In recent years, the Philippines has been Vietnam’s leading market for rice exports. Vietnam rice export to Philippines not only has to compete with other suppliers but also maintains high quality and large quantities.
An overview of Vietnam rice export to Philippines
According to the Department of Agriculture and Rural Development, 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
Vietnam rice export to Philippines has witnessed positive figures.
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.
By July 2, Vietnam rice export to Philippines accounted for about 1.126 million tons, accounting for about 87% of imports in the six months. Besides, the Philippines also imported 2,638 tons from Pakistan and 109.36 tons from India.
The Philippines is the leading export market of Vietnam. Therefore, fluctuations in the Philippines’ rice demand will significantly affect Vietnam rice export to Philippines. Competition for rice exports to the Philippines market is expected to increase because it is expected that the country’s import volume will decrease by 14%, to 2.1 million tons when the rice industry is in season this year, USDA forecasts domestic production of the Philippines will reach 12.4 million tons, rise by 4%
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. This type of rice is clear or in opaque color. White rice has many health benefits like adding necessary vitamins, helping control blood pressure, and supplying energy. The average price of white rice export is 438-442 USD/ton.
Jasmine rice for wholesale just made up about 21,9% (according to figures of first months in 2021). Jasmine rice is softer than most white rice. It is well-known for its soft, clingy texture when cooked. This is one of the main Vietnam rice export to Philippines. The average price of Jasmine rice export is 563-567 USD/ton.
Sticky rice made up a minority of Vietnam rice export to Philippines. Sticky rice is also known as Vietnamese glutinous rice, has opaque grains, low amylose content, and when cooked, it is especially sticky. The average price of glutinous rice export is 500-510 USD/ton.
Main locations promote Vietnam rice export to Philippines
Being famous for rice civilization, Vietnam has many advantages in rice production and is one of the largest rice export nations of Philippines.
The Mekong Delta has the rice-growing area at the top of the country, accounting for 52% of Vietnam’’s rice cultivation area on average. The planted area in 2020 is 3,963.7 thousand hectares, accounting for 54.5%. The rice industry of the Mekong Delta has constantly applied improved plant varieties so the rice yield of the region in most years is higher than the national average, contributing to the majority of the quantity of Vietnam rice export to Philippines.
The Red River Delta has the highest level of intensive farming in the country and has applied many scientific achievements in selecting new varieties with high yield, good quality, using a lot of fertilizers, and combining the rich experience of the people. Therefore, this area has high productivity, plays a key role in the production of Vietnam rice export to Philippines. In 2020, the Red River Delta cultivated 484.4 thousand hectares, equivalent to 97,4% compared to 2019.
Factors leading to the development of 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.
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. At present, autumn-winter rice is in the stage of seedling, tillering, and tilling; growing and developing well. The structure of Vietnam’s rice exports is continuing to shift to jasmine rice and fragrant rice to boost Vietnam rice export to Philippines.
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. Reasons for the decrease are that international rice prices soared, problems related to global logistics, and domestic harvest improved. This affects Vietnam rice export to Philippines.
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”.
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. This creates many opportunities for Vietnam rice export to Philippines in bulk.
Ways to seek popular suppliers in Vietnam rice export to Philippines
Meeting virtually or directly is the best method to connect with Vietnam rice suppliers
- Through e-commerce platforms
With the booming of e-commerce platforms displaying numerous rice products like Alibaba, Amazon, etc., importers could easily browse through and select the rice products with a reasonable price and well-designed packaging. Buying through the internet gains much profit for Vietnam rice export to Philippines.
- In trade fairs or Embassy in the host country
In those trade fairs, buyers have the chance to work directly or meet face to face with exporters. Instead of looking at products online, importers can touch the authentic rice products, assess the quality then come to a decision. Vietnam rice export to Philippines are promoted through trade fairs.
- Join importing and exporting groups in social media sites
Nowadays, Vietnamese rice suppliers are available on Facebook, Linkedin, etc., so importers could contact them to discuss products they want to buy in bulk. Those groups have many members around the world. Therefore, suppliers and customers could easily interact with each other.
Best suppliers of Vietnam rice export to Philippines
Here are some reputable wholesale rice suppliers in Vietnam for buyers’ references.
Gentraco Limited Company – one of the best suppliers in Vietnam rice export to Philippines
With more than 35 years of experience in which more than 20 years have been operating in the rice processing industry for export, now the warehouse and factory system is formed in 5 clusters with a capacity of 2,500 tons/day, a storage system of tanks. 100,000 tons of troops are located in the rice center of the Mekong Delta.
The annual export output is about 300,000 – 400,000 tons. Revenue is over 4000 billion VND, export turnover is about 120 – 150 million USD/year. The main products of Gentraco are fragrant rice, sticky rice, etc. These rice varieties are also preferred in Vietnam rice export to Philippines.
Tien Giang Food Company – TIGIFOOD
TigiFood is committed to providing rice products with uniform variety, good milling, good quality, appropriate moisture, etc. TIGIFOOD’s products are all qualified for ISO 9000, ISO 22000, HACCP, BRC, HALAL. Overseas markets account for more than 80% of revenue. Typical rice varieties include Nang Hoa Rice, Jasmine 85, Japonica. TIGIFOOD contributes a large amount in Vietnam rice export to Philippines.
K-Agriculture Factory – one of the leading suppliers in 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.
If buyers would like to buy rice products from K-Agriculture Factory, feel free to contact us.
The Philippines is an attractive market for Vietnamese rice due to its high demand. Hence, the volume of Vietnam rice export to Philippines is considerable every year.