Rice sacks are loaded onto a ship at Saigon Port (Photo: VNA)

Hanoi (VNA) – Vietnam will continue to supply up to 1.5 million tonnes of rice per year to the Philippines as the rice trade agreement between the two countries has been extended to December 31, 2018, according to Vietnam’s Ministry of Industry and Trade.

The agreement is a solid legal foundation for Vietnam to maintain its share in the Philippines rice market as the product is mostly imported to the country via governmental auctions.

The extension of the deal helps stabilise Vietnam’s rice export market. The country has been competing with both traditional rice exporters such as Thailand and India as well as emerging ones like Pakistan, Cambodia and Myanmar.

The Philippines is a key rice importer of Vietnam, buying from 500,000 – 1,500,000 tonnes of rice from Vietnam every year, and accounting for 17 – 20 percent of Vietnam’s total overseas rice shipments during 2011-2015.-VNA