The Philippines and Vietnam have strengthened their agricultural partnership by securing a major rice supply agreement during talks held on the sidelines of the ASEAN Summit in Cebu.
President Ferdinand Marcos Jr. met with newly appointed Vietnamese Prime Minister Lê Minh Hưng on Thursday as both countries marked 50 years of diplomatic relations. The leaders discussed ways to expand cooperation in trade, tourism, agriculture, and the economy.
Agriculture Secretary Francisco Tiu Laurel Jr. said the Philippines is prioritizing stable rice imports from Vietnam, its top rice supplier, amid rising regional demand, global uncertainties, and possible production risks from another El Niño event.
Under the agreement, Vietnam will supply 1.5 million metric tons of rice to the Philippines over one year, with deliveries secured until April 2027. The two sides also agreed on a price of USD450 per metric ton for DT8 rice.
Tiu Laurel said the deal aims to help stabilize rice supply and local prices, noting that rice remains a key factor in inflation after the country’s inflation rate reached 7.2 percent in April.
He added that Vietnam is seeking a long-term framework for rice and agricultural trade, while the Philippines continues to maintain alternative supply sources to protect against market disruptions.
The agreement supports the Marcos administration’s push for stronger intra-ASEAN trade and deeper regional economic integration. Officials said the deal could also pave the way for broader agricultural cooperation between the two countries.
