Vietnam plans to increase rice reserves to stabilize the market

Golden Ten Data reported on March 12 that Vietnam plans to increase its national rice reserves and encourage traders to ramp up purchases in order to stabilize the market, which is under pressure due to weak global demand and a surge in domestic supply. The Vietnamese government stated earlier this month that global buyers’ demand continues to weaken, with no signs of recovery in the short term, and both procurement and inventory are becoming more cautious. Official data shows that Vietnam exported 629,000 tons of rice in February, down 9.7% year-on-year. It is currently the peak of the winter-spring harvest season in the Mekong Delta, the largest rice crop of the year. The Vietnamese government has asked the Ministry of Finance to develop a reserve purchase plan and the central bank to guide commercial banks to provide preferential loans to rice traders to increase purchases from farmers. Meanwhile, the Ministry of Trade is actively expanding the market for high-quality rice exports, including to the United States, the European Union, Japan, and China.