Vietnam’s rice to remain Philippines' main import source

Vietnamese rice will continue to be the primary import source of the Philippines in 2025 and beyond, according to Mr. Phung Van Thanh, Commercial Counselor at the Vietnam Trade Office in the Philippines.

In 2025, the Philippines' demand for imported rice is expected to remain high, projected at approximately 4.92 million tons, with the possibility of surpassing 5 million tons.

Policy measures implemented by the Philippine government to reduce retail rice prices may introduce uncertainty or lead to lower-than-expected profit margins for rice importers, potentially affecting Vietnam's exports. However, in reality, the Philippines' reliance on imported rice is unlikely to decrease in the near future. The country faces limitations in significantly expanding domestic paddy production within a short timeframe to meet growing demand.

According to Mr. Thanh, compared to other rice-exporting countries such as India, Pakistan, Thailand, and Japan, Vietnam retains a competitive edge in the Philippine market. Whether by necessity or strategic choice, the Philippines will continue to depend on Vietnam's rice supply in the foreseeable future.

Recent data from the Vietnam Trade Office in the Philippines indicates that Vietnam holds a dominant share in the Philippines's rice market, ranging from 80% to 85%. Thailand accounts for approximately 10%, while the remainder is sourced from India, Pakistan, Bangladesh, Japan, and other nations.

Nonetheless, the possibility of the Philippines diversifying its supply sources to reduce its reliance on Vietnam cannot be ruled out.

"Therefore, while exploring new opportunities in emerging markets, Vietnamese rice-exporting businesses must also prioritize securing and maintaining Vietnam's leading position in the Philippine rice market," Mr. Thanh emphasized.

To strengthen Vietnam's presence in the Philippine market, rice exporters from Vietnam should continue collaborating with the Ministry of Industry and Trade and the Vietnam Trade Office in the Philippines. Efforts should focus on promotional programs, communication strategies, and advertising campaigns to enhance the visibility and competitiveness of Vietnamese rice.