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In the Mekong Delta, known as Vietnam’s “rice bowl” due to its large growing area, traders have been cutting back on purchases in recent days due to concerns about exporting to the Philippines.“I am only buying cautiously to sell domestically, as export shipments are on hold, awaiting new signals from buyers,” seasoned trader Huyen in An Giang Province said.Farmers harvest rice in the Mekong Delta. Photo by Read/Thuy TienIn Dong Thap Province, rice mills are rushing to fulfill existing orders to the Philippines, prioritizing old contracts while new purchases have sharply declined.Prices for Dai Thom 8 and OM18 rice have fallen 4% in recent weeks to VND11,000 (US$0.42) per kilogram.A rice export company in Dong Thap, which asked to remain anonymous, told Read that the two-month import suspension from the Philippines – its largest market – has disrupted business plans.The halt, coinciding with the peak harvest season, has stalled contracts, increased inventories, and driven up storage costs, a company representative said.Rising financial pressures, compounded by high borrowing interest rates and a 5% value-added tax imposed from July 1, have raised fears of significant losses for the firm, they added.“Prices for summer-autumn and autumn-winter seasons could drop sharply,” said Nguyen Chi Thanh, director of the rice division of agriculture exporter Angimex.He noted that finding new markets is challenging, and other importing countries may exploit the situation to negotiate lower prices.Exporters reported that since 2019, obtaining phytosanitary certificates for the Philippines has been a lengthy process, hindering long-term contracts.Although online licensing began on July 7 this year, extensive paperwork and additional costs continue to squeeze profit margins.As Philippines accounts for almost 45% of Vietnam’s rice export revenue, the import suspension has led to stalled contracts, rising inventories, tightened liquidity, and downward pressure on domestic rice prices, Do Ha Nam, chairman of the Vietnam Food Association, said in a letter to the Ministry of Industry and Trade.The ministry said that alongside the Philippines’ import halt, many August contracts have been delayed due to the lack of sanitary and phytosanitary certificates granted by the country.This has heightened inventory risks, depressed export prices, narrowed profit margins, and directly impacted farmers’ incomes, it added.The ministry cautioned that large inventories and falling prices will increase credit pressures for businesses.It urged companies to maintain reserves and wait for market recovery to avoid panic selling, while encouraging coordination among ministries, agencies, and associations to mitigate risks and expand markets to the Middle East, Africa, and Northeast Asia.Explaining its decision to halt imports, the Philippines said it aims to protect domestic production amid sharply declining local rice prices.In response, the Vietnam Food Association has urged the trade ministry to engage with the Philippines to clarify affected rice types and resolve procedural issues to sustain trade, minimize losses, and protect farmers’ interests.Vietnam and the Philippines are implementing a rice trade cooperation memorandum signed on January 30 last year and effective until the end of 2028.The rice industry is seeking support from ministries to ensure smooth production and exports.The trade ministry has requested Prime Minister Pham Minh Chinh to direct the Ministry of Finance to expedite value-added tax refunds for rice exporters and plan national rice reserve purchases for this year to address unfavorable market fluctuations.In the first seven months, rice exports to the Philippines fell 13.5% year-on-year while other markets saw growth, such as Ghana (53.5%), Ivory Coast (96.6%), and Bangladesh (188 times).(function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(d.getElementById(id))return;js=d.createElement(s);js.id=id;js.src="