Việt Nam, Philippines look toward US$10 billion in trade by 2026

National Assembly Chairman Vương Đình Huệ said that he hoped businesses of both countries to exchange and share their interest in the investment and business environment in Việt Nam.

Chairman of the Vietnamese National Assembly Vương Đình Huệ on Thursday reiterated the goal of lifting two-way trade between Việt Nam and the Philippines to US$10 billion in a more balanced manner by 2026 when they celebrate the 50th anniversary of diplomatic ties.

Addressing the Việt Nam-Philippines Investment-Trade Forum, Chairman Huệ emphasised that Việt Nam and the Philippines share many similar strategic interests and are two dynamic developing economies with a trade turnover of $7 billion.

Huệ noted that the number of Vietnamese companies doing business in the Philippines remained small, and Philippines businesses have only invested around $600 million in Việt Nam. This failed to meet the potential of both sides.

He said Việt Nam would continue doing well in farm produce trading activities while ensuring a high and stable export of rice at reasonable prices while staying ready to import products of the Philippines’ strength.

The two governments and legislatures will offer all possible support for investors and enterprises, he said, adding that the two economies are not competitive but supplementary to each other. So far, Việt Nam has been the only strategic partner of the Philippines in ASEAN while their geographical distance is close.

President of the Philippine Senate Juan Miguel Zubiri praised Việt Nam's determination to become a leading economy in the ASEAN, noting that the Philippines always admired and wanted to hear more about Việt Nam's experiences to support its economic growth.

Senate President Zubiri said Việt Nam has a dynamic, strong and favourable investment climate for foreign investors. Zubiri said he supports further strengthening the economic, trade and investment partnership with Việt Nam.

He noted that to create an incentive for foreign investment, the Philippines has reduced corporate income tax to 25 per cent from 31 per cent, noting that this was an average tax rate to attract investment from Việt Nam.

At the forum, participants from both sides discussed and shared views on many fields. For example, the Philippine businesses expressed their interest in developing electric vehicles, saying that the two countries could cooperate as the Philippines have raw materials needed to produce electrical battery components.

Together with the garment and textile industry, the two countries can also work together in renewable energy due to their similarity in long coastlines and huge solar energy resources.

Participants also answered questions raised by participants about the demand to import construction materials from the Philippines and the standardisation of the production and processing process of Vietnamese farm produce for export.

Online English learning has also become a potential sector with some Vietnamese businesses looking to hire Filipino teachers to work in Việt Nam.

Vietnamese Minister of Agriculture and Rural Development Lê Minh Hoan said that Việt Nam is transitioning towards low-carbon agriculture but still prioritises agricultural products Việt Nam has the strength to produce in large volumes. The Philippines and other ASEAN member states are always key markets for Việt Nam’s farm produce.

Vietnamese Deputy Minister of Planning and Investment Trần Duy Đông said that the two sides needed to expand further in green growth, circular economy and innovation.

Deals on export-import of cement and clinker, and distribution of vaccines against African swine flu in the Philippines were also signed at the event.