The Vietnam Trade Office in the Philippines said that the Philippines is a major rice consumer and one of the leading rice importers in the world. In recent years, the Philippines' annual rice imports have always been high, reaching a record 3.82 million tons in 2022. In 2023, the country's total rice imports will reach 3.6 million tons, down 5.9% compared to 2022.
In June 2024, President Ferdinand R. Marcos Jr. signed Executive Order No. 62 adjusting import tariffs on many items, including rice, from 35% to 15% with an effective period until 2028. This is expected to help reduce rice prices in the market by about 6-7 pesos/kg, increasing domestic demand for rice.
According to statistics from the Bureau of Crops - Department of Agriculture of the Philippines, if in the first 6 months of 2023, the total amount of rice imported by the Philippines reached 1.86 million tons, then in the first 6 months of 2024, this figure was 2.32 million tons, an increase of 24.7%. This allows forecasting that the total amount of rice imported by the Philippines in 2024 could reach over 4 million tons, even up to 4.5 million tons, higher than the previous forecast of about 4 million tons.
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| The Philippines' rice imports in 2024 could reach over 4 million tons, even up to 4.5 million tons. |
Also according to the Department of Crops, in the first 6 months of 2024, the Philippines imported 1.72 million tons of rice from Vietnam. Followed by Thailand with a volume of 352,331 tons.
According to statistics from the Vietnam Trade Office in the Philippines, the Philippines' annual domestic rice consumption demand is from about 14.5 million to 15 million tons. The minimum reserve requirement to ensure enough food for 30 days to ensure domestic food security in the Philippines is about 1.2 million tons. Therefore, the total annual rice demand of the Philippines is about 15.5 to 17 million tons. Meanwhile, according to statistics from the Rice Association and the Philippine Department of Agriculture, the Philippines' domestic rice production in 2022 will reach about 19.75 million tons, equivalent to about 12.74 million tons of rice. In 2023, the Philippines' domestic rice production will reach over 20 million tons for the first time (specifically 20.06 million tons).
Domestic production cannot meet demand, so the Philippines has to import about 3 million to 4 million tons of rice every year. Since 2019, when the Philippines issued and implemented Law No. 11203 allowing free import and export and trade of rice, removing quotas and restrictions on rice imports, Vietnam has surpassed Thailand to become an important rice supplier, always holding the No. 1 position in rice exports to the Philippine market.
Mr. Phung Van Thanh - Trade Counselor of the Vietnam Trade Office in the Philippines market said that Vietnamese rice has moderate quality, suitable for the tastes and consumption habits and meets the diverse needs of the Filipino people, from the large population with low and middle income to the wealthy class, affordable prices so it is competitive. Not only that, the supply of Vietnamese rice is stable in both quantity and price, can meet the annual import demand of the Philippines. The geographical distance is close so the cost is low and convenient in transportation.
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); Regional Comprehensive Economic Partnership Agreement (RCEP)... while the Philippines' non-ASEAN partners (such as India and Pakistan) do not have them.
In order to sustainably export Vietnamese rice to the Philippine market, Mr. Phung Van Thanh recommends that domestic rice exporting enterprises, in addition to approaching new markets, must always pay attention to maintaining Vietnam's No. 1 position in rice exports in the Philippine market. Because currently, Thailand is also looking for ways to increase output and market share of rice exports to the Philippines and compete with Vietnamese rice.
On the other hand, Vietnamese rice exporting enterprises need to continue to coordinate well with the Ministry of Industry and Trade, the Embassy and the Trade Office of Vietnam in the Philippines to implement programs to promote, disseminate and advertise Vietnamese rice products. Continue to maintain and ensure stable rice quality, constantly improve the quality of exported rice products, thereby contributing to increasing the export value of Vietnam's rice products to the Philippine market.
Mr. Phung Van Thanh also noted that businesses need to diversify their rice export products, not only focusing too much on high-quality rice products serving high-income people, but also need to exploit the potential of medium-quality and lower-quality rice to serve a large number of people with middle and low incomes.
Source: https://congthuong.vn/philippines-co-the-nhap-khau-45-trieu-tan-gao-viet-nam-them-du-dia-xuat-khau-332631.html
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