MANILA (Dow Jones)--The Philippines may opt to enter into a government to government deal with Vietnam in securing its future rice contracts, a senior agriculture official said Tuesday.

  While the National Food Authority, the country's state-owned grain trading firm, has been buying most of its rice import requirements through auctions in the past several years, the agency is still allowed by law to negotiate for a government to government deal, said the official.

  However, any government to government deal with Vietnam will have to be approved by the NFA council, which includes the finance department, if not by the country's president, he added.

The Philippines is seeking assurance from Vietnam that it will give priority to supplying Manila's rice import requirement for the year.

  "We want an assurance that they will give us top priority. We're confident we'll get this assurance because Vietnam is an Asean member like us," said NFA administrator Jessup Navarro, referring to the Association of Southeast Asian
Nations.

  The NFA has so far signed contracts to buy 877,000 metric tons of rice out of an import quota of 1.6 million tons for the year.

  The agency plans to buy another 550,000 tons of rice in an auction March 11.  

  The Philippines is a major buyer of rice in Asia, importing mostly from Vietnam. 
 
  
  -By Rhea Sandique-Carlos, Dow Jones Newswires; 632-848-5051;
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