According to Vietnam Customs, Vietnam’s exports to Malaysia reached $3.81 billion in the first nine months of 2024, marking a 3.5 per cent year-on-year increase. A significant highlight was the 131.2 per cent surge in rice exports, which have outperformed traditionally-strong items such as phones and their components.

Rice has emerged as a major export item to Malaysia, accounting for 9.8 per cent of the total and ranking third among Vietnam’s largest export items to the market, surpassing phones and their components, which account for 8.5 per cent.

Malaysia’s higher rice imports from Vietnam even exceed its imports of high-end consumer goods like phones.

Other agricultural products such as coffee also saw impressive growth, with exports rising 117.5 per cent year-on-year. However, this growth is predominantly in the form of raw coffee beans, which are used as raw materials for Malaysia’s coffee industry.

The Vietnam Trade Office in Malaysia noted that Vietnam’s exports to Malaysia enjoy significant opportunities due to the country’s strong purchasing power, diverse demand, and cultural affinity with Vietnamese goods.

Its open market, characterized by relatively low barriers to entry for Vietnamese exports, is facilitated by both countries’ participation in numerous regional free trade agreements.

Malaysia also contends with domestic supply shortages for many essential food items, including rice and seafood, despite strong government support for domestic businesses and farmers.

Despite these opportunities, Vietnamese products face stiff competition from other exporters, particularly China, Thailand, and Indonesia, due to Malaysia’s open import market.

Source: VnEconomy