Trade Ministry Mobilizes After Philippines Halts Vietnam Rice Imports
With the Philippines implementing a 60-day pause on imports of regular milled Vietnam Rice beginning September 1, the Ministry of Industry and Trade (MoIT) has moved swiftly and decisively, issuing comprehensive instructions to provincial and municipal People’s Committees, the Việt Nam Food Association (VFA), and all major rice export traders.
The ministry clarified that this temporary suspension is specifically limited to regular milled and well-milled rice varieties, and notably does not apply to specialty varieties that are not widely cultivated by Vietnamese farmers, thus protecting a niche segment of the market.
MoIT has requested that all People’s Committees undertake a prompt review and actively gather feedback from businesses regarding any emerging difficulties or operational obstacles caused by the ban.
Following this assessment, they are required to report their findings and propose appropriate, localized solutions.
The VFA has been assigned the critical task of quickly notifying all rice export traders about the Philippine policy change so they can immediately adjust their production and overall business plans to mitigate impact.
Furthermore, the VFA is expected to significantly strengthen its market monitoring, information updates, and forecasting of both domestic and global rice trends.
This enhanced intelligence is necessary to keep the Government, ministries, and relevant authorities fully informed, allowing them to propose effective measures to boost domestic rice consumption and sustain exports of Vietnam Rice to other markets.
Diversification and Market Monitoring as Key Strategies
In response to the temporary market disruption caused by the Philippine decision, the strategy for the Vietnam Rice sector is shifting toward intense market monitoring, strategic diversification, and proactive compliance with government regulations to maintain competitiveness and stability.
A crucial component of the VFA’s new mandate is to collaborate closely and consistently with the Philippine rice importers association.
This partnership is vital for actively monitoring and capturing real-time market information and policy changes from the Philippines, ensuring that the government can promptly report back and propose adaptive solutions.
Beyond the immediate crisis response, the VFA is also tasked with supporting its member businesses in the fundamental, long-term goal of diversifying export markets and strengthening trade promotion, especially with traditional trading partners.
The MoIT has also issued strong recommendations to all rice export traders, urging them to not only maintain their current traditional markets but also to proactively seek out and exploit new potential markets.
This diversification effort is essential for mitigating future risks and improving the sector’s overall adaptability to sudden international policy changes.
In a measure designed to support local producers, the ministry urged traders to actively purchase rice for temporary storage to help support farmers during the market uncertainty, while strictly complying with all provisions of government Decree No 107/2018/NĐ-CP regarding the rice export business and all other related regulations, ensuring ethical and legal operations within the Vietnam Rice supply chain.
Maintaining Global Standing and Quality Control
Vietnam’s position as a major player in the global rice market is well-established, with recent statistics reinforcing its role, yet the current challenges underscore the need to tighten cultivation and quality control processes to enhance the value and competitiveness of Vietnamese rice exports.
Official statistics confirm that Việt Nam’s rice exports reached approximately 9 million tonnes last year, achieving a remarkable value of US$5.7 billion.
This achievement is crucial, as it strongly reinforces Việt Nam’s significant position and influence in the global rice market.
Recent international consultations with partners, including the US, Singapore, and Brazil, have consistently shown high appreciation for Việt Nam’s reliable and critical role in the global rice supply chain, a trust the country is fully capable of maintaining and enhancing.
This is particularly true as the global demand for high-quality rice varieties continues to grow steadily.
In the first eight months of this year, rice exports reached 6.3 million tonnes and generated US$3.17 billion.
While this represented an increase of 2.2 per cent in volume compared to the same period last year, it saw a significant decrease of 17.5 per cent in value.
The average export price of rice during those eight months was estimated at US$504.9 per tonne, a decline of 19.3 per cent year-on-year, according to MoIT data.
To address the decrease in value and ensure long-term competitiveness, it is essential to tighten and enforce rigorous cultivation processes to guarantee product safety and consistent high quality.
This commitment to quality control is paramount for ensuring that Vietnamese rice maintains its strong reputation and high value in demanding international markets.
