The latest information from the Vietnam Trade Office in the Philippines shows that the government is currently making efforts to diversify rice supply sources, reducing dependence on foreign markets.
Specifically, according to the Trade Office, although there is rice production, the annual output cannot meet domestic consumption demand, so every year the Philippines has to import rice from many countries.
For the Vietnamese market, rice is both a traditional commodity and a key export item to the Philippine market in recent years. In 2023, Vietnam exported 3.1 million tons of rice to the Philippines, worth 1.75 billion USD, down 2% in volume but up 17.6% in value compared to the previous year. Vietnamese rice accounts for over 80% of the market share in the Philippines.
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| The Philippine government is looking to reduce its dependence on Vietnamese rice supply by diversifying its supply sources and looking to other potential rice suppliers. Illustrative photo |
However, along with geopolitical fluctuations and instability in the world, policy changes in some major rice-producing countries in the world, typically India's ban on rice exports, make the issue of ensuring food security in the Philippines even more important.
In that context, realizing the large dependence on rice supply from Vietnam, the Philippine Government is looking for ways to reduce this dependence by diversifying supply sources, looking for potential rice suppliers other than Vietnam that they previously thought had no advantage.
" As of mid-March 2024, the country's rice imports have decreased, this figure partly reflects the initial success of the Philippine Government in seeking to diversify rice supply" - Vietnam Trade Office in the Philippines commented.
Specifically, statistics from the Plant Department - Ministry of Agriculture of the Philippines show that from January 1, 2024 to March 14, 2024, the total amount of rice imported by the Philippines is 886,963.11 tons, about 10.6% higher than the same period in 2023. However, this is still a high level and according to the forecast of the Trade Office, the level of rice imported by the Philippines in 2024 is about 3.8 to 4.0 million tons, which is completely appropriate.
Of the total rice imports of the Philippines mentioned above, rice imported from Vietnam still accounts for the largest volume with 493,962.72 tons, accounting for 55.7%. Next is Thai rice with 230,559.43 tons, accounting for 26%. Meanwhile, rice imported from Pakistan is 109,803.5 tons, accounting for 12.4%. In addition, in the first 3 months of 2024, the Philippines also imported rice from Myanmar with a quantity of 48,960 tons, from Cambodia 1,620 tons, from Japan 1,815.37 tons, from India about 235.5 tons and from Italy 6.6 tons...
The above rice was imported by 109 companies licensed by the Bureau of Plant Protection - Department of Agriculture of the Philippines, including the two largest importers in the Philippines, Orison Free Enterprise Inc, with a volume of 103,408.35 tons; and BLY Agri Venture Trading with an import volume of 55,419.99 tons.
Meanwhile, in the first half of March 2024, this agency also issued 424 quarantine clearance certificates for 358,188.5 tons of imported rice. And according to regulations, the amount of rice granted quarantine clearance must be imported into the Philippines within 30 days from the date of issuance.
Thus, the Philippines' initial success in diversifying rice supply makes Vietnamese rice increasingly competitive in this market.
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| To gain a foothold in the Philippine market for Vietnamese rice, exporting enterprises must invest in their image and improve the quality and reputation of their products. Illustrative photo |
Mr. Phung Van Thanh - Commercial Counselor of the Vietnamese Embassy in the Philippines recommends that in order for Vietnamese rice to gain a foothold in the Philippine market, domestic rice exporting enterprises must have good preparation and competitive strategies.
"First of all, we must invest in image and reputation to continue maintaining relationships with long-standing traditional customers and partners, and expand the search for new partners and importers" - Mr. Phung Van Thanh recommended and suggested that domestic export enterprises, in addition to promoting the export of goods, need to coordinate with the Ministry of Industry and Trade and the Vietnam Trade Office in the Philippines to implement programs to introduce and promote Vietnamese products and goods, including rice.
Mr. Nguyen Anh Son - Director of the Import-Export Department (Ministry of Industry and Trade) commented that in 2024, the export opportunities for the rice industry are huge, but opportunities always go hand in hand with challenges. In the context of the global rice trade market in 2024 still being hot and having many fluctuations, rice enterprises must closely follow the market and organize effective and sustainable business.
"Quickly grasping market information will help propose specific solutions and plans to support rice market development in 2024" - Director Nguyen Anh Son recommended and emphasized that the Ministry of Industry and Trade will coordinate with the Ministry of Agriculture and Rural Development to proactively negotiate to diversify export markets, taking advantage of opportunities to capture new and potential markets.
As of March 15, 2024, rice is one of the five export items of over 1 billion USD of the agricultural sector, when nearly 1.6 million tons were successfully sold, bringing in 1.06 billion USD.
While in the first quarter of last year, the rice industry exported nearly 1.85 million tons, but the value did not reach a billion USD, stopping at 981 million USD.
Obviously, thanks to the high export price, although the rice output sold is lower, the value earned from exports has increased significantly, at the same time showing that rice export activities continue to show many positive signs.
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