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Vietnam, the Philippines eye $10 billion of trade turnovers in 2026
Son Nguyen 20:36, 2022/11/24
Bilateral trade turnovers between Vietnam and the Philippines are now worth $7 billion, and there is still room to grow.

Vietnam and the Philippines eye US$10 billion worth of bilateral trade turnovers in 2026 on the 50th anniversary of the two nations’ diplomatic ties, National Assembly’s chairman Vuong Dinh Hue said on November 24.

Vietnamese and Philippine officials and business executives present at the Vietnam-Philippines Investment-Trade Forum on November 24. Photo: Vietnam News Agency

The two-way trade turnovers between Vietnam and the Philippines are now $7 billion, he said at the Vietnam-Philippines Investment-Trade Forum in Manila.

Vietnam and the Philippines are the two dynamic economies in the region, Hue said at the Vietnam-Philippines Investment-Trade Forum in Manila, the capital city of the Philippines.

Vietnam and the Philippines are strategic partners, the Vietnamese President said, adding the two economies are supplementary to each other.

However, economic and business relations between the two nations have not reached their full potential, Hue said.

“The value of the Philippine business projects in Vietnam is only $600 million while very few Vietnamese investors are active on the other side,” he said.

He expected businesses from the two sides will find the forum an opportunity to foster cooperation and boost bilateral trade turnovers to $10 billion in 2026.

Hue also expected companies from the two sides to discuss investment and business conditions so that government agencies and officials could give their opinions.

“Vietnam has continued to improve the laws on investment and business operation, and the country is now one of the most attractive destinations for international capital flow,” Hue said.

As one of the 20 top countries with the highest foreign direct investment (FDI) capital, Vietnam has set up investment relations with 141 countries and territories and enabled 135,000 foreign investment projects with registered capital of $435 billion, the national assembly chairman said.

Vietnam guarantees sufficient food exports to the Philippine market at reasonable prices while willing to import key products of Philippine producers, Hue said.

President of the Philippine Senate Juan Miguel Zubiri praised Vietnam as the country has risen to one of the strongest economies in the ASEAN, adding there will be some valuable lessons for the Philippines to learn.

Vietnam has a proactive, favorable environment for international investors, the Philippine official said, adding he fully supports the two nations to bolster their economic, investment and trade relations.

Speaking of luring Vietnamese investors to the Philippines, Juan said the government had cut corporate income tax to 25% from the previous 31% to attract foreign companies, including those from Vietnam.

Business talks

At the forum, Philippine companies expressed their interest in Vietnam’s electric vehicle sector, saying the two sides can skip the manufacturing of fueled vehicles as the Philippines has advantages in materials, green production of batteries, and software development.

In addition, Philippine companies suggested they can cooperate with Vietnamese partners in renewable energy development due to the advantages of long coastline, sunlight, and determination to achieve a net zero emission.

With a population of 113 million people, the Philippine companies are highly interested in importing Vietnamese agriculture products, they said.

For his part, Vietnamese Minister of Agriculture and Rural Development Le Minh Hoan said that the Philippines and other ASEAN markets remain Vietnam’s key export markets.

Deputy Minister of Planning and Investment Tran Duy Dong recommended authorities of the Philippines bridge the companies and government of the two nations with business talks so that the two sides can study each other’s market.

Deputy minister Dong said that Vietnam commits to facilitating the local operation of foreign companies through a transparent, friendly, and favorable environment.

At the forum, Vietnam’s minister Le Minh Hoan, deputy minister Tran Duy Dong and President of the Philippine Chamber of Commerce and Industry Geogre T. Barcelon witnessed Vietnamese and Philippine companies sign several trade and vaccination agreements.

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TAG: Vietnam the Philippines economic relations Foreign Affairs Vuong Dinh Hue international cooperation ASEAN business cooperation trade exports imports
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