THE Philippines and Vietnam have agreed on a one-year deal for 1.5 million metric tons (MT) of rice through April 2027, the Department of Agriculture (DA) said on Friday.
The arrangement was said to have been secured via a high-level meeting between President Ferdinand Marcos Jr. and Vietnamese Prime Minister Le Minh Hung a day earlier at the Association of Southeast Asian Nations (Asean) leaders’ summit in Cebu.
Agriculture Secretary Francisco Tiu Laurel Jr. said pricing and trade logistics were also finalized at $450 per MT for the DT8 variety, a popular fragrant rice from Vietnam.
“Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks,” he said.
The deal will help stabilize domestic rice prices, especially with inflation having surged to a three-year high of 7.2 percent in April.
Rice inflation alone rose to 13.7 percent last month from just 7.2 percent in March.
Tiu Laurel also emphasized the importance of long-term ties and said that supply predictability was necessary to prevent price volatility.
Rising demand and potential production challenges worsened by the Middle East crisis, have made stable imports a priority, he added.
The DA said the deal signaled a broader shift in the relationship between the Philippines and Vietnam.
The meeting during the Asean Summit also commemorated the 50th anniversary of bilateral ties between the two countries and explored other ways to boost trade, tourism, agriculture and broader economic cooperation.
The DA said the rice import agreement was aligned with the president’s aim of boosting trade within Asean.
“This deal builds on our push for Asean countries to trade more closely — it’s another step toward regional integration,” Tiu Laurel said.
While Vietnam is the Philippines’ top source of rice imports, he said the country would maintain alternative sources to ensure that it was not overly reliant on a single trade partner.
