Vietnam

Market Snapshot 2018 - Vietnam - Commodity Table

Supply/Demand Basics

  • Largest corn importer in Southeast Asia, over 8 MMT in 2017.
  • Imports 1 MMT of feed wheat.
  • Top 4 importer of DDGS in the world when unrestricted.
  • Tremendous growth in commercial feed market, expected to eclipse 30 MMT.
  • Forecast to become the world’s largest per capita consumer of pork by 2020.

Country Overview

  • Population / growth: 96 million / 1.1%
  • Urban / growth: 34% / 3%
  • GDP(PPP) / growth: $643 billion / 6.2%
  • GDP per capita: $6,900
  • High commercial lending rate.
  • Median age of 29 years old.
  • New destination for global manufacturing sector as China’s wages increase.
  • 2018 marks the 23rd 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.
  • Relatively low buyer sophistication with high counterparty credit risk.
  • Large unofficial cross border trade with China.
  • Insect issue has the potential to threaten U.S. DDGS exports.

Policy Issues

  • 0% corn tariff.
  • 0% tariff on CGM/DDGS.
  • 100% fumigation at origin necessary for DDGS.
  • Maximum 14% moisture requirement for imported corn.
  • Successfully cultivates transgenic corn.

Market Snapshot 2018 - Vietnam - Chart