CaliToday (05/9/2025): Paddy and rice prices for the Autumn-Winter crop across Vietnam's Mekong Delta, the nation's primary agricultural hub, are holding firm at high levels, driven by a combination of stable export demand and a moderate domestic supply. While these prices are delivering strong profits for farmers in key provinces like An Giang, they are simultaneously creating a challenging environment for rice exporters struggling to balance their international contracts.
As of early September 2025, prices for fresh Autumn-Winter (Thu-Đông) paddy are consistently high. Popular varieties such as Đài Thơm 8 and OM 5451 are fetching between VND 6,000 and VND 6,200 per kilogram directly from the fields. This sustained high price point is a welcome development for local farmers, ensuring a healthy profit margin and providing a stable income as they harvest their crops.
The favorable pricing is underpinned by two main factors. Firstly, international demand for Vietnamese rice remains robust. As one of the world's top rice exporters, Vietnam continues to see consistent orders from key markets, particularly in Asia and Africa. This steady export pipeline prevents a surplus from building up in the domestic market, thus supporting the high prices.
Secondly, the current supply is not overly abundant. While the harvest is proceeding as planned, the overall volume is in line with expectations, preventing a market glut that would otherwise drive prices down. This balance between a steady supply and strong demand creates the ideal conditions for high farm-gate prices.
However, the situation presents a significant challenge for the country's rice exporting enterprises. These companies must procure paddy from farmers at the high domestic rates, which increases their operational costs. On the international stage, they face intense competition from other major producers like Thailand and India, which limits their ability to pass on these higher costs to buyers.
This dynamic squeezes their profit margins and makes it difficult to negotiate new contracts that are both competitive globally and profitable domestically. Exporters are caught in a delicate balancing act: they must secure enough supply to fulfill their orders while carefully managing costs to remain viable in a fiercely competitive global market. The current climate underscores the ongoing need for Vietnam's rice industry to focus on enhancing value through quality and efficiency, ensuring its long-term sustainability.
