The Philippines Is Vietnam's Largest Rice Export Market

 The Philippines Is Vietnam's Largest Rice Export Market

August 19, 2022

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By the end of June 2022, Vietnam exported 1.62 million tons of rice to the Philippines, earning 759.10 million USD, up 48.64% in volume and 30.92% in value, accounting for 49.89 % of total rice exports nationwide…

According to statistics from the Ministry of Industry and Trade, in 2021, Vietnam's rice exports to the Philippines will reach 2.45 million tons, with a turnover of over 1.25 billion USD, up 10.7% in volume, up 18.5% in turnover and increased 7.1% in price compared to 2020, accounting for 39.4% of the overall volume and 38% of the whole rice export turnover of the country.

In the half-moon of 2022, the Philippines continued to guide Vietnam's rice consumption, accounting for 44.7% of the overall volume and 42.6% of the country's total rice export turnover, reaching 672,136 tons, cherish 311 .08 million USD, the common price was 462.8 USD/ton, a pointy increase of 63.3% in volume, up 41.4% in turnover.

By the tip of June 2022, Vietnam exported 1.62 million heaps of rice to the present country, earning 759.10 million USD, up 48.64% in volume and 30.92% in value, accounting for 49.89 you look after total rice exports nationwide.

Rice exported to the Philippines is principally rice of normal grade, broken by 20-25%, competing mainly on price. In 2021, the Philippines imported 3 main rice products from Vietnam, namely HS 100630, 100640 and 100610. Of which, HS code 100630 ranked first in terms of turnover, reaching US$931.23 million, accounting for 86% of the full rice imports of the Philippines.

Outlook for rice exports within the near future, Viet Rong Securities Company (VDSC) forecasts that Vietnam's rice export output will still increase, when the demand for rice from the Philippines is increasing.

Besides, rice production within the Philippines is forecast to be flat (up 2% y/y) which has boosted import activities. Therefore, with a share of over 80% of the overall market share of rice exports to the Philippines within the period of 2021-2022, Vietnamese rice will benefit.

According to estimates by the US Department of Agriculture, within the 2022-2023 crop year, the Philippines will consume 15.35 million tons, up from the estimated 15.2 million tons within the 2021-2022 season.

In particular, recently the Philippine government announced that, so as to curb inflation, the country decided to increase the reduction of rice import charge per unit for countries outside geographic region with the rate of 35% (compared to the tax rate of 35%). with the previous level of 40-50%) until the top of 2022.

Therefore, so as to seize this chance, the Ministry of Industry and Trade recommends that Vietnamese rice enterprises must strengthen cooperation and association with cooperatives and enormous farming households in key rice production areas. , minimizing intermediaries at both input and output to assist reduce costs, thereby improving the competitiveness of Vietnamese rice exports.

In addition, Vietnamese rice exporters must actively learn and strictly adjust to the Philippine regulations on rice imports. Specifically, special attention is paid to the regulations on honest customs declaration.

At the identical time, only negotiate and sign contracts with Filipino traders who are licensed by the Philippine Department of Agriculture.

Vietnamese rice exporters have to closely monitor the tax reduction adjustment situation of the Philippines, fully assess policy risks to develop appropriate transaction plans, sign and implement contracts.

In addition, the rice industry must concentrate on trade policies with countries within the region, taking full advantage of the benefits of FTAs ​​between ASEAN and partners within the world. still improve the technology level to extend the competitiveness of products and restructure products, increasing the competitive advantage of Vietnam.