Vietnam imports US agricultural products in very large quantities, second only to Brazil and China, according to a report by the US Department of Agriculture.

The US Department of Agriculture has just released a report reviewing the food export situation of US businesses to Vietnam, which emphasizes that the Vietnamese market offers many opportunities for businesses exporting US consumer goods.

The report assesses that Vietnam's population continues to grow, the middle class is increasingly large and wealthy, and consumers care more about the origin of food products.

Apples are one of the three fruits most imported by American businesses into Vietnam. Source: Economic Times

Comments on Vietnam's economic prospects

The US Department of Agriculture said that in 2024, Vietnam's GDP is expected to grow well with an expected rate of 6.0%. The results come from the development of the service and industrial sectors as well as the strong recovery of tourism after a period of decline during the COVID-19 pandemic.

The report estimates Vietnam's GDP per capita in 2023 to be 4,284 USD/person, an increase of 160 USD compared to the previous year; at the same time, citing World Bank (WB) analysis, interest rates in Vietnam remain stable.

In general, the US Department of Agriculture evaluates Vietnam as a dynamic market with a wealthy middle class as well as a young population that likes to pursue international consumption trends and high per capita income. Therefore, Vietnam imports American agricultural products in large quantities and diverse types.

Food export champions into the Vietnamese market

According to the US Department of Agriculture, the countries that export the most agricultural products to Vietnam include China with a proportion of 15%, Brazil with 11% and the US ranked third with a proportion of 10%.

In 2023, Vietnam will import an estimated 32 billion USD of agricultural products from the world. Vietnam's imports of agricultural products from abroad have gradually increased in the last three years as Vietnam's economy recovered from the COVID-19 pandemic.

Overview of countries/territories exporting the most agricultural products to Vietnam. Source: US Department of Agriculture

Over the past 30 years, Vietnam has participated in 16 multilateral and bilateral trade agreements; therefore, the opportunity to export agricultural products to Vietnam for countries participating in these agreements is huge, the US Department of Agriculture said.

Potential of exporting US agricultural products to Vietnam

The US Department of Agriculture forecasts that US agricultural product exports to Vietnam still have much room for development because consumers love high-quality, safe American products. The US exports 3.1 billion USD of agricultural products to Vietnam in 2023, slightly lower than China and Brazil.

Agricultural products from China and Brazil exported to Vietnam mainly serve animal feed and production. American agricultural products are consumed in many sectors of Vietnam, from retail to hotels and restaurants and food processing.

Data for 2022 show that the consumption scale of Vietnam's hotel and restaurant group increased by 51% compared to the previous year. However, the report assesses that Vietnamese consumers are still quite "sensitive" to prices.

Export developments of US agricultural products to Vietnam from 2019 to 2023 Source: US Department of Agriculture

The US Department of Agriculture's report cited Euromonitor data saying that Vietnam's hotel and restaurant industry has about 330 thousand business locations including: restaurants, bakeries, cafes; bars, stalls and service centers. Vietnam's food processing industry also uses a lot of food imported from the US such as dried fruit, dairy products, nuts, and potatoes.

Vietnam imports American agricultural products in large quantities, so this is a potential market for American fresh fruit. The total value of fresh fruit that Vietnam imports from the US in 2023 is estimated at 105 million USD, an increase of 13% compared to 2022, mainly apples, cherries, and grapes. To date, Vietnam has licensed the import of seven types of US fruits including: apples, cherries, grapes, pears, blueberries, oranges and grapefruits.

Source: Law Newspaper