Vietnam's rice advantage in the world's leading rice importing country

The US Department of Agriculture estimates that the Philippines will be the world's top rice importer, with imports rising to 4.1 million tons this year, up 5.1% from 3.9 million tons last year. The report also said that Vietnam will remain one of the top rice exporters to the Philippines.

Data released by the US Department of Agriculture (USDA) in its monthly global grains report for May showed that the Philippines’ rice imports are expected to increase further next year as consumption continues to grow. Import volumes will hit a record high thanks to “increased population growth and tourism ,” while domestic rice production in the first three months of the year fell. The Philippines’ rice imports currently come mainly from Vietnam.

According to Vietnamese Trade Counselor in the Philippines Phung Van Thanh, rice is a key export item that has created a solid position for Vietnam in this market. Previously, Vietnam competed with Thailand to become the two major rice exporting partners to the Philippines. However, since 2019, after the Philippines implemented an open-door policy, liberalizing imports and trade, Vietnamese rice has become an important supplier, taking the No. 1 position in rice exports to the Philippines.

Importing Vietnamese rice at Surigao port (Source: Inquirer)

Assessing the advantages of Vietnamese rice in the Philippine market, Mr. Phung Van Thanh said: “Many Vietnamese rice enterprises have long-term relationships with Philippine rice importers, creating prestige and trust in rice exports with Philippine customers. Second, Vietnamese rice has moderate quality, meeting the diverse needs of Philippine consumers, from the large number of middle- and low-income people to the wealthy classes, with competitive prices. Third, Vietnam's rice supply is stable in quantity and price, able to meet the annual import needs of the Philippines.”

Vietnamese Trade Counselor in the Philippines Phung Van Thanh said that these results were a great effort by Vietnam, but there is still room for Vietnam to continue to exploit and increase rice export turnover to the Philippines, maintaining its No. 1 position in the Philippine market.

"First of all, continue to build, create and maintain trust and prestige with customers in the Philippine market. Have a long-term strategy to continue maintaining relationships with existing traditional customers, while seeking opportunities and expanding cooperation with new partners. Second, continue to diversify products, not only focusing on exporting high-quality rice to serve the needs of high-income consumers but also need to pay attention to expanding towards low- and middle-income consumers. Third, continue to coordinate with the Ministry of Industry and Trade and the Vietnam Trade Office in the Philippines to promote Vietnamese products, including rice products in the Philippine market," said Mr. Phung Van Thanh.

On rice exporting countries, the US Department of Agriculture said that India is expected to remain the world's top rice exporter despite trade restrictions, with exports expected to reach 18 million tonnes, or about a third of the global total. Increased exports due to larger crop production and ample stocks will partly offset declines from other major exporters such as Vietnam, Thailand, Pakistan and Myanmar.

According to Pham Ha/VOV-Jakarta

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