How Mekong Delta farmers gained access to premium export markets

Date released

30 June 2025

Vietnam ranks as the world's third-largest rice exporter, with half of its rice produced by 1.5 million small-scale farmers in the Mekong Delta. However, most farmers lack access to high-value premium export markets, limiting their income potential.

The intensification of rice production in the Mekong Delta, with two to three annual crops, has led to reduced profitability, declining rice quality, soil degradation, and increased greenhouse gas emissions.

Turning challenges into opportunities

Through a research partnership co-funded by ACIAR and the SunRice Group, the University of Queensland, in collaboration with Can Tho University, Cuu Long Rice Research Institute and An Giang University is transforming the livelihoods of Mekong Delta farmers through improved value chain engagement with premium markets.

This public-private partnership, the Sustainable Mekong Rice initiative, connects farmers with the SunRice Group, enabling them to access high-value international markets by meeting established standards.

'By involving global agri-food leaders like SunRice, we're enabling Mekong Delta farmers to meet premium market requirements with research and innovation underpinning their success,' said Mr David Shearer, ACIAR Research Program Manager, Agribusiness.

Premium markets, standards and prices

'A major outcome we are most proud of is that farmers now transport fresh paddy directly to mills, ensuring traceability and meeting Maximum Residue Level (MRL) standard. These achievements open doors to high-quality export markets with premium prices,' said project leader Associate Professor Jaquie Mitchell from the University of Queensland.

People moving sacks of rice on a boat — Farmers transporting their rice to Lap Vo Mill of Rice Grower Vietnam, a member of Sun Rice Group. Photo: Can Tho University

Beyond higher prices, the project has created a shift in farmers' mindsets toward sustainable production. From being dependent on brokers and traders to transport rice and deal prices, farmers now plan their production and manage transport themselves, which helps reduce costs and increase profits.

'Before, they simply focused on producing large quantities of rice. Now, they place a stronger priority on quality, environmental safety, and production linkages,' added Dr Tin from Can Tho University, who leads farmer engagement activities.

A farmer success story: from grower to trader

Mr Tran Phuoc Nhan, a rice farmer of over 20 years, is a shining example of these changes.

Since participating in the project, he has applied integrated pest management practices and entered in a farming contract with SunRice. In the 2024 winter-spring season, Mr Nhan managed 155 hectares of rice, overseeing his own rice fields and those of neighbouring farmers under his coordination. This season alone, he supplied SunRice with more than 1,150 tonnes of high-quality rice, resulting in a significant income boost. For rice meeting the MRL standard, he earned a premium of more than 300 VND (0.018 AUD) per kilogram over regular rice.

'Thanks to participating in this project, my production, income and life quality have improved significantly. I am building a new house and investing in my children's university education,' said Mr Nhan.

'Local people also trust me more, which has enabled me to coordinate a larger rice supply to various companies in the Mekong Delta.'

Each season, Mr Nhan supplies about 5,000-6,000 tonnes of rice to various rice companies. He plans to expand his trading operations and continue contributing to the community's development. His success has inspired others to combine farming with trading, fostering local economic growth.

Row of people standing in front of a rice field

Farmer Mr Tran Phuoc Nhan and the project team visiting his farm in An Giang Province, Vietnam. Photo: Can Tho University

Man standing in a rice field facing the camera

Farmer Mr Tran Phuoc Nhan on his farm that applied integrated pest management practices. Photo: Can Tho University

Mekong farmers visiting a rice field applying integrated pest management as part of the project. Photo: Can Tho University

Building trust: A key to success

Mr Nhan's journey was not without challenges. Initially, farmer groups and cooperatives were hesitant to sign formal contracts with SunRice as they had not operated this way before.

'Trust-building was our first priority,' said Dr Tin.

'We had to demonstrate the economic, social, and environmental benefits to encourage farmer's participation.' 

Starting on a small scale, Dr Tin and his team from Can Tho University carefully facilitated the process, helping farmers and SunRice build mutual confidence and understanding.

'Successful cooperation requires mutual benefit and risk-sharing,' said Dr Tin.

'We must tailor our support to farmers' needs and capacities, guiding them step-by-step to fully engage with SunRice.'

Women standing in a row in a rice field — Women transplanting rice in Kien Giang, Vietnam. Photo: Can Tho University

Empowering women in decision-making

Another significant project outcome has been the increased role of women in decision-making around farming practices.

'Women often manage finances, bookkeeping, and marketing activities. However, societal stereotypes frequently impede their decision-making ability,' said Associate Professor Mitchell.

The project has enhanced women's confidence and skills through training in production planning, finance management, and health awareness, challenging traditional gender roles.

Notably, flexible training schedules could enable greater female participation.

Women sitting around a table — Dr Nguyen Anh Minh from Can Tho University (right) interviewing female farmers after working in the rice field in Hon Dat, Kien Giang, Vietnam. Photo: Can Tho University

'Understanding the local context allowed us to make training accessible and impactful for women, sometimes simply by organising training at convenient locations and times,' said Associate Professor Mitchell.

By actively engaging women's unions and female farmers in the project activities, the project has fostered an environment where women's participation is encouraged and integral to their operations.

Looking ahead

The success of Mekong Delta farmers in meeting MRL standards and producing high-quality rice has driven sustainable change. Economic incentives strongly motivate farmers to partner with businesses like SunRice beyond the project.

'The goals of this partnership are consistent: collaboration, resource-sharing, and leveraging knowledge and capacity for a high-quality rice value chain in the Mekong Delta,' said Associate Professor Mitchell.

The network has expanded and strengthened over the last 3 years. More than 354 market actors, including 69 farmer households, have been involved in capacity-building activities, creating a lasting impact on Vietnam's rice sector. Participation of students from An Giang University has further enriched the project, reinforcing the research partnership between academic institutions and industry.

'We are glad that the ACIAR-SunRice partnership has paved the way for sustainable, inclusive development in Vietnam's rice industry. We look forward to scaling this effective model to tackle long-standing challenges, such as engaging in premium markets, and emerging challenges, such as working towards low carbon rice value chains,' said Mr Shearer, ACIAR Research Program Manager, Agribusiness.

The project was launched in 2022 and represents the first major public-private partnership ACIAR has invested in.

ACIAR Project: ‘Planning and establishing a sustainable smallholder rice chain in the Mekong Delta’ (AGB/2019/153)