MANILA — The Department of Agriculture (DA) is working to help fulfill a commitment by President Ferdinand R. Marcos Jr. and Vietnamese President Tô Lâm to expand bilateral trade to USD20 billion, up from the current USD15 billion, while also addressing a persistent trade imbalance favoring Vietnam.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the Philippines is looking to increase its agricultural exports to Vietnam while resolving issues in existing trade arrangements, particularly in rice imports where Vietnam remains the country’s largest supplier.

He noted that the Philippines currently faces a trade deficit of about USD2.7 billion with Vietnam, largely driven by agricultural trade flows.

Beyond expanding trade volume, the Philippine government is also pushing for stronger enforcement of contracts to ensure more stable and predictable 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 during talks with Vietnamese officials.

He said the concern will be raised in upcoming bilateral discussions as both sides work to improve reliability in trade agreements.

Vietnamese Industry and Trade Minister Le Manh Hung acknowledged the issue and said it would be elevated to Vietnam’s Ministry of Agriculture and Environment for further review.

Tiu Laurel said both countries are also strengthening technical mechanisms through the Joint Trade Committee (JTC) and Joint Committee on Agriculture (JCA) to address trade concerns more efficiently.

He also cited the need for closer coordination ahead of a European Union audit scheduled in September, noting that improved compliance and cooperation could help facilitate smoother agricultural trade.

The DA said the planned expansion of trade is expected to deepen economic ties between the Philippines and Vietnam while also supporting regional food security efforts.