Opportunities and challenges

Vietnam’s annual export turnover to the Philippines ranges from US$5 billion to US$6 billion, accounting for only a modest share of the country’s total imports. The Philippines’ primary imported goods, including electronics, mobile phones, minerals, vehicles, mechanical tools, industrial equipment, and steel, are also among Vietnam's key export products. This presents significant opportunities for Vietnam to further tap into and expand its market share in these sectors.

According to Vietnamese Trade Counselor in the Philippines Phung Van Thanh, the country’s population of nearly 120 million and annual GDP exceeding US$400 billion drive strong demand for diverse consumer goods, while domestic production remains limited and heavily reliant on imports. With additional advantages such as geographic proximity and logistical convenience, the Philippines holds great potential for Vietnamese exports. Its large trade deficit also creates favorable conditions for Vietnam’s goods to enter the market.

However, the Philippines is not without challenges. Phung Van Thanh notes that the market poses significant risks, requiring Vietnamese businesses to adopt persistent, well-planned marketing and market penetration strategies.

Key obstacles include consumer preferences for imports from the Republic of Korea, Japan, the US, and Europe, as well as fierce competition from China, Indonesia, and Thailand. Additionally, complex import procedures, inconsistent trade policies, and technical barriers such as safeguard duties add to the difficulties Vietnamese exporters face.

Promising export products

In 2024, several of Vietnam’s key export sectors to the Philippines saw impressive growth, most notably rice (over US$2.6 billion), followed by machinery, equipment, cement, coffee, mobile phones, electronic components, garments and textiles, seafood, and footwear.

Looking ahead to 2025 and beyond, rice is expected to remain the leading export product, alongside coffee, cashew nuts, seafood, textiles, machinery, electronic components, transportation equipment, cement, and chemicals.

Notably, Vingroup’s recent focus on the Philippine market alongside its investments in pharmaceuticals, labor protection, and healthcare is opening up new avenues for trade.

Additionally, previously challenging-to-export products such as labor protection equipment, medical supplies, pharmaceuticals, veterinary medicine, and vaccines have started to gain market traction.

Strategies for overcoming barriers

The positive export growth in 2024 has provided a strong foundation for Vietnam to expand its presence in the Philippines. To capitalize on these opportunities, Vietnamese businesses need to stay informed about market trends and regulations, enhance product quality to meet international standards, optimize logistics for cost-effective distribution, and step up trade promotion efforts to increase brand awareness.

At the policy level, the government should accelerate bilateral trade agreements to create more favorable conditions for Vietnamese enterprises.

Apart from increasing export volume, Vietnam also aims to diversify its product portfolio, particularly in processed goods, manufacturing, and high-tech industries. The long-term goal is to strike a balance between agricultural exports and industrial, high-tech products.

Trade Counselor Phung Van Thanh says that maintaining Vietnam’s leading position in rice exports to the Philippines remains a top priority, as rice is the country’s top export to this market. However, sustained cooperation among government agencies, industry associations, and businesses is essential to maintain and further strengthen this momentum.

Nine-month rice exports to Philippines hit nearly US$2 billion

VOV.VN - Vietnam earned nearly US$2 billion from exporting rice to the Philippines market during the past nine months of the year, making up 42.86% of the country's total rice export turnover, according to the Vietnamese Trade Office in the Philippines.