According to a report by the Agricultural Export Management Agency - US Department of Agriculture, the amount of rice imported by the Philippines this year is at 4 million tons, instead of the previous forecast of 4,1 million tons. Because, the Philippines' domestic rice production is expected to meet the slight increase in domestic consumption demand.
The Vietnam Trade Office in the Philippines cited data from the Philippine Department of Agriculture as saying that as of March 7, this country imported a total of more than 3 tons of rice.
As always, Vietnamese rice accounts for the majority, with a volume of nearly 431.850 tons, accounting for 54,4% of the Philippines' total imports. Next is Thailand with 210.127 tons, accounting for 26,5%.
Thus, in the first quarter of 2024, the amount of Thai rice exported to the Philippine market increased compared to before. This is a warning signal for Vietnamese rice when Thai products begin to increase their market share in this market.
In 2023, Vietnam exports 3,1 million tons of rice to the Philippines, with a turnover of 1,75 billion USD, although down 2% in volume but up 17,6% in value compared to the previous year. Vietnamese rice holds a market share of over 80% in the Philippine market.
The US Department of Agriculture forecasts that Philippine rice production will reach 12,13 million tons due to the possibility of El Nino decreasing in April and May 4, as well as the government's rice production support program. by increasing the use of fertilizers and good seeds.
The Philippine government, through the Department of Agriculture, has provided P30,8 billion in support to rice growers across the country. This amount is much higher than the P15,8 billion to support rice growers in 2022.
Along with increased support from the government, the country's rice productivity and output also increased. In 2023, Philippine rice production will exceed 20 million tons for the first time, an increase of 1,5% compared to 2022.
Previously, Mr. Phung Van Thanh - Vietnam Trade Counselor in the Philippines, commented that space and opportunities still exist for our country's rice export enterprises to continue to exploit and expand markets, increasing export turnover. exported to the Philippines.
However, he also warned that Thailand is looking for ways to increase production and market share of rice exports to the Philippines and compete with Vietnamese rice.
Therefore, rice export businesses need to continue to coordinate with ministries and branches to implement promotion, propaganda and promotion programs for Vietnamese rice products. In addition, it is necessary to diversify products, not focusing too much on high quality rice but also exploiting medium quality rice to serve a large number of people with middle and low incomes.
According to the provisions of Order No. 50 issued by President Ferdinard R. Marcos Jr. signed, rice from countries importing to the Philippines are subject to a 35% import tax - applicable until the end of 2024.
Data from the Vietnam Food Association shows that from the beginning of the year until now, our country's export rice prices have fluctuated in a sharp downward trend.
By March 27, the export price of Vietnam's 3% broken and 5% broken rice decreased to 25 USD/ton and 582 USD/ton, respectively. Meanwhile, the price of rice of the same type in Thailand is 558 USD/ton and 599 USD/ton respectively.
Although export rice prices have dropped sharply, preliminary statistics from the General Department of Customs show that our country's rice export turnover has exceeded the 1 billion USD mark as of March 15. The rice industry aims to export about 3 million tons this year, with an estimated turnover of 8 billion USD.
