After the Lunar New Year holiday, Vietnamese rice export prices continued to plunge, falling below the $400 per ton mark. At this level, Vietnam's "white gold" has become the cheapest rice in Asia, a rare occurrence in the global market.

Vietnam's rice prices hit lowest level in Asia

Following months of record-high prices, Vietnam's export rice has now entered a sharp downward trend. According to the Vietnam Food Association (VFA), as of February 7, the price of Vietnam’s 5% broken rice fell to $399 per ton.

This makes Vietnamese rice cheaper than its competitors:

$32 per ton lower than Thai rice of the same grade

$14 per ton lower than Indian rice

$5 per ton lower than Pakistani rice

This is an unusual shift, as Vietnamese rice traditionally competes with Thai rice in both quality and pricing while maintaining higher prices than Indian and Pakistani rice.

At $399 per ton, Vietnam’s rice is now cheaper than the $533 per ton recorded on July 19, 2023, before India imposed its export ban. Compared to the peak price of $663 per ton in late November 2023, the current price has dropped by $264 per ton, or nearly 40%.

Vietnamese rice prices drop below Thai 25% broken rice

This marks the lowest price for Vietnamese rice since early 2023. Notably, Vietnam’s 5% broken rice is now cheaper than Thailand’s 25% broken rice, which is priced at $410 per ton.

Similarly, Vietnam’s 25% broken rice has also declined to $371 per ton, while the same grade from:

Thailand costs $410 per ton

India costs $394 per ton

Pakistan costs $377 per ton

According to industry leaders, the main reason for the decline is India’s decision to reopen rice exports, which has eased supply pressure. Global buyers are no longer rushing to secure rice shipments, as they did in late 2023 and early 2024.

Additionally, Vietnam’s key import markets have reduced their purchase volumes this year, further impacting prices.

However, Do Ha Nam, Vice Chairman of the VFA, believes the price drop is temporary. He explained that buyers are waiting for even lower prices before making new deals. Vietnamese rice has established a strong reputation and holds a distinct market position, ensuring long-term demand.

Harvest season expected to impact prices

Vietnam is about to enter the winter-spring harvest, the largest rice crop of the year. Favorable weather conditions in recent months suggest a high yield, encouraging importers to wait for lower prices before placing orders, Nam added.

According to the Ministry of Agriculture and Rural Development, Vietnam exported 500,000 tons of rice in January 2025, generating $308 million. While export volume increased by 1% compared to January 2024, total revenue fell by 10.4% due to lower prices.

Despite strong global demand, the VFA forecasts challenges for Vietnam’s rice exports in 2025. Total exports may drop to 7.5 million tons, lower than the record-breaking 9 million tons shipped in 2024.

Tam An