Vietnamese rice export enterprises are grappling with significant financial pressure due to delayed value-added tax (VAT) refunds amounting to hundreds of billions of VND. According to the Vietnam Food Association (VFA), the new 5% VAT policy implemented in 2025 requires enterprises to pay taxes upfront and await refunds after export. This issue is particularly critical as the Philippines, a major market, is set to suspend rice imports for 60 days, impacting enterprises’ cash flow for purchasing rice from farmers.

Not only rice but also other commodities like coffee are similarly affected, with the estimated VAT burden on enterprises reaching approximately 370 million USD (over 10,000 billion VND). The VFA and other associations are urgently appealing to the Ministry of Industry and Trade and the Government for intervention.

The VFA has proposed that the Government eliminate VAT on rice exports or simplify the refund process. The Ministry of Finance is currently reviewing solutions, but the issue remains unresolved. If not addressed promptly, Vietnam’s goal of achieving 100 billion USD in agricultural exports could be at risk.