Vietnam intends to reduce annual rice exports by 44% to 4 million tonnes by 2030.

The measure is intended to "increase high-quality rice exports, ensure domestic food security, protect the environment, and adapt to climate change," according to a government document obtained by Reuters on May 26.

According to the news agency, rice export earnings would decline to $2.62 billion per year by 2030, down from $3.45 billion in 2022.

"Although Vietnam's rice farming area is shrinking due to climate change, and some farmers are switching to growing other crops and raising shrimp, the strategy appears to be too aggressive," said a rice merchant in Ho Chi Minh City on Saturday.

According to the dealer, some rice farmers in the Mekong Delta are converting portions of their fields to fruit farms, cultivating mangoes, grapefruit, jackfruit, and durian, but the great majority still rely on rice.

Shrimp farming has been popular in the area for some years, since rising saltwater caused by climate change causes major salinisation in the Mekong Delta region.

According to local media, Vietnam would diversify its rice export markets in order to lessen its dependency on any single nation. The Philippines has traditionally been Vietnam's largest rice consumer, accounting for about half of the country's supplies last year.

During a regional summit in Indonesia this month, Prime Minister Pham Minh Chinh informed Philippines President Ferdinand Marcos Jr that Vietnam was prepared to sell rice to the Philippines in the long term at affordable pricing.

According to the study, by 2025, 60% of Vietnamese rice exports would be sent to Asian markets, 22% to Africa, 7% to American markets, 4% to the Middle East, and 3% to Europe. By 2030, Asian markets will account for 55% of total revenue, with Europe accounting for 5%.

According to government customs figures, rice exports from Vietnam increased 40.7% year on year to 2.9 million tonnes in the first four months of this year.

Source: Nikkei