With bilateral trade reaching $8.33 billion and much room for growth, it is time for Manila and Hanoi to truly see each other as ideal trade partners.
Half a century after establishing diplomatic relations, Vietnam and the Philippines have yet to fully tap each other’s potential.
With bilateral trade reaching $8.33 billion and much room for growth, it is time for Manila and Hanoi to truly see each other as ideal trade partners.
Half a century since establishing diplomatic relations, Vietnam and the Philippines have proven that their economies complement each other more than they compete.
Electrical machinery and components from the Philippines go to Vietnamese factories, while rice and cereals from Vietnam ensure food security for the Philippines. A mutually beneficial relationship awaits a new level of advancement.
The linkage between the two economies is evident across many dimensions. In the global supply chain ecosystem, in 2024 alone, the Philippines’ exports of electrical machinery and components to Vietnam exceeded $500 million – a crucial input for Vietnamese products sold worldwide.
Conversely, Vietnam is a key supplier of rice and cereals to the Philippines, both ensuring food security for the Philippines and providing sustainable income for Vietnamese farmers. This mutually beneficial mechanism allows both sides to create more jobs for their workers.
This complementarity extends to services. As Vietnamese brands continue to expand globally, the Philippines’ capabilities – with its English-proficient workforce serving many top global corporations – can become a pillar for international customer service. This is the spirit shaping the two countries’ economic relations today: growing stronger by leveraging each other’s strengths.
Bilateral trade turnover has increased from $4.91 billion in 2019 to $8.33 billion in 2025. Both sides are striving to surpass the $10 billion mark. Yet this figure remains modest compared to the true potential of both economies.
For a long time, most trade promotion efforts by both the Philippines and Vietnam have focused on other markets. It is time for Manila and Hanoi to proactively view each other as ideal partners – especially when both have shown impressive resilience and economic growth in recent years.
During the visit of General Secretary and President To Lam to the Philippines, the two countries will sign a series of agreements in trade and investment, aviation, agriculture, tourism, defense, education, maritime cooperation, and fisheries.
These agreements ensure that cooperation between the two governments proceeds with clear goals and structure. The remaining question is how both sides will leverage that foundation.
Vietnam is in a phase of infrastructure expansion and service modernization – an area where the Philippines has valuable experience to share. With appropriate incentive mechanisms, Philippine companies can invest in roads, water supply, renewable energy, and international port operations in Vietnam.
Conversely, although some major Philippine corporations are already present in Vietnam, Vietnamese businesses still have many opportunities to invest in the Philippines, especially in telecommunications and electric vehicle manufacturing.
Beyond capital and goods, human resource cooperation is also a promising direction. Many Filipinos are interested in positions within Vietnam’s education system, thereby helping to improve English skills for Vietnamese people – an increasingly important asset as Vietnam integrates more deeply and broadly.
The most promising areas still lie ahead: renewable energy, artificial intelligence, and the blue ocean economy. In particular, the ocean economy is
Manila
Manila, the capital of the Philippines, is a vibrant metropolis with a rich history that blends indigenous, Spanish, and American influences. Founded in 1571 by Spanish conquistadors, it served as the center of the Spanish East Indies for over three centuries and later became a key battleground during World War II. Today, its historic walled city of Intramuros, along with modern skyscrapers and bustling markets, reflects its layered past and dynamic present.
Hanoi
Hanoi, the capital of Vietnam, is one of Southeast Asia’s oldest cities, with a history dating back over a thousand years. It served as the imperial capital of the Ly dynasty and later became the administrative center of French Indochina, which left a legacy of colonial architecture. Today, Hanoi is renowned for its blend of ancient temples, tree-lined boulevards, and vibrant street life, reflecting its rich cultural heritage and resilience through periods of war and modernization.
Philippines
The Philippines is a Southeast Asian archipelago of over 7,000 islands, with a rich history shaped by indigenous cultures, Spanish colonization (1565–1898), American influence, and its own struggle for independence. It is known for its vibrant festivals, diverse languages, and landmarks like the historic walled city of Intramuros in Manila and the UNESCO-listed rice terraces of Banaue. Today, the country is a popular destination for its stunning beaches, warm hospitality, and unique blend of Eastern and Western traditions.
Vietnam
Vietnam is a Southeast Asian country with a rich history shaped by centuries of Chinese rule, French colonization, and the Vietnam War. Its cultural heritage is reflected in ancient temples, vibrant festivals, and diverse cuisine, blending indigenous traditions with external influences. Today, Vietnam is known for its stunning landscapes, from Ha Long Bay to the Mekong Delta, and its resilient, rapidly modernizing society.
ASEAN
ASEAN, the Association of Southeast Asian Nations, was established on August 8, 1967, with the signing of the Bangkok Declaration by five founding members: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Its primary goals are to promote economic growth, social progress, and cultural development in the region, as well as to ensure regional peace and stability. Today, ASEAN includes ten member states and serves as a key platform for political, economic, and security cooperation in Southeast Asia.
To Lam
To Lam is a revered Buddhist temple in Hanoi, Vietnam, known for its historical and spiritual significance. Originally built in the 17th century, it served as a center for Buddhist learning and practice, particularly during the Lê dynasty. Today, it remains an active place of worship, attracting both pilgrims and visitors interested in its serene architecture and cultural heritage.
Philippines’ exports of electrical machinery and components
The Philippines is a major exporter of electrical machinery and components, including semiconductors, transformers, and wiring devices, which form a key part of its manufacturing sector. This industry grew significantly from the 1970s onward, driven by government incentives and foreign investment, particularly from Japan and the United States, establishing the country as a vital link in global electronics supply chains. Today, electrical machinery remains one of the Philippines’ top export categories, contributing substantially to its economy.
Vietnam’s education system
Vietnam’s education system has deep roots in Confucian traditions, with a strong emphasis on respect for teachers and academic achievement. Historically, it underwent significant reforms under French colonial rule and later during the communist era, prioritizing mass literacy and universal education. Today, it is a highly competitive, state-controlled system that has achieved near-universal primary enrollment and consistently high scores on international assessments like PISA.
