Despite earlier forecasts, the Philippines is importing large quantities of Vietnamese rice

According to the Asia-Africa Market Department under the Ministry of Industry and Trade, the Philippine Statistics Authority reported that the Philippines imported 1.5 million tons of rice from Vietnam during the first five months of 2023. This sum accounts for 89.6% of the total 1.62 million tons of rice that are imported into the country. As a result, Vietnam continues to be the largest rice supplier to the Philippines.

Despite earlier forecasts that the Philippines could cut back on rice imports in 2023 due to high prices and the government's emphasis on developing domestic production to achieve food self-sufficiency, the country continues to have a strong domestic consumption demand.

On the other hand, the Philippines increased its imports of rice to restock the national rice reserve in preparation for the weather instability brought on by the El Nino phenomenon, which include drought and heatwaves that might severely can food production. According to the Philippine Statistics Authority, the country's rice imports in the first five months of 2023 increased by nearly 7.7% over the same period in 2022.

The Philippines is also continuing to be the largest market for Vietnamese rice. The General Department of Vietnam Customs reported that during the first five months of 2023, rice exports to the Philippines reached 1.53 million tons, which is valued at 772 million USD. This is an increase of 21% in volume and 31% in turnover compared to the first five months of 2022. Accordingly, the Philippines accounted for 42% of the total volume and 40% of the total export turnover of Vietnam's rice in the first five months of 2023.

According to the Asia-Africa Market Department, the strong growth in rice exports to the Philippines has helped Vietnam's overall export to the Philippines maintain a positive growth in the first five months of 2023 despite the steady decline in exports of other commodities.

In addition to market factors, the Government and the Ministry of Industry and Trade have been actively promoting rice trade cooperation with the Philippines for many years, and their efforts have played a significant part in assisting Vietnamese rice in maintaining its dominant position in this traditional market. Through multiple exchanges at Governmental and ministerial levels, Vietnam has repeatedly affirmed its intention of supplying a stable source of rice to the Philippines. Subsequently, the export of rice will contribute to ensuring food security for the Philippines, especially during pandemics and natural disasters.

The Ministry of Industry and Trade, the Vietnam Trade Office in the Philippines, the Vietnam Food Association and rice export businesses have coordinated regularly and effectively over the past few years to resolve difficulties as well as organize various trade promotion activities.

The Asia-Africa Market Department forecasts that for the rest of 2023 and early 2024, the Philippines' rice consumption and import demand will continue to climb. In addition to the Philippines, El Nino is forcing many countries to increase their food reserves, thereby raising the global rice prices in the immediate future.

Long An Provincial People's Committee has registered to participate in the Project on sustainable development of one million hectares of high-quality specialized rice in association with green growth in the Mekong Delta region. The province will contribute 120.000 hectares of agricultural land to the Project by 2030.

According to Mr. Nguyen Thanh Truyen, Director of Long An province's Department of Agriculture and Rural Development, the province's rice production area reaches over 500,000 hectares every year. Accordingly, the province has a total output of nearly 2.8 million tons, and a yield between 6.5 and 7 tons per hectare. In recent years, Long An province has gradually shifted from low to high quality rice varieties such as OM5451, OM18, Jasmin 85, RVT, Dai Thom 8, ST24, ST25 among others. High quality rice accounts for over 90% of the total rice production area in the province, which meets the market demand.

Mr. Truyen emphasized that the project of one million hectares of high-quality specialized rice is not only aimed at boosting economic efficiency, ensuring food security, and creating higher incomes for farmers, but it also ensures many new goals such as adapting to climate change, and reducing the amount of methane gas caused by rice farming. Moreover, the project will contribute to transforming Vietnamese farmers' production mindset towards quality, added value and sustainable agriculture for the Mekong Delta as well as Long An province.