Vietnam secures nearly $3 billion deal to import US agri products

New chapter in US–Vietnam agricultural trade

On June 6 in Washington DC, Minister Do Duc Duy joined a roundtable discussion with leading companies and corporations from the US-ASEAN Business Council (USABC). This event marked the final stop on the Ministry of Agriculture and Environment’s working trip, setting the stage for more sustainable and effective cooperation between the two countries.

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At the event, eight agreements were signed, totaling up to $1.1 billion. Along with earlier Memorandums of Understanding (MOUs) signed in Iowa, Ohio, and Maryland, the total value of agricultural import agreements from the US has reached nearly $3 billion.

Speaking to the press, Minister Do Duc Duy stated, “So far, we can say this trip has been a great success, delivering very positive results.”

Ted Osius, President and CEO of USABC, expressed his delight and noted that he has been following US media coverage of the Vietnamese delegation’s visit. He emphasized that USABC has deployed staff to fully support the Ministry of Agriculture and Environment during their time in the US.

“The agreements signed today and throughout the visit clearly show the strong partnership between our two countries,” he said. “They also pave the way for promising collaboration between two highly complementary agricultural sectors.”

The largest agreement on June 6, valued at $380 million, was signed between Vietnam’s Khai Anh Binh Thuan Joint Stock Company and US-renowned animal feed producer, Cargill. Under the MOU, Vietnam will import 1.2 million tons of US animal feed grain, including corn, wheat, and soybean meal.

In addition, seven agreements were signed between Thien But Company and Lamex Food Group; Thien But Company and Niceland Foods; RYL Food Joint Stock Company and Sea2Asia; IMEX CDC Joint Stock Company and Niceland Foods; IMEX CDC Joint Stock Company and Intervision Foods; Ho Chi Minh City Handicraft and Wood Processing Association (HAWA) and Kember Interiors; Northeast Timber and Lumber LLP and Vitana Company Limited.

At the first stop of Minister Do Duc Duy's US trip in Iowa on June 2, Vietnamese agricultural businesses signed four agreements worth up to $800 million to import corn, soybeans, and meat from the state over the next three years.

Ohio was the next stop for the Ministry of Agriculture and Environment delegation, along with accompanying Vietnamese companies. On June 4, under the witness of ministry leaders and representatives from Ohio’s agricultural associations, the delegation signed additional contracts worth over $600 million to purchase corn, cornmeal, and soybean products from the States.

During a brief working session in Maryland on the morning of June 6, specialized units under the Ministry observed the signing of deals worth around $300 million to import agricultural products and meat from the US.

USABC to support Vietnam’s green growth vision

At the signing ceremony, Minister Do Duc Duy held discussions with USABC on cooperation to help Vietnam reach its Net Zero target. USABC members shared ideas, initiatives, and hopes for working with Vietnam on technology transfer and green production.

Betsy Struse, Director of International Government Relations at Cargill, expressed pride in the company’s early entry into the Vietnamese market, dating back to the establishment of diplomatic relations between the two countries.

As Vietnam’s leading supplier of animal feed, Cargill operates factories and production facilities across 12 provinces and cities, employing more than 1,500 people. Beyond business, the company also invests in community development, having sponsored the construction of over 120 schools nationwide, contributing to human development and the future of Vietnam.

As a net-exporting economy, the US agricultural sector relies heavily on global markets, exporting 65% of its soybeans, 30% of its corn, and 25% of its protein products. “Cargill values the joint effort to expand market access in both directions,” Struse said. “We look forward to continuing our partnership with Vietnam to ensure long-term, sustainable growth for both agricultural sectors.”

Miguel Bates-Bingosa, Vice President of International Government Relations at Citigroup, shared that Citi celebrated 30 years of operations in Vietnam last year. Reflecting its global commitment to advancing the circular economy, Citi has launched several initiatives in Vietnam aimed at reducing the impacts of climate change.

In 2022, Citi completed its first voluntary carbon credit transaction in Vietnam, partnering with a home appliance manufacturer producing stoves and water purifiers for vulnerable, low-income communities.

“As a financial intermediary, Citi wants to support Vietnam in developing its climate finance market. We aim to supply verified carbon credits to global clients, helping lower emissions while improving the livelihoods and health of people in rural areas,” Bates-Bingosa remarked. 

Atmo CEO Alex Levy also expressed interest in collaborating with the Ministry of Agriculture and Environment and Vietnam’s National Center for Hydro-Meteorological Forecasting to leverage AI in enhancing Vietnam’s forecasting capabilities and resilience to extreme weather events. He added that immediately after today’s meeting, Atmo will head to Hanoi to meet with Deputy Minister Le Cong Thanh and other relevant stakeholders.

Mr. Levy also expressed support for joint technology innovation centers between Vietnamese and US. companies under the Ministry’s direction. Atmo is ready to work with Vietnam’s top meteorological institutions to deliver advanced weather forecasting services for disaster risk management.

Four key outcomes

Speaking to both Vietnamese and international media at the event, Minister Do Duc Duy outlined the key results of the delegation’s working trip. The delegation included representatives from 50 agencies, associations, and agricultural businesses who joined the Minister in visiting the US during the first week of June.

First, Vietnamese businesses signed a series of MOUs totaling nearly $3 billion through a range of agricultural trade connection activities. This was an unexpected but significant achievement, reflecting the initiative and determination of Vietnamese agricultural enterprises in seeking out and securing international partners.

Second, the forums and bilateral meetings provided both Vietnamese and US business communities with a clearer understanding of each other’s markets, consumer trends, and developments in agriculture, forestry, and fisheries. These exchanges have opened the door for future business partnerships, expanded market access, investment opportunities, and stronger commercial ties.

Third, by visiting local farms and collaborating with state governments and businesses, the delegation gained practical insights into technology transfer, modern farming practices, and innovative solutions to build an ecological, intelligent, circular, and sustainable agriculture.

Finally, through discussions with members of Congress, state officials, business leaders, and local residents, the delegation reaffirmed Vietnam’s clear position and strong commitment to boosting agricultural trade and working toward a more balanced and mutually beneficial trade relationship.

Minister Do Duc Duy concluded: “The Vietnamese Government places great importance on the Comprehensive Strategic Partnership with the US and continues to push this relationship to new heights.”