Vietnam-US sign series of agricultural cooperation agreements worth 800 million USD

Overview of the working session between the Ministry of Agriculture and Environment and the Iowa Department of Agriculture. (Photo: Negotiation delegation).

On June 2 (local time), the working delegation of the Ministry of Agriculture and Environment of Vietnam led by Minister Do Duc Duy began a working trip to the United States, with the first stop being the state of Iowa.

Receiving and working with the Vietnamese delegation, from the Iowa Department of Agriculture, there were Secretary Mike Naig and Deputy Secretary Grant Menke.

At the meeting, the Vietnamese delegation expressed its strong commitment to signing purchase contracts worth over 2 billion USD in the US market. With Iowa alone, the two sides signed five memorandums of understanding (MOUs) worth a total of about 800 million USD, to be implemented over three years.

Open long-term cooperation

Sharing at the meeting, Minister Do Duc Duy said that this working trip promotes cooperation in agricultural, forestry and fishery trade between Vietnam and the United States, especially with the state of Iowa.

With a long tradition of farming, Iowa is known as the leading corn granary of the United States, producing about 50 million tons of corn each year. In addition, the state is also a producer of many other grains such as rye, wheat, as well as fruits.

On the contrary, Vietnam has risen to become one of the world's leading agricultural exporters, actively contributing to ensuring global food security.

“We are constantly expanding our processing capacity, quality control and sustainable agricultural development. Therefore, the two sides can complement each other and jointly develop bilateral, stable and long-term agricultural, forestry and fishery value chains,” said Minister Do Duc Duy.

Also at the meeting, the two sides reviewed and assessed the current status of agricultural trade cooperation between Vietnam and the state of Iowa, and shared information, needs and potential for business cooperation between the two sides.

The discussion opened up a practical direction, promoting the export of high-quality agricultural, forestry and fishery products from Iowa to the Vietnamese market and vice versa.

Notably, the Vietnamese delegation accompanying Minister Do Duc Duy to the United States is expected to sign MoUs to purchase over 2 billion USD worth of US agricultural, forestry and fishery products.

With Iowa alone, businesses and associations from both sides have signed five MoUs worth a total of about $800 million, to be implemented over three years. This is a significant increase compared to the previous average of $44 million in annual agricultural exports from Iowa to Vietnam.

Specifically, Khai Anh Binh Thuan Company agreed to import 1 million tons of soybean meal worth an estimated 380-390 million USD from its partner Ag Processing Inc (AGP). This enterprise also agreed to buy an additional 900,000 tons of corn and wheat from its partner United Grain, worth about 250 million USD.

Viet Nhat Nutrition Technology Joint Stock Company also signed a contract with POET Group to import 100,000 tons of dried distillers grains (DDGS) and 100,000 tons of dried soybeans, with a total value of 60-70 million USD.

Public-private cooperation between the two countries is also expanded in the MoU between the Department of Animal Husbandry and Veterinary Medicine (Ministry of Agriculture and Environment) and the Iowa Pork Producers Association. Both sides are committed to strengthening trade relations, encouraging linkages between Vietnamese and Iowa producers through organizing technical seminars, promotional events, and trade connections.

In addition, the exchange program has also created opportunities for many other Vietnamese and US businesses to exchange, creating new opportunities to strengthen trade relations, promote connectivity in the Vietnam - US agricultural, forestry and fishery supply chain; thereby increasing the transfer of advanced US technology to Vietnamese businesses, together towards the development of green, smart and sustainable agriculture.

Minister Do Duc Duy expressed his belief that the event will be the beginning of a period of deeper and more effective cooperation between the Vietnamese business community and the state of Iowa, demonstrating the goodwill of both sides to foster the comprehensive strategic partnership between Vietnam and the United States.

Forming a Vietnam-US supply chain

At the related discussion within the framework of the working session, Mr. Ngo Hong Phong - Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment) also presented an overview of agricultural trade relations between Vietnam and the state of Iowa.

According to the Ministry of Agriculture and Environment, Vietnam and the United States have a clearly complementary agricultural product structure. Specifically, Vietnam is strong in tropical agricultural products such as rice, coffee, pepper, vegetables and fruits; has a long coastline favorable for aquaculture development, especially shrimp and tra fish.

Meanwhile, the United States excels in temperate agricultural products such as corn, wheat, soybeans, milk, meat, temperate fruits and seafood such as Alaskan lobster and cod.

Mr. Phong said that thanks to participating in many free trade agreements with the European Union-Vietnam (EVFTA), the United Kingdom of Great Britain and Northern Ireland (UKVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), Vietnam has had significant advantages in terms of tariffs as well as access to international markets.

“Contributing to that achievement are the Vietnamese farmers, who are mainly manual laborers but are experienced and resilient. They contribute to building modern agriculture, while helping export products maintain price competitiveness,” Mr. Phong shared.

According to Mr. Phong, the difference in crop seasons due to climate conditions helps supplement year-round supply for domestic and international markets. Thanks to that, consumers of both countries have more choices of tropical and temperate fruit products across the Pacific.

Thanks to that, agricultural trade between the two countries is mutually supportive, less directly competitive, and contributes to the formation of a common Vietnam - US supply chain.

With this advantage, the Director of the Department of Quality, Processing and Market Development gave some suggestions for US businesses wishing to export agricultural, forestry and fishery products to the Vietnamese market, including food safety regulations. “We need to make the most of the incentives from the results of trade negotiations between the two governments, within the framework of the increasingly developing Comprehensive Strategic Partnership,” Mr. Phong emphasized.

According to the Ministry of Agriculture and Environment, in the context of the world facing many challenges such as climate change, supply chain disruptions, and market fluctuations, market diversification is an important strategy to ensure food security.

Vietnam pledges to work with US partners, especially the Iowa business community, to continuously expand fair, transparent and mutually beneficial trade relations.

Source: https://baobinhphuoc.com.vn/news/4/173570/viet-nam-hoa-ky-ky-loat-thoa-thuan-hop-tac-nong-nghiep-tri-gia-800-trieu-usd