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Manila’s surprise 60-day suspension has rattled Vietnam’s rice market, prompting calls for storage aid and debt relief to shield farmers and exporters.

The Philippines, Vietnam’s largest rice buyer, has unexpectedly suspended imports for 60 days, sending shockwaves through the market. The move has driven rice prices into a steep decline, left exporters scrambling over stalled contracts, and placed mounting pressure on farmers.

From January through July 2025, the Philippines imported around 2.44 million tons of Vietnamese rice, accounting for more than 44 percent of the country’s total exports. According to Mr. Le Ba Anh, Deputy Director General of the National Authority for Agro-Forestry-Fishery Quality, Processing and Market Development under the Ministry of Agriculture and Environment, Manila issued a presidential decree halting rice imports for 60 days starting September 1, citing the need to shield local farmers as domestic paddy prices plunge.

The impact was immediate: Vietnam’s fragrant rice FOB price fell to US$439 per ton—the lowest in nearly three years. Exporters now fear signed contracts could be disrupted, with some forced to renegotiate delivery and payment terms, while unsold stockpiles continue to mount.

A representative of the Vietnam Food Association (VFA) warned that the Philippines’ suspension could disrupt the consumption chain, creating a “double burden” for both farmers and businesses unless urgent remedies are put in place. The VFA has petitioned the Government to swiftly roll out preferential credit packages, restructure debt, and support warehousing to prevent panic selling. It also urged the Ministry of Industry and Trade (MOIT) and the Ministry of Agriculture and Environment to hold direct talks with Philippine authorities to clarify the categories of rice covered by the suspension under the bilateral rice trade Memorandum of Understanding signed on January 30, 2024, which could preserve part of the export flow.

“Although the presidential decree sets a 60-day suspension, it also requires the Philippine Department of Agriculture to reassess the situation after 30 days, meaning the halt could be shortened,” Mr. Le Ba Anh noted.

In response, MOIT promptly issued a directive to provincial authorities, associations, and exporters, calling for immediate measures—including purchasing rice for reserve—to stabilize export material prices in the coming period.

Deputy Minister of Agriculture and Environment Phung Duc Tien pointed out that Vietnam exported 2.92 million tons of rice to the Philippines in 2024, but when cross-checked with Vietnam Northern Food Corporation (Vinafood1) and VFA, the figure was higher—4.3 million tons. He projected that despite current headwinds, Vietnam could still surpass its annual export target of 8 million tons, buoyed by growth in Bangladesh, China, and South Africa. The Ministry of Agriculture and Environment has also urged exporters to diversify markets to mitigate future risks.

The Department of Industry and Trade of Vinh Long Province, on September 7, issued an advisory urging local rice exporters and traders to exercise caution, avoid hasty or complacent reactions to international trade policy shifts, and proactively seek new markets alongside maintaining traditional partners.

The department also encouraged traders to buy and temporarily store rice to support farmers, and to strictly comply with government regulations on rice export. Any difficulties, it added, should be reported to the department’s Trade Management Division for timely assistance.

By Phuc Hau, Tin Huy, Cao Phong – Translated by Thuy Doan

Published Date: September 8, 2025