Vietnam increases grain imports due to decline in domestic production

Vietnam is seeing a surge in demand for imported grains as domestic corn and rice production declines as farmers shift to more profitable crops. According to the USDA’s Foreign Agricultural Service (FAS) report dated August 6, corn imports are forecast at 12.2 million tonnes in FY2024/25, while domestic corn production is expected to decline to 4.1 million tonnes, down 0.2 million tonnes from the previous year.

Vietnam’s rice production continues to decline gradually as farmers shift to higher-yielding crops. Rice production is forecast to fall to 6.79 million tonnes in FY2025/26, down from 6.95 million tonnes in FY2024/25 and 7.11 million tonnes in FY2023/24. To compensate for the domestic rice shortage, imports of raw rice from Cambodia increased by 54% in the first half of 2025, which allowed to increase the forecast of rice exports for 2024/25 MY to 8.5 million tons.

Vietnam does not produce wheat, but its demand for it is growing due to the needs of the food industry and bakeries. In 2024/25 MY, wheat imports are forecast at 5.72 million tons, reflecting stable demand. The main suppliers of wheat are Australia, Ukraine and Brazil, which provide stable supplies for local processors.

The growth of livestock production, in particular pig and poultry farming, stimulates the demand for compound feed, which is forecast at 28.7 million tons in 2025, and will increase to 29.5 million tons in 2026. Maize accounts for 85–88% of total annual feed consumption, highlighting the sector’s dependence on imports, especially against the backdrop of declining local production and increasing exports of ingredients such as cassava and rice bran.

Tags: corn, grain, rice, wheat, imports