In 2024, Vietnam's rice exports to the Philippines reached US$2.6 billion - Photo: baochinhphu.vn

Bilateral trade between Vietnam and the Philippines reached a record US$8.66 billion in 2024, according to the Vietnam Trade Office in the Philippines. With Vietnam’s exports amounting to US$6.19 billion, the country recorded a trade surplus of US$3.72 billion in 2024, exceeding the projected US$3.5 billion.

Rice remained a significant driver of this growth, accounting for over US$2.6 billion in exports. Other major Vietnamese exports to the Philippines included electronics, mobile phones, minerals, and steel, signalling further market expansion opportunities.

On average, Vietnam exports between US$5 billion and US$6 billion annually to the Philippines, representing a relatively modest portion of the latter’s total imports.

Challenges in expanding rice and agricultural exports

Despite the growing trade relationship, Vietnamese rice and other agricultural products face stiff competition in the Philippines. Filipino consumers often favour imports from the US, Europe, the Republic of Korea, and Japan, perceiving them as superior in design and quality.

Vietnamese goods also have to compete with products from China and other ASEAN countries, particularly Indonesia and Thailand.

“The strong Chinese business community in the Philippines has facilitated the deep penetration of affordable yet quality-controlled Chinese products. This creates challenges for imports from other countries, including Vietnam,” the Vietnam Trade Office noted.

Additionally, the Philippines has yet to fully open its market to certain Vietnamese goods, including fresh fruits, vegetables, fresh meat, and flowers. Complex import regulations further hinder market access for these products.

Ensuring Vietnam’s leading role in rice exports

Looking ahead, rice is expected to remain Vietnam’s leading export to the Philippines. Other promising products include coffee, cashew nuts, seafood, mobile phones, and electronic components.

“To maintain and accelerate export growth, Vietnam’s primary goal is to solidify its position as the leading rice exporter to the Philippines,” the Vietnam Trade Office stated.

Vietnamese businesses are encouraged to diversify their product offerings and enhance the quality of processed and industrial goods. Expanding into high-tech sectors and boosting exports in these categories are key priorities.

The Vietnam Trade Office also emphasized the need for government support in strengthening trade relations and advocating for improved market access, particularly for agricultural and seafood products.

Furthermore, Vietnamese businesses should focus on building trust with partners, improving product quality, and actively participating in trade fairs and exhibitions in both Vietnam and the Philippines to enhance their market presence.