Vietnamese Rice Remains Dominant in Philippine Market Despite Policy Changes
Published on: June 6, 2024.
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The rice trade between Vietnam and the Philippines is expected to remain steady in the coming months, according to the Vietnam Trade Office in the Philippines. Despite the Philippines undergoing changes in its National Food Authority (NFA) and considering revisions to rice import regulations, these developments are unlikely to have an immediate impact on Vietnamese exports.
The restructuring of the NFA aims to equip the agency with the necessary tools to intervene in the rice market and stabilize prices. In addition, lawmakers in the Philippines are considering amendments to Republic Act No. 11203, which opened up the rice trade in the country. These measures are being taken in response to rising rice prices in the Philippines, which have contributed to inflation. Previous attempts to control prices, such as implementing price ceilings, have proven ineffective.
The Vietnam Trade Office stresses that the NFA’s interventions primarily target lower-quality rice consumed by low-income Filipinos, and thus should not disrupt the premium rice market where Vietnamese exporters have a strong foothold. Vietnamese rice, such as DT8 and 5451 varieties, are popular in the Philippines for their softness and affordability. Vietnamese rice dominates the market in Metro Manila and southern localities due to its great taste and competitive pricing.
Vietnamese rice meets the quality standards, variety, and cost requirements of Philippine consumers. It is a consistent and reliable supply that aligns with the Philippines’ annual import needs. Geographical proximity between the two countries also contributes to cost-effective transportation.
Vietnamese rice also benefits from trade agreements such as the ASEAN Trade in Goods Agreement (ATIGA) and the Regional Comprehensive Economic Partnership (RCEP). These agreements provide advantages not available to non-ASEAN rice exporters like India and Pakistan.
Looking ahead, the Vietnam Trade Office advises Vietnamese rice exporters to maintain their top position in the Philippines. This can be achieved through continued collaboration with the Ministry of Industry and Trade, as well as Vietnamese authorities in the Philippines, such as the Embassy and Trade Office, to organize promotional events. They also suggest exploring the potential of medium- and lower-quality rice to cater to a broader range of Philippine consumers.
Source: [VietnamPlus](https://en.vietnamplus.vn)
