I.

Limitations and threats existed in the trading between Vietnam and

Philippine:
Along with the rapid growth of the performance of Vietnam products on foreign
market, Philippine in particular, to a greater or lesser degree, there are various limitations
and threats in the context of maximizing Vietnam international trading potential. From
being a chronic importer of rice in the 1980s, Vietnam has become the world’ s second
largest rice exporter after Thailand in the late 1990s. This revolution of breaking into
world markets has created a new trade-off for Vietnam’s policymakers between ensuring
sufficient supplies of rice at affordable prices to national consumers on the one hand and
generating foreign exchange from rice exports on the other. Yet, this implication got
exacerbated in the scenario of the sudden pandemic of Covid 19, Prime Minister Nguyen
Xuan Phuc initially decided to suspend rice exports until the end of May to stabilize
domestic rice prices, ensure food reserves, and protect rice farmers’ benefits. This raises
the issue of whether Vietnam would be able to respond to the increasing demand on the
overseas markets, thereby, Vietnamese exporter may lose considerable favor to partners
within Asia in the near future due to the shortage in supply and falling output afterward.
Another aspect that is worth considering is the issue of traditional, low-yield
varieties and low quality of rice, which despite improved milling facilities, has been
compounded by the lack of standardization systems, limited rice seed control, and
insufficient drying and storage facilities. As a result, farmers’ small farm size and lack of
organization undermines their standing as potential business partners, making them
vulnerable actors in the value chain. A typical example is that Vietnamese rice strains
tend to be of low or middling quality, meanwhile, Thailand’s rice – direct competitors -
remains perfectly soft, puffy and tasty for two hours after it is cooked. Besides, không chỉ
những outsider như Thailand and indonasians compete với Vietnam khi export rice to
Philippines, mà còn chính Philippines domestic market cũng là một threats với việc xuất
khẩu của Vietnam vì nó have a much longer experience in production and established a
reputation of stable and good quality supplies.
There is no denial that unusual weather phenomena place an important role in the
productions of rice export of Vietnam to the Philippines. Over the winter-spring crop in
2016, the Mekong Delta, which accounts for 90 percent of the country’s rice exports, was
hit by the most severe drought in almost a century, causing its rice output to decrease by
 one million tons. In addition, rising sea levels together with the construction of Chinese
dams on the Mekong River are posing serious threats to rice farming in the delta.
Therefore, without practical solutions from advanced technologies and professional management,
this will remain complicated and lay a strong negative impact on rice export activities.
Taking everything into account, Vietnam’s rice sector is predicted to face difficulties in
2020 with strong volatility of production, demand and this is not to say that there are not
possible improvement nhưng nếu tackle được thì sẽ phát triển tối đa.
II. Opportunities and recommendations for exporting rice in Vietnam:
Opportunities:
According to IRRI, the International Rice Research Institute, the rice sector
plays an important role in Vietnam’s social and economic development, and rice
lands account for 82% of the country’s arable land. Undoubtedly, Vietnam is a
country with exceptional comparative advantages in rice production. About 52%
of Vietnam’s rice is produced in the Mekong River Delta and another 18% in the
Red River Delta. With this surpass
Price has been a major contributory factor to Vietnam's success so far in 2020,
despite disruptions earlier this year.

May was an active month for the world rice export market with several
countries stocking up on the grain because of the ongoing Covid-19 pandemic. As
a result, global rice export prices rose to its highest level in years. The comparative
pace of Thai and Vietnamese exports is surprising considering both countries' response
to the coronavirus pandemic. The agro processing and market development
department expects global demand for rice to continue rising. If sustained,
Vietnamese exports will outstrip Thai exports for the first time since 2012, with
Vietnam likely to be the second largest origin market behind India in 2020. At the
national level, there is a growing demand for better quality rice as income
levels increase and consumer food preferences change. Firstly, Vietnam’s ST25
rice was awarded the world’s best variety, surpassing Thai and Cambodian rice.
This is an opportunity for Vietnam to improve its image globally.
According to Mr. Ho Quang Cua, who has the merit of breeding the ST rice
varieties, since ST25 rice won the world's best rice award, the trend of using
branded rice in Vietnam has increased
Vietnam has benefited from both Thailand's lackluster performance in
Africa in 2020 and the Philippines liberalizing its rice import structure in 2019.
Instead of limiting how much rice will be imported, the Philippines now will
impose tariff on rice at 35% for ASEAN members.The move is expected to have a
positive effect on Vietnamese rice exporters, according to Viet Dragon Securities
Company (VDSC).The import tax rate applied for Vietnamese rice is relatively
low, fixed at 35% regardless of volume while production costs in the Philippines
are much higher than in Vietnam and Thailand, VDSC said in its latest report.

In the first four months of the year, the Philippines was the biggest buyer of
Vietnamese rice, accounting for 40.5 percent market share at 902,100 tons worth
$401.3 million. Vietnam, the world's third largest rice exporter, is likely to ship
seven million tonsthis year, official agencies have said. Regulation changes as
 mentioned above may boost rice imports into the Philippines, especially those
from Vietnam.
Kết luận

Recommendations:
- intensify application of advanced technologies in growing paddy rice
- As regards the most appropriate response to this situation, one suggestion would
be to
- The Vietnamese land reforms over the two past decades have come a long way in
terms of acknowledging the individual farm household as the basic unit of
agricultural production. Nevertheless, there are still certain restrictions on the
cross-sectoral mo- bility of agricultural land. The present analysis shows that such
restrictions pose a se- rious constraint on the production - and hence also the
export - response of the rice sector in connection with liberalization of the rice
policy regime. Many opportunities are opening up to Vietnamese rice, the problem
is that local authorities need to have policies to support the connection between
enterprises and farmers, creating a "well-known rice region on the world map",
like the desire of Mr. Ho Quang Cua. This will be a turning point for the
Vietnamese rice brand to solidify itself in the world market if the raw material
areas can be built, attached to safe production processes. Mr. Ho Quang Cua
proposed that they need to build an ST fragrant rice cultivation area in the rice-
shrimp farming area of the entire Ca Mau peninsula. This will be a famous area on
the world rice production map. The basis of this is the ability to easily export safe
rice to the US and European markets. Nguyen Tien Dung, Deputy Director of
Food Trade Department under Loc Troi Group, said that to meet the increasing
requirements of the market, his group has developed rice production value chains,
built raw material areas and formed large-scale fields in various localities in the
Mekong Delta with the support of agricultural engineers who live and work
directly with local farmers. In addition, the group has also closely associated with
new-style cooperatives to strictly control multiple rice production processes,
including cultivation, sorting harvested rice, rice processing at factories and
exporting.
- In order to take advantage of opportunities to promote rice exports in 2020,
Deputy Minister of Industry and Trade Tran Quoc Khanh noted that enterprises
should pay attention to insurance when signing contracts to avoid risks. In
addition, they should also focus on maintaining the Filipino market by meeting the
standards given by them.
- estructuring of rice production, as well as other agricultural products, should
follow market signals to guide production planning and organisation, as well as
 strengthen linkages along the value chain covering production, consumption and
exports, aiming to stabilise consumption activities at a beneficial price to farmers
to help increase their income.

https://e.vnexpress.net/news/business/quality-not-quantity-vietnam-should-lower-
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https://english.vietnamnet.vn/fms/business/211473/vietnam-struggles-to-boost-high-
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https://english.thesaigontimes.vn/72584/vietnamese-rice-50-cheaper-than-thai-
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https://vietnamnet.vn/en/business/philippine-rice-tariffication-law-to-benefits-
vietnam-s-exporters-535200.html

https://www.rikolto.org/en/project/sustainable-and-inclusive-rice-vietnam
https://vietnamnet.vn/en/business/vietnam-s-rice-sector-forecast-to-face-difficulties-in-2020-
602476.html
https://en.nhandan.com.vn/business/item/8489702-what-are-the-prospects-for-rice-exports-in-
2020.html