Diversifying exports, promoting Vietnam's trade growth

The Philippines is a potential market, so businesses need to expand their product structure and increase export turnover and value.

The Philippines is currently Vietnam's 16th largest trading partner in the world and 6th largest in ASEAN; meanwhile, Vietnam is the Philippines' 9th largest supplier of goods in the world and 5th largest in the ASEAN region.

In the first 9 months of 2024, the total bilateral trade turnover between Vietnam and the Philippines reached 6.48 billion USD, an increase of 13.83% over the same period in 2023; the trade balance reached 2.75 billion USD, a significant increase of 40.56%.

Regarding investment, according to data from the Ministry of Planning and Investment , in the first 9 months of 2024, the Philippines currently has 98 investment projects in Vietnam with a total registered capital of more than 609 million USD. Increasing the interest and investment of businesses from both countries in each other's markets is one of the goals that both sides are aiming for.

Rice cooperation is a bright spot in trade relations between Vietnam and the Philippines. Illustrative photo.

The Vietnam Trade Office in the Philippines said that Vietnam and the Philippines have advantages in terms of geographical distance and similarities in consumer culture... therefore, this is a market with much potential for Vietnam's export products.

In addition, the Philippines is a country that does not have strict requirements on the quality of goods and services, so Vietnamese goods exported to this market will have more advantages than some other demanding markets such as the EU or the United States. Some Vietnamese goods exported to the Philippines include agricultural products, seafood, confectionery, textiles, machinery, equipment, etc. Of which, agricultural products, especially rice, always account for a large proportion in the export structure of Vietnam to the Philippines.

According to the Center for Industry and Trade Information ( Ministry of Industry and Trade ), rice cooperation is a bright spot in the trade relations between the two countries. As of the end of October 2024, the Philippines imported a total of 3.68 million tons of rice, of which 2.91 tons were imported from Vietnam, accounting for more than 79%. With the above results, Vietnam still maintains its leading position in rice exports to the Philippine market.

In the Philippines, Vietnamese rice has moderate quality, suitable for tastes and consumption habits and meets the diverse needs of the people.

In addition, Vietnamese rice also takes advantage of bilateral and multilateral trade agreements that both sides participate in, such as the ASEAN Trade in Goods Agreement (ATIGA); RCEP Agreement... while the Philippines' non-ASEAN partners (such as India and Pakistan) do not have them.

According to the Center for Industry and Trade Information, although the Philippines is an agricultural producing country, domestic output cannot meet the consumption needs of its people, so every year the country still has to import from other markets. In previous years, because the Philippines imported rice under the intergovernmental negotiation method (GTG), Vietnamese rice had to compete strongly with Thailand; however, since 2019, when the country issued and implemented the law allowing free import and export and trade of rice, removing quotas and restrictions on rice imports, Vietnam has surpassed Thailand to become an important supplier to the Philippines, taking the No. 1 position in rice exports to the Philippine market.

“With this growth trend, the total rice import volume of the Philippines in 2024 is forecast to be over 4 million tons, possibly reaching 4.5 million tons ,” said the Vietnam Trade Office in the Philippines.

Enterprises need to expand their product structure and increase the export turnover and value of Vietnamese goods to the Philippine market. Illustrative photo

Although being a potential partner, the Trade Office also recommends that businesses should note that currently in the structure of Vietnam's export products to the Philippines, the proportion of agricultural products is large while other product lines are still very scattered, not diverse, and there are not many fresh agricultural products (such as fruits, meat) entering the Philippine market despite the very large consumer demand.

Therefore, businesses need to expand their product structure and increase the export turnover and value of Vietnamese goods to the Philippine market.

In January 2024, Prime Minister Pham Minh Chinh received Philippine President Ferdinand Romualdez Marcos Jr. on a state visit to Vietnam. To continue deepening the bilateral relationship in a more practical and effective manner, the two sides agreed to continue to increase the exchange of high-level delegations and delegations at all levels, sectors and localities; affirming that regular meetings between leaders of the two countries contribute to consolidating and enhancing political trust and comprehensively promoting bilateral cooperation.

Regarding rice trade, the Prime Minister affirmed that this is one of the important areas of cooperation with the Philippines, not only for economic benefits but also linked to the goal of ensuring food security; he suggested that both sides effectively implement the signed Memorandum of Understanding on rice trade cooperation.

Source: https://congthuong.vn/da-dang-hoa-hang-xuat-khau-thuc-day-tang-truong-thuong-mai-viet-nam-philippines-356266.html