Dai Thom 8: Vietnamese rice variety proposed as tax reference standard in the Philippines

(DTO) The Philippine Department of Agriculture (DA) is considering adjusting the reference base for its flexible rice import tariff mechanism. Under this proposal, the department would shift away from using the Vietnam 5% broken rice FOB price published by the FAO, moving instead to monitoring and utilizing Vietnam's Dai Thom 8 rice variety as the basis for tax calculations.

The information was shared by Philippine Agriculture Secretary Francisco P. Tiu Laurel, Jr. with BusinessWorld Online, as the agency reviews its market-responsive tariff adjustment framework.

Secretary Francisco P. Tiu Laurel, Jr. stated in a Viber message: “Most of the rice we import is not the standard Vietnam 5% broken rice. The majority of rice entering the Philippines today is Vietnam’s Dai Thom 8, and that is the variety we should be monitoring and using as the basis.”

According to BusinessWorld, the Philippine Department of Agriculture argues that continuing to use the 5% broken price as a reference no longer reflects the actual composition of imported rice, whereas Dai Thom 8 is now the dominant variety in the Philippine market.

Export prices of Dai Thom 8 to the Philippines currently range between 430 and 450 USD per ton, higher than the roughly 361 USD per ton for Vietnam 5% broken rice. The proposal to adopt Dai Thom 8 as the new reference is seen as better aligned with the commercial value of Vietnam’s fragrant rice in the market.

Dai Thom 8 is a proprietary rice variety developed, produced, and commercialized by Vinarice Co., Ltd., and is widely cultivated in the Mekong Delta. It is favored for its long, translucent, non-chalky grains and its soft, fragrant, flavorful cooked rice, meeting stringent export requirements.

Experts note that this move signals a shift in the rice tariff policy of the Philippines, a major rice-importing country, from generic varieties toward those with higher market share and commercial value. The fact that a Vietnamese variety is being proposed as a reference standard in the tariff mechanism of a major import market is a positive indicator, reaffirming the rising position of Vietnam’s rice industry.

However, businesses and experts also caution that counterfeit or imitation Dai Thom 8 seeds in the market may undermine product reputation and quality. Farmers are advised to purchase certified seeds from reputable distributors and companies with clear packaging, labeling, and technical standards to safeguard production efficiency.

By MY NHAN
Translated by ANH DUC