Vietnam has 35 products and industries exported to the Philippines
Commercial Counselor, Vietnamese Embassy in the Philippines Phung Van Thanh said that the Philippine market is not too demanding or too strict in consuming all kinds of goods and services. Domestic consumer demand for goods and services is large but depends heavily on imported products.
Top major exporting countries to the Philippine market include China, Korea, Japan, Indonesia and the US. Vietnam ranked last in the list of the Philippines' 10 largest trading partners. Key exported items into the Philippine market include electronic products, minerals, vehicles, industrial tools and all kinds of iron and steel.
The Philippines' export products are mainly agricultural products, of which the main export products are: Coconut oil and coconut products, fresh bananas, mangoes, chemical products and mining. Processed products and high-tech products for export are still very limited.
From above characteristics, along with other factors such as geographical distance, similarities in consumer culture... Commercial Counselor Phung Van Thanh commented that the Philippines has become a market with great potential for Vietnam's export products.
Also according to Counselor Phung Van Thanh, there are about 35 Vietnamese products/industries exported to the Philippines, including important products/industries such as: Agricultural products, seafood, confectionery, animal feed, cement, iron and steel, construction materials, textiles, machinery, equipment... Among them, agricultural products, especially rice, always account for a large proportion of Vietnam's export structure to the Philippines. In recent years, Vietnam has had a trade surplus with the Philippine market.
Despite being affected by the Covid-19 epidemic, in 2022, total two-way import-export turnover between Vietnam and the Philippines still reached over 7.8 billion USD, an increase of more than 14.7% compared to 2021. Of which, Vietnam's export turnover to the Philippine market reached over 5.1 billion USD, an increase of 11.6% and import turnover reached over 2.7 billion USD, an increase of 12.8%.
Rice is Vietnam's main export product to the Philippine market, with export volume and turnover in 2022 reaching over 3.2 million tons and nearly 1.5 billion USD, respectively, accounting for about 85% of the total import rice volume of Philippine. In 2022, rice exported to the Philippine market accounts for 45% in volume and about 43% in turnover of Vietnam's total rice export volume and turnover.
In 2023, Vietnam's rice export turnover to the Philippine market continues to make its mark when it reaches 1.75 billion USD, an increase of 17.6% compared to 2022, the amount of rice exported reaches 3.1 million tons, a decrease 2% compared to 2022. However, Vietnamese rice still accounts for over 80% of the Philippines' total rice imports.
The above figure has contributed to raising the total import-export turnover between Vietnam and the Philippines in 2023 to 7.8 billion USD, equivalent to 2022, of which exports reached 5.15 billion USD, up 1% over the year. In 2022, imports reach 2.65 billion USD, down 2% compared to 2022. Trade surplus to the Philippine market in 2023 reaches 2.5 billion USD, up 4.2% compared to 2022.
Diversify products and promote exports
According to Counselor Pham Van Thanh, the Philippine market space is still large for Vietnam to further exploit. Vietnamese exporters need to keep the Philippine market while expanding new markets. To promote export of goods to the Philippine market, Trade Counselor Phung Van Thanh proposed goals and directions to exploit this potential market, specifically:
Firstly, continue to consolidate and maintain Vietnam's number 1 position in rice exports in the Philippine market.
“The Philippines is an agricultural production country, including rice production, however, for many years domestic production has always failed to meet consumer demand. Every year, depending on farming conditions, the Philippines' domestic production reaches about 19 to 20 million tons of paddy, equivalent to over 12.5 million tons of rice. Meanwhile, annual rice consumption demand is about over 14.5 million tons and the minimum reserve to ensure enough food for 30 days is about over 1 million tons, which means total annual demand is about over 15.5 million tons of rice. Therefore, every year the Philippines has to import from over 2.5 million to 3.5 million tons of rice" - Mr. Phung Van Thanh analyzed.
In previous years, the Philippines purchased rice through intergovernmental negotiations (GTG), Vietnam competed with Thailand, which are two major rice export partners to the Philippines. However, since 2019, when the Philippines issued and implemented a law allowing free import, export and trade of rice, removing quotas and rice import restrictions, Vietnam has surpassed Thailand to become a major supplier. important role, occupying the number 1 position in rice export to the Philippine market.
For the Philippines, Vietnamese rice is not only a common import item but also an important item to ensure food security. Currently, rice imported from Vietnam accounts for more than 80% (by 2022 it will be over 83%) of the Philippines' total rice imports.
In the Philippine market, Vietnamese rice has an advantage. It is a high-quality product with better quality and affordable price, so it is competitive, suitable for tastes and can meet diverse needs of consumers, especially large income class, medium and low income. In addition, stable supply, geographical distance, cost and convenience in transportation, trust and long-term customer relationships.
Second, expand product structure and increase export turnover and value.
Although the market still has a lot of potential, the export product structure of Vietnam and the Philippines is still not symmetrical. The number of exported products/industries is still limited, only about 35 items/industries, while there are still many products/industries with potential for exploitation in the Philippine market.
In addition, in structure of Vietnam's exports to the Philippines, proportion of agricultural products is large while other industries are fragmented, small and have little product diversity. No fresh agricultural products (fruits, meat) have yet entered the Philippine market despite huge consumer demand.
Therefore, Mr. Thanh emphasized that expanding product structure and increasing turnover and export value of Vietnam's goods to the Philippine market are the top priority goals.
Third, promote promotional activities and increase awareness of domestic businesses about potential of the Philippine market.
The Philippines is a potential market, however, in recent times, Vietnamese businesses have paid little attention to this market, mainly small businesses. Therefore, it is necessary to promote promotional activities and increase awareness of Vietnamese businesses about this market potential to promote exports.

Source: Vitic/ congthuong.vn