Instead of burning Vietnamese rice straw after harvest, circular economy models are opening up a new pathway. They do so by transforming agricultural by-products into valuable raw biomass. This approach not only creates additional income for farmers. It also helps reduce emissions in rice production.
Each year, the world generates an estimated 500–600 million tonnes of rice straw. The Mekong Subregion alone—one of the world’s largest rice bowls—accounts for a significant share of this volume. After each harvest, farmers usually burn Vietnam’s rice straw in the fields or handle inefficiently. As a result, this leads to air pollution, soil nutrient loss and greenhouse gas emissions.
As agriculture across ASEAN faces mounting pressure from climate change and emission-reduction requirements, the key question is no longer “whether rice straw should burn.” Instead, it has become “what should do with rice straw after harvest.”
Rice straw is increasingly being re-evaluated as a strategic biological resource. It is no longer viewed merely as an agricultural waste product.
Experience from Vietnam shows that Vietnamese rice straw can serve as an input for a circular agricultural value chain. This chain ranges from mushroom cultivation and organic fertilizer production to biochar, biomass pellets and biodegradable materials. However, this only possible provide that technical processes, markets and infrastructure are properly organized.
These models are gradually taking shape with the participation of farmers, cooperatives, businesses and research institutions. Projects such as RiceEco play a connecting role. They also provide scientific evidence to support the transition.
At the international conference “Circular Economy from Rice Straw: Innovation, Action, Impact and Investment Opportunities (RiceEco 4Is),” experts presented research findings. These findings showed that sustainable rice straw management can significantly reduce greenhouse gas emissions from rice cultivation.
Studies under the RiceEco project demonstrate that rice straw can serve as an input for a new agricultural value chain. This chain delivers economic benefits to farmers. At the same time, it contributes to emission reductions and soil ecosystem restoration.
Mr. Le Quoc Thanh is the Director of the National Agricultural Extension Center. He emphasized that sustainable rice straw management is a “critical link” in Vietnam’s transition toward low-emission agriculture. At the same time, it opens up new economic opportunities for millions of rice-farming households.
Mapping studies and rice straw management strategies developed for the Mekong Delta indicate a significant potential impact. If implementing sustainable measures in a coordinated manner, the region could reduce straw-related emissions by up to 36%. This reduction is equivalent to more than 2 million tonnes of CO₂e per year.
Vietnamese rice straw
Importantly, field experiments show that the benefits go beyond emission reductions. Using rice straw for mushroom cultivation and organic fertilizer production helps improve soil structure, increase microbial biodiversity, and sustain crop productivity over the long term. These findings provide a scientific basis for viewing rice straw as a valuable biomass resource. It should no longer be a waste by-product.
According to assessments by the Mekong Institute, treating rice straw as part of an integrated agriculture–environment–livelihood system allows impacts to be measured more comprehensively. These impacts can be assessed not only in environmental terms but also across economic and social dimensions. This provides a solid foundation for policy formulation and investment decisions.
Dr. Suriyan Vichitlekarn, Executive Director of the Mekong Institute, stressed the broader significance of the approach. “The circular economy for rice straw is not merely a technical solution in agriculture,” he said. “It is a systems transformation approach that links agriculture with the environment, livelihoods and regional cooperation.”
He further emphasized that such models must be embedded in a regional strategy. They also need to ground in scientific evidence and supported by coherent policies. Only then can their impacts be effectively scaled up.
Economic effectiveness is the decisive factor in changing farmers’ practices. According to Assoc. Prof. Dr. Nguyen Van Hung, Senior Expert at IRRI and Head of the RiceEco Project, three years of implementation have provided solid scientific evidence. “The rice–straw value chain can increase economic value by more than 20%,” he noted. At the same time, the collection and reuse of rice straw can reduce greenhouse gas emissions by over 30% compared with traditional farming practices.
He emphasized that rice straw management should integrate into national target programs on sustainable and low-emission agriculture. It should not treat as a standalone technical solution.
Practical implementation in Vietnam shows clear income benefits for farmers. When rice straw can integrate into the value chain, farm household income can increase significantly. According to Mr. Nguyen Cao Khai, Director of Tien Thuan Cooperative, under conventional rice cultivation, profits average around USD 2,600 per hectare per year.
When rice straw management incorporates, the cooperative organizes the collection of approximately 279 straw bales per hectare per year. The straw is then the fertilizer for straw mushroom cultivation. This yields about 615 kilograms per hectare annually and generates an additional profit of roughly USD 570 per hectare per year. Further mechanization of composting from spent straw adds another USD 410 per hectare per year.
The use of compost derived from rice straw helps reduce chemical fertilizer use by about 40%. As a result, total income from the integrated rice–straw value chain reaches approximately USD 3,600 per hectare per year. Of this, value added from straw accounts for around 35–40%.
Notably, surveys conducted by Can Tho University indicate a marked decline in open-field straw burning across many localities. A growing number of farmers have shifted to using straw for mushroom cultivation, composting, or supplying other circular agriculture models.
In Cambodia, cooperative-based compost production models using rice straw have also shown promising results. These models report average profits of about USD 136 per tonne. Selling prices range from USD 285 to 330 per tonne, depending on distribution channels.
However, these models require sufficiently large scale to be viable. The break-even point exceeds 3,100 tonnes per year, with a payback period of around 11 years. This highlights the critical importance of production organization and long-term investment.
At the same time, straw mushroom cultivation is a key link for generating quick cash flow. With a production cycle of around 30 days, yields reach 80–100 kilograms of mushrooms per tonne of straw under open-field conditions. When cultivated indoors, yields increase to 150–200 kilograms per tonne. This generates additional income of approximately USD 256 per hectare per year, excluding further value added from composting all remaining straw after mushroom harvest.
Vietnamese rice straw warehouse
According to former Minister of Agriculture Cao Duc Phat, rice husk is also a highly promising feedstock for biomass energy. Currently, rice husk prices remain low at around VND 1,000 per kilogram. They are available mainly through small-scale, informal channels. These channels lack technical standards, structured supply–demand linkages, and large-scale collection systems. With proper logistics, standardization and clear contractual arrangements, he believes prices could rise to VND 2,000–3,000 per kilogram.
“The key strength of circular economy models based on rice straw is that they have demonstrated economic feasibility,” said Dr. Suriyan Vichitlekarn. Once farmers generate real income from straw, farming behavior changes. This is the prerequisite for sustainably reducing straw burning and greenhouse gas emissions.
Despite proven potential, scaling up these models still faces multiple barriers. High logistics costs persist due to limited infrastructure for straw collection, transport and storage. Labor remains largely seasonal. Meanwhile, straw markets are still informal and lack standardized contract pricing mechanisms and invoicing systems.
In addition, access to concessional credit for straw collection equipment, processing facilities and technology investment remains limited. This constraint hinders scale expansion. From a policy perspective, rice straw in many areas has yet recognized as a biomass resource. As a result, its eligibility for integration into carbon markets and emission-reduction strategies has reduced.
From a regional perspective, organizations such as IRRI and the Mekong–Korea Cooperation Fund see circular economy models based on rice straw as a critical platform. These models help link science, policy and markets.
The role of initiatives such as RiceEco lies in generating evidence and conducting field trials. They also create dialogue spaces among stakeholders. In this way, they support decision-making processes at both national and regional levels.
Dr. Shin Jongsoo, IRRI’s Regional Director for Asia, highlighted the importance of collaboration. “RiceEco has demonstrated that science and innovation are the foundation of sustainable agricultural transformation,” he said. However, to achieve impact at scale, close cooperation among governments, scientists, businesses and farmers is essential.
To enable rice straw to truly become a core component of low-emission agriculture, experts argue that simultaneous investment is necessary. This includes investment in biomass logistics infrastructure, standardization of technical specifications and trading mechanisms, and development of green finance. In addition, rice straw management should integrate into carbon programs and regional cooperation frameworks within ASEAN and the Mekong Subregion.
Only then will rice straw cease to be a by-product burned after harvest. Instead, it will become an integral part of a circular agricultural value chain. In such a system, farmers’ economic interests align with emission reduction and sustainable development goals.
Vietnamese source: https://mekongasean.vn/tai-dinh-vi-rom-ra-trong-chuoi-gia-tri-nong-nghiep-tuan-hoan-51068.html