DA seeks stronger rice contract enforcement with Vietnamese suppliers

The Department of Agriculture (DA) said Tuesday it is looking into demanding stronger contract enforcement with Vietnamese rice suppliers as Manila and Hanoi deepen economic ties.

In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said the move is aimed 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, noting that this is a recurring concern among Philippine importers and policy makers.

The Agriculture chief said the Philippine side is seeking “to narrow a persistent trade gap that heavily favors Vietnam,” by boosting exports to Vietnam and address long-standing concerns over the implementation of agricultural trade agreements, particularly in the rice sector.

Tiu Laurel issued the statement after President Ferdinand Marcos Jr. and Vietnam President Tô Lâm announced an enhanced strategic economic and diplomatic relations between the two nations.

In particular, Manila and Hanoi are seeking to expand bilateral trade beyond the mutual target of $10 billion.

Tiu Laurel said the issue with Vietnamese suppliers 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 remains as the Philippines’ largest source of imported rice, contributing to a trade deficit estimated at around $2.7 billion.

For his part, 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 likewise called for the urgent reinforcement of the bilateral technical mechanisms for the Joint Trade Committee (JTC) and Joint Committee on Agriculture (JCA) this year to discuss concerns of both sides. — BAP, GMA News