By TED CORDERO, GMA News

The Philippines has secured a critical buffer against global market volatility after formalizing a landmark rice trade agreement with Vietnam, ensuring a steady flow of the food staple through April 2027.

On Thursday, President Ferdinand Marcos Jr. and newly elected Vietnamese Prime Minister Le Minh Hung agreed to establish a long-term rice trade mechanism that seeks to ensure stable supply and strengthen food security cooperation between the two countries during the bilateral meeting between the two leaders on the sidelines of the 48th Association of Southeast Asian Nations (ASEAN) Summit and Related Meetings in Cebu.

In a statement on Friday, Agriculture Secretary Francisco Tiu Laurel Jr. underscored the urgency of securing reliable rice supplies from Vietnam —the country’s primary grain supplier.

The two countries agreed on a one-year arrangement for 1.5 million metric tons of rice, ensuring uninterrupted deliveries through April 2027.

“Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks,,” Tiu Laurel said, stressing the importance of predictable supply to stabilize price.

Rising regional demand—exacerbated by the Middle East crisis—and potential production challenges from another El Niño event have made stable imports a priority, he said.

Vietnam, Tiu Laurel said, is looking to establish a long-term trade framework for rice and other agricultural commodities.

“Even the Vietnamese prime minister has consistently highlighted during the bilateral meeting,” he added.

Rice is the country’s national staple, and weighs heavily in the basket of consumer goods that determine inflation, which surged to a three-year high 7.2% in April.

The DA chief said pricing and trade logistics were also finalized, with both parties agreeing on $450 per metric ton for the popular DT8 rice.

While the negotiations focused on rice, the deal could serve as a blueprint for broader agricultural cooperation, he added.

The agreement aligns with President Ferdinand Marcos Jr.’s vision of strengthening intra-ASEAN trade.

“This deal builds on our push for ASEAN countries to trade more closely—it’s another step toward regional integration,” Tiu Laurel said. — RSJ, GMA News

Published Date: May 8, 2026