Major exporter Vietnam’s rice imports reach $1bn

Vietnam spent around $1 billion on rice imports in the first seven months of this year, reducing the sector’s trade surplus, according to the Ministry of Agriculture and Environment’s (MAE) July report.

During the reviewed period, the country’s rice exports reached 5.5 million tons worth $2.81 billion, up 3.1% in volume but down 15.9% in value year-on-year.

The rice trade surplus stood at $1.81 billion, down 30% compared to the same period last year, Vietnam News reported.

Vietnam could become second-largest rice importer

In June, the United States Department of Agriculture (USDA) forecast that Vietnam could become the world’s second-largest rice importer, after the Philippines, with the country’s imports potentially hitting a record 4.1 million tons.

In 2024, Vietnam was the third-largest rice importer, buying 3.2 million tons worth $1.2 billion, a figure that surprised many given the country’s status as a major exporter.

Vietnam primarily imports paddy rice from Cambodia for processing and re-export, with a large share cultivated on Cambodian land leased by Vietnamese farmers.

The country also brings in milled rice from India for producing noodles, rice paper, and other items, as local farmers have transitioned to higher-value fragrant rice varieties.

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Vietnam’s rice imports not due to shortages

Do Ha Nam, chair of the Vietnam Food Association (VFA), told Nguoi Lao Dong newspaper that local data still required verification.

He said that the USDA combined paddy rice and milled rice without converting paddy rice into milled rice equivalents, where the average milling rate is about 55%, meaning the USDA figures could be significantly overstated.

According to the VFA chairperson, Vietnam’s rice imports are not due to shortages, and overall, the benefits to trade outweigh concerns.

Since 2010, Vietnam has steadily exported six to seven million tons of milled rice each year.

In 2023, exports reached about 8.3 million tons, earning nearly $4.8 billion, according to the MAE.

In the first half of this year, agro-forestry-fishery exports totaled $33.8 billion, up 15.5% year-on-year, with a trade surplus of $9.8 billion, up 16.5% year-on-year.

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