Hanoi (VNA) – The Philippines is sharply increasing direct rice imports from Cambodia as part of efforts to diversify its supply sources, boosting Cambodia’s rice exports while reducing Vietnamese millers’ demand for Cambodian paddy.
According to the US Department of Agriculture (USDA), the Philippines became Cambodia’s largest ASEAN market for milled rice in 2026. Cambodia exported 122,102 tonnes of milled rice to the Philippines in January-August, up significantly from just 3,500 tonnes in the whole of 2025.
The surge in milled rice shipments has coincided with a decline in Cambodia’s paddy exports to Vietnam, which fell 13% in the first four months of 2026, the USDA reported.
Vietnam was traditionally an important market for Cambodian paddy. Vietnamese businesses bought fresh paddy from Cambodia, milled and processed it domestically, and exported the finished rice to other markets, including the Philippines.
However, Manila’s growing purchases of milled rice directly from Cambodia are changing this supply chain and reducing demand from Vietnamese mills.
For Cambodia, exporting milled rice instead of raw paddy allows domestic millers to retain a larger share of the added value. Large orders from the Philippines also help reduce transportation costs per tonne and shorten delivery times compared with container shipments, the USDA said.
Cambodia has contracted to supply a further 87,344 tonnes to the Philippines between September and December. If all orders are fulfilled, its rice exports to the market could reach around 209,000 tonnes in 2026.
Expanded Philippine import allocations and government-backed credit programmes are supporting the trade. However, further growth will depend largely on Cambodia’s ability to maintain competitive prices, the department said./.
