Vietnam's largest rice buyer initiates safeguard investigation

Specifically, the Trade Remedies Department (Ministry of Industry and Trade) stated that it recently received information from the Department of Agriculture and Rural Development (DA) regarding an investigation into imported rice products based on a request from the domestic rice industry in the Philippines. The products under investigation are imported rice, including unmilled, hulled (brown rice), partially milled, fully milled, or broken rice, falling under AHTN codes Chapter 1006, specifically codes 1006.10; 1006.20; 1006.30; and 1006.40. The investigation period covers from 2020 to August 2025.

The Philippines, Vietnam's largest rice buyer, is investigating imported rice products. PHOTO: DUY TAN

The Philippine Department of Agriculture has preliminary evidence of a significant and sustained increase in rice imports, both in absolute and relative terms to domestic production and consumption. Serious damage or threats of serious damage have been caused to the domestic rice industry, particularly to local rice farmers. A causal relationship exists between the increase in imports and the serious or threatened serious damage to the domestic industry; this is evidenced by the continuous decline in domestic rice prices due to imports and the transfer of the impact of imported rice prices to farmgate prices through integrated rice value transfers.

According to regulations, the Philippine Department of Agriculture initiates the preliminary investigation. If the preliminary conclusion is affirmative, the Philippine Tariff Commission will conduct a formal investigation.

Based on the above information, to minimize the impact should the Philippines apply safeguard measures on imported rice, which could last up to eight years... The Trade Remedies Department recommends that Vietnamese rice exporting associations and businesses exporting to the Philippines prepare response plans and gather all relevant data to provide information, arguments, and counter-arguments. They should provide information, cooperate closely with the Department, and submit written requests to the Ministry of Industry and Trade, if necessary, for government support.

For many years, the Philippines has consistently been the world's largest rice importer, peaking in 2024 with imports exceeding 5 million tons. The Philippines has had to increase rice imports because its domestic production is inefficient, resulting in high costs that make it uncompetitive with imported rice. Meanwhile, Vietnamese rice, with its good quality and competitive price, has gradually gained market share in the Philippine rice import market.

Source: https://thanhnien.vn/