Vietnamese Jasmine Fragrant Rice Exports

Jasmine fragrant rice, or Jasmine rice, is a source of pride for Vietnam’s rice industry. With its distinctive flavor and superior quality, this type of rice has captivated both domestic and international markets. Its long, translucent grains, when cooked, release a delicate floral aroma like jasmine, yielding soft, tender rice with a sweet aftertaste that retains its texture even when cool.

1. Origin and Main Growing Regions

Jasmine fragrant rice isn’t a single rice variety but a general term for rice varieties with fragrant, pliable characteristics similar to Jasmine 85 (Thai Hom Mali standard). In Vietnam, Jasmine rice is a common name for rice varieties that produce fragrant, long-grain, and soft-textured rice. Some popular fragrant rice varieties cultivated in Vietnam include:

Jasmine 85: This imported variety is widely grown in the southern provinces, especially the Mekong Delta (MD), due to its high yield and good rice quality.
OM 4900, OM 5451, DT08, Hương Lài, Lài Miên: These fragrant rice varieties have been bred and developed domestically, are well-suited to Vietnam’s soil and climate conditions, and bring high economic efficiency to farmers.
ST24, ST25: Crowned “world’s best rice” in 2019 and among the top 3 best in 2020, ST24 and ST25 are outstanding achievements in Vietnam’s fragrant rice breeding efforts. These varieties are primarily grown in the provinces of Soc Trang, Bac Lieu, Hau Giang, and some coastal areas of the MD, where soil conditions are ideal for maximizing the rice’s distinctive flavor.

The Mekong Delta is the largest rice bowl in the country and also the key region for producing jasmine fragrant rice for export. Favorable natural conditions with fertile alluvial soil, a tropical monsoon climate, and an intricate canal system have created an ideal environment for growing high-quality rice.

2. Export Potential of Vietnamese Jasmine Fragrant Rice

Vietnam is currently one of the world’s leading rice exporters, and jasmine fragrant rice contributes significantly to its export turnover.

High Quality and Diversity: Vietnamese jasmine fragrant rice is known for its consistent quality, soft, fragrant grains, and natural sweetness. The development of new, high-yield, and market-diverse fragrant rice varieties like ST24 and ST25 has elevated the position of Vietnamese rice in the international arena.
Broad Market Reach: Vietnamese jasmine fragrant rice is present in approximately 150 countries and territories. Major importing markets include the Philippines, Indonesia, Malaysia, Ivory Coast, Ghana, China, as well as more demanding markets such as the EU, the US, and the Middle East. Notably, Vietnamese fragrant rice is warmly received in the Middle East, where there is high demand for fragrant and quality rice.
Trade Agreement Advantages: Free Trade Agreements (FTAs) to which Vietnam is a member, such as the EVFTA and CPTPP, have opened up significant opportunities for the rice industry, especially for high-quality rice types like jasmine fragrant rice, by reducing tariffs and creating more favorable conditions for market access.

3. Opportunities and Challenges

Vietnam’s jasmine fragrant rice export industry faces numerous opportunities but also significant challenges:

Opportunities:

Increasing Global Demand: The growing global population, coupled with many countries’ prioritization of food security, increases demand for essential food staples like rice.
Shift Towards High-Quality Rice: Consumer trends are shifting towards premium, fragrant, and nutritious rice varieties, which is a major advantage for Vietnamese jasmine fragrant rice.
Value Chain Development: Building an efficient rice value chain from production to consumption will help increase added value for both farmers and businesses.

Challenges:

Price Volatility and Fierce Competition: The export price of Vietnamese rice can fluctuate sharply due to market supply and demand and the export policies of other countries. Competition from major rivals such as Thailand, India, and Pakistan remains intense.
Quality and Standards: To maintain and expand market share, Vietnam needs to continuously improve rice quality, ensuring compliance with increasingly strict technical and food safety standards of importing markets.
Logistics Infrastructure and Costs: Inadequate logistics infrastructure, especially in the MD, remains a limitation, leading to high transportation costs.
Impact of Climate Change: The MD is heavily affected by climate change, saltwater intrusion, and drought, impacting rice yield and quality.
Production Linkages: The linkage between farmers, businesses, and scientists in the rice production, processing, and consumption chain is still limited, reducing competitiveness.

4. Development Orientation

To continue leveraging its potential and overcoming challenges, Vietnam’s rice industry needs to focus on the following solutions:

Restructuring the Rice Industry: Focus on high-quality, high-yield, and climate-resilient rice varieties, such as fragrant rice and specialty rice.
Investing in Technology: Apply scientific and technological advancements to every stage, from seed selection, cultivation.
Brand Building: Promote and build the brand of Vietnamese jasmine fragrant rice in international markets to enhance its value and position. In particular, focus on registering for protection and managing geographical indications for specialty rice varieties like ST25.
Market and Product Diversification: Not only focus on traditional markets but also expand to new potential markets. At the same time, diversify rice products (organic rice, instant rice, processed rice products, etc.).
Enhancing Business Competitiveness: Support businesses in improving their production, processing, trade promotion, and market seeking capabilities, while encouraging linkages with farmers along the value chain.

5. Comparison: Jasmine Fragrant Rice vs. ST25 Rice

Comparison Criterion	Jasmine Fragrant Rice (General Term)	ST25 Rice (Specifically ST25 Fragrant Rice)
Definition/Origin	A general term for fragrant, long-grain rice varieties with a distinctive jasmine-like aroma. Most common varieties include Jasmine 85, OM 5451, DT08, Huong Lai, Lai Mien, etc.	A specialty fragrant rice variety, bred and selected by engineer Ho Quang Cua’s team in Soc Trang, Vietnam. It was recognized as the world’s best rice in 2019.
Main Growing Regions	Primarily grown in the Mekong Delta provinces, where soil conditions are suitable for various fragrant rice varieties.	Primarily cultivated in Soc Trang, Bac Lieu, Hau Giang, and some coastal areas of the Mekong Delta, where specific conditions optimize its flavor development.
Grain Characteristics	Long, slender, translucent grains, with minimal chalkiness.	Long, translucent grains, no chalkiness. It tends to be longer and more slender than many common Jasmine varieties.
Aroma	A light, natural aroma like jasmine flowers. The fragrance can vary slightly depending on the specific variety.	A distinctive aroma reminiscent of pandan leaves and young sticky rice. Its fragrance is generally richer and more alluring.
Cooked Rice Quality	Cooked rice is soft, tender, with a sweet aftertaste, and remains pliable even when cool.	Cooked rice is exceptionally soft, very tender, rich in flavor, with a deep sweet aftertaste, and remarkably maintains its quality and texture even when cooled or reheated.
Brand Value	Widely known in international markets as “Jasmine rice” from Vietnam.	Possesses a distinct and highly reputable brand, recognized as the world’s best rice, creating exceptional brand value for Vietnamese rice.