge.

Tien Phong

Vietnam has surpassed Thailand to become the world’s second-largest rice exporter. To maintain this position, Prime Minister Pham Minh Chinh has called for the agricultural sector to swiftly address obstacles and seize export opportunities.

Accelerating rice exports

On August 18, 2025, the Government Office issued official dispatch No. 7697/VPCP-NN, conveying Prime Minister Pham Minh Chinh’s directive on Vietnam’s rice export strategy.

According to the document, the Thai Rice Exporters Association recently reported that Vietnam had overtaken Thailand to rank second globally in rice exports during the first half of this year. This achievement signals a growing shift from exporting in high volumes to exporting high-value rice, enhancing Vietnam’s competitive edge.

However, sustaining this momentum will require the Vietnamese rice sector to resolve persistent challenges, particularly policy and regulatory bottlenecks, as well as technical barriers from high-standard markets such as the EU and Japan.

Given weakening global demand and intensified price competition from rival exporters, Vietnam’s current pricing advantage is likely to erode. This necessitates a long-term strategy focused on shifting from quantity to quality, emphasizing high-grade, organic rice and building a national rice brand.

The Prime Minister assigned the Ministry of Agriculture and Environment to collaborate with relevant agencies to immediately address these issues within their jurisdiction. He also urged them to act swiftly to boost rice exports, particularly high-quality and organic varieties, linked with traceability systems and national branding to increase export value.

The agriculture sector must also expedite the implementation of the sustainable development plan for one million hectares of high-quality, low-emission rice in the Mekong Delta, aligned with green growth targets through 2030.

Building a distinct market

According to the Ministry of Agriculture and Environment, in the first seven months of 2025, Vietnam exported 5.5 million tons of rice, generating $2.81 billion. This represents a 3.1% increase in volume but nearly a 16% decrease in value compared to the same period in 2024.

The global rice market has been under pressure as India continues to release large quantities of mid- and low-priced rice, affecting global prices. Additionally, Vietnam may face further impact as the Philippines, its largest rice export market, has announced a temporary 60-day import suspension starting September 1.

However, the Vietnam Food Association notes that Vietnamese rice has been carving out a niche market with premium varieties such as DT, OM, and especially ST. For example, ST25 rice is exported to Europe at prices exceeding $1,200 per ton, double the price in China.

Despite declining global prices, Vietnam remains competitive due to its stable markets, high-quality products, and rapid adaptability. By maintaining export momentum and leveraging free trade agreements (FTAs), Vietnam is poised to consolidate its No. 2 global ranking in 2025 – even if overall revenue declines from the record-setting year of 2024 – laying a strong foundation for future growth.

According to the Thai Rice Exporters Association, in the first half of 2025, India led with 11.68 million tons of rice exports, a 36.5% increase year-over-year. Vietnam followed with 4.72 million tons, up 3.5%. Thailand ranked third with 3.73 million tons, a 27.3% drop. This confirms Vietnam’s rise to the world’s second-largest rice exporter in the first six months of 2025.

Published Date: August 20, 2025