From Waste to Wealth: Transforming Rice Straw into a 'Strategic Biomass Resource' in the Mekong

Can Tho City, Vietnam - On November 19, 2025, a critical discussion unfolded in Can Tho, Vietnam, as over 100 delegates from Vietnam, Laos, Cambodia, Myanmar, and Thailand gathered for the Workshop "Rice straw value chain: Policy and investment opportunities." Organized by the International Rice Research Institute (IRRI), Department of Cooperatives and Rural Development (DCRD), and Vietnam Rice Industry Association (VIETRISA), the event addressed a major crossroads for the Mekong Sub-region: Will the nearly 100 million tons of rice straw produced annually remain an environmental burden or become a "gold mine" for the green economy?

Scientists, businesses, and government leaders agree-rice straw is officially moving from a forgotten by-product to a vital component of the low-emission rice strategy.

A New Vision: Straw as a Solution, Not a Problem

The workshop was grounded in the scientific findings of the IRRI's RiceEco Project (2023-2025), funded by the Mekong-Korea Cooperation Fund (MKCF), which aims to develop and replicate sustainable straw management solutions across the Mekong Delta and neighboring countries.

Dr. Robert Caudwell, IRRI Representative in Vietnam, emphasized this paradigm shift: "Straw is not a problem to be managed, but a solution to be exploited." He highlighted IRRI's regional experience, showcasing how straw can be converted into valuable products like compost, animal feed, and straw mushrooms, simultaneously reducing air pollution and creating new income streams for farmers.

The RiceEco project team, led by Dr. Nguyen Van Hung of IRRI, has successfully developed and adapted straw management technologies, like the "Mechanized straw management solution towards emission reduction and circular agriculture," across the sub-region. This solution, recognized as a technical advancement in Vietnam, is now a key component of the High-Quality and Low-Emission Rice Production Process, which underpins Vietnam's ambitious 1 Million Hectare High-Quality and Low-Emission Rice Project in the Mekong Delta.

Dr. Nguyen Van Hung, scientist at IRRI Vietnam and lead of RiceEco Project

Economic and Environmental Gains

Pilot models applying circular agriculture principles to straw management have delivered impressive results, confirming that straw is indeed a valuable biomass resource when handled correctly:

• Environmental Benefit: Recorded a reduction of up to 3 tons of CO2equivalent/ha compared to the practice of burying straw in flooded fields.

• Economic Gain: Rice yield increased by 10-15% when using organic fertilizer produced from straw.

Supporting this transition, the EasyFarm application, partially funded by RiceEco, has been tested by over 2,000 farmers. This digital platform connects farmers directly with mechanized straw rolling services and straw purchasing markets, facilitating transactions and encouraging environmentally friendly straw handling habits.

Workshop participants from Vietnam, Laos, Cambodia, Myanmar and Thailand.

Strategic Pillars for Green Transformation

Mr. Le Duc Thinh, Director of DCRD, emphasized that straw management has transcended being a purely technical issue. It has become a "strategic pillar" directly linked to Vietnam's commitments to green growth and achieving Net Zero emissions by 2050.

He outlined three key task groups to realize this vision:

1. Perfect the Legal Framework: Institutions must formally recognize straw as a biomass resource, not a waste by-product. This requires establishing technical standards for collection, preservation, transportation, and reuse to create a legal foundation for a sustainable straw market.

2. Reorganize the Value Chain: Cooperatives must play the central role-providing mechanized services, organizing collection points, and acting as a "bridge" to connect farmers with enterprises processing straw into organic fertilizers, biochar, and biomass pellets. This ensures a stable supply and fairer value sharing.

3. Mobilize Finance and Integrate Carbon Mechanisms: Financial resources, ODA, and credit packages must be leveraged. Critically, a Measurement-Reporting-Verification (MRV) system for straw needs to be established and integrated into the carbon credit mechanism to provide clear economic incentives for sustainable models.

Panel discussion on rice value chain policies and investment opportunities.

The Industry's Vision: A High-Value Product

From the industry's perspective, Mr. Le Thanh Tung, Vice President of VIETRISA, affirmed that sustainable straw management is vital for the 1 million hectare project to achieve its emission reduction targets, calling it a "great economic opportunity."

Dr. Nguyen Hong Tin of Can Tho University presented research from RiceEco 2025, which highlighted that while the current straw value chain is often led by traders (32.4%), with mushroom cultivation (17.9%) yielding the highest profit, it suffers from a lack of quality standards, weak logistics, and no formal trading floor. He echoed the call to establish the legal status of straw as a biomass resource and integrate it into the carbon mechanism.

Mr. Huynh Van Thon, Chairman of Loc Troi Agricultural Group, shared his company's practical investment in processing straw for mushroom cultivation and cooperating on using rice husks to produce bioplastics. He concluded that with investment in technology, straw transforms from an obstacle into a valuable product that provides significant additional income for farming households, encouraging them to maintain their essential role in national food security.

The consensus at the workshop was clear: By shifting its status from waste to a strategic resource, rice straw is poised to be the catalyst for a prosperous, circular economy in the Mekong region.

This work is part of the MKCF-funded Rice Straw-Based Circular Economy for Improved Biodiversity and Sustainability Project and the CGIAR Scaling for Impact Program.