VINAGRI News - Vietnam is introducing a minimum export price of USD 500 per ton and a domestic paddy floor price of VND 7,000/kg as exporters seek to prevent foreign buyers from driving prices lower through shifting import policies. Despite higher export volumes in 2026, weaker prices have reduced export earnings.
Summary:
> Vietnam exported 5.3 million tons of rice by mid-July, but export value declined due to lower prices.
> The Philippines remains Vietnam's largest rice buyer but frequent policy changes have increased market volatility.
> The Vietnam Food Association (VFA) agreed on a USD 500/ton export floor price and VND 7,000/kg paddy purchase floor.
> Vietnam expects limited exportable rice supplies in the second half of 2026, supporting a firmer price outlook.
Vietnam introduces rice export floor price to counter foreign buyer price pressure
By mid-July 2026, Vietnam exported approximately 5.3 million metric tons of rice worth USD 2.52 billion, according to the Vietnam Food Association (VFA). Export volume increased 4.31% from the same period in 2025, but export revenue declined 3.85% as international rice prices weakened during the first months of the year.
Domestic rice prices fell during the first quarter of 2026 before recovering in the second quarter as import demand strengthened. By the end of June, prices for most paddy and rice products had risen compared with the end of 2025, particularly for processed rice, reflecting improving export demand.
Philippines continues to influence global rice prices
The Philippines remained Vietnam's largest export destination, importing nearly 2.4 million tons, accounting for 47.6% of Vietnam's total rice exports and marking a 13.3% year-on-year increase.
However, the Philippine market has repeatedly adjusted its import policies, creating significant volatility in both Vietnamese and global rice prices.
After temporarily suspending rice imports during the final four months of 2025 - an action that contributed to a sharp decline in international rice prices - the Philippines changed course again in early July 2026 by temporarily suspending import permits for 5% broken rice while continuing to allow imports of 25% broken rice.
Earlier this year, the Philippine Department of Agriculture projected rice imports for 2026 at 3.6 million tons. By the end of June, however, the country's Bureau of Plant Industry (BPI) had already issued 3,952 Sanitary and Phytosanitary Import Clearances (SPSICs) covering more than 4.4 million tons of rice.
Rice imports during the first six months of 2026 are estimated at 2.8 million tons, up 22% from a year earlier.
More recently, the Philippine Agriculture Secretary acknowledged that total imports this year could reach 5.0 - 5.2 million tons, exceeding earlier estimates as the government may purchase additional rice to strengthen strategic reserves. The revised outlook is consistent with projections from the U.S. Department of Agriculture (USDA).
These developments indicate that Philippine demand for imported rice remains robust, but frequent policy adjustments continue to generate uncertainty and price fluctuations in the global rice market, posing risks for Vietnamese exporters.
Vietnam adopts export and farmgate floor prices
At its mid-year review conference, the VFA outlined strategies for the remainder of 2026.
According to Vietnam's Department of Crop Production and Plant Protection, national paddy production is expected to remain stable at 43 - 44 million tons this year, sufficient to meet domestic consumption, strategic reserves, and export commitments. Total rice exports for 2026 are projected at 7.0 - 7.5 million tons.
With 5.3 million tons already exported during the first half of the year, Vietnam is expected to have only 1.7 - 2.2 million tons available for export in the second half, equivalent to just over 300,000 tons per month. The limited remaining export supply is expected to support stronger prices as global demand improves.
Meanwhile, rising input costs - particularly fertilizer prices - have discouraged many farmers from reinvesting in production. As a result, rice yields in several regions are expected to decline, leading to lower production during the upcoming summer-autumn and winter-spring crops.
To protect both farmers and exporters, VFA members agreed to implement two coordinated pricing measures.
The association agreed to maintain a minimum farmgate purchase price of VND 7,000 per kilogram for ordinary paddy, ensuring farmers receive a reasonable profit and remain motivated to continue rice production.
At the same time, exporters agreed to adopt a minimum export price of USD 500 per metric ton, roughly matching current market levels. The measure is intended to prevent overseas buyers from forcing prices lower during the summer-autumn harvest, when seasonal supply temporarily increases.
VFA Chairman Đỗ Hà Nam said that adherence to both domestic and export floor prices would protect the legitimate interests of Vietnamese farmers and exporters while reducing the risk of psychological price manipulation by foreign buyers.
He added that maintaining sustainable rice prices is essential to preserving farmers' profitability, encouraging continued production, and safeguarding Vietnam's long-term food security, particularly amid the growing challenges posed by El Niño and climate change.
NPK/ Vinagri News
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