Though competing with many supplier, Vietnam rice export to Philippines still holds the position of the leading rice in this market.
Vietnam rice export to Philippines: An overview
The Philippine government has decided to reduce the import tax on rice to 35% within 1 year to increase rice supply, maintain affordable rice prices and reduce inflationary pressures. This is a big chance to boost Vietnam rice export to Philippines.
General figures of Vietnam rice export to Philippines
In the second quarter of 2021, the Philippines still ranks first in Vietnam’s rice consumption, reaching over 1.09 million tons, equivalent to 579.83 million USD, the average price is 530.5 USD/ton, decreased by 20.6% in value, further to 8.6% in turnover but rose by 15% in price compared to the first 6 months of 2020; accounting for 36% of the total rice export volume and turnover of Vietnam.
Leading products of Vietnam rice export to Philippines
The majority of Filipinos are fond of long-grain white rice in the amount of Vietnam rice export to Philippines due to its unique taste and health benefits.
During the first months of 2021, white rice accounted for 63.1% of Vietnam rice export to Philippines. Jasmine rice for wholesale just made up about 21,9% (according to figures of first months in 2021)Sticky rice made up a minority of Vietnam rice export to Philippines.
Factors affecting the Vietnam rice export to Philippines
The rice quantity exported to another country is impacted by some striking elements that could negatively or positively cause growth or decrease in volume.
- Rice production
By July 15, the Mekong Delta had sown 294.9 thousand hectares of autumn-winter rice, equaling 95.9% of the same period last year.
- Rice demand
According to data from the Department of Plant Industry (BPI) of the Philippines, in the first 6 months of 2021, the country imported 1.26 million tons of rice, which decreased by about 11% compared to 1.417 million tons of rice in 2020.
Due to the Covid-19 pandemic, transportation struggles to port congestion. Vietnam rice export to Philippines can be late in delivery or cargo preparation. Recently, the transportation fee has increased sharply, 500-1,000 USD/time, and even dramatically went up to 2,000-3,000 USD/time, making many businesses unable to “turn around”.
- Governmental policies
The law on taxing rice products of the Philippines has come into effect so far, when Vietnamese rice is exported to this country both inside and outside the quota, it is enjoying a tax rate of 35%, lower than the tax rate applied to other exporting countries such as India and Pakistan.
How to find popular suppliers in Vietnam rice export to Philippines
There are some ways to find your suppliers of Vietnam rice export to Philippines.
- Meeting virtually through the Internet
- In trade fairs or Embassy in the host country
- Join importing and exporting groups on social media sites
The leading suppliers of Vietnam rice export to Philippines
In 25-year experience, K-Agriculture is one of the leading wholesale companies in Vietnam rice export to Philippines. K-Agriculture Factory has 2500 MT/day of milling capacity and 400000 MT of storage capacity. Besides, K-Agriculture possessed HACCP and ISO certificates. The main products are ST rice, jasmine rice, glutinous rice, etc.