Vietnam signs memorandums to purchase $2 bln worth of American agricultural products

Vietnamese companies have signed memorandums with the US to purchase $2 billion worth of American agricultural products, Reuters reports, citing the US Department of Agriculture. The signed agreements are part of efforts to conclude a new trade agreement between the two countries.

The new agreements, signed during a visit to the US by a delegation of 50 Vietnamese companies led by Agriculture Minister Do Duc Duy, include five memoranda and provide for expanded purchases of corn, wheat, dried distillers grains, and soybean meal over three years.

Tariffs on Vietnamese products were estimated by the Trump administration at 46%. Although they were suspended until July, if they come into force, they could seriously undermine the growth model of Vietnam’s agribusiness sector, which relies on exports to the United States as its main market.

Last year, Vietnam purchased $3.4 billion worth of US agricultural products and exported $13.68 billion worth of its own agricultural products to the US. Vietnam and the Trump administration are still talking about a trade deal, with Vietnam promising to let in more imports from the US to close the trade gap between the two countries.

Earlier, it became known that trade problems are hampering sales of new crop corn and soybeans from the US. As of May 1, export sales were significantly below their five-year historical averages: soybean sales fell by 88.2% and corn sales by 26.9%.

Tags: Vietnam, wheat, soybean meal, USA, corn