HANOI: Vietnamese enterprises are poised to sign memoranda of understanding (MoUs) with U.S. partners to purchase American agricultural products valued at $2 billion, the Ministry of Agriculture and Rural Development confirmed on Tuesday. The agreements form part of broader efforts to finalise a new trade arrangement between Vietnam and the United States.
The MoUs are expected to be formalised during an official visit to the United States by a delegation of 50 Vietnamese companies, led by Agriculture Minister Do Duc Duy. Among the deals are five MoUs covering the purchase of $800 million worth of agricultural goods from the state of Iowa over a three-year period. These products include corn, wheat, dried distillers grains and soybean meal, the ministry stated.
The negotiations come at a critical juncture as bilateral trade relations face potential strain. The Trump administration previously imposed 46% “reciprocal” tariffs on Vietnamese exports. Although implementation has been deferred until July, the threat of enforcement looms and could significantly disrupt Vietnam’s export-led growth model, particularly given the United States is its largest export market.
Vietnam is seeking to address the growing trade imbalance with the U.S., which posted a trade deficit of $123 billion with the Southeast Asian nation in 2024. As part of its commitment to narrow the gap, Vietnam has agreed to expand imports of American goods and services.
In 2024, Vietnam imported $3.4 billion worth of U.S. agricultural products, while exporting $13.68 billion in agricultural goods to the American market, according to Vietnam News Agency. The country has also pledged to increase purchases of other U.S. goods, including Boeing aircraft and liquefied natural gas, and to enhance its enforcement efforts against counterfeit goods and digital piracy following concerns raised by the U.S. government.
-Reuters
