Philippines spends $1.2B on Vietnamese rice in H1
In the first half of 2024, Vietnamese rice emerged as the top export to the Philippines, generating $1.2 billion—41% more than last year. With the Philippines lowering rice import tax from 35% to 15% and increasing import volume, opportunities for Vietnamese rice are promising. Despite high input costs and potential storm impacts, the Vietnam Trade Office advises businesses to balance costs and enhance competitiveness through trade promotions and quality improvements. Last year, Vietnam’s rice exports to the Philippines were 3 million tons, up 17.6% in value despite a 3% volume decrease.
Rice was the Vietnamese product with the highest export value to Philippines in the first six months of 2024, with a turnover of $1.2 billion, up 41% over the same period last year.
Vietnamese rice has been leading the market in the Philippines, Vietnam’s largest rice export partner for many years, according to data from the Vietnam Trade Office in the Philippines.
In June, the Philippines reduced rice import tax from 35% to 15% until 2028, and is expected to increase import volume from 4 million to 4.5 million tons. This is deemed a great opportunity for Vietnamese rice in the second half of the year.
However, although rice export opportunities are expanding, many businesses are still cautious due to high input prices and the impact of storms that could reduce rice supply at the end of the year.
The Vietnam Trade Office in the Philippines recommends that businesses need to balance costs to offer competitive prices and maintain market share. At the same time, the Ministry of Industry and Trade, the Embassy and the Vietnam Trade Office will also support businesses in trade promotion activities, advertising and improving product quality to increase export value, it said.
Last year, Vietnam exported more than 3 million tons of rice to the Philippines, down 3% compared to 2022. However, thanks to the increase in prices, export turnover reached $1.75 billion, up 17.6% compared to the previous year.
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