Việt Nam managed to export 5.5 million tonnes of rice worth US$2.81 billion in the first seven months of this year, even as volumes slumped in other rice-exporting countries.

It represented a 3 per cent increase in volume but earnings were down nearly 16 per cent as global prices plunged.

The Việt Nam Food Association remains confident that exports this year will reach 8 million tonnes keeping Việt Nam second in the list of the world’s largest exporters after India.

Association chairman Đỗ Hà Nam speaks about how the industry is navigating challenges ranging from global demand shifts to domestic tax policy.

Can you tell us about the rice export situation in the first seven months of the year? Please elaborate on the factors that helped Việt Nam maintain its export volume and position.

In the first seven months of 2025 Việt Nam exported 5.5 million tonnes of rice worth US$2.81 billion. While the value fell by 15.9 per cent, the volume increased by 3 per cent. Most other exporting countries recorded declines in export volume, but Việt Nam managed to grow it.

The reason is that Việt Nam has a number of distinctive products such as fragrant varieties like OM, DT, ST, and other speciality glutinous rice types. These are products in high demand in many markets, and consumers are already accustomed to them.

This has allowed us to hold our ground even in a difficult year. The Philippines, in particular, has remained a very steady market for Vietnamese rice.

Recently the Philippines announced a 60-day suspension of rice imports starting September 1. It is one of Việt Nam’s most important export markets. How will this affect exports?

The Philippine president ordered the suspension to protect local farmers, ensuring better domestic prices and encouraging consumption of local rice.

The move is understandable. Even with a 15 per cent tariff, Vietnamese rice remains cheaper than rice grown in the Philippines. The Philippine government wants to protect its farmers.

In recent months Việt Nam’s rice exports to the Philippines have done quite well. In particular, in August the Philippines increased its imports of Vietnamese rice. But with the suspension, we will face challenges in September and October as shipments to this market will decline.

Fortunately, we still have some good markets such as Africa. Normally, around this time of year buyers there would have stopped purchasing, but at present they are continuing to buy, which is indeed a favourable condition. At the same time our rice supply is not very abundant.

I believe the market will rebalance quickly when the Philippines resumes imports, ensuring farmers’ interests are protected.

 

Besides the Philippines and China, Africa is emerging as a key market. How do you assess its prospects?

Currently the Philippines accounts for 40-45 per cent of Việt Nam’s rice exports, while China is the second largest buyer: Its imports from Việt Nam have doubled this year.

Africa is now becoming another bright spot.

Though exporting rice to Africa poses challenges such as delayed payments and other possible risks, thanks to the efforts of companies, Việt Nam’s rice exports to the market are progressing well. With continued effort, this region could become one of Việt Nam’s strongest markets in the years ahead.

What’s your export outlook for the rest of 2025?

The Việt Nam Food Association originally forecast that this year the country would export around 7.5 million tonnes of rice.

But given the current performance, reaching 8 million tonnes is realistic.

That would keep Việt Nam ahead of Thailand, which has struggled with exports recently, and secure our position as the world’s second largest rice exporter.

A new value-added tax regulation has been causing concern among exporters since July. Can you explain why?

The new VAT Law, effective from July 1, requires agricultural exporters to issue invoices with a VAT rate of 5 per cent and claim tax refunds after export. This creates both financial pressure and heavy administrative burden.

In essence, export goods are not subject to VAT, and so requiring businesses to pay a 5 per cent tax and then go through the refund procedures is an unreasonable and burdensome regulation.

Under the new regulation from the Ministry of Finance, enterprises can only receive tax refunds if they present a complete set of export documents.

The problem is that for shipments sent to certain new markets, payment may be delayed by five to six months. In many cases enterprises must first buy goods from farmers, store them temporarily and then export.

In other cases we ship the goods, and only after the partners receive them do they make payment.

In our general assessment, it usually takes three to six months for enterprises to complete the full set of documents required for tax refunds. With the volume of rice exports from now until the end of the year, the tax to be refunded is about VNĐ2 trillion ($76 million). For companies dependent on bank loans, this creates an enormous strain.

The tax refund process in Việt Nam is not simple — all documents must be 100 per cent compliant, and even small errors can delay refunds. In some cases, refunds for VAT not directly linked to exports can take six months to a year.

If these obstacles are not resolved, at some point enterprises will run out of capital with all their funds locked up in tax refunds. At the same time the Ministry of Finance must also devote significant administrative resources to processing them.

The association, along with other industry associations, has submitted petitions to the Government and the Ministry of Finance, requesting an urgent review and a return to the previous regulation under which export products were exempt from VAT and no refund procedures were required. VNS