The Department of Agriculture (DA) is moving to help deliver on a commitment by President Ferdinand R. Marcos Jr. and Vietnamese President Tô Lâm to expand bilateral trade to USD20 billion, up from the current USD15 billion, while seeking to narrow a persistent trade gap that heavily favors Vietnam.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the Philippines is exploring ways to boost exports to Vietnam and address long-standing concerns over the implementation of agricultural trade agreements, particularly in the rice sector.
Vietnam remains the Philippines’ largest source of imported rice, contributing to a trade deficit estimated at around USD2.7 billion.
Beyond increasing trade volumes, Manila is pushing for stronger contract enforcement mechanisms to ensure greater predictability in agricultural transactions between the two countries.
“One of the major issues is that when prices go up, the Vietnamese side normally rescinds the contract,” Tiu Laurel said during discussions with Vietnamese officials, highlighting a recurring concern among Philippine importers and policymakers.
The agriculture chief said the issue will be raised in future bilateral talks as both governments work to make trade arrangements more reliable and efficient. The contract enforcement problem has prompted Philippine industry stakeholders and government agencies to negotiate with Vietnam through a more coordinated approach, he added.
Vietnamese Industry and Trade Minister Le Manh Hung acknowledged the concern and assured Philippine officials that the matter would be elevated to Vietnam’s Ministry of Agriculture and Environment for further discussion.
Tiu Laurel also expressed during the meeting the instructions from the two leaders to urgently reinforce the bilateral technical mechanisms for the Joint Trade Committee (JTC) and Joint Committee on Agriculture (JCA) this year to discuss concerns of both sides.
The talks come as both countries seek to deepen economic ties and strengthen regional food security cooperation.
Tiu Laurel also underscored the importance of closer coordination ahead of a European Union audit scheduled for September, saying stronger collaboration could help facilitate smoother agricultural trade flows and improve compliance with international standards.
The Philippines and Vietnam have increasingly relied on one another as strategic partners in Southeast Asia, particularly in agriculture and food security.
As Manila works to diversify its exports and secure more dependable supply arrangements, officials see the planned expansion of bilateral trade as an opportunity not only to increase commerce but also to create a more balanced and resilient trading relationship.
