Leo Nguyen 2024-06-24 21:46:24

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The Vietnam Trade Office in the Philippines reported that President Ferdinand R. Marcos Jr. has recently signed Executive Order No. 62, which includes a reductiomport tariffs on various goods, particularly rice. Under this order, the import tax on rice will be decreased from 35% to 15%.

This policy is considered a strategic move by the Philippine government to combat inflation, especially given the ongoing surge in rice prices since the start of the year.

In the first quarter of 2024, the Philippine economy showed relative stability, except for the notable price hikes in essential commodities, especially rice, which increased by approximately 24.4% during the quarter. The elevated rice prices now represent about 9% of the Philippines" consumer price index (CPI).

Executive Order No. 62 is set to become effective 30 days post-publication, with the new rice import tariff taking effect 15 days post-publication. Consequently, the new rice import tariff in the Philippines is expected to be implemented in early August 2024.

Vietnam has been the leading rice exporter to the Philippines for years, consistently making up over 80% of the Philippines" total rice imports. Some analysts believe that the reduction in rice import tariffs will further facilitate and enhance opportunities for Vietnamese rice in the Philippine market.