return icon

Thai policy on rice subsidy is double-edged sword for Vietnam

The government of Thailand has approved a budget of 21.5 billion baht to ensure a rice price at a reasonable level for Thai farmers. The policy is expected to have a negative impact on other export countries, including Vietnam.

The program is expected to benefit 892,000 rice farmers who have registered with the Thailand Ministry of Agriculture and Cooperatives. The aim of the program is to ensure that the rice price brings reasonable profits to farmers despite price fluctuations.



According to the Vietnam News Agency, the policy will be applied for one year, commencing from October 2019, valid for some kinds of products, including Hom Mali fragrant rice, Pathum Thani, sticky rice and other fragrant rice varieties.

Under the program, the Thai government ensures a stable price of 10,000 baht per ton, or $325, for white rice production, 12,000 baht per ton, or $390, for sticky rice.

Pham Quang Dieu, director of Agromonitor, a market analysis firm, believes the Thai subsidy policy won’t have a big impact on Vietnam’s rice exports, because Thai rice price doesn’t compete with Vietnamese (Thai price is higher).

The government of Thailand has approved a budget of 21.5 billion baht to ensure a rice price at a reasonable level for Thai farmers. The policy is expected to have a negative impact on other export countries, including Vietnam.

“Moreover, Vietnam’s scented rice varieties OM 5451 and Dai Thom 8 now have prices very competitive with Thai scented varieties and they are a favorite in the market,” he said.

According to Nguyen Thanh Phong, director of Van Loi Company, the Thai government uses the state budget to be sure that the rice purchase price is stable even if the market price goes down.

However, the program, to some extent, leads to disadvantages in export. Once Thailand raises the rice purchase price, this means that the cost price is pushed up. In other words, the government’s intervention through the subsidy program would ‘distort’ the market and break market rules.

Meanwhile, when exporting rice, Thailand has to compete with many strong exporters, including Vietnam, India, Pakistan, Myanmar and Cambodia.

“With the subsidy program, Thai rice will not be competitive in the market,” he commented.

However, the director of a rice export company in Mekong River Delta said if Thailand subsidizes the rice price, which leads to difficulties in exporting rice, or to high inventory level, this would badly affect other rice export countries, including Vietnam.

In the past, Thailand once applied a similar program under the administration of Yingluck Shinawatra in 2011, which led to a record high inventory level of the country, which exceeded 11 million tons at times. Finally, the government of Thailand had to clear the stockpile at low prices, thus affecting Vietnam’s exports.

As such, Thai subsidy policy is believed to be a double-edged sword for Thailand’s rivals, including Vietnam.

Kim Chi 


China no longer largest buyer of Vietnam rice

China no longer largest buyer of Vietnam rice

China’s rice imports from Vietnam plummeted during the first few months of 2019, pushing it off Vietnam’s top rice consumers list.  

Vietnam’s rice exports to Philippines up, but farmers aren’t happy

Vietnam’s rice exports to Philippines up, but farmers aren’t happy

Rice exports to the Philippines have increased sharply as the country has lifted quotas since the beginning of the year. However, Vietnamese farmers have not received big benefits.


Experience Hanoi in its autumn glory

Thanks to its geographical location, the Vietnamese capital city of Hanoi witnesses contrastingly different weather conditions during the four seasons of the year.


HCYU’s 7th National Congress to be held next week

RoK President hosts State-level welcoming ceremony for Vietnamese counterpart

President Nguyen Xuan Phuc was welcomed in Seoul with a 21-gun salute which is given to a foreign head of state during a State-level visit to the Republic of Korea (RoK).


2022 ASEAN Postal Business Meeting to be held in Binh Dinh

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.

Proper investment needed to develop night-time economy in Vietnam

The night-time economy of major cities in the country has remained underdeveloped due to a lack of proper investment and an absence of a legal framework and policies to promote it, authorities said.

Vietnam's rice exports likely to reach US$3.5 billion this year

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

Local movie to be screened at Australian Vietnamese Film Festival

Vietnamese film "Cô gái từ quá khứ" (Girl from the past) will be introduced at the Australian Vietnamese Film Festival (AVFF) 2022 which is getting underway in Melbourne, Australia.

Auctions for car licence plates to be tested from July 2023

The starting price of a car licence plate put up for auction is VND40 million. The price may increase by increments of VND5 million.

Purpose-led business to drive superior performance

Working and developing a career at an enterprise with a mission towards sustainable development, employees can bring their goals to life.

Vietnam is well-positioned for green hydrogen production

Green hydrogen (GH2) industrial development is a direction for Viet Nam in the energy transition roadmap to achieve the goal of zero carbon emissions by 2050 but challenges remain, experts said.

Vietnamese Ao Dai honoured at Hanoi festival

Young designer Vu Thao Giang introduced a collection of Ao Dai, a traditional long dress of Vietnam, kick-starting the 2022 Hanoi Tourism Ao Dai festival oon December 2.

Entertainment and cultural events of the week (December 5-11)

Upcoming entertainment and cultural events in Vietnam's major cities on December 5-11.

Three belts on the line at 'Fortunes of War' boxing event in Vung Tau

A blockbuster "Fortunes of War" boxing event will bring together Asia's best fighters in 12 bouts, including three title matches, sanctioned by the IBF and WBO on December 10 at The Grand Ho Tram Strip, Ba Ria Vung Tau Province.

Gold items popular with wealthy Vietnamese

Wealthy people in Vietnam are willing to spend money for their villas, ornamental plants and cars.