Vietnam overtakes the Philippines in banana exports to China
The Philippines is no longer the top supplier to the Chinese market, with a 32 per cent drop in exports. Vietnam instead consolidated its growth thanks to competitive prices, geographic proximity, and higher production. Meanwhile, the European Union is boosting ties with the communist Southeast Asian country after the US threatens new tariffs.
Hanoi (AsiaNews) – Vietnam has become the main supplier of bananas to the Chinese market, reaching first spot that the Philippines had held for over 20 years.
The change is not only symbolic, but marks a turning point in regional trade and raises questions about Philippine competitiveness in agriculture.
Both Vietnam and the Philippines are members of the Association of Southeast Asian Nations (ASEAN), partners in a regional free trade system that is also oriented to external markets.
Data for 2024 show a sharp drop in Philippine banana exports to China, down 32.45 per cent from the previous year, at just over 463,000 tonnes, while Vietnam’s exports hit 625,000 tonnes, up by 24 per cent.
This is a significant change from 2017, when the Philippines covered 70 per cent of China's banana imports, now down to 27.47 per cent, according to the International Trade Centre.
Vietnam has focused on prices, geographic proximity, and higher production, going from 1 per cent of the Chinese market in 2014 to 37 per cent in 2024.
For China, which imports about 1.8 million tonnes of bananas a year, Vietnam is an increasingly reliable supplier.
Philippines is facing competitiveness problems, compounded by poor planning and insufficient assessment of emerging markets, contributing to the sector’s decline. Even in South Korea, Philippine banana producers have lost ground.
Diplomatic relations between China and the Philippines may have influenced trade as well. In 2018-2019, when President Rodrigo Duterte's administration maintained good relations with Beijing, China was the main outlet for Philippine bananas.
By contrast, under Ferdinand Marcos Jr, relations have cooled. Manila has strengthened its strategic partnership with Washington, upping the ante in territorial disputes in the South China Sea.
In the face of growing uncertainty, Philippine producers are looking for alternative markets outside Asia, urging their government to take concrete steps to support production and stabilise prices.
In addition to consolidating its position in China, Vietnam is attracting the interest of the European Union since US President Donald Trump said that he might impose new tariffs on Vietnamese exports.
European Commission President Ursula von der Leyen and French President Emmanuel Macron are expected to visit the Southeast Asian country, while European Trade Commissioner Maros Sefcovic could bring forward talks as early as April.
The EU seeks closer trade relations and offers new investment opportunities, especially after the Trump administration decided to freeze US foreign aid.
In 2023, the EU imported US$ 52 billion worth of goods from Vietnam, less than half of what the United States did. However, for Vietnam, the EU is its third-largest export market, thanks to an existing free-trade agreement.
Trade and diplomatic exchanges come at a time when Vietnam is trying to diversify its military supplies and increase public spending on infrastructure, including a major national railway project in which European companies are competing for contracts.
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12/02/2016 15:14
11/09/2023 18:27
