The Philippines’s move to lower tariffs on imported rice will open opportunities for Việt Nam to maintain stable supply of the product for the country and helpnbsp;it stabilise the domestic market, the Vietnamese Ministry of Industry and Trade has said.

In the first four months of this year, Việt Nam shipped more than 715,000 tonnes
of rice valued at some US$380 million to the Philippines, accounting for 36.27 per cent
of total rice exports. — Photo vov.vn

The Philippines’s move to lower tariffs on imported rice will open opportunities for Việt Nam to maintain stable supply of the product for the country and help it stabilise the domestic market, the Vietnamese Ministry of Industry and Trade has said.

However, given fierce price competition with traditional rice exporters like Thailand and India, the ministry urged domestic firms to foster co-operation and connectivity with co-operatives and major farming households to minimise intermediate stages, thus cutting costs and enhancing competitiveness.

At the same time, exporters should study and observe regulations set by the Philippines, including those on customs declaration, the ministry said, noting that they should negotiate and sign contracts with only businesses that have been granted with the Sanitary Phytosanitary Import Clearance (SPS-IC) by the Philippine Department of Agriculture.

They also need to keep updated on the market, as the tariff cut under the Philippine President's order can be changed anytime, and draw up plans to prevent business risks, while stepping up inspections and supervisions over rice quality to ensure the prestige of Vietnamese rice, the ministry suggested.

Earlier, in an executive order, Philippines President Rodrigo Duterte cut the Most Favoured Nation (MFN) tariff rates on rice to 35 per cent from 40 per cent for in-quota purchases and 50 per cent for out-quota volume for one year.

According to the General Department of Việt Nam Customs, in the first four months of this year, Việt Nam shipped more than 715,000 tonnes of rice valued at some US$380 million to the Philippines, accounting for 36.27 per cent of total rice exports. — VNS