More than 80% of the Philippines' rice imports come from Vietnam.

Every year, the Philippines has to import over 2.5-3.5 million tons of rice, of which 80% is imported from Vietnam. At the same time, nearly 45% of the rice that Vietnam exports is sent to the Philippines.

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On January 29, the Vietnam Trade Office in the Philippines and the Ministry of Industry and Trade informed that there are currently a total of about 35 items and industries of Vietnamese goods exported to the Philippines, including agricultural products, seafood, confectionery, animal feed, cement, iron and steel, construction materials, textiles, machinery, equipment, etc. Of which, rice always accounts for a large proportion in the export structure of Vietnam to this country.

According to the Vietnam Trade Office in the Philippines, rice is Vietnam's main export item to the Philippine market, with export volume and turnover in 2022 reaching over 3.2 million tons and nearly 1.5 billion USD, respectively, accounting for about 85% of the Philippines' total rice imports. In 2022, Vietnamese rice exported to the Philippines accounted for 45% in volume and about 43% in turnover of Vietnam's total rice export volume and turnover.

According to statistics in 2023, Vietnam's rice export turnover to the Philippines market reached 1.75 billion USD, an increase of 17.6% compared to 2022; the amount of exported rice reached 3.1 million tons, a decrease of 2% compared to 2022. However, Vietnam's rice still accounts for over 80% of the total rice imported by the Philippines.

According to information from Vietnamese Trade Counselor in the Philippines Phung Van Thanh, although the Philippines also produces rice, for many years, domestic rice production in the Philippines has not been able to meet consumption demand.

Annually, depending on farming conditions, the Philippines' domestic production is only about 19-20 million tons of paddy rice, equivalent to about 12.5 million tons of rice. Meanwhile, the country's annual rice consumption demand is about 14.5 million tons and the minimum reserve to ensure enough food for 30 days is about 1 million tons, meaning the total annual demand is about 15.5 million tons of rice. Therefore, the Philippines has to import about 2.5-3.5 million tons of rice annually.

In previous years, the Philippines bought rice through the Government-to-Government Negotiation (GTG) method, and Vietnam competed with Thailand, the two major rice exporting partners to the Philippines. “However, since 2019, the Philippines issued and implemented a law allowing free import and export of rice, removing quotas and restrictions on rice imports, and Vietnam has surpassed Thailand to become an important supplier, taking the No. 1 position in rice exports to the Philippine market,” Mr. Phung Van Thanh informed.

Currently, the Philippines is an important market for Vietnam's rice exports, with the volume and value of Vietnam's rice exports to this market accounting for nearly 45% in volume and 43% in value of Vietnam's total rice export volume and value.

For the Philippines, Vietnamese rice is not only a regular import item but also an important item to ensure food security.

"In the Philippine market, Vietnamese rice has advantages: more suitable grade and quality, affordable price, so it is competitive, suitable for tastes and can meet the diverse needs of consumers, especially the large population with low and middle income; stable supply, convenient geographical distance for transportation, so the cost is lower...", said Mr. Phung Van Thanh.

VAN PHUC

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