Opportunities for Vietnam to maintain stable rice export to Philippines
The Philippines’s lowering tariffs on imported rice would open up opportunities for Vietnam to maintain stable supply of the product for the country and helping it stabilise the domestic market, the Vietnamese Ministry of Industry and Trade said.
However, given the fierce price competition with traditional rice exporters like Thailand and India, the ministry urged domestic firms to foster cooperation and connectivity with cooperatives and major farming households to minimise intermediate stages, thus cutting costs and enhancing competitiveness.
At the same time, exporters should study and observe relevant regulations set by the Philippines, including those on customs declaration, the ministry said, noting that they should negotiate and sign contracts with only businesses that have been granted with the Sanitary Phytosanitary Import Clearance (SPS-IC) by the Philippine Department of Agriculture.
They also need to keep updated on the market, as the tariff cut under the Philippine President's order can be changed anytime, and draw up plans to prevent business risks, while stepping up inspections and supervisions over rice quality to absolutely ensure the prestige of Vietnamese rice, the ministry suggested.
Earlier, in an executive order, Philippines President Rodrigo Duterte cut the Most Favoured Nation (MFN) tariff rates on rice to 35% from 40% for in-quota purchases and 50% for out-quota volume for one year.
According to the General Department of Vietnam Customs, in the first four months of this year, Vietnam shipped over 715,000 tonnes of rice valued at some US$380 million to the Philippines, accounting for 36.27% of the total exported rice.