Philippines, Vietnam agree on fixed-price rice deal till April 2027

MANILA, Philippines — The Philippines and Vietnam have agreed to establish a rice trade mechanism to help secure stable rice supply on a fixed price until April 2027, the Department of Agriculture said Friday, May 8.

The agreement was reached during President Ferdinand Marcos Jr.'s bilateral meeting with newly appointed Vietnamese Prime Minister Le Minh H?ng on the sidelines of the 48th ASEAN Summit in Cebu on Thursday, the Presidential Communications Office said.

Agriculture Secretary Francisco Tiu Laurel Jr. said the rice trade mechanism would help the Philippines manage supply risks.

"Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks," Tiu Laurel said in a statement.

Under the agreement, the Philippines will have uninterrupted deliveries of 1.5 million metric tons of Dai Thom 8 rice from Vietnam until April 2027, according to the DA.

Dai Thom 8, also known as Vietnamese fragrant rice, is popular in the Philippine market for its long grain, soft texture and light aroma, the DA said.

The deal allows the Philippines to purchase the rice at $450 per metric ton until next year, Tiu Laurel said. This lessens risk on a Filipino staple despite periods of market swings.

"This deal builds on our push for ASEAN countries to trade more closely, it's another step toward regional integration," he said.

The Philippines has been one of the world's largest rice importers. In 2024, it imported 4.8 million metric tons of rice in 2024, mostly from Vietnam.

In January that year, Marcos visited Hanoi where the two countries signed a deal for Vietnam to supply the Philippines with 1.5 million to 2 million metric tons of rice annually. The new arrangement builds on that broader five-year rice trade commitment, but appears more specific in its pricing terms.

Tiu Laurel also said the rice trade deal may also serve as a "blueprint" for broader agricultural cooperation between the Philippines and Vietnam.

Leaders meet

At the bilateral meeting in Cebu, Marcos and Le discussed expanding cooperation against transnational crimes, including scam hubs and human trafficking, as well as strengthening collaboration in tourism.

The Philippine leader also congratulated his Vietnamese counterpart on his assumption to office and welcomed him to his first ASEAN Summit.

Both leaders cited the 50th anniversary of Philippines-Vietnam relations, which they said could pave the way for tighter cooperation in trade.

The Philippines has pursued rice self-sufficiency programs for decades since the regime of Marcos' father, dictator Ferdinand Marcos Sr. But economists have long argued that zero-import rice self-sufficiency is not realistic under present conditions.