Vietnamese Rice Exports Threatened by Philippine Import Ban

The Vietnam Food Association has asked the country’s trade ministry to challenge a move by the Philippines to suspend rice imports for two months, with traders saying it will harm local production.

Being Vietnam’s biggest rice buyer, the Philippines said that it would suspend rice imports for 60 days starting 1 September, in an effort to protect local farmers impacted by falling prices during the harvest season.

According to a source, the Philippines is Vietnam’s largest rice export market and the suspension would have significant impacts on rice production on the latter.

From January to July this year, Vietnam exported 2.44 million metric tons of rice to the Philippines, accounting for 44.3% of its total rice shipments over the period.

In 2024, the Philippine market accounted for 46.7% of Vietnam’s total rice exports with shipments in September and October higher than the monthly average.

Earlier this year, Vietnam signed a memorandum of understanding (MOU) on rice trade with the Philippines, where rice production is often prone to flooding and typhoon risks.

“They are suspending rice imports this year to protect their farmers ahead of an expected bumper harvest,” said a trader based in Ho Chi Minh City.

The Philippines’ rice production in the second quarter grew 13.9% form a year earlier, a sharp acceleration from the 0.3% growth in the first quarter.

Traders said the Philippines’ move to suspend rice imports will put pressure on export prices of Vietnamese rice.

This article has been republished from the SME Asia.