Strengthening U.S.-Vietnam Trade Ties

As global markets evolve, strengthening international partnerships remains a key priority for U.S. soybean farmers. With a delegation of South Dakota farmers set to embark on a trade mission to Vietnam, the spotlight is on this dynamic and rapidly growing market. Vietnam is the world’s 13th-largest soybean consumer and Southeast Asia’s second-largest importer of U.S. soy, making it a crucial trade partner for American agriculture.

Vietnam’s Growing Demand for Soybeans

Vietnam’s demand for soybeans is driven by its expanding middle class, increasing soy food consumption, and a thriving livestock and aquaculture industry. In 2023, the country imported 5.9 million metric tons (MMT) of soybean meal to support its growing feed sector. Additionally, Vietnam is the world’s sixth-largest pork producer and fourth-largest aquaculture producer, both industries that rely heavily on soybean meal for feed.

The U.S. has played a vital role in Vietnam’s soybean industry since 1996, supplying high-quality soybeans for food and feed applications. In the 2022/2023 marketing year, Vietnam imported a total of 6.7 MMT of soy complex products (whole soybeans, meal, and oil), with U.S. soy accounting for 18.64% of the market. Whole soybeans saw the highest U.S. market share, with over half of the 1.25 MMT imported coming from American farmers.

Trade Growth and Market Opportunities

The Vietnamese market presents numerous opportunities for U.S. soybeans. Recent infrastructure developments, including deep-water seaports and expanded crushing facilities, are improving import capacity. Vietnam currently operates four soybean crushing plants.

Additionally, the ongoing shift from backyard farming to modernized feed operations presents another advantage. More than half of Vietnam’s feed mills operate under foreign direct investment (FDI), creating a more structured and scalable demand for high-quality soybean products.

Challenges and Competition

Despite these opportunities, challenges remain. Vietnam faces price competition from South America, and poultry and swine diseases pose threats to the industry. Additionally, import taxes on refined soybean oil from the U.S. remain higher than those for other ASEAN countries, impacting competitiveness. However, continued collaboration between U.S. soybean organizations and Vietnamese stakeholders can help address these challenges and further solidify trade relationships.

The Importance of Building Relationships

South Dakota farmers’ upcoming trade mission to Vietnam underscores the importance of face-to-face relationship-building in international trade. These missions provide opportunities to engage directly with buyers, processors, and government officials to discuss market needs, establish trust, and showcase the benefits of U.S. soy.

SD Soybean Research and Promotion Council Chairman David Struck emphasized the significance of these engagements: “Trade isn’t just about selling a product; it’s about building long-term partnerships. Vietnam’s demand for soybeans continues to grow, and strengthening these connections ensures that U.S. farmers remain a trusted supplier in this important market.”

As Vietnam’s economy and population continue to grow—projected to reach 109.6 million people by 2035—its demand for high-quality soybeans will only increase. By fostering strong trade relationships today, U.S. soybean farmers can secure a prosperous future in this expanding market.

United States Soybean Export Council information on Vietnam.