RP, Vietnam forge trade agreements

The Philippines and Vietnam are forging a number of trade cooperation agreements following a joint trade committee meeting between Philippine and Vietnamese trade officials in Hanoi, Vietnam recently.

Productive discussions were held on countertrade agreements, garment quota swap arrangements, business alliances and partnerships and trade promotion activities.

On countertrade, the two countries expressed their desire to diversify and expand the present range of products subject to countertrade arrangements.

The Philippine International Trading Corp. (PITC) in particular encouraged Vietnam’s Southern Food Corp. (Vinafood II) to purchase a wide range of local products.

These include pharmaceuticals, construction materials, liquefied petroleum gas (LPG) tanks, coconut oil, copper concentrates and copper-related products, processed food, motorcycle and automotive parts and accessories, carageenan, fishmeal, personal care products and furniture.

Last year, PITC and Vinafood II entered into a countertrade agreement worth $32.8 million where Vietnam agreed to supply long-grain white rice to the Philippines through the National Food Authority (NFA) in exchange for fertilizers equivalent to at least 50 percent of total rice shipment value.

PITC president Anthony Abad said the countertrade contract was completed through exports of fertilizers, ammonium sulfate and newsprint to Vietnam and exports of coconut oil and naphtha to other Asian countries.