Market Profile - Vietnam

Supply/Demand Basics

  • Largest corn importer in Southeast Asia, will surpass 7 MMT in 2016.
  • Imports 1 MMT of feed wheat.
  • #3 DDGS importer in MY2016 at over 1 MMT.
  • Expected to become number 1 feed market in SEA in 2017.
  • Forecast to become the world’s largest per capita consumer of pork by 2020.

Country Overview

  • Population: 95.3 million
  • Population growth: 0.95%
  • Urban %: 33.6%
  • Urban growth: 2.95%
  • GDP: $552.3 billion
  • GDP growth: 6.7%
  • GDP per capita: $6,000
  • High commercial lending rate.
  • Median age of 29 years old.
  • New destination for global manufacturing sector as China’s wages increase.
  • 2016 marked the 21st anniversary since the U.S. normalized relations.

Trade and Market Share Issues

  • Low market share due to poor freight spreads and moisture levels in U.S. corn.
  • Argentina DDGS have begun flowing into the country.
  • Relatively low buyer sophistication with high counterparty credit risk.
  • Large unofficial cross border trade with China.
  • Insect issue threatens U.S. DDGS exports.

Policy issues

  • 5% corn tariff proposed to phase out in five years if TPP is ratified.
  • Immediate 5% removal on sorghum tariff if TPP is ratified.
  • 0% tariff on CGM/DDGS.
  • 100% fumigation at origin necessary for DDGS.
  • Maximum 14% moisture requirement for imported corn.
  • Successfully cultivated their first crop of transgenic corn.
  • DDGS market access currently closed.
  • Recent FTA with Russia shut the window for U.S. corn imports.