According to updates from the An Giang Department of Agriculture and Environment, fresh paddy prices were as follows: OM 18 at VND6,500–6,700/kg; IR 50404 at VND5,500–5,600/kg; OM 5451 at VND5,800–6,000/kg; Đài Thơm 8 at VND6,500–6,700/kg; OM 34 at VND5,200–5,400/kg; and OM 4218 at VND6,000–6,200/kg.

For rice products, Đài Thơm 8 rice traded at VND8,600–8,750/kg; IR 504 export-grade rice at VND7,600–7,750/kg; OM 5451 export-grade rice at VND8,150–8,300/kg; Sóc Thơm export rice at VND7,500–7,600/kg; CL 555 at VND7,340–7,450/kg; OM 380 at VND7,200–7,300/kg; OM 18 at VND8,500–8,600/kg; and IR 504 finished rice at VND9,500–9,700/kg.

Rice by-products traded between VND7,600–11,000/kg, with broken rice rising by VND100/kg to VND7,600–7,700/kg, while rice bran ranged from VND10,000–11,000/kg.

At retail markets, prices remained stable, with Nàng Nhen rice at VND28,000/kg; Hương Lài at VND22,000/kg; Thai fragrant long-grain rice at VND20,000–22,000/kg; Nàng Hoa at VND21,000/kg; Taiwan fragrant rice at VND20,000/kg; jasmine rice at VND14,000–15,000/kg; ordinary white rice at VND12,000–13,000/kg; and other common varieties ranging from VND16,000–17,000/kg.

On the export market, according to the Vietnam Food Association, 5% broken fragrant rice was quoted at USD420–440/tonne, 100% broken rice at USD319–323/tonne, and jasmine rice at USD446–450/tonne.

For Vietnam, one of the world’s leading rice exporters, focusing on mid-sized markets with stable demand, high quality requirements and near-total reliance on imports such as Israel is emerging as a sound strategic approach.

The Vietnam–Israel Free Trade Agreement (VIFTA), which entered into force in late 2024, is expected to provide fresh momentum for agricultural exports, with rice positioned as a key beneficiary.

Israel’s arid climate, limited arable land and chronic water scarcity result in virtually no domestic rice production. While wheat-based products dominate local diets, rice maintains a stable presence, particularly among Asian and African communities, Arab populations and migrant workers.

According to data from Israeli customs and the Food and Agriculture Organisation (FAO), Israel’s annual rice consumption is estimated at around 250,000 tonnes. With a population of over 10 million, per-capita consumption averages approximately 25 kg per year. Demand is structurally stable and largely insulated from economic cycles.

Domestic supply is negligible, forcing Israel to import nearly 100% of its rice needs. Annual import values typically range between USD120 million and USD150 million, occasionally approaching USD200 million. The market mainly favours milled and polished rice, especially 5% broken jasmine and japonica varieties. During January–July 2025 alone, rice imports exceeded USD102 million, representing an annual increase of more than 8%.

Australia, Thailand, India and the United States dominate Israel’s rice imports. Australia and Thailand hold strong positions due to consistent quality, established brands and efficient logistics. India leads the basmati segment, which aligns well with Middle Eastern taste preferences.

Vietnam is already present in the Israeli market, accounting for approximately 2.2–3% of total imports. Although modest, this share reflects Vietnam’s ability to meet stringent Israeli standards on quality, food safety and regulatory compliance, which are among the strictest globally.

Consumer preferences in Israel are evolving alongside rising health awareness. Demand for gluten-free, organic and specialty rice, including brown and wholegrain varieties, is increasing. At the same time, convenience foods such as ready-to-eat rice are gaining popularity, driven by busy urban lifestyles and the expansion of vegan and flexitarian diets.

These trends create favourable conditions for Vietnamese exporters, particularly for premium products such as jasmine, ST24 and ST25 rice, which match Israeli preferences for soft texture and mild aroma. Vietnamese rice also retains a competitive price advantage in the mid to upper-mid market segment, an important factor amid persistent inflationary pressures.

However, entry barriers remain significant. Israel imposes rigorous requirements on traceability, hygiene, pesticide residues, phytosanitary measures and, in many cases, Kosher certification. Long shipping distances, high freight costs and entrenched competition from established suppliers further intensify challenges for new entrants.

In this context, VIFTA is widely viewed as a critical tool to enhance Vietnam’s competitiveness. Signed in July 2023 and effective from November 17, 2024, the agreement commits Israel to immediately eliminate tariffs on around 66% of tariff lines, with coverage expanding to approximately 93% over subsequent years.

Equally important, VIFTA establishes a transparent legal framework governing rules of origin, sanitary and phytosanitary measures and technical barriers to trade. This provides Vietnamese exporters with a predictable and secure pathway into the Israeli market, reducing reliance on sporadic or ad-hoc shipments.

Given its structurally stable demand, near-total dependence on imports and preferential access under VIFTA, Israel is increasingly regarded as a promising medium- to long-term destination for Vietnamese rice. While it is unlikely to become a high-volume market, it offers a valuable platform for developing premium, value-added products and strengthening Vietnam’s global rice brand.

To fully capture this opportunity, Vietnamese exporters must continue upgrading quality standards, invest in certification and compliance, and build durable partnerships with Israeli importers and distributors. Stronger coordination with trade promotion agencies and more targeted marketing across Israel and the wider Middle East will be essential to securing a lasting foothold in this demanding but high-potential market.

T.Huong

Source: Vitic