Hanoi – The Vietnam Food Association has urged the Ministry of Industry and Trade to respond to the Philippines’ decision to suspend rice imports for two months, a move that traders say could harm Vietnam’s rice industry. The Philippines is Vietnam’s largest rice buyer, and the halt is expected to significantly impact local production and export revenues.
Last week, Manila announced a 60-day suspension of rice imports starting September 1, citing the need to protect domestic farmers from falling prices during the harvest season. Vietnam, however, views the suspension as a critical setback.
“The Philippines is Vietnam’s largest rice export market, and the suspension would have significant impacts on rice production in Vietnam,” a trader with knowledge of the matter told Reuters.
According to customs data, Vietnam exported 2.44 million metric tons of rice to the Philippines in the first seven months of this year, representing 44.3% of its total rice shipments. In 2023, the Philippine market accounted for 46.7% of Vietnam’s exports, with shipments in September and October typically above average.
Earlier this year, the two countries signed a memorandum of understanding on rice trade. But with Philippine rice production surging 13.9% year-on-year in the second quarter, compared to just 0.3% in the first quarter, Manila moved to shield its farmers ahead of a bumper harvest.
Traders warn that the suspension will put additional downward pressure on Vietnam’s export prices. Vietnam’s 5% broken rice was offered at $395 per ton on Tuesday, nearly 30% lower than a year earlier.
“We fear that prices will fall further if there’s the suspension,” another Ho Chi Minh City-based trader said, adding that the situation could weigh heavily on both producers and exporters.
The Ministry of Industry and Trade has not yet commented on the association’s request, but industry voices stress the urgency of engaging with Manila to prevent further disruption in Vietnam’s top export market.
