Philippines reduces rice import tax, creates export opportunities for Vietnam
Philippines’ Decree No. 62, signed by President Ferdinand R. Marcos Jr., slashes rice import taxes from 35% to 15% starting August 2024 until 2028. Aimed at curbing inflation, particularly rising rice prices, this move is pivotal as rice constitutes 9% of the consumer price index. Vietnam, already the major rice supplier to the Philippines with 80% market share, expects enhanced export prospects. Vietnamese rice varieties DT8 and 5451 are popular, solidifying Vietnam’s dominance in Manila and southern provinces.
A new decree issued by the Philippines that cuts rice import tax to 15% is expected to increase export opportunities for Vietnam.
Decree No. 62, signed by Philippine President Ferdinand R. Marcos, Jr., cuts import taxes on many products and commodities including rice, the Vietnam Trade Office in the Philippines said last Thursday.
It said the import tax on rice will be cut from 35% to 15%, effective from early August 2024 until 2028, the office said.
The tax cut is the latest move by the Philippines to deal with inflation, especially rice prices, which have been increasing steadily since the beginning of the year.
However, the Philippine economy was relatively stable in the first quarter of the year except for the increase in prices of some essential consumer goods, especially rice, by about 24.4%. Rice prices account for about 9% of the Philippines’ consumer price index.
Vietnam has been the largest rice supplier to the Philippine market in recent years, accounting for over 80% of total imports, according to the Vietnam Food Association.
From January 1 to May 23, Vietnam exported 1.44 million tons of rice to the Philippines, accounting for 72.9% of its total rice imports, according to an official Philippines agency.
Leaders of the Phuoc Thanh IV Production and Trading Ltd. have said that the Philippine market is quite fond of Vietnamese rice varieties DT8 and 5451.
Currently, Vietnamese rice dominates the market in Manila and the southern provinces because locals consider it delicious and reasonably priced.
Experts and industry insiders say that the reduction in import taxes will create more advantages and increase opportunities for Vietnamese rice to enter the Philippines market later this year.
Source Link : https://theinvestor.vn/philippines-reduces-rice-import-tax-creates-export-opportunities-for-vietnam-d10867.html
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