This agreement is considered by the Ministry of Industry and Trade to help maintain the position of the top rice exporter in the world.
The Ministry of Industry and Trade has announced that it has reached a major agreement on extending rice export to the Government level in the Philippines for 2 years, until 31/12/2018.
Under a government-level rice trade deal with the Philippines, Vietnam will provide up to 1.5 million tonnes of rice a year, ensuring its position as the top rice exporter in the world.
Therefore, the Ministry of Industry and Trade said that in the context of Vietnamese rice being under pressure of price and quality from traditional rivals (Thailand, India) as well as emerging competitors (Pakistan, Cambodia and Myanmar). The extension of rice exports to the Philippines will help Vietnam strengthen its position on the world rice trade map.
Only three countries, Cambodia, Thailand and Vietnam, have the right to export rice to the Philippines, which is mainly imported through government procurement (G-G).
According to this agreement, the two exporters of Vietnamese rice to the Philippines are still the Northern Food Corporation and the Southern Food Corporation. The first rice export offer will take place in January 2017.
From 2011 to 2015, the Philippines has always been Vietnam’s important rice export market. The amount of Vietnamese rice exported to the Philippines usually accounts for 17-20% of the total Vietnamese rice exported to the world.
Vietnam has always been an important and traditional partner in Philippine rice import operations. Every year, this country imports from 500,000 to nearly 1.5 million tons of rice from Vietnam depending on the production and temporary storage of the market.