Trade imbalance highlighted in Marcos-Pham Minh Chinh talk
‘Our objective is to expand our bilateral trade which stands at just about $7 billion today and expand that to $10 billion by exploring untapped resources’
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Daily Tribune‘Our objective is to expand our bilateral trade which stands at just about $7 billion today and expand that to $10 billion by exploring untapped resources’
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During his talk with Vietnamese Prime Minister Pham Minh Chinh, President Ferdinand R. Marcos Jr. expressed his desire to streamline trade procedures, reduce barriers, and create a transparent business environment that fosters ‘fair competition and mutual growth.’
Philippine news agency
HANOI, Vietnam — President Ferdinand Marcos Jr. wants to explore the untapped resources and address trade imbalances between the Philippines and Vietnam as he aims to increase the trade volume from $7 billion to $10 billion.
During his call with Vietnamese Prime Minister Pham Minh Chinh here on Tuesday, Marcos stressed the importance of balancing the import-export ratio and highlighted the Regional Comprehensive Economic Partnership as a key driver for further growth.
“Our objective is to expand our bilateral trade which stands at just about $7 billion today to expand that to $10 billion by exploring untapped resources. In time, hopefully, the balance between our imports and exports will move to a more equitable ratio,” Marcos said.
Streamline trade procedures
Marcos also expressed his desire to streamline trade procedures, reduce barriers, and create a transparent business environment that fosters “fair competition and mutual growth.”
‘The Philippines is eager to work closely with Vietnam in streamlining our trade and investments procedures and requirements, minimizing trade barriers, and fostering a transparent and predictable business environment that encourages fair competition and mutual growth and development,’’ Marcos said.
In 2022, the Philippines and Vietnam engaged in total trade amounting to $6.18 billion, comprising exports worth $1.72 billion and imports totaling $4.46 billion.
Trade surplus
Vietnam enjoyed a trade surplus of $2.74 billion in this bilateral trade relationship.
The primary exports from the Philippines to Vietnam encompass electrical machinery and equipment with parts, copper and related articles, nuclear reactors, boilers, machinery, mechanical appliances, and their parts, plastics and associated articles, as well as fertilizers.
Conversely, the Philippines primarily imported cereals, electrical machinery and equipment with parts, iron and steel, salt, sulfur, earths, stone, plastering materials, lime, cement, and miscellaneous edible preparations from Vietnam.
Meanwhile, food security was another major point of discussion during Marcos’ meeting with the Vietnamese Prime Minister.
Marcos commended Vietnam’s willingness to support the Philippines’ rice needs, recognizing the importance of sustainable global supply chains in a post-pandemic world.
Agreement
Before Marcos had a meeting with the Vietnamese Prime Minister, Philippines and Vietnam entered into an agreement wherein Hanoi will import an annual supply of 1.5 million to 2 million metric tons (equivalent to 1.6 to 2.2 million US tons) of rice to Manila at reasonable prices.
Vietnamese rice holds a significant share, making up 85 percent of the imported rice in the Philippines. Both countries have agreed to establish a framework aimed at securing stable and consistent rice supplies.
This collaboration comes in response to the challenges faced last year, including a rice shortage exacerbated by climate change and the decision of some major producers to suspend exports, leading to a global surge in prices, affecting the Philippines as well.
