The Philippine Department of Agriculture aims to improve contract reliability with Vietnamese rice suppliers amid deepening economic ties between Manila and Hanoi.
The Department of Agriculture (DA) of the Philippines has announced its intention to push for stronger enforcement of rice import contracts with Vietnamese suppliers. This comes as part of efforts to strengthen economic relations between the Philippines and Vietnam. Agriculture Secretary Francisco Tiu Laurel Jr. highlighted that enforcing contract terms more rigorously would help ensure greater predictability in agricultural trade between the two nations. A recurring issue has been that Vietnamese suppliers reportedly rescind contracts when rice prices increase, creating challenges for Philippine importers and policymakers.
Secretary Tiu Laurel further noted the Philippines’ aim to reduce the trade imbalance, which currently favors Vietnam, by increasing Filipino exports to Vietnam and addressing long-standing concerns related to the implementation of agricultural trade agreements, especially in the rice sector. Vietnam remains the Philippines’ largest source of imported rice, contributing to an estimated $2.7 billion trade deficit.
These matters are set to be discussed in upcoming bilateral talks, with both governments striving to make trade arrangements more reliable and efficient. Vietnam’s Industry and Trade Minister Le Manh Hung acknowledged these concerns and indicated that they would be escalated to Vietnam’s Ministry of Agriculture and Environment for further review. The DA also urged for the reinforcement of the technical mechanisms of the Joint Trade Committee and Joint Committee on Agriculture to address mutual concerns swiftly.
This announcement followed the declaration by Philippine President Ferdinand Marcos Jr. and Vietnamese President Tô Lâm on enhancing strategic economic and diplomatic relations, with ambitions to expand bilateral trade beyond the current $10 billion target.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/989880/da-rice-contract-enforcement-with-vietnamese-suppliers/story/