Third biggest rice producer in the world plans to reduce exports by 44% annually.

Vietnam reduces rice exports as part of strategy for sustainability

Rice export reduction target set for 2030

In its rice export strategy, the Vietnamese government said it would reduce its rice exports to 4 million tons a year by 2030 from 7.1 million tons last year.

Vietnam is the world’s third largest rice exporter after India and Thailand.

According to the document, dated May 26 and seen by Reuters, the move aims to “promote exports of high-quality rice, ensure local food security, protect the environment and adapt to climate change”.

Projected impact on revenues

The document said that Vietnam’s rice export revenues will fall to $2.62 billion annually by 2030, down from $3.45 billion in 2022.

‘Strategy looks too aggressive despite declining area cultivated with rice in Vietnam due to climate change and some farmers switching to other crops and raising prawns,” a rice trader in Ho Chi Minh City said on Saturday.

The trader added that some rice farmers in the Mekong Delta process part of their fields in orchards, but the vast majority still depend on rice cultivation.

The region has witnessed a growing trend of establishing shrimp (shrimp) farms due to rising sea levels as a result of climate change, which has led to a significant increase in water salinity in the Mekong River Delta.

Market diversification

The document said Vietnam will diversify its rice export markets to reduce its dependence on a single country. The Philippines has long been the largest importer of rice from Vietnam, buying up 45% of its exports last year.

The document added that by 2025, 60% of Vietnamese rice will be exported to Asian markets, 22% in Africa, 7% in American markets, 4% in Middle East and 3% in Europe.

By 2030, Asian markets will account for 55% and Europe for 5% of export markets.

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