Vietnam’s macro-economic conditions – including population growth, continual urbanization and dietary shifts towards increased animal protein consumption – offer mounting prospects for increase in feed grain demand and imports of U.S. coarse grains and grain co-products. So far in calendar year 2014, Vietnam’s corn imports have increased more than 400 percent over the same period last year to a total of 1.41 million metric tons (55.5 million bushels), according to the General Department of Vietnam Customs.
U.S. corn exports to Vietnam are enjoying an increase as well, up more than 735 percent over the same time period last year. According to USDA FAS, Vietnam had combined U.S. corn outstanding sales and accumulated exports of 262,800 tons (1 million bushels) from Sept. 1 to March 27. This is mostly corn redirected from China, but it builds familiarity and confidence with U.S. sourcing, which may be leveraged in the future.
In the past, Vietnam’s feed milling sector has lacked a thorough understanding of the benefits of importing U.S. corn, which include reliability and consistent high-quality. The Council has been working to alleviate this perception through the distribution of compelling evidence to highlight U.S. corn quality, to include widely distributing the 2013/2014 Council Corn Harvest Quality and Corn Export Cargo Quality Reports.
This week, USGC Regional Director of Southeast Asia Adel Yusupov and USGC Director of Trade Development in China Kevin Roepke, continued the effort to promote U.S. corn by presenting the report findings at a seminar in Vietnam. This activity is intended to build demand and customer preference for U.S. corn through targeted market education.
“The pace of corn imports by Vietnam is truly amazing,” Yusupov said. “The Council will continue to provide reliable, transparent market information to Vietnamese importers and end-users which will help bolster confidence in U.S. corn and differentiate U.S. corn from competitors.”