Philippines seals five-year Vietnam rice supply deal

THE PHILIPPINES and Vietnam sealed several deals on Tuesday including one that will ensure steady supply of Vietnamese rice to its Southeast Asian neighbor, where prices of the food staple have spiraled in recent months.

At the same time, Manila expressed commitment to boost its trade with Hanoi by at least $3 billion.

Under a memorandum of understanding ( MoU) signed during President Ferdinand R. Marcos, Jr.’s two-day state visit to Vietnam, Hanoi committed to supply 1.5 million to 2 million metric tons of white rice to the Philippines “at a competitive and affordable price” for five years, Malacañang said in a statement.

The deal was signed by Philippine Agriculture Secretary Francisco Tiu Laurel, Jr. and his Vietnamese counterpart.

“The MoU on Rice Trade Cooperation creates a framework for rice cooperation between the Philippines and Vietnam to ensure and establish sustainable food supply amidst the impact of climate change, pandemics, and other events external to both countries,” the Palace said.

The Philippines and Vietnam also signed a MoU on agriculture cooperation, which will intensify their ties “in the fields of agriculture, rural development, and other related fields” and facilitate over a dozen areas of cooperation including on high-value crops, livestock, and aquaculture, farm management and sustainability, smart agriculture and aquaculture technology, it added.

The deal would also facilitate training and exchange of agriculture experts.

Mr. Marcos and Vietnamese Prime Minister Pham Minh Chinh first discussed the rice deal during their bilateral meeting on the sidelines of the 43rd Association of Southeast Asian Nations (ASEAN) Summit in Jakarta, Indonesia in September last year.

“I appreciate Vietnam’s readiness to support the Philippines’ rice requirements. Especially coming from the pandemic, we recognize the importance of food security and sustainable global supply chains,” Mr. Marcos told Mr. Pham at their bilateral meeting on Tuesday.

He said the two countries should find more opportunities in their trade, especially under the Regional Comprehensive Economic Partnership (RCEP) which is touted as the world’s largest free-trade agreement.

“The Philippines is committed to enhancing and fortifying our economic, trade, and investment ties with Vietnam,” he said, noting that his country seeks to expand its bilateral trade with Vietnam, which stands at just about $7 billion today, to $10 billion “by exploring untapped resources.”

“And in time hopefully the balance between our imports and exports will move to a more equitable ratio,” he added.

Vietnam is the Philippines’ 11th largest trade partner, and the 5th largest trade partner among its Southeast Asian neighbors.