Source: Daibieunhandan.vn
Fierce competitive pressure
The Philippines has rice production, but annual output does not meet consumer demand, so it has to import rice from many countries, of which Vietnam holds the largest market share.
The Vietnam Trade Office in the Philippines cited statistics from the Plant Department, Ministry of Agriculture of the Philippines, showing that from January 1 to March 14, 2024, the country’s total rice imports were more than 886,900 tons, about 10.6 times higher. % compared to the total amount of rice imported in the first quarter of 2023. It is forecast that this year, this country will import about 3.8 – 4 million tons of rice.
Of the total amount of imported rice mentioned above, rice from Vietnam still accounts for the largest amount, with 493,900 tons, accounting for 55.7%. Next is rice imported from Thailand with more than 230,550 tons, accounting for 26%; Pakistan is 109,803 tons, accounting for 12.4%; Myanmar is 48,960 tons; Cambodia is 1,620 tons; Japan 1,800 tons; India 235.5 tons and from Italy 6.6 tons. This amount of rice was imported by 109 companies licensed to import by the Plant Department.
Notably, in just 14 days (from March 1 to March 14), the country’s Plant Department issued 424 quarantine certificates for customs clearance for 358,188 tons of imported rice. The amount of rice licensed for customs clearance must be imported into the Philippines within 30 days from the date of licensing.
According to the Trade Office, the above figures reflect the initial success of the Philippine Government in seeking to diversify rice supplies, reducing heavy dependence on Vietnamese rice in the context of geopolitical and economic fluctuations. instability in the world and policy changes of some major rice-producing countries, typically India’s ban on rice exports.
Diversifying the Philippines’ imported rice supply means it will create fiercer competition for Vietnamese rice exported to this market, especially with competitors from Thailand. As of March 7, 2024, Thai rice exported to the Philippines reached 210,127 tons, accounting for 26.47% of the market share and increasing compared to the same period in 2023. This is a warning signal for Vietnamese businesses in the Philippine market when Thai rice increases. market share, the Trade Agency stated.
Another difficulty that businesses exporting rice to the Philippines face is that this year, the country is forecast to reduce the amount of rice imported because of increased domestic supply.
The representative of the Vietnam Trade Office in the Philippines said that according to a report from the Agricultural Export Management Agency, the US Department of Agriculture, the amount of rice imported by the Philippines this year is at 4 million tons, 100,000 tons lower than expected. previously reported. The reason is that El Nino is forecast to decrease in April – May 2024, thereby helping the country’s rice production output reach 12.125 million tons this year.
Building image and reputation for Vietnamese rice
Despite many challenges, Vietnam’s rice exports in general and to the Philippine market still have optimistic signs. In just the first 2 months of this year, the General Department of Customs said that the country’s rice exports reached nearly 1.08 million tons, equivalent to over 735.58 million USD, with an average price of 684.2 USD/ton, respectively. increase 20.4% in volume, increase 55.7% in turnover and increase 29.4% in price compared to the same period in 2023. Of which, the largest export was to the Philippine market, with more than 500,000 tons, equivalent to 337 million USD, an increase of 24.4% in volume, an increase of 64.7% in turnover.
The Philippines is determined to remain the main export market for Vietnamese rice. Currently, Vietnamese rice also has many advantages in this market, such as appropriate quality and grade, meeting the diverse tastes and needs of consumers, especially the large population with middle and low incomes; Stable supply, geographical distance, cost and convenience in transportation, trust and long-term customer relationships.
In the context that Vietnamese rice is under fierce competitive pressure as the Philippines seeks to diversify its supply, The representative of the Vietnam Trade Office in the Philippines noted that businesses need to have good preparation and competitive strategies, first of all in terms of image and reputation to continue maintaining relationships with customers and media partners. system; Expand your search for new partners and importers. At the same time, businesses need to continue to coordinate with the Ministry of Industry and Trade and the Trade Agency to implement programs to introduce and promote Vietnamese products and commodities, including rice.
At a trade promotion conference with the theme “Assessing the export situation and orienting trade promotion to develop the rice market in 2024” recently held, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, Tran Quoc Toan confirmed that currently, rice export activities are still not diversified in terms of markets, depending on a number of key traditional markets such as the Philippines, Indonesia… Our country’s rice traders have not focused on developing links to build raw material areas as well as implementing solutions on traceability and building a data information base to meet the requirements of the import market.
Therefore, to make good use of opportunities to increase market share in countries with great potential, the Ministry of Industry and Trade will urgently review and complete the Decree amending and supplementing Decree No. 107/2018/ND-CP of the Government on rice export business to complete the legal corridor for the rice export mechanism; At the same time, coordinate with the Ministry of Foreign Affairs and the Ministry of Agriculture and Rural Development to proactively negotiate to diversify export markets. The Ministry will also strengthen trade promotion activities to promote cooperation in rice trade; exploit niche markets with fragrant rice and high quality rice, Mr. Toan informed.
