Vietnam has hit a significant milestone in rice exports, exceeding $5 billion for the first time in history. Despite this achievement, Le Thanh Tung, Deputy Director of the Department of Crop Production at the Ministry of Agriculture and Rural Development, acknowledged at a recent forum that there are still hurdles to overcome, such as unstable relationships between buyers and sellers and the absence of a well-known quality Vietnamese rice brand on the global stage.
During the forum named “Scaling Successful Pilot Models for the Sustainable Development of One Million Hectares of High-Quality, Low-Emission Rice Fields” on November 23, Tung highlighted advancements made since last year when a government initiative was launched to develop sustainable rice farming in the Mekong Delta. This was quickly followed by the formation of the Vietnam Rice Association (VIETRISA).
“We aim to build upon the successful models established by the Ministry of Agriculture, the National Agricultural Extension Center, and local authorities,” he explained. The Department of Crop Production has been assigned the task of compiling effective methods for wider application.
Tung openly discussed the persistent lack of collaboration within Vietnam’s rice sector, pointing out ongoing issues such as conflicts between farmers and businesses that stall progress. Although the quality of Vietnamese rice is competitive with that of leading exporters, the industry has yet to fully harness its capabilities, with emissions from rice cultivation at 0.9%, higher than those in the Philippines, Thailand, and China.
At present, 12 out of the 13 provinces in the Mekong Delta have participated in the one-million-hectare rice initiative. This program aims to forge a new identity for rice as “Green, Low-Emission Vietnamese Rice.”
Notable successful models in provinces like Dong Thap, Kien Giang, Can Tho, Soc Trang, and Tra Vinh have yielded encouraging outcomes. Tung remarked that the active involvement of farmers, coupled with cooperation from corporate and government sectors, is fostering significant improvements. Future goals include enhancing value-chain frameworks, developing ecological data systems, embracing technology, shifting mindsets, and enhancing capabilities.
Hoang Tuyen Phuong, leader of the Crop and Forestry Division at the National Agricultural Extension Center, stressed the need to market Vietnamese rice as a premium, sustainable product via stronger ties with domestic and international media.
The focus is on creating sustainable livelihoods for farmers while increasing production standards and reducing emissions. Tran Minh Hai, Deputy Rector of the Institute for Public Policy and Rural Development, highlighted the importance of cultivating robust cooperatives that can engage in cooperative buying and selling with businesses, ensuring compliance with export standards.
Currently, cooperatives in the Mekong Delta average around 80 members, significantly lower than the national average of 200 and Thailand’s average of 1,500. Outstanding examples like the Tan Hung, Phu Thanh, and Binh Thanh cooperatives exemplify efficiency in meeting production standards and providing services such as mechanized harvesting and rice transport. Hai noted, “When cooperatives are strong, efficiently managed, and responsive to market needs, they are crucial to the growth of modern rural economies.”
As of November 15, Vietnam has exported over 8 million tons of rice, generating revenue of $5.05 billion, marking a record-high. The average export price for Vietnamese rice in the first ten months of 2024 reached $626 per ton, representing a 12% increase from the previous year. Remarkably, Vietnamese rice varieties are now fetching higher prices compared to similar products from major exporters like Thailand, India, and Pakistan.
Nonetheless, experts agree that establishing a globally recognized premium Vietnamese rice brand remains a pivotal goal. This endeavor will require ongoing investments in sustainability, collaboration, and effective branding.