USGC renews long-term partnership with Vietnam

Over three decades of partnership and development

On June 6 in Washington DC, Vietnam Deputy Minister of Agriculture and Environment Hoang Trung met and worked with the U.S. Grains Council (USGC).

During the meeting, Deputy Minister Hoang Trung, on behalf of the 50-member Vietnamese delegation, expressed his gratitude to the USGC for taking the time to welcome the delegation.

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According to the Deputy Minister, the primary objective of the delegation was to enhance cooperation between the two countries in the fields of agriculture and the environment, and to promote further bilateral trade in agricultural, forestry, and fisheries products. In addition, the visit aimed to expand business-to-business connections, thereby boosting purchasing power and increasing the import of U.S. agricultural products into Vietnam.

"Over the past four days, the delegation has engaged in numerous productive discussions with state authorities, businesses, and representatives from state departments of agriculture, contributing to the realization of the objectives set forth. Many noteworthy outcomes have been reported by media outlets in both countries," the Deputy Minister emphasized.

Appreciating the USGC's role in promoting trade cooperation, Deputy Minister Hoang Trung stressed that the Council is one of the earliest foreign business organizations to establish an office in Vietnam.

For its part, the USGC representative affirmed that Vietnam has been a key market the Council approached early on. The cooperative relationship between the two sides has been built on a foundation of in-depth research and a long-term commitment to promoting trade.

Mr. Ryan LeGrand – President and CEO of USGC – shared that the Council had closely followed the delegation’s journey and had participated in supporting several related programs in Iowa and Ohio.

He emphasized that the cooperative relationship between USGC and Vietnam dates back to 1994, even before the two countries officially established diplomatic relations. The USGC opened its representative office in Vietnam in 1996, just one year after normalization of bilateral ties.

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Currently, both USGC offices in Hanoi and Ho Chi Minh City maintain close relationships with Vietnamese government agencies, organizations, and local enterprises. Vietnam is considered by the USGC as a bright spot in Southeast Asia in terms of trade growth.

“Vietnam has always held a top position on USGC’s list of priority partners,” Mr. LeGrand expressed his optimism about the positive signals from the Vietnamese market. The USGC leadership reaffirmed its full support and commitment to a sustainable bilateral relationship based on mutual benefit.

In addition to general cooperation areas, he noted that the USGC had proactively worked with the Office of the United States Trade Representative (USTR), clearly stating its position that the current tariff rate of 46% is excessively high and should be reviewed.

On the technical front, Mr. LeGrand proposed several initiatives to enhance bilateral trade relations further, aiming to build a stable, balanced, and sustainable market for both sides. Specifically, he hoped that Vietnam would consider relaxing fumigation requirements to help reduce costs for Vietnamese importers.

Vietnam's need for imported animal food

Deputy Minister Hoang Trung stated that Vietnam is currently implementing a strategy to develop its livestock sector in a modern and sustainable direction. The country’s pig population is around 30 million, poultry around 550 million, and cattle approximately 14 million.

As a result, the domestic demand for raw materials to produce animal feed is substantial. Each year, Vietnam imports about USD 8 billion worth of raw animal food, primarily corn, soybeans, wheat, and DDGS.

“These are all key export commodities of the U.S.,” the Deputy Minister noted. “Therefore, the Vietnamese government has been actively promoting policy mechanisms to facilitate trade to the greatest extent possible.”

In particular, the MAE closely oversees matters of quarantine and food safety. Specialized agencies respond quickly and adhere strictly to technical requirements, particularly those related to SPS (Sanitary and Phytosanitary Standards).

Providing further insight into Vietnam’s demand, Mr. Nguyen Tuan Nam – General Director of Khai Anh Binh Thuan Joint Stock Company – shared that his company is expanding its animal feed sector, with an annual material demand ranging from 20 to 22 million tons.

In 2024 alone, Khai Anh directly purchased approximately 600,000 tons of U.S. corn. From a business perspective, Mr. Nam highly appreciated the cooperation between the Ministry and the USGC, which has made it easier for companies to access the U.S. market.

“The quality of U.S. corn has significantly improved. The kernels are firmer, the breakage rate during processing has noticeably decreased, and the color is more attractive, with a naturally golden hue instead of the previous pale white,” Mr. Nam expressed, impressed by the transformation in the U.S. supply chain.

Khai Anh Binh Thuan is currently supporting livestock farmers across Vietnam. Mr. Nam emphasized that for the sector to grow sustainably in the long run, all parties must collaborate to ensure greater presence of U.S. agricultural products in the Vietnamese market.

Recently, Khai Anh Company signed MOUs to purchase approximately 4.3 million tons of various animal feed materials. This is a long-term strategic move that reflects the company’s commitment to sustainable cooperation between Vietnam and the U.S.

In 2021, Ministry of Agriculture and Rural Development (now MAE) signed a MOU with USGC, focusing on three key areas: grain trade promotion, capacity-building training, and research and development of biofuels. As the 2021 MOU has expired, during the working session, USGC signed a new agreement with PSAV, which will be effective for five years.

The overarching goal of the new MOU is to establish a technical cooperation relationship between PSAV and USGC in the fields of livestock, production and use of biofuels in Vietnam, as well as to enhance information exchange on policies, legal regulations, and Vietnam's development objectives. PSAV will make efforts to further support trade with the U.S. coarse grains sector within its responsibilities and authority.