Following the temporary suspension of rice imports by the Philippines, many Vietnamese exporters are actively seeking new markets, with Africa emerging as a promising destination.

The Philippine government’s decision to halt rice imports for 60 days starting September 1, 2025, has significantly impacted Vietnam’s rice exports. According to the General Department of Customs, export volume and value in September dropped sharply to 467,000 tons worth 232 million USD, down 46.2% in volume and 46.8% in value compared to August. Compared with September 2024, exports declined by 43.3% in volume and 54.7% in value.

Due to the steep decline in September, total rice exports in the first nine months of 2025 fell by 2% year-on-year, reaching 6.8 million tons, with export value decreasing by 20% to 3.5 billion USD.

Recently, the Philippine government announced another extension of the import suspension. According to Do Ha Nam, Chairman of the Vietnam Food Association (VFA), while some reports suggested a 60-day extension, official information received by VFA confirms that the suspension will be extended by 30 days, until the end of November 2025.

The extension is expected to create further difficulties for Vietnam’s rice exports, as the Philippines has long been the largest importer, accounting for roughly 40% of total export volume. In 2024, Vietnam exported 9 million tons of rice, of which 4.22 million tons—or 46.7%—went to the Philippines.

During the first eight months of 2025, exports to the Philippines reached more than 2.9 million tons. With the suspension now extended, that figure will remain unchanged at least until the end of November. This situation requires Vietnam’s rice industry and exporting enterprises to make substantial efforts to find alternative markets for a significant volume of unsold rice.

Diversifying into new markets has become the top strategy for rice exporters, and among major potential destinations capable of easing pressure from the Philippine market, Africa stands out as the most promising.

Since the beginning of the year, Vietnam’s rice exports to Africa have shown strong growth, with several markets recording double- or triple-digit increases. In the first eight months of 2025, exports to Ghana reached 662,000 tons worth 373 million USD, up 95% in volume and 59% in value year-on-year. Meanwhile, exports to Côte d’Ivoire reached 754,000 tons worth 349 million USD, up 156% in volume and 96% in value over the same period.

Due to strong demand from African markets, Vietnamese exporters had already begun shifting focus toward the continent earlier this year. As a result, when the Philippines suspended rice imports, many Vietnamese enterprises were better positioned to pivot further toward Africa to sustain operations and sales.

Currently, the biggest challenge facing rice exporters is rising costs, as large inventories have accumulated amid declining exports. According to Do Ha Nam, when the Philippine market became constrained and following the government’s directive to stockpile rice, many companies began purchasing and storing rice for future export. Although there are no official figures on the total amount of rice currently being stored, the extended suspension has left businesses facing mounting costs as storage expenses continue to rise daily.

Another pressing issue for exporters is the delay in value-added tax (VAT) refunds. In the final months of the year, it is estimated that rice companies will need approximately 2,000 billion VND to purchase and distribute rice from farmers. Continued delays in VAT refunds could strain even the leading enterprises in the sector, particularly as they strive to maintain purchasing activities and shoulder additional financial burdens from storage costs.

Source: Bao Nong nghiep va Moi truong