Adopting new rice farming standards will increase income

The information was shared by Mr. Nguyen Do Anh Tuan, Director General of the International Cooperation Department under the Ministry of Agriculture and Environment, at the conference titled “Program to promote the scaling up of next-generation rice production” held on the morning of March 2.

Expanding the next-generation rice model

According to Mr. Tuan, global rice output is now sufficient to meet demand, with the 2025–2026 crop forecast to reach 556.4 million tons. Many countries have achieved food self-sufficiency. Meanwhile, climate change, emission reduction requirements, and increasingly stringent market standards have emerged as the primary pressures facing the sector.

“Growth driven purely by output is no longer appropriate,” Mr. Tuan remarked, emphasizing that the rice sector must shift toward a “rice economy,” where value lies in the way rice is cultivated rather than merely in the grain itself.

Viet Nam previously achieved growth through higher productivity. Current yields average around 6 tons per hectare, with total annual output exceeding 43 million tons. However, there is limited room for further expansion. Therefore, in the coming phase, the agricultural sector must focus on quality and low emissions.

The Ministry of Agriculture and Environment has launched several related initiatives, including the One Million Hectares of High-Quality, Low-Emission Rice Project in the Mekong Delta, and the Crop Production Emission Reduction Plan for 2025-2035. Under these frameworks, farmers adopting new cultivation practices can generate additional income from the carbon market, rather than relying solely on rice sales.

To achieve this, farmers must follow standardized cultivation processes: reducing seed use, fertilizers, and pesticides; applying alternate wetting and drying irrigation; and managing rice straw effectively. Pilot results from the Ministry show methane emissions reduced by 20-40 percent, while profits increased by more than 30 percent.

A Measurement, Reporting and Verification (MRV) system for emissions is currently being developed. Once data is available, eligible rice fields will be able to participate in carbon finance mechanisms.

At the same time, mechanization and digitalization are being introduced into the fields. Drones are used for seeding and fertilization, and cultivation area data is systematically recorded. These are foundational elements enabling rice traceability.

DG Tuan noted that the next generation of farmers will not only “sell rice” but also “sell the cultivation process.” Additional income will come from high-quality rice and verified emission reductions.

Under the new cultivation model, cooperatives are positioned at the center of organizing production and linking with enterprises. At the same time, rice farmers must be the direct beneficiaries for the model to function effectively.

“Viet Nam proposes that countries in the region share climate-resilient seed technologies, harmonize low-emission standards, and move toward mutual recognition of agricultural carbon credits,” Mr. Tuan added, calling on the World Bank (WB) to support green finance and results-based payment mechanisms. The ultimate goal is to enhance economic efficiency, reduce emissions, and ensure transparency across the rice value chain.

Engaging farmers more deeply in the rice value chain

Mr. Sergiy Zorya, Senior Agriculture Economist at the World Bank (WB), analyzed that the rice value chain is shifting toward four key objectives: reducing costs for farmers, improving quality and market access, integrating smallholders into the value chain, and minimizing environmental impacts.

To achieve these goals, beyond reducing seed rates, fertilizers, and chemical inputs, and adopting improved seed varieties, farmers must also strengthen linkages with rice mills and apply direct seeding techniques along with water-saving irrigation practices.

However, policies can either facilitate or hinder this transformation.

Output subsidies, fertilizer subsidies, and price interventions often encourage farmers to use more inputs rather than to use them efficiently. Large-scale public rice stockpiling can also reduce the role of the private sector.

Conversely, policies considered supportive of the transition include targeted seed subsidies, investments in irrigation modernization to enable alternate wetting and drying, research and extension services, and support for upgrading rice milling facilities.

Data show that Viet Nam has gradually reduced direct support for rice production while increasing spending on research, agricultural extension services, and post-harvest infrastructure. Budget expenditures on rice have also declined from 0.5 percent of GDP in 2013 to 0.2 percent in 2023.

According to Dr. Zorya, the next step is to recalibrate policy groups related to trade and stockpiling, input subsidies, irrigation water pricing, irrigation modernization, and technical advisory services. The objective is to create conditions that enable farmers to change cultivation practices and integrate into the value chain, rather than simply expanding rice output.

These changes are becoming increasingly evident in the Mekong Delta, Viet Nam’s rice bowl, which accounts for 56 percent of national output and 90 percent of rice exports. Research directions have shifted from maximizing production to enhancing quality and environmental sustainability. Breeding programs now prioritize fragrant grains, high milling recovery rates, tolerance to salinity, drought and heat, as well as reduced emissions.

Rice varieties must also be compatible with mechanization. Growth duration has been shortened to 90–110 days, with uniform ripening and improved lodging resistance to enable mechanical seeding and harvesting. This approach reduces seed use and labor requirements, while cutting post-harvest losses to below 5 percent, compared to 15-20 percent previously.

The Cuu Long Delta Rice Research Institute, which has developed more than 160 rice varieties and accounts for approximately 60-65 percent of the cultivated rice area in the Delta, has shifted its focus from “maximizing yields at all costs” to three objectives: economic efficiency, social equity, and environmental sustainability. Integrated farming models such as rice-shrimp systems, reduced irrigation practices, and straw recycling have been incorporated into production systems.

More than 5,000 community-based agricultural extension groups, with nearly 50,000 members nationwide - technical staff working closest to farmers - have been reorganized. Instead of short-term training sessions, extension officers now accompany farmers throughout the cropping season and organize them into groups or cooperatives. Viet Nam considers this model a foundation for sustaining low-emission rice cultivation over the long term.

Ms. Mariam J. Sherman, World Bank Country Director for Viet Nam, Cambodia and Lao PDR, stated that the WB considers the One Million Hectares of High-Quality, Low-Emission Rice Project a flagship model for agricultural transformation.

According to her, pilot models indicate that production costs have decreased by approximately 25 percent, farmers’ profits have increased by around 30 percent, and CO₂ emissions have been significantly reduced.

The WB is working to mobilize concessional financing, provide policy advisory support, and strengthen institutional capacity to help Viet Nam effectively implement the program. The organization also views the initiative as a model for scaling up other green agriculture programs.