Vietnam Delegation Pledges $2 Billion in Farm Good Purchases

A 50-person trade delegation from Vietnam announced pledges to purchase $2 billion in agricultural goods in a visit to the Iowa State Capitol on Monday.

The signing of five memoranda of understanding (MOUs) is between the Vietnamese feed industry and private companies from the United States. Of the $2 billion in total value, $800 million has been pledged to Iowa farm goods, according to Iowa Department of Agriculture and Land Stewardship (IDALS) Secretary Mike Naig. 

“This is a clear sign that international buyers continue to see value, reliability, and opportunity in Iowa agriculture,” Naig said. “I’m proud of the work we’re doing to build markets for Iowa’s high quality ag products and to grow our rural economy through global partnerships.”

A Reuters report on the Vietnamese ministry’s announcement said the trip is part of an effort to complete a new trade deal with the U.S. after getting slapped with 46% reciprocal tariffs as part of President Donald Trump‘s “Liberation Day” event on April 2. Naig said the visit to Iowa was part of a “multi-state trip” for the Vietnamese contingent, which included its minister of agriculture and the environment, Do Duc Duy. According to the Iowa Corn Growers Association (ICGA), the group will be heading to Ohio before making its way to Washington, D.C.

“Vietnam is a strategic trading partner with the U.S. and is a top importer of DDGS [Distillers Dried Grains with Solubles],” said Iowa Corn Promotion Board President Ralph Lents. “This event showcased an increased commitment from Vietnam to purchase more agricultural products and reinforce the strong partnership between our countries. Iowa is the top corn-producing state, and we are happy to serve as host to our important trade partners.”

Iowa Corn provided descriptions of the five MOUs signed Monday: 

• An agreement between United Grain, a major U.S. feed supplier, and Khai Anh Binh Thuan. This MOU covers the import of 900,000 metric tons of U.S. corn and wheat with a value of $250 million.
• An agreement between SB&B Foods, LLC, specializing in soybean products, and Nevist International Export Import from Vietnam. This agreement covers the import of 2,000 metric tons of U.S. soybeans.
• A comprehensive agreement between the Iowa Pork Producers Association and Vietnam’s Department of Livestock and Animal Health of the Ministry of Agriculture and Environment. It focuses on collaboration for market development, representing a strategic partnership that will enhance trade opportunities and technical cooperation between industries.
• An agreement that brings together POET, a leader in biofuel production and DDGS, and Viet Nhat Feed. This partnership involves the import of 250,000 metric tons of U.S. DDGS with a value of $84 million.
• An agreement between AG Processing Inc, one of the leading soybean meal suppliers in the U.S., and Khai Anh Binh Thuan, one of the leading feed producers in Vietnam. This agreement covers the import of 1 million metric tons of U.S. soybean meal with a total value of $400 million.

In addition, Iowa Corn and Iowa Public Radio both said the Vietnamese government is currently exploring the expansion of its E5 RON92 mandate to all grades of gasoline. 

“If Vietnam moves to a nationwide E10 mandate across all grades of gasoline, this will be a huge win for Iowa’s corn farmers,” according to a release by the ICGA.