Vietnam’s rice exports from January to August of this year were 20 percent higher than they were over the same period in 2022, according to The Investor.
Why it matters: Whereas foreign investment in rice production is relatively small, rice prices are a key contributor to Vietnam’s consumer price index which is a key indicator of Vietnam’s rate of inflation–ergo, rising rice prices could indicate stronger inflationary pressure. The Vietnamese dong has been on a steady decline since April, increasing the costs of imports and increasing the returns on exports delineated in US dollars. This could be further exacerbated by rising rice prices.