Vietnam plans to reduce its rice exports to 4 million tons per year by 2030, down from 7.1 million tons in the previous year. This is stated in a government document outlining the rice export strategy.
Vietnam is the world’s third-largest rice exporter, after India and Thailand.
The reduction in exports aims to “increase the export of high-quality rice, ensure domestic food security, protect the environment, and adapt to climate change,” according to the government document dated May 26, as seen by Reuters.
Rice export revenue is expected to decrease to $2.62 billion per year by 2030, down from $3.45 billion in 2022, according to the document.
“Although Vietnam’s rice farming land is shrinking due to climate change, and some farmers have switched to growing other crops and raising shrimp, the strategy seems too aggressive,” said a rice trader based in Ho Chi Minh City on Saturday (May 27).
The trader mentioned that some rice farmers in the Mekong Delta have converted part of their paddy fields into fruit plantations, growing mangoes, pomelos, jackfruit, and durian. However, the majority of farmers still rely on rice.
In recent years, farmers in the Mekong Delta region have been inclined to cultivate shrimp due to rising sea levels triggered by climate change.
Vietnam will diversify its rice export markets to reduce dependence on any particular country, according to the government document. The Philippines has long been the largest rice importer from Vietnam, accounting for 45 percent of the total exports last year.
By 2025, 60 percent of Vietnam’s rice exports will be sent to Asian markets, 22 percent to Africa, 7 percent to the Americas, 4 percent to the Middle East, and 3 percent to Europe, the document stated. By 2030, Asia’s market share will reach 55 percent, and Europe will account for 5 percent.
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