Philippines seeks fairer rice trade with Vietnam

The Philippines is pushing for stronger safeguards in its rice trade with Vietnam as the two countries move to expand bilateral commerce to $20 billion, amid concerns over contract reliability and a widening trade imbalance.

Agriculture Secretary Francisco Tiu Laurel Jr. said Manila is seeking more predictable trading arrangements with its largest rice supplier while exploring ways to increase Philippine exports to Vietnam and narrow a trade deficit estimated at $2.7 billion.

The issue surfaced during discussions between Philippine and Vietnamese officials following the commitment of President Ferdinand Marcos Jr. and Vietnamese President Tô Lâm to raise bilateral trade from the current $15 billion level.

“One of the major issues is that when prices go up, the Vietnamese side normally rescinds the contract,” Tiu Laurel said, referring to concerns repeatedly raised by Philippine rice importers.

The agriculture chief said the government intends to raise the issue in future bilateral meetings as both countries work toward a more stable and dependable agricultural trading relationship.

Vietnamese Industry and Trade Minister Le Manh Hung acknowledged the concern and assured Philippine officials that the matter would be elevated to Vietnam’s Ministry of Agriculture and Environment for further discussion.

Beyond trade volume targets, the Philippines is seeking to strengthen the technical mechanisms of the Joint Trade Committee and the Joint Committee on Agriculture to address longstanding concerns affecting agricultural commerce between the two countries.

Tiu Laurel said both governments have been directed by their respective leaders to convene the committees this year to tackle trade issues and improve coordination.

The talks also covered preparations for an upcoming European Union audit in September, with Philippine officials emphasizing the need for closer cooperation to facilitate agricultural trade and improve compliance with international standards.

Vietnam remains the Philippines’ largest source of imported rice and a key partner in regional food security initiatives. However, Philippine officials are looking to build a more balanced economic relationship by expanding export opportunities while securing more reliable supply arrangements.