PAN Group expands low-emission rice production to 100,000ha

Vinarice leads nearly 60% of the TRVC Project’s coverage area

For many years, Viet Nam has been recognized globally as one of the world’s leading rice exporters. However, the concept of “low-emission rice” remains relatively unfamiliar to many domestic rice enterprises. Today, the value of a grain of rice is no longer determined solely by yield or quality, but also by the amount of carbon emissions generated throughout its production process.

Against this backdrop, the Transforming Rice Value Chains for Climate Resilient and Sustainable Development in the Mekong Delta (TRVC) Project, launched in 2023, has emerged as a major catalyst for the green transformation of Viet Nam’s rice sector, promoting climate resilience and sustainable development across the Mekong Delta.

The project is funded by the Australian Department of Foreign Affairs and Trade (DFAT) and implemented by the Netherlands Development Organisation (SNV) in Viet Nam in collaboration with the Ministry of Agriculture and Environment across two provinces: An Giang and Dong Thap. Running from 2023 to 2027, the TRVC Project aims to support the transition toward low-carbon agriculture and strengthen climate resilience in the Mekong Delta.

A distinctive feature of the project is its business-centered approach to value chain development. Participating companies are not only responsible for purchasing rice but also for organizing production, standardizing farming practices, measuring greenhouse gas emissions, ensuring traceability, and committing to increase farmers’ profits by at least 30%. In addition, they are required to promote gender equality and the inclusion of persons with disabilities within both their organizations and partner communities.

Among the participating enterprises, Vinarice, a member of Vinaseed under PAN Group, was one of the pioneering companies to join the project from its first production season in the 2024 Summer-Autumn crop. After three production seasons, Vinarice has expanded its TRVC implementation area to more than 48,518 hectares, accounting for nearly 60% of the project’s total coverage. This achievement reflects the company’s strong commitment to advancing Viet Nam’s rice sector.

Notably, Vinarice’s project activities have reduced nearly 184,000 tonnes of CO₂ equivalent emissions, averaging a reduction of 3.79 tonnes of CO₂e per hectare. Farmers participating in the program recorded an average profit increase of 54.02%, significantly exceeding the project’s minimum target of 30%.

PAN Group has set a target of expanding its low-emission rice cultivation area under the TRVC Project to 100,000 hectares by the end of 2027. This rapid expansion demonstrates that low-emission rice production is no longer a pilot initiative but is increasingly becoming a long-term competitive strategy for the company.

PAN redefines the value of Vietnamese rice

Through its participation in the TRVC Project, PAN Group has not approached low-emission rice production as a short-term campaign or simply as part of a “green trend.”

Instead, the group has focused on building an integrated ecosystem for the rice industry. Within this ecosystem, Vinaseed is responsible for researching and supplying rice varieties suited to climate change conditions and low-emission farming models. Viet Nam Fumigation Joint Stock Company (VFC) and BioSpring provide input solutions aimed at optimizing fertilizer use and promoting biological crop protection products. Meanwhile, Vinarice develops raw material zones, partners with cooperatives, implements cultivation protocols, and commercializes rice products.

According to Ms. Tra My, PAN Group’s most significant achievement after three crop seasons under the TRVC Project has been the gradual completion of a high-quality rice value chain, from seed development and agricultural inputs to production organization, processing, branding, and export.

“By participating in the TRVC Project, we have come to realize that reducing emissions is not merely an environmental responsibility. More importantly, it creates opportunities to enhance the value of Vietnamese rice,” she said.

Whereas Viet Nam’s rice export prices previously averaged around USD 500-600 per tonne, Vinaseed has now successfully exported rice shipments valued at as much as USD 1,300 per tonne. In particular, a newly developed specialty purple rice variety has been exported at a price of USD 2,300 per tonne.

A particularly significant milestone was Vinarice being granted the right to use the “Viet Nam Green Low-Emission Rice” label by the Viet Nam Rice Industry Association. This recognition is widely regarded as a major breakthrough.

For the first time, Viet Nam has established an official certification and branding system for low-emission rice. The label serves as a “green passport,” enabling Vietnamese rice to gain access to demanding international markets. It is no coincidence that markets such as the EU, the United States, the United Kingdom, and Australia are showing increasing interest in environmentally sustainable rice products. As the world moves toward net-zero emissions, consumers are placing greater value on products that are not only safe and high quality but also environmentally responsible.

Building on its low-emission production areas, Vinarice is now preparing to supply green, low-emission rice products to international markets.

According to Mr. Nguyen Van Be Hai, Acting Chief Executive Officer of Vinarice, participation in the TRVC Project has enabled the company to strengthen its partnership model with cooperatives and farmers while standardizing high-quality, low-emission cultivation practices. The project has also enhanced traceability and laid the groundwork for future carbon-credit initiatives and green finance opportunities.

He noted that the project’s incentive and reward mechanisms have primarily served as a positive catalyst during the initial phase, encouraging both businesses and farmers to adopt new production practices and move away from traditional farming methods.

With its strong foundation in seed research and development, Vinarice is able to maintain integrated control over the entire value chain, from seed varieties and cultivation protocols to final product quality. Combined with PAN Group’s long-term commitment to sustainable development, the company views the project not as a short-term support program, but as strategic preparation for the evolving demands of the global rice market.

Farmers experience the most tangible benefits

If businesses are the driving force behind the green transition, farmers are the ones who experience the most immediate and tangible benefits of low-emission rice production.

Ms. Ho Thi Thuy Hang, a farmer in My Qui Commune, Dong Thap Province, said that her family has enrolled 1.5 hectares in the TRVC Project through a partnership with Vinarice and has completed four crop seasons under the program.

Previously, she practiced dense seeding. After joining the project, however, she was guided to adopt lower seeding rates and apply the “One Must, Five Reductions” approach, which reduces seed use, fertilizer application, pesticide use, and irrigation water consumption.

“At first, it was difficult to adapt, but once we saw the results, we continued with the new practices,” Ms. Hang said. “Production costs fell from around VND 30 million per hectare to approximately VND 25 million per hectare. After harvest, we can also make use of rice straw to generate additional income.”

In addition to lower production costs, her rice is purchased by the company at prices higher than prevailing market rates. As a result, her average profit reaches approximately VND 17-20 million per hectare.

Similarly, Ms. Nguyen Thi Moi of My Dong Commune, Dong Thap Province, said that participation in the TRVC Project has enabled her family to adopt a range of improved farming techniques, particularly the alternate wetting and drying (AWD) irrigation method, which helps conserve water while reducing fertilizer and pesticide use. She noted that women involved in the project have not only increased their incomes but have also strengthened their roles within both the household and agricultural production activities.

At My Dong III Cooperative in My Qui Commune, Dong Thap Province, Vinarice and the cooperative have jointly implemented low-emission rice cultivation across 267 hectares under the TRVC Project for two crop seasons. Encouraged by the results, the cooperative plans to expand the model by an additional 200 hectares in the near future.

According to Mr. Nguyen Thanh Nghiep, Chairman of the Board of Directors and Director of My Dong III Cooperative, participating farmers have reduced production costs by approximately 10-15%, lowered seed use by around 30%, and cut fertilizer application by about 20%. At the same time, yields have remained stable and, in some cases, have even exceeded those achieved under conventional farming methods. More importantly, farmers benefit from stable market access and no longer face the risk of being forced to sell at unfavorable prices when market conditions fluctuate.

The low-emission rice race: Who will take the lead?

According to Ms. Nguyen Thi Tra My, PAN Group’s strategy is not simply to invest more resources, but to reorganize production more efficiently through an integrated value chain approach. Given the pace at which Vinarice is expanding its participation in the TRVC Project, the company’s target of reaching 100,000 hectares of low-emission rice cultivation by 2027 is considered well within reach.

The PAN Group CEO noted that the company’s next step is to deepen collaboration with domestic and international partners to develop high-quality, low-emission rice value chains while exploring opportunities for carbon credit generation in rice production. If successfully implemented, this could create a new source of value not only for businesses but also for farmers themselves.

Associate Professor Dr. Bui Ba Bong, Chairman of the Viet Nam Rice Industry Association (Vietrisa), highlighted that the most distinctive feature of the TRVC Project is its ability to foster strong linkages among enterprises, cooperatives, and farmers through a transparent incentive mechanism based on verified emissions-reduction results.

In this regard, production linkages have emerged as the key factor behind the success of the TRVC Project and offer a practical pathway for advancing Viet Nam’s One Million Hectares of High-Quality, Low-Emission Rice Project.

The project’s outcomes demonstrate that the model can be scaled up effectively, not just across tens or hundreds of hectares, but potentially across hundreds of thousands of hectares, provided that appropriate mechanisms are in place to encourage both businesses and farmers to participate. Such a transition would position Viet Nam’s rice industry to compete not only on productivity and quality, but increasingly on sustainability and climate responsibility.

Associate Professor Dr. Bui Ba Bong emphasized that the current priority is to further strengthen partnerships among enterprises, cooperatives, and farmers. At the same time, greater efforts are needed to raise public awareness so that consumers understand that choosing low-emission rice is not only a purchasing decision but also a way to support environmental protection and sustainable agriculture.

In this transformation, the role of leading enterprises such as Vinarice is becoming increasingly important. These pioneering companies possess the capacity to organize large-scale production areas, build strong partnerships with cooperatives and farmers, standardize production data, measure and verify emissions reductions, ensure traceability, and connect with international markets. Through these efforts, they are helping redefine the value of Vietnamese rice.

Looking ahead, Viet Nam’s rice industry will not only maintain its position as one of the world’s leading rice exporters but also establish a new identity in the global marketplace - one built on green production, low-emission cultivation, and sustainable development. This emerging reputation has the potential to position Viet Nam not merely as a supplier of rice, but as a global leader in sustainable rice production.

$ 1 = VND 26,402 - Source: Vietcombank.