Facing a prolonged domestic rice shortage and rising prices, Japan is ramping up imports from Southeast Asia, signaling a rare shift in the country’s traditionally protected grain market.

Vietnam’s Tan Long Group plans to export more than 20,000 metric tons of rice to Japan this year—over four times its total shipments in 2023. According to Nikkei, that amount is enough to feed approximately 400,000 people for a year. The company, which has historically exported long-grain indica rice, began shipping short-grain japonica rice to Japan last fall.

At a grocery store in Kanagawa Prefecture, a five-kilogram bag of Vietnamese rice from Tan Long sells for about ¥3,200 (approximately S$29), roughly 20% cheaper than the average price of domestically grown rice.

The shortage has persisted for over six months, with consumers expressing frustration over limited supply and climbing prices. In response, Japanese trading firm Kanematsu began importing rice in March, primarily from the United States. The company now plans to expand sourcing from Vietnam as well.

"Vietnamese rice is not only competitively priced but also widely used in Japanese restaurants across Asia," a Kanematsu representative told Nikkei. Most of the firm’s Vietnamese rice imports are distributed to restaurants, though a portion is available in supermarkets and retail outlets. Retail prices for a five-kilogram bag typically range between ¥3,500 and ¥4,500.

Thailand is also positioning itself to meet Japan’s growing demand. Last month, the Thai Ministry of Commerce hosted a major rice conference in Bangkok, drawing around 500 delegates from over 30 countries, including Japan. In a Bangkok supermarket, a five-kilogram bag of locally grown japonica varieties such as Sasanishiki was selling for 230 baht (about S$9)—roughly a quarter of the Japanese retail price.

The price gap is partly due to Southeast Asia’s favorable growing conditions. Regions in southern Vietnam and central Thailand can harvest rice two to three times annually. Lower labor costs further reduce production expenses.

According to the U.S. Department of Agriculture, Vietnam and Thailand rank as the world’s second- and third-largest rice exporters respectively, behind India. While much of their exports traditionally go to Indonesia and the Philippines, Japan’s tightening supply and high prices are drawing renewed attention from Southeast Asian suppliers.

“There are signs that governments in Vietnam and Thailand are actively encouraging farmers to cultivate premium varieties such as japonica rice for export,” said Yukihisa Yamada, a researcher at Japan’s Norinchukin Research Institute.

Japan maintains tight controls on rice imports to protect domestic producers. Annual duty-free import quotas for private firms are capped at 100,000 metric tons. Beyond that threshold, rice imports are subject to a steep tariff of ¥341 (about S$3.06) per kilogram.

Yet with domestic prices now exceeding ¥4,000 for a five-kilogram bag, importers say Southeast Asian rice remains attractive—even after accounting for the tariff. As a result, demand for foreign rice is likely to grow, further opening the door to Southeast Asian exporters.