News
8 Apr 2026

Vietnam proposes EU revise list of fragrant rice eligible for tariff preferences

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The Multilateral Trade Policy Department under the Ministry of Industry and Trade is proposing that the European Union revise the list of fragrant rice varieties to better align with those currently cultivated in Vietnam.

Under the terms of the EU–Vietnam Free Trade Agreement (EVFTA), the European Union grants Vietnam an annual quota of 80,000 tons of rice, including 30,000 tons of milled rice, 20,000 tons of unmilled rice, and 30,000 tons of fragrant rice.

For fragrant rice exports to qualify, shipments must be accompanied by a certificate of variety and must fall within the list of approved rice varieties specified in the Agreement.

Currently, nine varieties are eligible for a 0% tariff rate when exported to the EU, including Jasmine 85, ST5, ST20, Nang Hoa 9, VD20, RVT, OM4900, OM5451, and Tai Nguyen Cho Dao rice.

However, according to Mr. Ngo Chung Khanh, Deputy Director General of the Multilateral Trade Policy Department, this list was negotiated during 2014–2015 and is no longer aligned with current production realities.

“Some enterprises are facing difficulties exporting to the EU because certain fragrant rice varieties currently cultivated in Vietnam are not included in the agreed list,” Mr. Khanh noted.

In response, the Department is proposing that the EU revise the list to reflect the varieties currently grown in Vietnam.

It remains unclear which varieties will be included in the revised list. However, according to the Department of Crop Production and Plant Protection under the Ministry of Agriculture and Environment, commonly cultivated fragrant rice varieties in the Mekong Delta currently include ST24, ST25, Dai Thom 8, and OM18.

Previously, in March 2026, the Department issued certificates of variety for four shipments of fragrant rice exported to the EU by two enterprises, with a total volume of more than 380 tons.

According to experts, the growing presence of Vietnamese rice in the European market reflects a broader strategy to restructure export markets. While Vietnam’s rice exports were previously concentrated in traditional markets such as the Philippines, China, and Africa, the market structure is gradually becoming more diversified.

Many enterprises have proactively expanded into higher-value markets such as Europe by leveraging next-generation free trade agreements, including the EVFTA, UKVFTA, and CPTPP.

Although export volumes to the EU remain modest, the market offers high value-added potential and serves as a benchmark for quality. Once products meet EU standards, access to other developed markets becomes more feasible.

Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production and Trading Co., Ltd. (Vinh Long), stated that shifting toward high-quality rice segments is an inevitable trend for Vietnam’s rice industry.

Vietnam is unlikely to compete with India in the low-cost rice segment. Instead, the appropriate strategy is to focus on mid- and high-end segments, where Vietnam can compete with Thailand and Cambodia.

Source: VNBUSINESS

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