Philippines, Vietnam ink 5-year rice supply deal

HANOI – The Philippines signed on Tuesday a five-year deal with Vietnam to ensure steady supply of affordable rice to the country as global prices of the staple continue to surge.

President Marcos, who was here for a two-day state visit, witnessed the exchange of notes between Agriculture Secretary Francisco Tiu Laurel Jr. and Agriculture Minister Le Minh Hoan at the Presidential Palace.

Under the memorandum of understanding (MOU) on Rice Trade Cooperation, Vietnam agreed to supply, through its private sector, white rice to the Philippine private sector, amounting to 1.5 million to two million metric tons per year at “a competitive and affordable price.”

The MOU 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.”

Laurel earlier said rice prices continue to go up globally, citing the El Niño phenomenon as among the reasons for the price surge.

The rice agreement was one of the five deals sealed during Marcos’ visit here.

Vietnam supplies around 90 percent of the Philippines’ rice imports. Reports said the Philippines imported 2.4 million tons of rice worth $1.5 billion from Vietnam in the first nine months of 2023.

Recent monitoring by the Department of Agriculture showed that the retail price of local regular milled rice has increased to P53 per kilo; local well-milled rice, P55; local premium rice, P60; local special rice, P68; imported well-milled rice, P56; imported premium rice, P62 and imported special rice, P65.

However, retail prices of rice in Bicol have reached P75 per kilo, according to watchdog group Bantay Bigas.

According to Bantay Bigas spokesperson Cathy Estavillo, the increase in rice prices continues despite a report by the Philippine Statistics Authority that palay production in 2023 increased to 20.05 million metric tons compared to 19.75 million MT in 2022.

Vingroup – Vietnam’s largest conglomerate – is eyeing the launch of its electric vehicles (EVs) in the Philippines by April this year, President Marcos announced in Hanoi on Monday night.

“Just a while ago, we had a meeting