HCMC – Vietnamese rice exporters are poised for increased opportunities in the second half of 2024, as the Philippines is expected to sustain its robust demand for rice imports.
According to the Ministry of Industry and Trade, the Philippines imported 2.3 million tons of rice in the first half of the year. This volume is anticipated to continue in the coming months, offering significant prospects for Vietnamese exporters.
As a major rice consumer and one of the world’s top importers, the Philippines has consistently shown high import volumes. In 2022, it set a record by importing 3.82 million tons of rice. Although imports decreased by 5.9% to 3.6 million tons in 2023, they are projected to reach up to 4.5 million tons this year, exceeding earlier forecasts.
A key development in June 2024 was President Ferdinand R. Marcos Jr.’s signing of Executive Order No. 62, which reduced import tariffs on various goods, including rice, from 35% to 15% until 2028. This move is expected to lower rice prices by approximately 6-7 pesos per kilogram, thereby boosting domestic consumption, as reported by the Vietnam Trade Office in the Philippines.
Data from the Philippine Bureau of Plant Industry indicates that rice imports in the first half of 2024 surged nearly 25% to 2.32 million tons, up from 1.86 million tons during the same period in 2023. This increase supports projections that the Philippines could import up to 4.7 million tons of rice this year, driven by insufficient domestic production to meet local demand, according to the Vietnam Food Association (VFA) and data from the U.S. Department of Agriculture (USDA).
Vietnam’s total rice exports in the first half of 2024 reached nearly 4.55 million tons, valued at around US$2.9 billion, marking a 7.43% increase in volume and over 28% in value compared to the previous year. Notably, four of the top ten markets for Vietnamese rice exports in June were Southeast Asian countries: Malaysia, the Philippines, Indonesia, and Singapore.
Vietnam’s rice exports to the Philippines amounted to 1.72 million tons in the first six months of 2024, according to the Philippine Bureau of Plant Industry.
