HCMC – The central bank has directed commercial banks to ensure timely lending to individuals and businesses involved in rice production, processing, purchasing, and storage this year.
Priority will be given to financing the winter-spring rice harvest in the Mekong Delta to support farmers in replanting, reported the Vietnam News Agency.
In a newly issued directive, Document No. 1595, the State Bank of Vietnam (SBV) instructed its branches in the Mekong Delta along with commercial banks to implement credit solutions tailored to rice production, processing, and exports in the delta, the country’s key rice growing area.
Banks have been urged to balance their capital sources and swiftly meet the borrowing needs of farmers and businesses engaged in rice-related activities. A key focus is financing winter-spring rice purchases to enable farmers to reinvest in their next crop cycle.
Lenders are also encouraged to review and consider increasing loan limits and extending repayment terms for capable enterprises involved in rice purchasing, processing, and exporting, particularly those with sufficient storage capacity. The move aims to expand medium- and long-term credit for investments in storage infrastructure, machinery, and processing technology.
The SBV has called on banks to reduce operational costs, improve digital banking applications, and adopt measures to lower lending rates. These efforts are intended to ease financial burdens on borrowers and improve access to credit.
To facilitate smoother transactions, banks must strengthen their connections with businesses, swiftly address challenges, and ensure financial resources are readily available. Collaboration with the Vietnam Food Association (VIETFOOD) and the Vietnam Rice Industry Association (VIETRISA) will be enhanced to keep industry players informed about banking policies and credit programs.
SBV branches in the delta have also been instructed to direct local commercial banks to work with provincial departments and agencies to implement programs for matching lenders and borrowers and resolve issues with financial accessibility.
The SBV’s move follows hurdles facing the domestic rice sector.
At a meeting chaired by Deputy Prime Minister Tran Hong Ha in Can Tho City on March 7, Tran Thanh Nam, deputy minister of Agriculture and Environment, highlighted multiple challenges facing the rice market in early 2025. Global rice trade is facing challenges amid global volatility, with supply rising sharply while demand from major importing markets remains lackluster, leading to price declines.
The Philippines, Vietnam’s largest rice importer, is expected to reduce its rice imports this year to just over four million tons. Data from the Bureau of Plant Industry under the Philippine Department of Agriculture shows that the country’s rice imports reached a record high of 4.8 million tons in 2024, surpassing the previous peak of 3.8 million tons in 2022.
Some importers canceled contracts last month following a sharp drop in Vietnamese rice prices due to the upcoming harvest season and abundant global supply. This increase in supply is partly due to India lifting its rice export restrictions in October last year.
The Philippines remains Vietnam’s largest rice buyer, accounting for 38.6% of total exports.
Vietnam’s rice exports in February 2025 were estimated at 560,000 tons, generating US$288.2 million in revenue. This brought the total rice exports for the first two months of 2025 to 1.1 million tons, up by 5.9% year-on-year. However, revenue declined by 13.6% to US$613 million due to lower prices, which averaged US$553.6 per ton, down by 18.3% from the same period in 2024.
Domestically, the winter-spring rice harvest has been strong, contributing to an abundant supply and exerting downward pressure on prices.
Compared to early 2024, rice prices in the Mekong Delta have dropped significantly. As of early March, the IR50404 variety was priced at VND5,500-5,700 per kilogram, lower than the same period last year. Similarly, the OM18 variety saw a sharper decline of around 10%, now ranging from VND6,300-6,600 per kilogram.
Beyond production and consumption difficulties, the Mekong Delta is also grappling with saltwater intrusion at the start of the 2025 dry season. According to the ministry, salinity levels in major estuaries across the region are higher than the multi-year average. Although not as severe as peak years such as 2015-2016, 2019-2020, or 2023-2024, the situation remains a concern for local farmers and authorities.
