The successful export deal of 100,000 tons of rice to Bangladesh once again affirms the strong position of Vietnamese rice on the international market.
Government-to-Government Contract Highlights
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According to the Vietnam Food Association (VFA), this export contract was signed under a government-to-government (G2G) framework, with the Southern Food Corporation (Vinafood II) as the main supplier.
The proposal was presented during a meeting of Bangladesh’s Food Planning and Monitoring Committee and is now awaiting final approval. Officials noted that the surplus of fragrant rice has encouraged Bangladesh to reopen its rice import channel.
Under the agreement, Bangladesh will import 100,000 tons of white rice from Vietnam to supplement domestic supply and stabilize food prices, ensuring sufficient availability for local consumers.
Premium Price Reflects Vietnam’s Quality
The export price was settled at USD 474.25 per ton, higher than the average international price for white rice. This reflects the consistent quality and reputation of Vietnamese rice.
Bangladesh’s Parliamentary Committee on Public Procurement approved the purchase proposal on January 28, 2025, paving the way for the import process to commence shortly.
Bangladesh’s Food Security Strategy
This large-scale import is part of Bangladesh’s strategy to stabilize domestic rice prices, especially as the country launches its Open Market Sales (OMS) program in February 2025.
The government plans to distribute about 907 tons of rice per day through 906 centers nationwide, including major urban areas and labor-intensive regions.
Each center is expected to sell roughly 1 ton per day, while the Secretariat Center in Dhaka will double that amount to meet high demand. The rice will be sold at 30 taka per kg (approximately USD 243 per ton), helping low-income households access essential food at affordable prices.
Ensuring Food Security Amid Export Restrictions
With major producers like India maintaining export restrictions, this deal helps Bangladesh secure food security while offering a positive signal for Vietnam’s agriculture.
It encourages Vietnamese farmers to invest in high-quality rice production, meeting export standards and enhancing the global value of Vietnamese rice.
Bangladesh’s Rice Import Policy
Although Bangladesh is one of South Asia’s key rice producers, it still imports rice periodically to balance domestic supply and demand.
In 2023, the country imported nearly 2 million tons of rice from India, Thailand, Vietnam, and Myanmar, with Vietnam contributing a significant share thanks to its stable quality and supply.
Bangladesh’s import policies are often adjusted based on local harvest outcomes, national reserves, and international market fluctuations.
Potential Lifting of the Fragrant Rice Export Ban
The interim Bangladeshi government is also considering lifting its ban on fragrant rice exports, aiming to boost revenue, expand trade, and curb smuggling to India.
For years, a significant volume of Bangladeshi fragrant rice has been illegally re-exported under foreign labels at higher prices.
Currently, Bangladesh cultivates around 33 varieties of fragrant rice, previously exported to 136 countries before the ban. If exports resume, Bangladesh could tap into strong demand from markets in the Middle East, Europe, and North America.
Vietnam’s Rising Global Competitiveness
For Vietnam, the 100,000-ton rice deal with Bangladesh once again confirms its rising global competitiveness.
Over the years, Vietnam has made significant strides in product quality, market diversification, and supply chain efficiency.
New high-yield rice varieties with improved resistance and superior grain quality have helped Vietnam compete on equal footing with major exporters like Thailand and India.
Beyond Bangladesh, Vietnam is now a key rice supplier for China, the Philippines, Indonesia, and several African nations.
In 2024, Vietnam’s rice exports surpassed 8 million tons, earning nearly USD 5 billion—its highest level in more than a decade.