The Market Monitor Minding the Nation's Business
Vietnamese investments in the Philippines are expected to surpass US$100 million by the end of 2026, as Manila and Hanoi move to deepen economic ties under their newly elevated Enhanced Strategic Partnership.
Vietnamese Ambassador Lai Thai Binh said last week that Vietnamese companies have already invested more than US$90 million in the Philippines, representing nearly 70% of the cumulative Vietnamese investments in the country to date.
The two countries are also targeting a 30% increase in bilateral trade to US$10 billion this year, following nearly US$8 billion in two-way trade in 2025, which made Vietnam the Philippines’ 11th-largest trading partner.
Rice remains a major component of the economic relationship. Lai said Vietnamese rice has consistently accounted for about 80% of the Philippines’ total rice imports, while the Philippines accounts for nearly half of Vietnam’s rice exports.
“As we look ahead to the next 50 years, amidst an era of profound global changes, Vietnam and the Philippines share a compounding responsibility. First, we must further deepen our economic cooperation, recognizing that development is not secondary to security; rather, development is one of the very foundations of enduring security,” he said.
Foreign Affairs Undersecretary Maria Andrelita Austria said the Philippines would seek a more balanced trade relationship with Vietnam by expanding two-way trade opportunities, improving market access and reducing trade and investment barriers.
Meanwhile, Lai said the two countries are developing a new plan of action aimed at translating their Enhanced Strategic Partnership into more practical cooperation across several areas.
“The two countries have been able to upgrade our relations to an enhanced strategic partnership. This is very important for both countries, and it’s not just a name; it’s a real upgrade of the very close and special relation between the two countries,” he said.
“We hope that the new partnership will contribute a lot, not only to the benefits of our two peoples, but also to the region,” he added.
The Philippines and Vietnam formally established diplomatic relations on July 12, 1976. Their ties were elevated to an Enhanced Strategic Partnership during Vietnamese President To Lam’s state visit to Manila in June.
The stronger economic partnership is expected to open additional opportunities for investment, trade and market access as both countries seek to expand commercial relations over the coming years.