Japan-Phl-Vietnam relations and the coming flood season
ENERGY, INFRA AND ECONOMICS - Bienvenido Oplas Jr. - The Philippine Star
June 4, 2026 | 12:00am
Last week, President Marcos made a state visit to Japan and met with Prime Minister Sanae Takaichi and Emperor Naruhito. A Philippines-Japan Comprehensive Strategic Partnership is being worked out.
Upon coming back in Manila, the President hosted a state visit by Vietnam President To Lam. It was the 50th anniversary of Philippines-Vietnam diplomatic relations.
Bilateral Trade
Japan is the Philippines’ third largest merchandise exports market after the US and Hong Kong, buying an average of $10.9 billion a year from 2022 to 2025. In January to April 2026, we exported $3.8 billion worth of goods to Japan. In terms of exports share, Japan’s share is declining from 14.1 percent of our total exports in 2022 to 2024 to 12.6 percent in 2026.
As source of our merchandise imports, Japan is the third largest after China and South Korea. Its share is declining from nine percent of total imports in 2022 to 8.2 percent in January to April 2026. The share of China is rising from 20.6 percent in 2022 to 28.8 percent in 2026, South Korea share is also rising from nine percent in 2022 to 11.6 percent in 2026.
Among the ASEAN countries, Vietnam is the fourth largest market of our merchandise exports after Singapore, Thailand and Malaysia, buying an average of $1.65 billion a year in 2022 to 2025, and $487 million in January to April 2026. Its market share is declining from 2.2 percent of total exports in 2022 to 1.6 percent in 2026.
As source of our imports, among the ASEAN countries Vietnam is the fourth largest origin after Indonesia, Thailand and Singapore. Vietnam’s share is rising from 3.3 percent of total imports in 2022 to 3.9 percent in 2026.
Investments
In 2025, Japan was third largest in approved investments in the Philippines with P34 billion, behind Singapore with P92.8 billion and Netherlands with P36 billion. In 2024, Japan was fourth with P28.7 billion, behind Switzerland with P289.1 billion, South Korea with P97.3 billion and Netherlands with P50.2 billion.
Vietnam’s investments in the Philippines is small but slowly rising, with more Vinfast EVs coming in and plans for large-scale EV battery production using the Philippines’ high production of nickel and cobalt. Petro Vietnam Gas is also exploring partnership with Petron Philippines on LNG and related downstream energy projects.
I saw the press statement of Aboitiz Equity Ventures (AEV), their conglomerate has three engagements in Vietnam. One, Aboitiz Foods through Pilmico’s acquisition of Vinh Hoan 1 Feed JSC, and recently a $45-million feed mill in Long An province that can produce up to 300,000 metric tons of livestock and animal nutrition feed annually.
Two, Aboitiz Power’s (AP) 25 percent stake in Van Phong Power Co. that owns an operational 1,320 MW high-efficiency, low-emission (HELE) coal plant in Khánh Hòa province. Three, expanding direct air links between Cebu and major Vietnam cities like Hanoi and Ho Chi Minh through the Mactan-Cebu International Airport operated by Aboitiz Infracapital. AEV officials like AP chief corporate services officer Carlos Aboitiz and AP CFO Sandro Aboitiz have met with Vietnam President To Lam on Day 1 of his state visit here.
Flood season coming
Last week, PAGASA announced the start of habagat or southwest monsoon season in the Philippines. Recall the bad La Niña and horrible flooding during habagat season last year especially in July. I counted 12 days with no sun in Metro Manila that month, mostly thick clouds and rains. It was during the series of flooding that the flood control scandal exploded.
This week Executive Secretary Ralph Recto met with officials of DPWH, DOTr, MMDA and DOLE to coordinate a major cleanup and de-clogging drive to reduce flooding across Metro Manila. President Marcos ordered the agencies to intensify flood mitigation efforts. Deployment of thousands of workers under the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) is part of the program.
I support this move. Our problem yearly in the Philippines and the tropics is lots of rain, lots of flood, not lack of rains. The solution is not more climate meetings and junkets, not more climate loans and bureaucracies. The solution is regular, annual dredging of those waterways, make them deeper and wider to accommodate more excess rainwater. Technically not flood control but flood facilitation so the excess rainwater can drain out to the sea as fast as possible.
Aside from declogging of waterways initiated by ES Recto and other officials, two other measures that the government may consider are the following.
One, leave mined-out areas to remain open and deep and become artificial lakes to help store water in the upland or midland. Mined-out areas should not be covered with soil and planted with trees as provided in the mining law.
Two, build more dams, weirs and related water storage structures in our many rivers and creeks. Various purposes like reduce flooding during heavy rains, source of raw water for water companies, hydroelectric power generation, irrigation source, inland fishing and eco-tourism.
In particular, above existing dams. I saw Ambuklao dam and hydroelectric plant in Benguet, just one hour by car from Baguio, it is beautiful and useful. Maybe another dam and hydro plant upstream can be built. Then between Ambuklao and Lower Binga dam and hydroelectric plant also in Benguet. Then between Binga and San Roque dam and hydro plant in Pangasinan.
The dam, weir and water reservoir are still owned by the government, only the hydroelectric power plant is owned by the private energy companies.
More bilateral trade and investments in Asia, not more war mongering. More water storage and waterways dredging, not more climate bureaucracies and junkets.
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