Balancing agricultural trade between Vietnam and the U.S.

On April 9 (local time), on the sidelines of Deputy Prime Minister Ho Duc Phoc's visit to the U.S., Deputy Minister of Agriculture and Environment Hoang Trung held a meeting with his counterpart, Mr. Jason Hafemeister, Deputy Minister of the United States Department of Agriculture (USDA). 

During the meeting, the two Deputy Ministers affirmed the positive outcomes of bilateral cooperation in the agricultural sector in recent years. These achievements serve as a foundation for the two sides to address emerging issues and further promote cooperation in market access and agricultural trade facilitation.

Removing trade barriers, promoting market access for agricultural products

Speaking at the meeting, Deputy Minister Hoang Trung affirmed that the USDA is a trusted partner of Vietnam’s Ministry of Agriculture and Environment (MAE) and of Vietnamese farmers. He expressed his desire for both ministries to further strengthen their cooperation, bringing greater benefits to both nations, particularly to farmers and businesses in the two countries.

Deputy Minister Hoang Trung shared that since the bilateral meeting in 2024, MAE has actively implemented its commitments with USDA. The Ministry is currently expediting the completion of pest risk assessments (PRA) and other regulatory procedures to enable seedless lemons, plums, and tangerines from the U.S. to enter the Vietnamese market by 2025. At the same time, Vietnam has completed the evaluation and authorization process for all genetically modified event dossiers for use in animal feed.

In the spirit of mutual cooperation, the Deputy Minister proposed that the U.S. side swiftly consider granting market access for Vietnam’s passion fruit.

Regarding the U.S. request for tariff reductions, Deputy Minister Hoang Trung informed that the Government of Vietnam had just issued Decree No. 73/2025/ND-CP on March 31, 2025, revising and supplementing preferential import tariff rates for certain goods. Accordingly, tariffs on wood and wood products have been reduced from an average of 15-25% down to 0%, and tariffs on corn and soybeans have also been cut from 2% to 0%, creating more favorable conditions for U.S. businesses exporting to Vietnam.

The Vietnamese Deputy Minister also mentioned that the two countries had agreed to negotiate a bilateral trade and investment agreement, which would allow U.S. businesses and investors to enjoy greater incentives in line with international practices.

Sustaining a positive relationship between MAE and USDA

During the meeting, both sides also discussed the recent announcement by the U.S. Government on the imposition of reciprocal tariffs of up to 46% on Vietnamese exports to the U.S. This action could pose significant challenges not only for Vietnamese farmers and enterprises but also for U.S. businesses and consumers.

Vietnamese agricultural products entering the U.S. market are known for their high quality and reasonable prices. Therefore, Deputy Minister Hoang Trung proposed that, building on the effective cooperative relationship between the two ministries in recent years, USDA will support MAE's proposal to the relevant U.S. authorities to consider granting tariff exemptions for certain agricultural and aquatic products that serve essential consumer needs and do not compete directly with domestic products, such as seafood, cashew nuts, pepper, fruits and vegetables, and coffee.

Deputy Minister Jason Hafemeister expressed his appreciation and affirmed that MAE is a reliable and valuable partner of the USDA. He expressed support for Vietnam's proposals and noted that the Minister is expected to visit Vietnam in May 2025 to further discuss and expand bilateral cooperation in the agricultural sector.

Implementing the Agreement on illegal logging and timber trade control

Currently, MAE has been working closely with the Office of the United States Trade Representative (USTR) to ensure timely implementation of commitments under the bilateral agreement on controlling illegal logging and timber trade. On April 1, 2025, the Government of Vietnam issued Decree No. 77/2025/ND-CP, stipulating the authority and procedures for establishing state ownership over certain assets and handling property determined to be under collective ownership.

In addition, MAE is drafting a circular to provide guidance on the handling of confiscated timber, which is in line with the commitments under the agreement. The Ministry is also working closely with other Vietnamese competent authorities to enhance traceability and prevent origin fraud. Deputy Minister Hoang Trung expected the U.S. side to promptly review Vietnam’s positive progress and draw a conclusion to close the ongoing investigation related to the control of illegal logging and timber trade.

In addition to the meeting between the two Deputy Ministers, the Vietnamese delegation also held technical discussions with the Foreign Agricultural Service (USDA) on the detailed implementation plan of the Fertilize Right Project. The project aims to enhance fertilizer use efficiency and effectiveness, improve farmers’ incomes, and reduce greenhouse gas emissions in rice cultivation through proper fertilizer management. The delegation also met with the U.S. Animal and Plant Health Inspection Service (APHIS) to strengthen cooperation in promoting market access for agricultural products both from the U.S. to Vietnam and from Vietnam to the U.S.

The U.S. is currently the largest exporter of poultry meat to Vietnam, accounting for approximately 34% of total poultry imports; the second-largest exporter of beef (after Australia, accounting for about 16%); and the sixth-largest exporter of pork (about 5%) among countries exporting meat to Vietnam. MAE encourages enterprises to increase imports of corn, soybeans, and distillers dried grains with solubles (DDGS) from the U.S. for use in animal feed. In 2024 alone, Vietnam imported approximately USD 1.6 billion worth of these products.