Vietnam's Rice Exports See Volume Rise, Value Decline Amid Market Shifts

Vietnam's rice exports are expected to see a rise in volume but a decline in value in the first half of the year, highlighting challenges of price volatility and sustainability demands in the global market. Meanwhile, investments in IT and high-tech sectors are progressing, diversifying the economy. According to the Ministry of Agriculture and Rural Development, Vietnam is projected to ship about 5 million tonnes of rice abroad in the first half, earning an estimated US$2.36 billion. This represents a 5.7% increase in volume year-on-year, but a 3.3% decrease in value. Specifically, from the beginning of the year to mid-March, rice exports reached approximately 1.74 million tonnes worth US$826.2 million, with an average export price of US$477.6 per tonne, down 10.7% year-on-year. Amidst these trends, SunRice Group, Australia's largest rice producer and distributor, plans to increase the capacity of its rice processing plant in Vietnam's Dong Thap province to 120,000 tonnes per year, indicating growing international interest in Vietnam's rice sector. In contrast to the challenges in rice exports, Vietnam's IT industry is experiencing rapid growth. Competitive labor costs and a pool of software engineers with strong mathematical skills have made Vietnam an attractive hub for IT outsourcing. Companies like FPT Software and VNG have proven their ability to compete in international markets, and these sectors benefit from relatively modest infrastructure spending while leveraging existing human capital. Furthermore, the focus on high-tech industries is intensifying. Hai Phong city aims to solidify industry, logistics, and port services as economic pillars while steering industrial development towards high technology, green production, and sustainability. The Da Nang Hi-Tech Park and Industrial Zones Authority has also finalized administrative procedures under its jurisdiction in accordance with the FTZ's special mechanisms and policies, preparing for the zone's functional areas to officially commence operations. Moreover, Vietnam's national plan for 2026-2030 aims to develop at least 10 strategic technology enterprises by 2030, each generating annual revenue of at least US$1 billion, employing over 5,000 workers, operating a recognized science and technology organization, and investing at least 3% of annual revenue in research and development. These developments underscore Vietnam's ambition to transition from a traditional agricultural economy to a more diversified and high-value-added industrial base. However, the decline in rice export prices highlights the complex challenges facing Vietnam's economy, including global market fluctuations and the need to build sustainable production and supply chains. Source: VietnamPlus English