Total import-export turnover between Vietnam and the Philippines in the first half of 2024 reached $4.21 billion

According to the Vietnam Trade  Office in the Philippines, in the first 6 months of 2024, total export turnover of Vietnam to the Philippines reached $2.93 billion, an increase of 17.6 per cent year on year.

Of which, rice continues to maintain its top position with an export value of $1.2 billion, an increase of 40.9 per cent year on year. Rice also accounts for 41 per cent of the total export value from Vietnam to the Philippines.

In addition, several commodities achieved export turnover exceeding $100 million, including machinery, equipment, tools, and spare parts at $175.2 million; clinker and cement at $171.1 million; coffee at $133.8 million; and various types of phones and components at $132.6 million.

Goods with export turnover ranging from $50 million to $100 million include vehicles and parts at $89.6 million; computers, electronic products, and components at $87.6 million; various types of steel at $62.6 million; textiles and garments at $60.6 million; and various types of footwear at $51.9 million.

Conversely, in the first six months of 2024, Vietnam's import turnover from the Philippines market reached nearly $1.28 billion, an increase of 19.5 per cent compared to the first half of 2023.

Major import items include computers, electronic products, and components at $779.2 million; machinery, equipment, tools, and spare parts at $132.3 million; various types of common metals at $103 million; and electric wires and cables at $48.7 million.

Thus, the total import-export turnover between Vietnam and the Philippines in the first half of 2024 reached $4.21 billion. It is therefore expected that the total import-export turnover between Vietnam and the Philippines in 2024 may reach between $8.1 billion and $8.3 billion, an increase of 3.9 per cent to 6.4 per cent compared to 2023.

In the near future, Vietnam's rice export to the Philippines is expected to continue to grow, in part due to Manila's new import tax reduction regulations.

In a meeting held in early June, the Philippine government announced it would reduce the import tax on rice from 35 per cent to 15 per cent from this year until 2028 to curb domestic inflation.

The decision was made after the 17th meeting of the National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand Marcos Jr. where a new Comprehensive Tariff Program was approved.

In a press briefing following this decision, Arsenio Balisacan, Secretary of the National Economic and Development Authority (NEDA) of the Philippines, stated that for rice, the most important item in the consumer basket of the Filipino people, the government have agreed to reduce the import tax from 35% to 15% from now until 2028.