Việt Nam's garment and textile export to the Phillipines reaches $138.2 million in 2024. — VNA/VNS Photo

Việt Nam’s trade with the Philippines has reached an impressive milestone, with turnover exceeding US$8.6 billion in 2024, up 11 per cent year-on-year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.

Of note, Việt Nam shipped $6.19 billion worth of products to the archipelago nation for the first time, up 20.2 per cent from 2023, while recording a 6.7 per cent drop in imports to $2.47 billion. As a result, it enjoyed a trade surplus of $3.72 billion as compared to the set target of $3.5 billion.

Phùng Văn Thành, a trade counsellor at the Vietnamese Trade Office in the Philippines, noted that prior to the COVID-19 pandemic, bilateral trade had been relatively stagnant. However, recent strategic efforts in market promotion and increased awareness of market potential have transformed trade dynamics.

Rice emerged as a standout export commodity last year, accounting for over $2.6 billion, surging 48.9 per cent year-on-year. Other significant export categories included machinery, equipment and spare parts ($393 million), clinker and cement ($319 million), coffee ($288.5 million), telephones and components ($212.3 million), and transport vehicles and spare parts (over $200.4 million).

Experts said although the Philippines, boasting a developing economy and perse consumption demand, is an attractive destination for Vietnamese exporters, the shipment portfolio remains limited to 35 categories, with farm produce dominating. Additionally, competition pressure with such rivals as Thailand, China and India has also posed challenges to market entry.

They suggested Vietnamese firms persify their offerings, work to meet strict food safety and environmental regulations of the Philippines, and bolster promotion activities to expand market penetration. Besides, businesses should invest in technology, product innovation, and brand building to strengthen their market position and consumer trust in this market.