The government is offering local companies zero-interest loans as it hopes these companies will buy as much as 1 million tons of rice from the summer-fall crop.
They will be responsible for their own profitability.
According to a decision signed by Prime Minister Nguyen Tan Dung on Wednesday, the loans will be offered between July 15 and September 15 for the purchasing of rice.
The directive aims to stabilize prices and ensure a 30 percent profit for farmers.
The Vietnam Food Association said provinces in the Mekong Delta, Vietnam's largest rice producer, are harvesting the summer-fall crop.
Prices have dropped by more than 20 percent compared to the previous harvest.
On the global market, Vietnamese rice rose 8.46 percent in the first six months compared to the same period last year, according to the Ministry of Agriculture and Rural Development.
Rice demand is on the rise. The Philippines plans to import 2 million tons this season.