Balancing agricultural trade between Vietnam and the US: Spotlight on grains

Grains are among the most in-demand commodities in the Vietnamese market. Meanwhile, the US is a global powerhouse in grain production, boasting high output, superior quality, and several competitive advantages.

To further explore this issue, Vietnam Agriculture and Nature Newspaper spoke with Mr. Caleb Wurth, Asia-Pacific Director of the US Grains Council (USGC).

‘Expecting to see more corn from US to be exported to Vietnam in 2025’

Corn, corn co products like DDGS and sorghum are essential ingredients to animal diets. The feed and animal protein produced in Vietnam using these inputs are then re-exported, generating positive GDP for Vietnam.

According to Caleb Wurth, of the 12.1 million metric tons of corn purchased in 2024, almost none was purchased from the United States. “We anticipate more corn purchased from the United States in marketing year (M/Y) 2025”, he shared.

The representative of the USGC in Asia and Pacific made the thought reasonable as Vietnam did purchase Distillers Dried Grains (DDGS) from the United States. In M/Y 2024, Vietnam imported 1.033 million metric tons. Vietnam also imports some DDGS from other countries such as Brazil and India, however the Vietnam market prefers the higher quality of U.S. origin DDGS.

Sorghum may also be available to Vietnam in 2025. This will provide Vietnam industry an alternative feedstock to lower cost of production.

Assessing the value of US grains in the Vietnamese market, Mr. Caleb Wurth affirmed that these products have various applications that bring added value to Vietnam. Specifically, corn and DDGS can be used as animal feed to support the production of pork, chicken, eggs, fish, and beef for export. Additionally, DDGS is considered a cost-effective feed for the dairy industry, helping to lower the production costs of this nutritious beverage.

Corn can also be used to produce ethanol fuel, a safe and environmentally friendly energy source suitable for common vehicles in Vietnam, such as motorcycles and cars. Meanwhile, aside from its role in animal feed production, sorghum can be used for human consumption, with its flour serving as an ingredient for gluten-free bread, or as pet food.

As for barley and malt, their primary application is in the production of high-quality, flavorful beer.

Environmental-friendly

When asked about the competitive advantages of US grains compared to similar products from other countries, Mr. Caleb Wurth did not hesitate to emphasize their reliability in origin, sustainability, environmental friendliness, and the strong Vietnam-US partnership. "The United States has an efficient supply chain capable of delivering high-quality products," affirmed the representative of the US Grains Council. 

According to him, organizations such as the US Grains Council are always eager and ready to support Vietnam’s animal feed processing industry to ensure profitability and success. Mr. Wurth emphasized that they are the only organization providing this level of support to business partners. "Whenever a Vietnamese customer purchases corn or corn co products from the U.S. they can be issued a Record of Sustainability, which proves that the product was grown in an earth friendly way," he stated. 

The US grain industry representative also noted that the United States is currently the only country offering such certifications to its customers. Meanwhile, the Vietnamese market is increasingly interested in sustainability and environmental responsibility in its product sourcing. 

Although the current trade volume remains modest, Mr. Wurth believes that the Vietnamese government consistently supports domestic animal feed production while encouraging imports of US-origin products. 

"There will be increased opportunity to import from the U.S. as prices become more competitive and as U.S. and Viet Nam governments encourage more mutually beneficial trade opportunities.," affirmed the Asia-Pacific Director of the US Grains Council. 

Regarding solutions to expand the import volume of US grains into Vietnam, Mr. Wurth suggested that, in the near future, Vietnamese animal feed producers could transition to using US corn or DDGS. 

Additionally, Vietnam could promote the use of ethanol fuel, which would help lower fuel costs, reduce air pollution, and increase the import volume of raw materials from the United States. Furthermore, for human consumption, sorghum and barley are also promising options.