Of note, Vietnam shipped US$6.19 billion worth of products to the archipelago nation for the first time, up 20.2 percent from 2023, while recording a 6.7 percent drop in imports to US$2.47 billion. As a result, it enjoyed a trade surplus of US$3.72 billion as compared to the set target of US$3.5 billion.
Phung Van Thanh, a trade counselor at the Vietnamese Trade Office in the Philippines, noted that before the Covid-19 pandemic, bilateral trade had been relatively stagnant. However, recent strategic efforts in market promotion and increased awareness of market potential have transformed trade dynamics.
Rice emerged as a standout export commodity last year, accounting for over US$2.6 billion, surging 48.9 percent year-on-year. Other significant export categories included machinery, equipment, and spare parts (US$393 million), clinker and cement (US$319 million), coffee (US$288.5 million), telephones and components (US$212.3 million), and transport vehicles and spare parts (over US$200.4 million).
Experts said although the Philippines, boasting a developing economy and diverse consumption demand, is an attractive destination for Vietnamese exporters, the shipment portfolio remains limited to 35 categories, with farm produce dominating. Additionally, competition pressure from such rivals as Thailand, China, and India has also posed challenges to market entry.
They suggested Vietnamese firms diversify their offerings, work to meet strict food safety and environmental regulations of the Philippines and bolster promotion activities to expand market penetration. Besides, businesses should invest in technology, product innovation, and brand building to strengthen their market position and consumer trust in this market.
