Vietnam, Philippines boost economic cooperation

Vietnam, Philippines boost economic cooperation

National Assembly (NA) Chairman Vuong Dinh Hue led a high-ranking delegation to visit the Philippines from November 23-25, promoting legal policies for increased economic cooperation between the two countries.

The visit contributed to deepening the bilateral strategic partnership and the relations between high-ranking leaders of the two countries, boosting cooperation between the two legislatures, and expanding bilateral cooperation in a wide range of fields, especially economics, trade, investment, health, education and training, national defense and security.

Trade has been a bright point of bilateral cooperation. Bilateral trade reached US$6.8 billion in 2021 - the highest in recent years. In the first 10 months of 2022, bilateral trade exceeded US$6.64 billion, including more than US$4.35 billion worth of Vietnamese exports to the Philippines, and over US$2.31 billion worth of imports from this market. Bilateral trade is forecast to reach US$8 billion by year’s end.

Many Vietnamese agricultural and industrial products have penetrated and carved out niches in the Philippine market, such as coffee, cement, iron and steel, construction materials, and processed seafood. Vietnamese Ambassador to the Philippines Hoang Huy Chung said the Philippines is a major export market for Vietnamese rice. Vietnamese rice exports to this market have grown in recent years, accounting for an increasing percentage of total rice export volume and value.

In 2020, Vietnam’s rice exports to the Philippines for the first time exceeded US$1 billion. In 2021, Vietnam exported to this market more than 2.45 million tonnes of rice worth over US$1.25 billion, accounting for 39.4 percent of total export volume and 38 percent of total export value of rice. Vietnam plays a strategic role in ensuring food security for the Philippines. In 2019 the Philippines began implementing its open-door policy to liberalize import-export activities and trade in rice. Vietnam has since become the top rice exporter to this market.

Vietnam is a leading exporter to the Philippines

However, investment cooperation between the two countries remains modest. The Philippines currently ranks 28th among 140 countries and territories investing in Vietnam, with total investment estimated at US$650 million. Vietnamese companies have invested about US$4 million in the Philippines in the fields of technology, information and services.

While national defense, security and maritime cooperation has expanded, there is much room for increased cooperation in agriculture because Vietnam is a leading farm produce exporter in the region, while the Philippines is the second most populous country in ASEAN. Despite direct and heavy impacts of the COVID-19 pandemic, the two countries have achieved significant cooperation results in education, culture, tourism and people-to-people exchanges.

In the coming time, bilateral relations will be focused on three major orientations: (1) further strengthening the traditional friendship and political trust between the leaders and people of the two countries; (2) boosting economic cooperation for post-pandemic recovery and sustainable development and effective participation in global supply chains; and (3) further promoting bilateral cooperation for peace, stability and prosperity through regional and international organizations and forums.

VietNam Economic News