Agriculture Secretary Francisco P. Tiu Laurel Jr. signed a memorandum of understanding with Minister Nguyen Hong Dien of the Ministry of Industry and Trade of Vietnam to enhance cooperation on rice trade. The MOU creates a framework for promoting sustainable rice trade cooperation that meets the common interests of the Philippines and Vietnam. Under the MOU, Vietnam commits to supply the Philippines with 1.5 to 2 million metric tons of white rice annually.
For five years, the two agencies will also pursue other cooperation activities, such as exchanging information on rice production, crop situation, and import and export needs, among other actions. The DA and the Ministry of Industry and Trade will also cooperate to ensure that rice from Vietnam complies with the Philippines’ food safety and plant health requirements. To further facilitate smooth trade and help ensure food security, the two ministries agreed to closely coordinate to address illegal rice trade and consult with each other ahead of any imposition of export measures that could hinder or delay exportations.
“While DA is focused in improving capacities for increased agricultural productivity, it is equally imperative to maintain a robust trade to help ensure food security, in particular, the supply of rice, especially in challenging times,” says Tiu Laurel. He added, “Vietnam is an important trading partner of the Philippines in agricultural commodities. It is, in fact, our third-largest trading partner in the ASEAN region in terms of overall value of agricultural trade. Around 80 percent of our rice imports are from Vietnam, and the Philippine market accounts for over 40 percent of Vietnam’s rice exports.”
Aside from cooperation on the rice trade, the Department also formalized the agreement on cooperation in agriculture with the Ministry of Agriculture and Rural Development. Tiu Laurel and Le Minh Hoan agreed to strengthen existing agriculture bilateral relations and update the previous cooperation agreement signed in 1999. The new memorandum of understanding will promote and intensify mutual support between the Philippines and Vietnam in areas covering high-value crops, livestock (including dairy), and aquaculture production and development; post-harvest facilities and food processing; digital and climate-smart agriculture; agri-fisheries mechanization; among others.
During his bilateral meeting with Minister Le Minh Hoan, Tiu Laurel articulated, “The Philippines puts high importance on its bilateral relations with Vietnam in the field of agriculture, and it considers Vietnam a key partner in the effort to transform the agriculture sector of the Philippines as well.”
The two agreements were signed during the State Visit of President Ferdinand R. Marcos, Jr. to Hanoi, Vietnam, on Jan. 29-30, 2024. Marcos and Vietnam’s President Vo Van Thuong witnessed the exchange of bilateral documents.
On the margins of the State Visit, Secretary Tiu Laurel Jr. also witnessed the signing of memoranda of agreements and understanding between three Philippine and eight Vietnamese enterprises on rice supply and food value chain.
