Philippines, Vietnam seek fair trade deals

June 3, 2026 | 12:00am

MANILA, Philippines — The Department of Agriculture will help deliver on a commitment by President Marcos and Vietnamese President Tô Lâm to expand bilateral trade to $20 billion, up from the current $15 billion, while seeking to narrow a persistent trade gap that heavily favors Vietnam.

Agriculture Secretary Francisco Tiu Laurel Jr. said the Philippines is exploring ways to boost exports to Vietnam and address long-standing concerns over the implementation of agricultural trade agreements, particularly in the rice sector.

Vietnam remains the Philippines’ largest source of imported rice, contributing to a trade deficit estimated at around $2.7 billion.

Beyond increasing trade volumes, Manila is pushing for stronger contract enforcement mechanisms to ensure greater predictability in agricultural transactions between the two countries.

“One of the major issues is that when prices go up, the Vietnamese side normally rescinds the contract,” Tiu Laurel said during discussions with Vietnamese officials, highlighting a recurring concern among Philippine importers and policymakers.

Tiu Laurel said the issue will be raised in future bilateral talks as both governments work to make trade arrangements more reliable and efficient.

The contract enforcement problem has prompted Philippine industry stakeholders and government agencies to negotiate with Vietnam through a more coordinated approach, he added.

Vietnam Industry and Trade Minister Le Manh Hung acknowledged the concern and assured Philippine officials that the matter would be elevated to Vietnam’s Ministry of Agriculture and Environment for further discussion.

Tiu Laurel also expressed during the meeting the instructions from the two leaders to reinforce the bilateral technical mechanisms for the joint trade committee and joint committee on agriculture this year to discuss concerns of both sides.

The talks come as both countries seek to deepen economic ties and strengthen regional food security cooperation.

The agriculture chief also underscored the importance of closer coordination ahead of a European Union audit scheduled for September, saying stronger collaboration could help facilitate smoother agricultural trade flows and improve compliance with international standards.

The Philippines and Vietnam have increasingly relied on one another as strategic partners in Southeast Asia, particularly in agriculture and food security.

Meanwhile, the Philippines and Vietnam are eyeing more direct flights between the two countries as part of a tourism deal signed on Monday in Manila.

Additional direct flights are part of the Tourism Cooperation Program 2026-2029 between the Department of Tourism and Ministry of Culture, Sports and Tourism of Vietnam, Presidential Communications Undersecretary Claire Castro said. — Helen Flores

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