Despite being a leading rice producer, Vietnam has ramped up its rice imports significantly in 2024, spending close to $850 million in just eight months.

This rise in imports highlights a strategic pivot to address domestic consumption and production needs amid fluctuating global rice prices.

In the first eight months of 2024, Vietnam has imported various types of rice totaling $843 million, marking a 43.6% increase compared to the same period last year, according to exclusive information from VietNamNet.

This surge in imports is noteworthy as Vietnam is traditionally a rice-exporting powerhouse, consistently ranking among the top three global exporters.

The General Department of Customs reports that Vietnam exported approximately 6.15 million tons of rice during this period, generating nearly $3.85 billion in revenue.

This represents a modest 5.8% increase in volume year-over-year, but a significant 21.7% increase in value, driven by a strong 14.8% increase in the average export price to $625 per ton.

Rice has now become the fifth highest-grossing agricultural export from Vietnam, trailing only behind timber products, seafood, fruits and vegetables, and coffee.

On the flip side, the pace of rice imports in 2024 suggests that the annual import figure could reach or even surpass $1 billion - a record in Vietnam's import history. In 2023, the country spent $860 million on rice imports, primarily from Cambodia and India. Imported rice varieties mainly include lower-grade segments such as 25% broken and 100% broken rice, used predominantly for processed rice products.

Industry experts suggest the increase in import activities is due to the high domestic prices of Vietnamese rice, which at times have exceeded those of competitors like Thailand and Pakistan. For instance, on September 11, the average export price for Vietnam's 5% broken rice was $567 per ton - marginally higher than Thailand's and $32 more than Pakistan's. Similarly, prices for 25% and 100% broken rice from Vietnam also remain competitive or advantageous compared to these nations.

Tam An