According to the report of the Agricultural Export Administration - 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 domestic rice production of the Philippines 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, the country imported a total of more than 793,753 tons of rice.

As usual, Vietnamese rice accounted for the majority, with a volume of nearly 431,850 tons, accounting for 54.4% of the total import volume of the Philippines. Next was 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 as Thai goods begin to increase their market share in this market.

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.

The US Department of Agriculture forecasts Philippine rice production to reach 12.13 million tons due to the possibility of El Nino reducing in April and May 2024, 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 assistance to rice farmers nationwide. This is significantly higher than the P15.8 billion in support for rice farmers in 2022.

With increased government support, the country’s rice productivity and output are also on the rise. In 2023, the Philippines’ rice production is expected to surpass 20 million tons for the first time, up 1.5% from 2022.

Previously, Mr. Phung Van Thanh - Vietnamese Trade Counselor in the Philippines, commented that there is still room and opportunity for Vietnamese rice exporting enterprises to continue to exploit and expand the market, increasing export turnover to the Philippines.

However, he also warned that Thailand is looking to increase production and market share of rice exports to the Philippines and compete with Vietnamese rice.

Therefore, rice exporting enterprises need to continue to coordinate with ministries and branches to implement programs to promote, publicize and advertise Vietnamese rice products. In addition, it is necessary to diversify products, not focusing too much on high-quality rice but exploiting medium-quality rice to serve the large number of people with low and middle incomes.

Under Executive Order No. 50 signed by President Ferdinand R. Marcos Jr., rice imported into the Philippines from all countries is subject to a 35% import tax - effective until the end of 2024.

Data from the Vietnam Food Association shows that since the beginning of the year, our country's rice export prices have fluctuated in a downward direction.

As of March 27, the export prices of 5% broken rice and 25% broken rice from Vietnam decreased to 582 USD/ton and 558 USD/ton, respectively. Meanwhile, the prices of the same type of rice from Thailand were 599 USD/ton and 551 USD/ton, respectively.

Although rice export prices have dropped sharply, preliminary statistics from the General Department of Customs show that Vietnam's rice export turnover has exceeded the 1 billion USD mark as of March 15. The rice industry aims to export about 8 million tons this year, with an estimated turnover of 5 billion USD.

After more than half a year of "booming", Vietnamese rice prices have plummeted. Rice prices have cooled down after more than half a year of "booming". The price of this commodity has plummeted, despite the fact that demand in some countries is still very high.