Economic

Research

Service

Economic

Information 

Bulletin 

Number 130

October 2014

United States Department of Agriculture

Vietnam’s Agri-Food Sector and 

the Trans-Pacific Partnership

Shawn S. Arita and John Dyck
Economic Research Service 

www.ers.usda.gov

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Shawn S. Arita and John Dyck. Vietnam’s Agri-Food Sector and the Trans-Pacific 

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October 2014.

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United States Department of Agriculture

Economic 

Research 

Service

Economic

Information 

Bulletin 

Number 130

October 2014 Abstract

In 1986, Vietnam embarked on a gradualist approach to market reform and steadily pursued 

trade agreements under a strategy of export-led growth. The country has since emerged as one of 

Asia’s dynamic economies and a growing market for agri-food trade. The proposed Trans-Pacific 

Partnership (TPP) is Vietnam’s next step toward increased economic integration. This report 

provides an overview of Vietnam’s agri-food sector and an analysis of its trade with potential 

TPP partners. Examination of Vietnam’s trade and tariff structure suggests modest agricultural trade growth potential from the proposed TPP agreement. Vietnam’s current preferential 

trade agreements (PTAs) with many of the negotiating TPP countries already provide low or 

duty-free rates. Major Vietnamese exports, such as coffee and natural rubber, are not expected 

to gain from an agreement. Nevertheless, even though many of Vietnam’s PTAs overlap with 

potential TPP partners, TPP could provide new opportunities where those agreements did not 

liberalize market access. Rice and smaller export sectors (cassava starch, pepper, processed 

foods, honey) could grow. For U.S. agricultural exporters, Vietnam’s already low tariff rates on 

animal feed and commodities for industrial inputs do not provide much growth opportunity for 

its top products; however trade liberalization could lead to increased U.S. markets for consumeroriented exports including meats, dairy products, fruits, and other high-value U.S. food products. 

Additional economic growth generated by an agreement would also increase Vietnam's import 

demand. 

Keywords: Vietnam, trade, Trans-Pacific Partnership, TPP, Pacific Rim, Vietnamese agriculture, Vietnamese agri-food sector, preferential trade agreement, tariffs, trade liberalization, Asia 

economic development

Acknowledgments

The authors appreciate the reviews by Linda Calvin, Andrew Muhammad, John 

Wainio, Mary Burfisher, Nathan Childs, and Anh Tran of U.S. Department of 

Agriculture, Economic Research Service; Mark Dries, Michael Ward, Dwight Wilder, 

Greg Tyng, and Elmasoueur Ashitey, USDA, Foreign Agricultural Service; Ian 

Coxhead, University of Wisconsin; and Hyunok Lee, University of California, Davis. 

We also want to thank David Marquardt of USDA/ERS, who provided the map; and 

Priscilla Smith and Cynthia A. Ray, USDA/ERS, for editorial and design support.

Shawn S. Arita and John Dyck

Vietnam’s Agri-Food Sector and 

the Trans-Pacific Partnership
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Vietnam’s Agri-Food Sector and the Trans-Pacific Partnership, EIB-130

Economic Research Service/USDA

Contents

Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Economic Overview of Vietnam. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Reform of Centrally Planned Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Export-led Growth and Rise of Manufacturing Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Vietnam Today. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Agriculture and Food Consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Vietnamese Agricultural Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Food consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Vietnam and Agricultural Trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Trade Liberalization and Trade Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Trade Policy and Barriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Agricultural Trade With Trans-Pacific Partnership Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Analysis of Trade and Tariff Structure for Vietnam’s Top Traded Commodities. . . . . . . . . . 18

Export Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Export Tariff Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Import Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Import Tariff Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Market Potential for U.S. Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
United States Department of Agriculture

A report summary from the Economic Research Service

ERS is a primary source 

of economic research and 

analysis from the U.S. 

Department of Agriculture, 

providing timely information on economic and policy 

issues related to agriculture, 

food, the environment, and 

rural America.

www.ers.usda.gov

Economic

Research

Service

Economic

Information 

Bulletin 

Number 130

October 2014

United States Department of Agriculture

Vietnam’s Agri-Food Sector and 

the Trans-Pacific Partnership

Shawn S. Arita and John Dyck

October 2014

Find the full report at 

www.ers.usda.gov/

publications/eib-economic-informationbulletin/eib130

Shawn S. Arita and John Dyck

Vietnam’s Agri-Food Sector and the 

Trans-Pacific Partnership

What Is the Issue?

Vietnam is a fast-growing transitioning economy that has sought economic development 

through market reform and export-led growth. A critical ingredient of this development 

strategy has been the signing of trade agreements. Vietnam is currently in negotiations with 

the United States and 10 other countries to establish the Trans-Pacific Partnership (TPP) 

agreement. The pact would eliminate or reduce tariffs and other barriers to trade and investment among participating countries. Vietnam hopes that TPP will secure markets abroad 

and facilitate the flow of foreign investment into the country. Similarly, the United States and 

other TPP members see Vietnam, with over 90 million people and a growing middle class, as 

a market with growth potential. 

This report provides an overview of Vietnam’s economy and agri-food sector and a detailed 

analysis of Vietnam’s trade with the United States, other TPP partners, and the rest of the 

world. Using a variety of trade sources, Vietnam’s trade and tariffs for major agricultural 

commodities are examined. Insights are provided on the potential implications of the proposed 

TPP agreement on Vietnamese agricultural trade.

What Did the Study Find?

Following three decades of market reform and trade liberalization, Vietnam has emerged as 

one of Asia’s most dynamic economies. Under its export-led growth strategy, textile and footwear industries expanded greatly, with Vietnam becoming a major importer of cotton, hide, 

and leather commodities. The country is a leading exporter of coffee, rice, cashew nuts, and 

pepper, and is a significant exporter of a variety of other commodities to the world market. 

Despite a recent slowdown in growth, Vietnam is expected to have significant market potential for agri-food products. As a very large consumer of pork and poultry products, Vietnam is 

heavily dependent upon feed from outside sources and has increasing requirements for foreign 

meat. With increased urbanization and rising household incomes, Vietnamese are increasingly 

turning to foreign packaged and processed food for convenience and a desire for variety.

Potential implications of a TPP agreement:

• While Vietnam is expected to be one of the largest beneficiaries of the proposed TPP 

agreement, trade gains in agriculture may be limited. Vietnam’s current preferential trade 

agreements (PTAs) with many of the negotiating TPP countries already provide low or 
duty-free rates. However, TPP could provide new opportunities where those agreements did not liberalize 

market access.

• Even among partners with which it currently lacks a PTA, most of Vietnam’s top exported commodities—

such as coffee, rubber, cashews, and pepper—are not protected, leaving little room for growth. Vietnam’s 

smaller export sectors (cassava starch, pepper, processed foods, and honey) could gain from further liberalization of tariffs, and Vietnamese rice could gain a share of Japan’s indica rice import niche. 

• Vietnam’s import growth will likely be concentrated in the consumer-oriented sector. Even though commodities used as inputs for agriculture (soy, cotton, wheat) make up the largest share of Vietnam’s agricultural 

imports, these commodities already enter with very low tariffs. Vietnam’s consumer-oriented foods on the 

other hand, face significantly higher rates (15-40 percent ad valorem duties) and thus larger growth potential 

from a TPP agreement. 

• U.S. agricultural exporters may be well suited to expand in meats, dairy products, and fruits. The TPP agreement also could provide new opportunities for exports of other high-valued U.S. consumer food products to 

the growing Vietnamese market.

How Was the Study Conducted?

Agricultural production and food consumption are reviewed for major commodity sectors. Assessment of the 

implications of the potential TPP agreement is based upon Vietnam’s agricultural trade and tariff structure. 

Using a variety of trade and tariff sources, Vietnam’s top exported and imported commodities with potential 

TPP countries and the rest of the world are documented. As negotiations are still pending, the full scope of the 

agreement is not known. Examination of the level of current protection across the top commodities helps identify areas of potential trade expansion that may be served through a TPP agreement.

www.ers.usda.gov
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Vietnam’s Agri-Food Sector and 

the Trans-Pacific Partnership 

Introduction

Vietnam has emerged as one of Asia’s dynamic economies. Beginning in 1986, the Government of 

Vietnam embarked on a gradualist approach to market reform and economic development (Tran, 

2013; Collins et al., 2009). Centrally planned controls were loosened, land laws reformed, and 

export-oriented industries fostered. One ingredient of this development strategy included trade 

agreements. To encourage foreign direct investment (FDI) and trade, Vietnam joined the Association 

of Southeast Asian Nations (ASEAN) in the mid-1990s; normalized trade with the United States 

in 2001; and since then has entered into preferential trade agreements (PTAs) with China, Japan, 

Australia, New Zealand, and other major trading partners and acceded into the World Trade 

Organization (WTO) in 2007.

Following Vietnam’s market reforms, per capita gross domestic product (GDP) growth has 

averaged more than 5 percent per year and is among the highest in Asia behind China. Today, 

Vietnam is a country with over 90 million people and has a growing middle class. It is a leading 

exporter of coffee, rice, and natural rubber and a major importer of agricultural commodities used 

for inputs in manufactured consumer products such as shoes, leather goods, and garments. With 

a policy goal of growth, Vietnam continues to maintain its course for further development. In 

2014, the country welcomed its first McDonald’s, epitomizing almost three decades of growth and 

market liberalization. 

The proposed Trans-Pacific Partnership (TPP) is Vietnam’s next step toward increased economic 

integration. TPP is a trade and investment agreement under negotiation by 12 Pacific Rim countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, 

Vietnam, and the United States. If concluded, the pact will strengthen ties among some of the 

world’s major agricultural importers, exporters, and producers by reducing or eliminating tariffs and 

some nontariff measures among its members. 

This report provides an overview of Vietnam’s economy and agri-food sector and a detailed analysis 

of its trade with TPP partners and the rest of the world. Using a variety of trade sources, Vietnam’s 

trade and tariff structure is examined for major agricultural commodities. Insights are provided on 

the potential implications of the proposed TPP agreement on Vietnamese agricultural trade.
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Economic Overview of Vietnam

Reform of Centrally Planned Economy

At times in its history, Vietnam was wealthy relative to other parts of Asia and the rest of the world. 

However, in the late 19th century, it was a poor colony of France. Wars that engulfed Vietnam 

throughout much of the second half of the 20th century further impoverished the country. Under 

centrally planned economic policies, Vietnam continued to suffer economic stagnation after the 

Vietnam War (1954-1975) and the country experienced food shortages. 

In 1986, Vietnam embarked on a new economic agenda known as the doi moi reforms or “renovation,” to transition itself into a more market-oriented economy. In contrast to the “shock therapy” 

approach followed by many eastern European transitioning economies, the strategy was gradualist in 

nature, employing a selective and slow liberalization process (Tran, 2013; Collins et al., 2009). The 

country adopted micro-level reforms first, while keeping its state-owned enterprises and political 

structure largely intact. Farmers were granted long-term leases, which allowed for the exchange, 

transfer, further leasing, inheritance, and mortgaging of land-use rights. Despite reforms (including 

most recently the revised Land Law passed by Vietnam’s National Assembly in late 2013), private 

ownership of land and businesses still is not allowed. Other reforms improved the agricultural 

economy by allowing the issuance of land-use certificates; foreign investment in land; and changes 

in land use. Later, the country eased in macro-level changes. Elimination of the state procurement 

system and price controls increased competition (Tran, 2013). Together, these reforms have been 

viewed as a significant factor in the increase of farm yields and have led to a rise in rice output. 

Export-Led Growth and Rise of Manufacturing Sector

As part of the doi moi reforms, Vietnam pursued trade policies promoting exports. This agenda also 

was gradual. Vietnam applied an export-led growth strategy based on export subsidies and import 

substitution. Liberalization was selective. State monopolies on trade were removed and tariffs and 

nontariff measures were reduced. However, the effective rate of protection remained high, and some 

industries were protected (Chaponniere and Cling, 2009). In 1987, the “law on foreign investment” 

opened the economy to foreign investors and set a path to more favorable investment conditions 

needed for developing its manufacturing base (Delaunay and Torrisi, 2012). FDI was promoted 

alongside Government-supported export processing zones. 

In the 1990s, when more than 70 percent of Vietnam’s workers were still in agriculture (McCaig 

and Pavcnik, 2013), the country sought to expand its cotton spinning and clothing industries. With 

Government-supported investment in Vietnam, foreign textile firms took advantage of relatively 

inexpensive and reliable labor, and helped foster a base for export-oriented production. By the 21st 

century, cotton spinning, using imported raw fiber, grew quickly. Besides being a large net exporter 

of finished textile goods, Vietnam also became a net exporter of cotton yarn. As in the textile sector, 

investment by leading Asian, North American, and European firms in Vietnam’s footwear industry 

expanded production for export. From early 2000 on, Vietnam became embedded in the global 

textile and footwear value production chain. Vietnam’s development of its manufacturing industries 

soon followed. Foreign investment in both its light and heavy manufacturing led to a growth in 

production in those industries. 
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Figure 1 displays Vietnam’s export growth and evolution. In the early 2000s, Vietnam’s textile, footwear, and machinery/electrical sectors each exported only $1 billion to $2 billion, approximately 

the same as the country’s agricultural sector. A little more than a decade later, textile and footwear 

exports grew by a factor of five; machinery and electrical exports grew to over $35 billion, more 

than three times the amount of agricultural exports.

Manufacturing quickly overtook agriculture as the main engine of growth as productivity gains in 

agriculture freed up some farm labor for other occupations. The rise in factory wages relative to 

farm wages contributed to the movement of labor out of agriculture (McCaig and Pavcnik, 2013). 

The share of agriculture in Vietnam's economy declined steadily until 2006 and has since remained 

around 20 percent (fig. 2). Land at the fringes of cities has passed from agriculture to industrial 

or residential use. Nevertheless, similar to its developing Southeast Asian neighbors, Vietnam 

still remains relatively dependent on agriculture with its agricultural value as a percentage of the 

economy more than 10 times greater than most TPP countries (fig. 3).

Vietnam Today

Following the structural reforms and partial liberalization of trade and investment, Vietnam experienced economic growth. Figure 4 displays Vietnam’s recent economic development. In 1986, Vietnam’s 

GDP per capita was $269 (2005 U.S. dollars); by 2013, it grew almost fourfold. Today, Vietnam's GDP 

exceeds $90 billion (2005 U.S. dollars). The growing industries have required and enabled an expansion of Vietnam’s infrastructure for supplying power and transportation. 

Vietnam’s advantages as a production base for nonagricultural goods include its relatively large 

urbanized population, which supplies both a consumer market and relatively low-cost but educated 

labor force. In 2013, Vietnam had a population of 92.5 million people, which is expected to rise to 

100 million by 2022 (U.S. Dept. of Commerce, 2013). With its economic development, Vietnam’s 

agricultural sector and workforce are undergoing transformation. Since 1990, when the urban

Figure 1

Vietnamese exports to the world, selected sectors, 2000-12

Source: USDA, Economic Research Service using data from United Nations, Comtrade.

$ billion U.S.

 0

 5

 10

 15

 20

 25

 30

 35

 40

2000 01 02 03 04 05 06 07 08 09 10 11 12

Machinery/electrical

Textiles

Agriculture

Footwear

Fishery products
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population was 20 percent of the total, many rural people have left farm villages and moved to urban 

areas. Young people in particular have migrated to major cities like Hanoi in the north and Ho Chi 

Minh City (formerly Saigon) in the south. By 2012, 32 percent of the people lived in cities with 

overall population growth declining to about 1 percent per year (World Bank, 2013). These ongoing 

migration shifts have affected, and are likely to continue to affect, Vietnam’s farming practices, 

consumption patterns, family size, and marketing. 

Figure 2

Vietnamese agricultural value-added as a share of GDP, 1985-2012

GDP = gross domestic product.

Source: USDA, Economic Research Service using data from World Bank, World Development Indicators, 2014.

Percent

0

5

10

15

20

25

30

35

40

45

50

1985 88 90 93 95 97 99 2001 03 05 07 09 11

Figure 3

Agricultural value-added as a share of GDP for selected countries, 2011

*Australia percentage is an estimate for 2010; Canada and New Zealand data were not available.

GDP = gross domestic product.

Source: USDA, Economic Research Service using data from World Bank, World Development Indicators, 2014.

Percent

0

5

10

15

20

25

30

35

40
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Although Vietnam’s economic development has been successful, several economic challenges 

remain. The earlier rapid-paced strategy of public investment in infrastructure and capital may 

be showing signs of diminishing returns. After years of GDP growth above 7 percent, Vietnam’s 

growth rate has slowed following the global financial crisis in 2008, averaging 5 to 6 percent, and in 

2012 reached its lowest level since 1990. Vietnam’s productivity growth has stalled, with almost the 

entire growth from 2005 to 2010 attributed to capital investment and labor growth (WTO, 2013). Its 

current short- and long-term issues include systemic risks in the financial sector, uncertain levels of 

nonperforming loans, liquidity and foreign reserve concerns, and inefficient state-owned enterprises 

(WTO, 2013; and Anand et al., 2014). It has been suggested that Vietnam’s export-led growth model, 

which has emphasized outward-oriented output and suppression of imports, has reached its limits 

and that more reform of state-owned enterprises and encouragement of domestic demand are needed 

to boost growth (The Economist, 2009; and Anand et al., 2014).

Figure 4

Vietnam real GDP per capita and real GDP, 1986-2013

GDP = gross domestic product.

Source: USDA, Economic Research Service using data from World Bank, World Development Indicators, 2014.

Real GDP per capita, $ U.S. (2005 dollars) Real GDP, $ billion U.S. (2005 dollars) 

 0

 10

 20

 30

 40

 50

 60

 70

 80

 90

 100

 0

 200

 400

 600

 800

 1,000

 1,200

1986 88 90 92 94 96 98 2000 02 04 06 08 10 12

Vietnam real GDP per capita

Vietnam real GDP
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Agriculture and Food Consumption

Vietnamese Agricultural Production

Through its course of economic development, Vietnam has shifted from being an economy based on 

subsistence farming to becoming a major agricultural exporter. Table 1 displays Vietnam’s production of major agricultural commodities. At 28 percent of total agricultural production, rice is the 

most important crop. Following the doi moi reforms, rice production rose and Vietnam became a 

leading exporter. Vietnam is a large consumer of meats, particularly pork and chicken, which make 

up 28 percent and 5 percent of total agricultural production respectively. Growing demand for meats 

has outpaced production, leading to increasing requirements for foreign meat. Over recent years, 

Vietnam has successfully developed specialized commodities for export. The country has emerged 

as a leading exporter of coffee, cashew nuts, and pepper, as well as an exporter of a variety of 

other commodities to the world market. Vietnam’s fishery sector is an important component of its 

economy and generates a surplus for export (see box, “Vietnam Fishery Exports”).

Rice

Rice-based agriculture has dominated Vietnam’s northern Red River Delta for centuries, and since 

the last century, the rice industry of the southern Mekong Delta has developed so that it now exceeds 

that of the northern delta. Both deltas receive water from heavy monsoon rainfall and from the 

seasonal rise of rivers fed by rainfall in the mountains in the north and west of Vietnam (the Red 

Table 1

Vietnam production of selected agricultural commodities in 2012

$ billion U.S.

Percentage of total 

agricultural production

Rice, paddy 13.1 28

Pork 13.1 28

Chicken meat 2.2 5

Coffee 2.1 5

Rubber, natural 2 4

Corn 1.5 3

Cashew nuts, with shell 1.2 3

Cassava 1.2 3

Sugar cane 1 2

Pepper 0.9 2

Bananas 0.4 1

Sweet potatoes 0.4 1

Soybeans 0.1 0

Tea 0.1 0

Note: 2012 data are the most recent data available.

Source: United Nations, Food and Agriculture Organization, FAOSTAT.
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Vietnam Fishery Exports

With its long coastline and extensive river systems, Vietnam always has had a large fisheries industry. In the 

last two decades, aquaculture has become a very large industry, especially in the Mekong Delta and along the 

coastline. Like other fisheries around the world, Vietnam’s wild-catch fish and seafood industry as well as its 

aquaculture industry are threatened by pollution, diseases, and overfishing. 

The figures show Vietnam’s fishery-product exports to the United States and the rest of the world from 1994. 

Vietnam’s fishery sector has grown tremendously over the past few years and has a large trade surplus. In 1994, 

total fishery export value was 

approximately $500 million. 

In 2012, it was over $4 billion, 

making Vietnam one of the 

largest seafood exporters in the 

world. Most of the growth has 

been due to aquaculture, which 

now makes up almost half of 

all Vietnamese fishery production and a significant portion of 

overall exports. 

Over the last decade, Vietnam 

has emerged as a major aquaculture producer of shrimp 

and catfish and has increasingly gained market share 

in the United States. The 

United States has taken 

several measures that have 

affected Vietnamese shrimp 

and catfish exports, including 

the imposing of anti-dumping 

measures and a requirement 

to label certain Vietnamese 

imports as basa and tra, other 

than catfish (Martin, 2014). 

Vietnam has raised complaints 

over the U.S. anti-dumping 

measures to the World Trade 

Organization (WTO). In 2011, 

the WTO sided with Vietnam 

in its dispute over U.S. antidumping measures on shrimp 

(WTO, 2011).

Box figure 1

Vietnamese fishery exports to United States, 1994-2012

Source: USDA, Economic Research Service using data from United Nations, Comtrade. 

$ million U.S.

 0

 100

 200

 300

 400

 500

 600

1994 96 98 2000 02 04 06 08 10 12

Shrimp and other crustaceans

Catfish and other fillets

Other seafood

Box figure 2

Vietnamese fishery exports to the rest of the world (excluding the 

United States), 1994-2012

Source: USDA, Economic Research Service using data from United Nations, Comtrade. 

$ billion U.S.

 0

 0.2

 0.4

 0.6

 0.8

 1.0

 1.2

 1.4

 1.6

 1.8

1994 96 98 2000 02 04 06 08 10 12

Shrimp and other crustaceans

Catfish and other fillets

Other seafood
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River) and in China (the Mekong). Given Vietnam’s tropical location, it is possible to raise multiple 

crops annually on the same rice paddies. 

As Vietnam handed control over much of rice farming to individual households in the 1980s and 

1990s, rice area and yield increased. Rice area increased by over a million hectares in the 1990s, 

largely through the expansion of multiple cropping. Since 2000, most of the increase in production 

has been due to rising yields, which rose by about 25 percent in the first decade of the 2000s (UN/

FAOSTAT, 2013). Farmers applied increasing amounts of fertilizer and pesticide and planted new 

varieties of high-yielding rice. 

Vietnam has always grown chiefly long-grain rice, of the variety often called indica. Because of its 

low labor costs and favorable climate, Vietnam became competitive in world markets in the 1990s 

(fig. 5).1 In 1996, the country overtook the second-largest exporter at the time, the United States, 

and quickly became the largest exporting country after Thailand. With India, Vietnam dominated 

world markets for low-priced rice, shipping white rice that was poorly milled and of low quality to 

poorer consumers in the rest of the world. Within Vietnam, the dominance of relatively low-quality 

but high-yielding rice suited rice farm households, which increasingly relied on the use of chemicals 

(such as herbicides) to replace weeding as labor became more costly. However, urban consumers 

increasingly demanded higher quality rice as incomes grew. Also, Vietnam began to import rice 

from Cambodia, Thailand, and Laos, including fragrant rice varieties. Nevertheless, imports account 

for a very small share of Vietnam’s consumption (UN/Comtrade, 2013). 

The world market for higher quality indica rice has long been dominated by Thailand and the 

United States. However, with the decision of Thailand’s Government over the last decade to support 

its farmers, often by directly buying rice at high prices, Thai rice became more expensive in world 

1

Vietnam was a major rice exporter under French rule until World War II. The country returned to being an exporter 

for a few years following WWII, but exports ceased in the early 1960s.

Figure 5

Vietnamese rice production and exports, 1960-2013

Source: USDA, Economic Research Service using data from USDA, Foreign Agricultural Service, Production, Supply 

and Distribution Online database. 

Million metric tons, milled basis

0

5

10

15

20

25

30

1960 63 66 69 72 75 78 81 84 87 90 93 96 99 2002 05 08 11

Production

Exports
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markets.2 Vietnam is currently increasing production and milling capacity for higher quality rice, 

such as fragrant varieties, in order to gain share in the global market. 

Other field crops

Traditional agriculture in the Vietnamese uplands has grown a variety of grains in addition to rice. 

But today, the main non-rice grain is corn, grown primarily for feeding animals. Corn production has grown rapidly but not as quickly as feed demand. Competition for land from other crops 

and forest use makes expansion difficult. Vietnam also produces increasing amounts of cassava, 

which is used for feed and starch manufacturing. The feed industry’s demand for protein meal 

and consumers’ demand for vegetable oils have increased demand for soybeans. However, production remains small, unable to satisfy demand for traditional soy foods like tofu. Peanuts are widely 

grown for food use. Vietnam, like neighboring Southeast Asian countries, is likely to remain a large 

soybean importer and a net importer of growing amounts of corn in the long term. 

Horticulture

Vietnam produces a wide variety of vegetables and fruits. Bananas and sweet potatoes are the 

leading horticulture crops, according to the limited data available from the United Nations' 

FAOSTAT database. Production is mostly small scale and relies on family labor. As urbanization 

proceeds, labor constraints may affect vegetable and fruit production, leading to higher prices 

or diminished production. Vietnam’s horticultural production is sold fresh in markets. Vietnam 

exports dragon fruit, watermelon, and coconut meats and imports temperate fruits, such as apples 

and oranges. 

Pork

Like China and the Philippines, Vietnam has a long history of pork consumption, and pork dominates all other meats. Although statistics are deficient, it is estimated that Vietnam has the world’s 

10th largest hog population, and production is growing to satisfy rising demand for pork (UN/

FAOSTAT, 2013). Pork farming is changing from small backyard operations using locally procured 

feed sources to full-time farms that raise hogs bred for more efficient meat production and use 

formula feeds produced by feedmills. Since Vietnam needs more feed inputs for its livestock and 

poultry than it produces, the feedmills increasingly rely on imported ingredients to mix feed. 

Vietnam’s meat consumption is relatively high in comparison to other Asian countries, with per 

capita pork consumption the highest in the Southeast Asia region (UN/FAOSTAT, 2013). 

Other animal products

Vietnamese consumers have long eaten traditional varieties of chicken and are still willing to pay 

more for such chickens than for modern broilers. However, demand for meat is rising, spurring the 

growth of a broiler farm sector organized around the feedmills of large (often multinational) companies. Similar to the pork sector, these feedmills use large amounts of imported ingredients. Vietnam 

has some native cattle and water buffalo, but few cattle from modern meat breeds that efficiently 

convert grain to meat. The Government is trying to develop a dairy industry using herds developed 

from imported breeding stock. However, most beef and milk products are imported. Little is known 

about Vietnam’s egg production beyond that it is growing to meet increasing demand. 

2The program has varied between a paddy-purchase program and price insurance. The program begun in late 2011 

purchased rice from farmers at prices about 50 percent above market levels (USDA/FAS, 2012a). 
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Plantation crops: sugar and rubber

During the colonial period, the French invested in sugar and rubber for exporting. These crops were 

established in the southern part of the country, outside the rice-growing region on forest land. Since 

then, the sugar industry has not grown much even as demand has increased, with Vietnam now 

importing sugar. Rubber production has expanded quickly, spurred by high prices in the last decade. 

Vietnam remains a rubber exporter and is ranked fourth in the world (UN/FAOSTAT, 2013).

New specialties: coffee, cashews, black tea, and pepper

In 1990, Vietnam did not produce much coffee, cashews, or black pepper. Today, it is the world’s 

largest or second-largest exporter of all three commodities. Tea production for export has also turned 

into a large industry (UN/FAOSTAT, 2013) (fig. 6). Despite scant domestic demand or familiarity 

with some of these products, the Government of Vietnam encouraged producers to start farming them 

primarily for the export market. Vietnam’s climate is favorable to producing these crops, and the 

combination of Government subsidies and other assistance with entrepreneurial farmers led to Vietnam 

transforming the global markets for these commodities, increasing world supply, and lowering prices. 

Like the earlier plantation crops, these new crops arose in areas outside the traditional rice areas in 

the deltas and represent an extension of commercial agriculture to lands that previously were used 

for primarily subsistence agriculture or forestry. As experience indicated that both farmers and the 

Government could suffer financial losses in these commodities, the impetus for further expansion has 

diminished. The unit value for Vietnam’s coffee exports is lower than that of other major exporters, 

reflecting the lower quality of its robusta coffee output (UN/FAOSTAT, 2013). Within Vietnam, a 

growing taste for coffee has helped support production. Unlike its other specialty crops, Vietnam’s 

cashew production has become an import processing operation whereby over two-thirds of all its raw 

cashews are imported from African countries, and Vietnam handles shelling and marketing. While this 

sector had grown during the early 2000s, cashew production has stabilized since its peak in 2007 due 

to competition from other crops (USDA/FAS, 2013; and UN/Comtrade, 2013).

Figure 6

Vietnam's production of selected export crops, 1961-2012

Source: USDA, Economic Research Service, using data from United Nations, Food and Agriculture Organization, 

FAOSTAT.

$ million U.S. (constant 2004-06) 

0

100

200

300

400

500

600

700

800

900

1961 64 67 70 73 76 79 82 85 88 91 94 97 2000 03 06 09 12

Cashew nuts

Coffee,

unroasted

Tea Pepper
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Food consumption

Vietnam’s food consumption on average has grown in caloric terms and has turned increasingly to 

animal proteins and vegetable oils in the last two decades (fig. 7). Wheat-based products, such as 

bread and cakes, have become more popular. Urban lifestyles often require less manual labor than 

farming and thus less carbohydrate demand supplied by rice. Higher incomes for urban residents and 

the proximity of grocery stores, restaurants, and bakeries have allowed greater consumption of meat, 

fish, vegetable oils, and wheat products.3 As poverty declines, consumers are becoming more quality 

conscious about rice purchases. Asian favorites, such as fragrant rices and glutinous rice (used for 

pastries), are more appealing than standard rice varieties bred just for high yield and low cost. The 

rice market appears to be less homogeneous than in the past. 

Vietnamese consume relatively large amounts of animal protein. Daily caloric intake from animalderived foods (meat, eggs, dairy, and marine products) exceeds that of most ASEAN countries and 

is almost 80 percent that of China. Pork is the leading meat and has enjoyed continued popularity. 

Consumption on a per capita basis may already exceed that in wealthier countries like Japan and 

the United States (UN/FAOSTAT, 2013). The second-largest animal protein source is fish, followed 

by poultry (chicken and duck), and beef (UN/FAOSTAT, 2013). Many modern Vietnamese people 

appear to favor a diet high in meat consumption. Milk consumption remains low, but demand 

by urban families and their children is growing. Introduced by the French, bread consumption 

has remained popular in Vietnam’s cities. With increased incomes, households have been able 

to purchase bread more freely. Wheat-based noodles, biscuits, cakes, and other pastries are also 

compatible with the needs of urban consumers, who turn increasingly to foods made outside the 

home for convenience and a desire for variety.

3While modern retail markets are growing, the majority of food is still purchased through small traditional markets, 

with approximately 20 percent of foods bought from modern grocery stores (USDA/FAS, 2013).

Figure 7

Vietnamese caloric intake per day, 1961-2009

Note: Caloric supply is calculated as food available for direct human consumption after accounting for feed use, waste 

and loss, exports, and stock changes.

Source: USDA, Economic Research Service, using data from United Nations, Food and Agriculture Organization, 

FAOSTAT.

Kilocalories per person

0

500

1,000

1,500

2,000

2,500

3,000

1961 66 71 76 81 86 91 96 01 06

Other/vegetable oil

Animal products

Grains
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Vietnam and Agricultural Trade

Trade Liberalization and Trade Growth

Vietnam’s integration with the global economy is encapsulated by trade agreements signed over the 

past two decades. During this period of economic integration, Vietnam’s agricultural trade grew, 

particularly with its Asian partners, after preferential tariffs began to take effect. Figure 8 displays 

the value in U.S. dollars (nominal) of total Vietnamese agricultural exports and imports from 1990-

2011. In 1995, the country joined ASEAN, becoming the seventh member of the Southeast Asian 

trade zone, which has since grown to 10 members. At the time of its ASEAN accession, Vietnam’s 

total agricultural trade (imports and exports) was less than $1 billion. As Vietnam’s commitments 

on tariff reductions with ASEAN were gradual (phasing out of tariffs only reached below 5 percent 

by 2009), trade growth with ASEAN did not rise much until the mid-2000s. From 2005 to 2010, 

Vietnam’s agricultural trade with ASEAN almost tripled. Vietnamese agricultural trade also benefited from its renormalization of trade with the United States.4 Exports to its preferential trading 

partners grew steadily, and Vietnam produced a trade surplus. 

Vietnam’s accession into the WTO in 2007 provided a further catalyst for growth and integration. 

From 2007 to 2011, total Vietnamese agricultural imports grew from approximately $6 billion to 

$10 billion; exports doubled, surpassing $13 billion. Vietnam entered into trade agreements with 

4Following the Vietnam War, the United States had imposed a trade embargo on Vietnam. The U.S.-Vietnam Bilateral Trade Agreement, signed in 2001, resumed trade relations. As Vietnam was also granted most-favored-nation trade 

status, tariff rates facing Vietnamese products were substantially reduced.

Figure 8

Vietnamese agricultural trade and trade agreements, 1990-2011

AANZFTA = ASEAN-Australia-New Zealand Free Trade Agreement; ASEAN = Association of Southeast Asian Nations;

EPA = economic partnership agreement; WTO = World Trade Organization.

Source: USDA, Economic Research Service, using data from United Nations, Food and Agriculture Organization, 

FAOSTAT.

$ billion (U.S., nominal)

 0

 2

 4

 6

 8

 10

 12

 14

 16

1990 92 94 96 98 2000 02 04 06 08 10

Exports

Imports

ASEAN

U.S.- Vietnam Bilateral 

Trade Agreement 

ASEAN-Korea, Vietnam-Japan EPA

AANZFTA, ASEAN-China, ASEAN-India 

WTO accession
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Korea (2009), China (2010), Australia/New Zealand (2010), and India (2010) through ASEAN, and 

signed bilateral agreements with Japan (2009) and Chile (in effect 2014), which led to tariff reductions that have only recently begun to take effect. Vietnam has concluded bilateral trade agreements 

with 40 different trading partners and is currently engaged in negotiations for several other major 

trade agreements.5

During Vietnam’s economic integration, intermediate inputs for nonagriculture and agricultural 

production sectors led import growth (fig. 9). Meat and egg consumption outstripped domestic feed 

production, leading to rising feedstuff imports; vegetable oil demand grew faster than oilseed output, 

increasing demand for soybeans. As a result, Vietnam’s imports of corn and soymeal for feed, and 

soybeans to crush for oil and meal grew, in addition to expanded imports of wheat, which is not 

grown in Vietnam. Textile industry demand, largely for clothing exports, outgrew domestic cotton 

production, making Vietnam a large cotton importer; and footwear production, again largely for 

export, required large hide and leather imports. However, imports of consumer-ready agricultural 

products lagged behind the imports of inputs, a result of Vietnam’s export-oriented trade strategy 

and relatively low household income. 

While increased market access for textiles and footwear is one of the Vietnamese objectives sought 

through trade negotiations, the fragmentation of the sector also limits the potential trade gains. 

Vietnam imports almost all of its cotton. Large quantities of U.S. cotton are imported, spun into 

yarn, and exported to markets across the world. Similarly, yarn is woven into fabric in other parts 

of the world and imported into Vietnam where it is made into clothing. Although the spinning of 

cotton yarn and weaving and knitting of fabric have increased, Vietnam’s textile sector continues 

to also import yarn, fabric, and unfinished textile products to export finished products. Like other 

5In addition to TPP, Vietnam is engaged in negotiations with the European Union, Regional Comprehensive Economic 

Partnership Agreement (RCEP), European Free Trade Association (EFTA), and the Customs Union of Belarus, Kazakhstan and Russian Federation.

Figure 9

Vietnamese agricultural imports by commodity class

Note: Cereals include wheat, rye, barley, oats, corn, grain sorghum, and other cereals. 

Source: USDA, Economic Research Service, using data from United Nations, Comtrade.

$ billion U.S.

 0

 2

 4

 6

 8

 10

 12

2000 01 02 03 04 05 06 07 08 09 10 11 12

Total agriculture

Oilseeds and cereals (excluding rice)

Raw cotton and hides

Processed foods
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developing economies, Vietnam’s textile industry would be affected by so-called “yarn forward” 

rules that limit preferential trade access in textile-importing countries to those products made from 

yarn produced in Vietnam (Inside U.S. Trade, 2012). Importing countries have expressed concern 

that without such a rule, even minimal additions to the value of textiles in Vietnam would qualify for 

favorable tariff treatment.

Trade Policy and Barriers

When Vietnam officially joined the WTO in 2007, the country committed to reducing its bound tariffs 

on agricultural products from 22.4 percent to 20.9 percent (which is significantly higher than the 13.1 

percent for non-agricultural goods). In 2013, its average applied tariffs on agricultural commodities 

were 17.5 percent. Under the terms of its accession agreement, Vietnam has agreed to further reductions for “sensitive products” (including sugar, wines and spirits, and tobacco) by 2014 and to bind 

tariff rates for most goods to 11.4 percent by 2019. Vietnam operates tariff-rate quotas for eggs, sugar, 

salt, and tobacco and has committed to increasing quota limits by 5 percent each year. 

Foreign exporters also face some difficulty with several nontariff measures in Vietnam’s market. 

Vietnam bans imports that it considers harmful to human health. For many products, importers are 

required to provide officials with documents certifying compliance and safety measures. However, 

the regulatory and food safety regime is still in its infancy, and testing agencies are limited, leading 

to inconsistent enforcement which adds to uncertainty for foreign producers (USDA/FAS, 2014). 

Vietnam also imposes reference prices for imports on some commodities (meats, fruits, beverages), 

which may act as a price floor on imports and are often arbitrarily set, creating further uncertainty 

for traders (USDA/FAS, 2012b).

Vietnam has committed itself to the WTO’s Sanitary and Phytosanitary (SPS) Agreement and 

thereby to implement regulatory measures based on science and adequate risk assessment. Since 

joining the WTO, the country has imposed different SPS measures on meats, fresh fruits and vegetables, feed, dairy, processed foods, and other food imports. While Vietnam has agreed to equivalence 

to foreign food safety measures, including with the United States, the country has not fully adopted 

standards provided by international organizations such as the World Organization for Animal Health 

(OIE). For example, Vietnam’s protective measures against bovine spongiform encephalopathy 

(BSE) on beef imports from the United States contain stricter restrictions than the science-guided 

measures recommended by the OIE.6

In 2010, Vietnam banned imports of pork, poultry, and beef offal products in spite of domestically 

produced offal continuing to be sold. The ban on red offal (heart, kidneys, and liver) was lifted in 

March 2011; however, the ban on white offal (intestines, tendons, marrow) remains in effect pending 

the registration of U.S. beef, pork, and poultry facilities to ship white offal.

In the past, Vietnam has had various export subsidy programs in place to assist agricultural exports. 

Export incentives, subsidized financing, and other measures were used to support the exporting of pork, 

rice, and coffee (Orden et al., 2007). However, after joining the WTO, Vietnam ended all direct export 

subsidy programs. Today Vietnam’s Government operates trade promotion programs for marketing 

assistance (WTO, 2013) and offers other forms of support for agricultural exporters. The Vietnam Food 

6Bovine spongiform encephalopathy (BSE) is a fatal neurological disease affecting adult cattle that may be transmitted to humans through consumption of BSE-infected beef. The OIE has categorized the United States to be a “negligible 

risk” country.
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Association (VFA), a public-private organization, has Government authority to set a minimum purchase 

price for paddy rice in Vietnam and also sets a minimum export price. The VFA sometimes instructs rice 

trading companies to purchase and store rice, to temporarily raise producer prices, and regulates exports 

to maintain the minimum export price (USDA/FAS, 2014b). Coffee farmers receive marketing coordination from a Government-owned enterprise, Vicofe, and the Government at times intervenes to reduce 

interest costs on loans to coffee farmers made by Vietnamese banks (USDA/FAS, 2014c). Additionally, 

the Government has offered value-added tax exemptions (5 percent) on coffee and other agricultural 

products to support exports (Huong and Tien, 2014).

Agricultural Trade With Trans-Pacific Partnership Partners

The proposed TPP agreement is Vietnam’s next step toward trade liberalization and expansion. The 

pact seeks market access reforms to eliminate or reduce tariffs and other barriers to trade and investment. Vietnam hopes that TPP will help secure markets abroad and facilitate the flow of foreign 

investment. In particular, Vietnam seeks open access for its textile and footwear industry. In turn, 

exporting countries see Vietnam as a market with growth potential. 

Figure 10 shows a map of Vietnamese agricultural trade with TPP countries. In 2012, Vietnam 

imported over $10 billion of agricultural products with $3.5 billion coming from TPP markets. 

The United States was the largest source of its imports at $1.3 billion; Australia and Malaysia also 

provided significant shares of agricultural goods at $888 million and $704 million, respectively. 

Vietnam exported approximately $14 billion of agricultural commodities with $2.9 billion to TPP 

countries. The United States was its largest TPP market at $1.2 billion, followed by Malaysia at 

$622 million and then Japan at $409 million. Vietnam had an agricultural trade deficit with the 

TPP zone and the United States individually, but had a trade surplus with the world as a whole.7 Of 

the non-TPP countries, China, the European Union, Argentina, and Brazil were some of Vietnam’s 

largest sources of imports (see appendix tables 1 and 2). 

Figure 10 also highlights the flow of Vietnam’s trade within the TPP zone that already occurs under 

a signed PTA. Vietnamese tariffs on imports from its ASEAN partners, Brunei, Malaysia, and 

Singapore, currently range between 0-5 percent for most agricultural products. Under Vietnam’s 

PTA with Australia and New Zealand (AANZFTA) and with the exception of a few sectors (e.g., 

tobacco, alcohol, and some meat products), all Vietnamese tariffs are set to be phased out by 2018. 

Vietnam’s PTA with Chile took effect in 2014, with most tariffs set to be phased out by 2024. 

The preferential tariff treatment in Vietnam’s market is generally substantial for ASEAN, Australia, 

New Zealand, and Chile, but less extensive in scope for other agreements. Japan’s PTA with Vietnam 

contains duty-free tariffs for approximately 95 percent of all tariff lines; however, several agricultural 

sectors remain significantly protected. The United States renormalized trade with Vietnam in 2001. 

But tariff rates were only set to most favored nation (MFN)/generalized system of preferences (GSP) 

rates as set through the WTO. The proposed TPP agreement could generate significant agricultural 

trade growth potential for Vietnam. According to the USDA/ERS’s computable general equilibrium 

(CGE) model, Vietnam would see the largest economic gain from TPP tariff elimination (see box, 

“Quantitative Assessment of the Trans-Pacific Partnership (TPP) on Agriculture”).

7These export figures exclude trade in fishery products. Vietnam is also a major exporter of fishery products (see box, 

“Vietnam Fishery Exports”). After including trade in fishery products, Vietnam has an agricultural trade surplus with 

both TPP and the United States. 
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Figure 10

Vietnamese agricultural trade with potential TPP partners in 2012

Note: 2012 data are the most recent data available.

Source: USDA, Economic Research Service using data from United Nations, Comtrade. 

1,174

1,257

89 10

4

1

11

147

12

255

25

409

45 101

172

888

Peru

Chile

Australia Australia

Australia Malaysia

Japan

New Zealand

USA

Canada

Mexico

622

704

207

312

Malaysia

Singapore

Brunei*

Vietnam

Exports Imports Agricultural trade in 

 $ million U.S. 

Countries without preferential 

trade agreements

*Imports too small to show on map

*TPP = Trans-Pacific Partnership.
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Quantitative Assessment of the Trans-Pacific Partnership (TPP) 

on Agriculture

To assess the potential gains of the proposed TPP agreement on agriculture, Burfisher et al. 

(2014) employed a computable general equilibrium (CGE) model of full elimination of tariffs 

among the TPP partners (not modeling other possible features of a TPP agreement). The 

study created a base path through 2025 to allow for an implementation period. In the baseline 

scenario (without TPP), Vietnam’s agricultural output expands by over 25 percent (2025 over 

2014) and grows strongly in most sectors with the exception of rice. In addition, consumption of 

agricultural products grows in the baseline but much less than consumption of nonfoods. Rice 

consumption falls in value. Consumption of “other foods,” which include processed foods, rises 

the most. Demand for vegetable oils, meat, and dairy products also rises substantially.

Assuming implementation of the proposed TPP agreement, the study found that Vietnam’s gross 

domestic product (GDP) in 2025 would increase by almost 0.1 percent over what it would be 

without TPP tariff elimination. While this seems small, it is the largest gain among all the TPP 

partners. This analysis only examined the removal of tariffs and did not account for withinsector productivity improvements that could significantly increase the expected gains of TPP. 

Removal of nontariff measures and accounting for within-sector productivity improvements 

would increase the expected gains of TPP. Petri et al. (2011) estimated much larger gains 

of TPP. Using a CGE model with heterogeneous firms that simulated a TPP agreement that 

reduced both tariffs and nontariff measures, they estimated that Vietnam would increase GDP 

by approximately 14 percent by 2025.

Vietnam’s agricultural output is expected to drop slightly as a result of TPP, with cereal (rice, 

corn, and other grains) output rising 1.3 percent but the value of all other output decreasing. 

While Vietnam’s domestic agricultural production is expected to be affected by imports (which 

rise by 18.5 percent), exports are estimated to also increase by an additional 6.4 percent due to 

reduction of tariffs abroad.
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Analysis of Trade and Tariff Structure for Vietnam’s Top 

Traded Commodities

To gain insight into the potential impacts of further trade liberalization on Vietnamese agricultural 

trade, this section examines the country’s trade and tariff structure for its top traded commodities. 

The following tables present Vietnam’s top agricultural exports and imports by value at the 4-6 

digit harmonized system (HS) commodity level to the world, TPP countries, and the United States. 

The tables also present Vietnam’s tariff structure across TPP countries and the rest of the world. 

Preferential tariff rates report final commitment rates. As TPP negotiations are still pending, the full 

scope of the agreement is not known. Nevertheless, examination of the level of current protection 

across the top commodities helps identify areas of potential trade expansion that may be opened by 

the proposed TPP agreement.

Export Profile

Tables 2-4 examine Vietnam’s export profile. The bulk of Vietnam’s exports are concentrated in a 

few commodities. Coffee and rice exports alone account for more than half of its overall agricultural 

exports at $3.3 and $2.4 billion, respectively, in 2012. The United States was Vietnam’s No. 1 destination for coffee, importing $601 million of the $887 million exports to TPP. Most of Vietnam’s rice 

is destined for non-TPP Asian countries (Indonesia, Philippines, and China), with approximately 

$524 million exported to TPP countries (primarily Malaysia and Singapore), and only $27 million 

and $15 million being sent to the United States and Japan, respectively. Quality keeps much of 

Vietnam’s rice out of the U.S. market. Japan buys mostly japonica rice (medium and short grain), not 

the indica rice that Vietnam produces.

Natural rubber is the third-most-valuable exported commodity, with non-TPP countries (primarily 

China) being its most important markets. Vietnam is also a major cashew exporter, supplying the 

world with over $3 billion worth of cashews in 2012. The United States was the largest destination for Vietnamese cashews, consuming $386 million of the $559 million total that went to TPP 

markets. The remaining products make up a fairly small share of Vietnamese exports. Pepper is a 

sizable export to TPP countries, totaling $165 million in 2012, with the majority going to the United 

States ($94 million). Other important commodities exported to TPP countries include wafers, modified starches, other nuts, and animal feed; however, they each fall under $50 million. For the U.S. 

market, honey is an economically significant Vietnamese export at $51 million.

Export Tariff Structure

Tables 2-4 also outline the extent to which Vietnam’s active agreements with several of the TPP 

countries would overlap with the proposed TPP agreement. ASEAN, AANZFTA, and Chile PTAs 

provide commitments to duty-free access to the majority of Vietnam’s export commodities. Japan’s 

economic partnership agreement with Vietnam also provides some preferential tariff rates but is 

more limited in scope. A trade agreement will primarily affect Vietnamese trade with countries with 

which it has not yet achieved a comprehensive PTA.

Nevertheless, even among partners with which Vietnam lacks a PTA, most of its top export 

commodities—such as coffee, rubber, cashews, and pepper—are not protected. Rice, cakes, pastries, 

biscuits, sugar confections, food preparations, mixed feeds, natural honey, other pasta, and wheat 
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Table 2 

Top Vietnamese agricultural exports and selected preferential tariff rates

HS code Commodity

Exports

TPP partner-country tariffs facing Vietnam’s 

leading exports to the world1

2009-11 

(average) 2012

SGP/

AUS/NZL/

BRN Malaysia Chile Japan Canada

United 

States

$ million U.S. Percent, unless otherwise specified

0901.11, 

.12 Coffee, unroasted 2,038 3,299 0 0 0 0 0 0

1006 Rice 1,844 2,356 0 20 0

341 yen/

kg 0

.44 cents/

kg-11.3

4001 Natural rubber 1,161 1,953 0 0 0 0 0 0

0801.32 Cashew nuts 2,019 3,258 0 0 0 0 0 0

0714.10 Cassava 319 576 0 0 0 0-5.5 0 11.3

0904.11, 

.12

Peppercorns, whole 

or ground 390 526 0 0 0 0 0 0-2.2

0810.90 Other fruit (fresh) 269 482 0 0-5 0 0 0-3 0

1108.14 Cassava starch 125 275 0 0 0

25-119 

yen/kg 0 0

0801.11, 

.19 Coconut meat 77 113 0 0 0 0 0 0

1905.90 

Cakes, pastries, 

and biscuits 72 93 0 0 0 6.2-34

0-13.11 

cents/kg+4 0-4.5

0902.40 Black tea 80 84 0 0 0 0 0 0

1704.90 Sugar confections 60 62 0 0 0 0-25 9.5-10

0-40 

cents/kg + 

10.4

2106.90 

Food preparations, 

not elsewhere 

specified 38 55 0 0 6

0-29.8+

1,155 

yen/kg 

0-274.5 but 

not less 

than $2.88/

kg

0-$1.996/

kg

2309.90 Mixed feeds 34 53 0 0 0 0

0-205.5 but 

not less 

than $1.64/

kg

0-80.4 

cents/kg + 

6.4

0409 Natural honey 51 52 0 0 0

12.8-

25.5 0

1.9 cents/

kg

0203.21 Pork, frozen 32 49 0 0 0

4.3 + 

GP 4/ 0 0

0807.11 Watermelon 31 46 0 5 0 0 0 9-17

1902.30 Other pasta 45 41 0 0 0

21.3-

23.8

0, 4, 6, 11, 

4.01cents/

kg +8.5 6.4

Continued—
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flour are sectors in which Vietnam’s exports currently face tariffs that could be reduced under the 

proposed TPP agreement. For Japan, tariffs for cassava starch are relatively high, and further liberalization could lead to significant gains. In the case of rice, Japan has a strong preference for shortgrain japonica rice and, even at zero tariffs, the country is unlikely to import much more of the 

long-grain indica rice that is grown in Vietnam (Dyck and Arita, 2014). Nevertheless, while Japan’s 

consumption of indica rice is limited and unlikely to grow, indica is still a sizable import market 

(200,000-300,000 tons annually in recent years), and Vietnamese rice could potentially replace the 

indica rice imports which are currently dominated by Thai rice. Although not reported in the table, 

Mexico and Peru also have relatively high tariffs for the top exported commodities (15-30 percent); 

however, given their distance from Vietnam and relatively smaller market size, little growth would 

be expected.

Import Profile

Tables 5-7 present Vietnam’s top agricultural imports by value at the 4-6 digit Harmonized System 

commodity level from the world and TPP. The commodities are organized by agri-food inputs, 

nonagri-food industry inputs, and consumer oriented products. 

Inputs for the agricultural industry make up the largest share of Vietnam’s agricultural imports. 

With growing demand for meat products, Vietnam is heavily dependent upon feed from outside 

sources. Soymeal and soybeans to be crushed for meal and oil are its chief imports, totaling almost 

$1.3 billion and $780 million respectively. Most of the soymeal is imported from non-TPP countries (Argentina, India, and Brazil), with a large amount of soybeans imported from the United 

States ($333 million). Wheat, used for both food and feed consumption purposes, is the next largest 

Table 2 

Top Vietnamese agricultural exports and selected preferential tariff rates

HS code Commodity

Exports

TPP partner-country tariffs facing Vietnam’s 

leading exports to the world1

2009-11 

(average) 2012

SGP/

AUS/NZL/

BRN Malaysia Chile Japan Canada

United 

States

$ million U.S. Percent, unless otherwise specified

1101 Wheat flour 20 40 0 0 6

90 yen/

kg

Within access commitment: 

$2.42/

mt; over: 

$139.83/mt

.7 cents/

kg

0709.60 Fresh peppers 19 30 0 0 6 0

3.75 cents/

kg but not 

less than 

8.5 percent

4.4-4.7 

cents/kg

HS = Harmonized System, a system of numerical codes for traded goods; mt = metric ton. TPP = Trans-Pacific Partnership.

1Mexico and Peru not reported due to relatively small Vietnamese exports.

SGP/AUS/NZL/BRN = Singapore (SGP); Australia (AUS); New Zealand (NZL); Brunei (BRN).

GP = Gate Price system, a variable levy assessed as the difference between the “gate price” and a lower import unit value.

Sources: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas; and United Nations, Comtrade 

database (exports); Association of Southeast Asian Nation (ASEAN); ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA); Canada: 

Government of Canada, Canada Border Services Agency, 2013; Chile: Chile National Customs Service; Japan: Government of Japan, Japan Customs, 2014; and United States: U.S. International Trade Commission (tariffs). 

—continued
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Table 3 

Top Vietnamese agricultural exports to TPP and selected preferential tariff rates

HS code Commodity

Exports Tariffs1

2009-11 

(average) 2012

SGP/

AUS/NZL/

BRN/CHL Malaysia United States Japan Canada

$ million U.S. Percent, unless otherwise specified

0901.11,

.12 Coffee, unroasted 563 887 0 0 0 0 0

0801.32 Cashews (shelled) 461 559 0 0 0 0 0

4001 Natural rubber 293 616 0 0 0 0 0

1006 Rice 388 524 0 20

11.2;

$0.0044/kg 341 yen/kg 0

0904.11, 

.12

Peppercorns, 

whole or ground 110 165 0 0 0-4.5 0-1 0

0409 Natural honey 51 52 0 0 1.9 cents/kg 12.8-25.5 0

1905.90

Cakes, pastries, 

and biscuits 37 46 0 0 0-4.5 6.2-34

0-13.11cents/

kg+4

0709.60 Fresh peppers 17 27 0-6 0

4.4-4.7 cents/

kg 0 8.5

3505.10

Dextrins and other 

modified starches 18 27 0 0 0.7 cents/kg 0 0-8 

2008.19

Other nuts, prepared/preserved 21 25 0 00-32.6 

cents/kg 0-11.6 0-6 

2309.90 Mixed feed 21 23 0 0 0

0 or 23.86 

yen/kg 

0-80.4 cents/

kg+6.4

0810.90 Other fruit (fresh) 10 17 0 0-5 0 0 0-3 

1704.90 Sugar confections 16 16 0 0

0-40 cents/

kg+10.4 0-25 9.5-10 

1902.19 Pasta uncooked 9 14 0 0 6.4 0 0-8.5 

2106.90

Food preparations, 

not elsewhere 

specified 10 12 0-6 0 0-$1.996/kg

0-29.8+

1,155 yen/kg

0-274.5 but 

not less than 

$2.88/kg

0902.40

Other black tea 

(fermented) 10 13 0 0 0 0-10.6 0

2004.90

Other vegetables, 

prepared 8 13 0 0 0-11.2 3.9-17 0-17 

0603.14 Chrysanthemums 9 12 0 0 6.4 0 8

0714.20 Sweet potatoes 7 11 0 0 4.5-6 8.3 0

2008.99

Other fruit, nuts 

(prepared) 8 11 0 0 0-22.4 0-20.5 0-6 

HS = Harmonized System, a system of numerical codes for traded goods. 

TPP = Trans-Pacific Partnership.

1Mexico and Peru not reported due to relatively small Vietnamese exports.

SGP/AUS/NZL/CHL/BRN = Singapore (SGP); Australia (AUS); New Zealand (NZL); Chile (CHL); Brunei (BRN).

Sources: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas; and United Nations, Comtrade 

database (exports); Association of Southeast Asian Nation (ASEAN); ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA); 

Canada: Government of Canada, Canada Border Services Agency, 2013; Chile: Chile National Customs Service, Japan: Government of Japan, 

Japan Customs, 2014; and United States: U.S. International Trade Commission (tariffs). 
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import at $756 million from the world. TPP countries, primarily Australia, are the main sources of 

wheat, totaling $630 million in 2012. Palm oil is the next highest at $595 million, with TPP countries accounting for a significant share of imports. This is followed by corn, with total imports of 

$463 million being primarily imported from non-TPP countries India and Brazil. Powdered milk, 

primarily used as an input for processed foods, is also a major import ($388 million), with the major 

source being TPP countries. 

With its large textile and footwear industry, inputs for nonagricultural purposes make up a major 

share of Vietnam’s overall agricultural imports. Cotton was a chief import, totaling over $861 

million from the world in 2012. TPP countries accounted for a moderate share of these imports, 

supplying almost $350 million. For U.S. cotton producers, Vietnam is a large market with $248 

million in imports. Raw hide imports also were substantial, totaling $67 million and $63 million 

from the world and TPP, respectively.

Table 4

Top Vietnam agricultural exports to the United States

Exports

Tariffs

2009-11 

(average) 2012

HS code Commodity $ million U.S.

Percent unless 

otherwise specified

0901.11,.12 Coffee, (not roasted) 368.2 600.9 0

0801.32 Cashew nuts (shelled) 328.2 385.8 0

0904.11,.12 Peppercorns, whole or ground 78.4 94.4 0

4001 Natural rubber 57.2 62.8 0

0409 Natural honey 49.7 51.0 $0.019/kg

1006 Rice 12.9 27.0 11.2; $0.0044/kg

1905.90 Cakes, pastries, and biscuits 15.3 21.1 0-4.5 

0901.21, .22 Coffee (roasted) 5.2 11.8 0

2008.19 Other nuts, seeds (prepared) 10.3 10.7 0-22.4

0902.40 Other black tea (fermented) 4.8 7.9 0

0208.90 Other meat and edible offal 0.2 6.3 0-6.4

1902.19 Pasta uncooked 2.9 4.7 0

1901.90

Other food preparations of malt extract, flour, 

starch, milk, cream 3.6 4.5 0-16

2101.12 Coffee extracts 3.8 4.4 8.5-10

2008.99 Other fruits (processed) 2.6 4.2 0-22.4

0810.90 Other fruit (fresh) 2.0 3.8 0-2.2

1902.3 Pasta 2.9 3.7 6.40

2003.90 Mushrooms 4.3 2.8 6 cents/kg + 8.5

0106.11 Rabbits and hares 3.7 2.6 0

2106.90 Other food preparations 2.2 2.6 0-$1.99/kg

Source: Global Trade Information Services, Global Trade Atlas (exports) and U.S. International Trade Commission (tariffs).
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Compared to inputs for agriculture and industry, commodities for direct consumption make up a 

smaller share of overall imports. Preparations of cereals, flour, starch, or milk make up a large share 

of imports from TPP totaling over $155 million. Infant food and other dairy and soy preparations 

are also important imports from TPP. Other processed foods made up the largest share of consumeroriented imports from the United States ($33 million). The United States also reported substantial 

exports of beef, nut, and frozen poultry exports to Vietnam. However, as a significant portion of this 

trade is believed to be trans-shipment flows to other countries, they were not included in the tables 

(see box, “Border Trade/Trans-Shipment Flows”).

Import Tariff Structure

Examination across different import groups indicates a difference in tariff rates between commodities used for inputs and commodities for direct consumption. Vietnam has relatively low tariffs for 

commodities used as intermediate inputs in nonagricultural and agricultural industries. To help 

support its textile and footwear industry, cotton and hides enter Vietnam duty-free. To feed its 

domestic livestock industry and flour mills, wheat, soy-based products, and dried distiller grains 

Border Trade/Trans-Shipment Flows

Over the past several years, China has grown to be the largest trading partner for Vietnam, 

amounting to over $35 billion in 2013. Even before the signing of the China-Association of 

Southeast Asian Nations (ASEAN) preferential trade agreement in 2010, trade between China 

and Vietnam had been fostered through liberalized border-trade regimes. China established free 

trade zones in Guangxi, a province along the Vietnamese border that allowed border citizens to 

trade goods under a limited amount ($166 per product per day). Under the ASEAN-China preferential trade agreement, virtually all of the agricultural goods traded under this border trade 

were duty-free and value-added-tax-free.

This liberalized border trade route also provided opportunity for Chinese market access from 

third countries. Several U.S. agriculture commodities face significant Chinese trade barriers, 

particularly meats. U.S. poultry products faced tariffs ranging from 40 to 80 percent, stemming from anti-dumping duties imposed by China. Due to bovine spongiform encephalopathy 

concerns, U.S. beef products are currently prohibited in China. While these U.S. products also 

face tariffs in Vietnam, they may find market access to China via the border-trade route through 

Vietnam. Much of the global beef exports to Vietnam likely are going to China. In one such 

example, 40 percent of India’s beef exports are reported to be sent to Vietnam, but the majority 

of that beef is believed to ultimately end up in China (Food Navigator Asia, 2013).

In addition to meats, a significant percentage of tree nuts exported from the United States to 

Vietnam may also be trans-shipped to China. 

For the trade data used in this report we have relied upon reported information from Vietnam 

and partner countries. Due to possible undocumented trans-shipments via the GuangxiVietnamese border trade, reports of Vietnam’s imports based upon trade partners’ documented 

information may overestimate the actual level of imports. We have attempted to adjust for potential discrepancies by employing reported information from Vietnamese Government and other 

sources and by removing trade flows considered to be trans-shipments.
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with solubles (DDGS) enter Vietnam under a 0-percent to 5-percent tariff rate. Tariff rates are 

significantly higher for direct consumption commodities. Other preparations for cereals, flour, 

starch, or milk face 15 percent to 40 percent ad valorem duties. The dichotomy of rates between 

commodities for inputs and commodities for direct consumption is consistent with Vietnam’s exportoriented development strategy. A natural outcome of this strategy is that it leaves the consumeroriented sector as the primary area of untapped import growth.

Tables 5 and 6 once again outline the extent to which Vietnam’s active agreements with several of 

the TPP countries would overlap with the proposed agreement. For ASEAN, AANZFTA, Chile, 

and Japan, PTAs provide commitments to duty-free access to all the major commodities excluding 

frozen chicken. It is expected that TPP import growth in Vietnam will be largely generated from the 

United States and to a lesser extent Canada, Mexico, and Peru.

Market Potential for U.S. Exports 

The tariff structure of top imported Vietnamese commodities suggests room for modest trade 

growth in Vietnam’s primary import sectors as a result of a TPP agreement. Table 8 presents tariffs, 

exports and market shares for selected U.S. export commodities.

As outlined earlier, consumer-oriented products are the chief area of potential growth. Meats, 

pork in particular, are believed to be one area of growth potential. With modest tariff levels and 

increasing demand, further liberalization could expand imports of these products. While we do not 

have accurate estimates of poultry and beef imports, these sectors are viewed as areas where the 

United States could increase its exports’ market share. Demand for higher quality meat is currently 

growing in Vietnam’s hotels, restaurants, and higher end markets. Reduction of health regulations 

and other SPS measures would also help further gains. The recent removal of the white-offal ban is 

expected to generate further import growth. 

Oranges, grapefruits, and strawberries have tariff rates of 40 percent; vegetables have rates of 20 

percent. U.S. fruit exporters face competition from other Pacific Rim exporters that enjoy preferential rates (Australia, New Zealand, and China). A reduction in tariffs would help U.S. exporters 

become more competitive and expand market share. Beyond powdered milk, other dairy products 

also have growth potential. Yogurt, whey products, and milk fats face high tariff levels. Demand 

for infant formula is growing. Western foods are perceived to have premium quality and high food 

safety standards (USDA/FAS, 2011). As American brands are popular in Vietnam, tariff reductions 

and further marketing efforts could increase market shares for U.S. high-value food exports such as 

snack foods, juices, canned products, wine, beer, and tobacco.
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Table 5 

Top Vietnamese agricultural imports and most favored nation (MFN) and preferential tariff rates

HS code Commodity

Imports Tariffs

2009-11 

(average) 2012 MFN1 ASEAN

AANZFTA

Chile, Japan

$ million U.S. Percent

Inputs to agricultural and food industry

2304.00 Soymeal 1,178 1,270 0 0 0

1201 Soybeans 222 780 0-5 0 0

1001.90 Wheat, not durum, not seed 575 756 0-5 0 0

1511 Palm oil 494 595 5-30 0 0

1005.90 Corn 338 463 0-5 0 0

0402 Powdered milk 265 388 10-30 0 0

2309.90 

Other preparations of a kind used in 

animal feed 269 337 5-10 0 0

2301.10

Flours, meals, and pellets, of meat or 

meat offal 155 204 8 0 0

2303.30 Distillers dried grains with solubles 104 147 5 0 0

1107.10 Malt, unroasted 104 133 5 0 0

0801.31 Cashew nuts, in shell 110 109 5 0 0

0904.11 Peppercorns, neither crushed nor ground 49 108 30 0 0

1701.99 Cane or beet sugar, other2 114 38 40 5 0 

Inputs to nonagricultural industry

5201 Cotton, raw 694 861 0 0 0

4101 Hides, raw (bovine) 57 67 0 0 0

0505.10 Feathers used for stuffing 40 65 5 0 0

Products for consumption

1901.10 Preparations for infant use 137 269 15-40 0 0

2106.90 Other processed foods 160 228 30 0 0

1901.90 

Infant food and other dairy and soy 

preparations 112 196 15-40 0 0

0207.14 Chicken cuts and offal, frozen 69 65 20 0-5 0-20

0405.90 Other dairy fats 49 47 5-20 0 0

HS = Harmonized System, a system of numerical codes for traded goods. 

TPP = Trans-Pacific Partnership.

1MFN rates are for TPP partners the United States, Canada, Mexico, and Peru.

2In-quota tariff rate. Sugar was excluded in the Japan-Vietnam economic partnership agreement.

Sources: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas; and United Nations, Comtrade 

database (imports); Government of Vietnam, Ministry of Finance, General Department of Customs (MFN); Association of Southeast Asian 

Nation (ASEAN); and ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) (tariffs).
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Table 6 

Top Vietnamese agricultural imports from TPP and preferential tariff rates

HS code Commodity

Imports TPP partner-country tariffs

2009-11 

(average) 2012 MFN2

ASEAN, 

AANZFTA, Chile, 

Japan

$ million U.S. Percent

Inputs to agricultural and food industry

1001.90 Wheat 459 630 0-5 0

1511 Palm oil 287 424 5-30 0

1201 Soybeans 109 362 0-5 0

402 Powdered milk 211 252 10-30 0

2303.30 Distillers dried grains with solubles 84 106 5 0

2309.90 Other preparations of a kind used in animal feeding 59 75 5-10 0

1107.10 Malt, unroasted 55 56 5 0

2304 Soymeal 58 45 0 0

1516.20 Vegetable fats 20 33 30 0

0404.10 Whey and modified whey 15 30 20-30 0

Inputs to nonagricultural industry

5201 Cotton 290 348 0 0

4101 Raw hides (bovine) 67 63 0 0

4103.30 Hides of swine 8 23 0 0

0505.10 Feathers used for stuffing 6 11 5 0

Products for consumption

1901.90

Infant food and other dairy and soy 

preparations 38 155 15-40 0

2106.90 Other processed foods 66 81 30 0

1901.10 Preparations for infant use 56 65 15-40 0

0405.90 Other dairy fats 45 46 5-20 0

0806.10 Fresh grapes 27 39 25 0

0808.10 Apples 8 11 20 0

HS = Harmonized System, a system of numerical codes for traded goods. 

TPP = Trans-Pacific Partnership.

1MFN rates are for TPP partners the United States, Canada, Mexico, and Peru.

Sources: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas; and United Nations, Comtrade 

database (imports); Government of Vietnam, Ministry of Finance, General Department of Customs (MFN); Association of Southeast Asian 

Nation (ASEAN); and ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) (tariffs).
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Table 7

Top Vietnam agricultural imports from the United States

Imports

Tariffs

2009-11 

(average) 2012

HS code Commodity $ million U.S. Percent

Inputs to agricultural and food industry

1201 Soybeans, yellow 88 333 5

2303.30 Distillers dried grains with solubles 84 105 5

2304 Soymeal 57 44 0

1001.90 Wheat, not durum, not for seed 35 37 5

1702 Other sugar 18 35 0-10

0402.10 Powdered milk, less than 1.5% 18 33 10-30

0404.10 Whey and modified whey 13 28 20-30

2309.90 Other preparations of a kind used in animal feeding 21 27 0-5

1208.10 Flours and meal of soya beans 26 16 30

2303.10 Residues of starch manufacture and similar residues 14 15 0-5

2308 Vegetable residues for use in feed 17 8 10

Inputs to nonagricultural industry

5201 Cotton 259 248 0

4101 Raw hides (bovine) 65 60 0

0505.10 Feathers used for stuffing 5 11 5

Products for consumption

2106.90 Other processed foods 18 33 30

0806.10 Grapes, fresh 15 18 25

1901.90 Infant food and other dairy and soy preparations 1 11 15-40

0808.10 Apples 6 8 20

2008.99 Prepared fruits, other 2 6 35-40

0806.20 Raisins 3 5 25

HS = Harmonized System, a system of numerical codes for traded goods. 

Sources: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas and United Nations, Comtrade database (imports); Government of Vietnam, Ministry of Finance, General Department of Customs (tariffs).
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Table 8

Vietnamese tariff rates on selected U.S. exports

Tariff

U.S. 

exports

U.S. 

market 

share Tariff

U.S. 

exports

U.S. 

market 

share 

Percent

2012 

($1,000)

Percent of 

Vietnam’s 

import 

market Percent

2012 

($1,000)

Percent of 

Vietnam’s 

import 

market

Meats Oils

0201 Beef, chilled 20 n/a n/a 1507 Soyoil 5-30 0 0

0202 Beef, frozen 20 n/a n/a 1508 Peanut oil 5-30 0 0

0203 Pork 30 3,379 58 1512

Sunflower seeds/

oil 5-30 296 18

0207.14

Chicken 

meat 20 n/a n/a 1517 Margarine 20-40 83 0

0206 Offals 15 1,474 16

1602

Processed 

meats 40 2,389 16

Food 

prep.

1901.10

Preparations for 

infant use 15-40 2,924 2

Dairy

products 1901.20

Mixes and 

doughs 35 238 1

0403

Yogurt and 

buttermilk 30 337 0 1901.90

Infant food and 

other dairy and 

soy preparations 15-40 10,784 8

0404 Whey 20-30 28,006 39 1902 Pasta 40 45 1

0405

Butter and 

milk fats 5-20 3 0 1905

Bread, pastry, 

cakes, cookies 40 1,713 1

2004.10

Potato preparations, frozen 35 1,618 41

Vegetables 2009 Fruit juices 35 1,364 13

0701.90 Potatoes 20 821 7

2101.11, 

12 Coffee extracts 50 744 0

0704.90 Broccoli 20 0 0 2106.90

Food preparations, n.e.s. 10-30 33,006 21

0710.10

Potatoes, 

frozen 20 0 0

Other

2203 Beer 65 699 25

2401

Tobacco, unmanufactured 30 4,013 3

Continued—
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Table 8

Vietnamese tariff rates on selected U.S. exports

Tariff

U.S. 

exports

U.S. 

market 

share 

Percent

2012 

($1,000)

Percent of 

Vietnam’s 

import 

market

Fruits

0805.10 Oranges 40 1,253 11

0805.40 Grapefruit 40 0 0

0805.50

Lemons and 

limes 40 5 18

0806.10

Grapes, 

fresh 25 17,751 38

0808.10 Apples 20 7,759 33

0811.10 Strawberries 40 0 0

0806.20 Raisins 25 4,959 57

0809.20 Cherries 35 1,724 55

N.e.s. = not elsewhere specified.

Source: USDA, Economic Research Service, using Global Trade Information Services, Global Trade Atlas and United Nations, Comtrade database (exports); Government of Vietnam, Ministry of Finance, General Department of Customs (tariffs).

—continued
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Conclusion

Vietnam is a transitioning economy that has adopted a gradual approach of market reform and 

export-led growth. The country steadily pursued trade agreements to expand trade and investment 

and has enjoyed a high rate of growth. While growth has recently slowed, Vietnam is expected to 

have market potential for imported food and agricultural products. Vietnam’s participation in the 

proposed TPP is intended to continue its path toward further economic integration and growth.

Although the nature and extent of a TPP agreement is not yet known, the trade profile outlined in 

this report highlights several key areas in which the agreement may affect Vietnam’s agricultural 

trade. While Vietnam is expected to be one of the largest overall beneficiaries of the proposed agreement, the gains may be more limited for agriculture. Vietnam’s current PTAs with many of the TPP 

countries already provide low or duty-free rates, leaving trade expansion with the United States 

and Japan as the largest areas of potential trade growth. Two of Vietnam’s top agricultural exports 

(coffee, natural rubber) have little room for growth. However, Vietnam’s smaller export sectors 

(cassava starch, pepper, processed foods, and honey) could gain from further liberalization of tariffs, 

and Vietnamese rice could gain a share of Japan’s indica rice import niche. For U.S. exporters, low 

tariff rates on feed and commodities used for industrial inputs leave little room for growth for its 

top commodities currently supplied to Vietnam, but a reduction in tariffs could expand the potential 

for more U.S. exports of meats, dairy products, and fruits. The TPP agreement also could provide 

new opportunities for exports of other high-valued U.S. consumer food products to the growing 

Vietnamese market.
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Vietnam’s Agri-Food Sector and the Trans-Pacific Partnership, EIB-130

Economic Research Service/USDA

Appendix

Appendix table 1

Vietnam agricultural imports from Trans-Pacific Partnership and other major markets 

2009-11 (average) 2012

$ millions U.S.

TPP total 2,690 3,527

United States 1,115 1,257

Australia 615 888

Malaysia 525 704

New Zealand 204 255

Singapore 125 207

Canada 44 147

Japan 41 45

Mexico 8 10

Chile 9 11

Peru 2 4

Other countries

European Union 683 939

Argentina 683 840

Brazil 417 809

China 584 789

Indonesia 417 487

Thailand 503 408

Cambodia 112 264

World 7,844 10,088

TPP = Trans-Pacific Partnership.

Source: USDA, Economic Research Service using United Nations, Comtrade database.
34

Vietnam’s Agri-Food Sector and the Trans-Pacific Partnership, EIB-130

Economic Research Service/USDA

Appendix table 2

Vietnam agricultural exports to Trans-Pacific Partnership and other major markets 

2009-11 (average) 2012

$ millions U.S.

TPP total 2,040 2,927

United States 832 1,174

Malaysia 380 622

Japan 269 409

Singapore 303 312

Australia 135 172

Canada 63 101

Mexico 25 89

New Zealand 19 25

Chile 7 12

Peru 0 1

Other countries

China 1,357 3,151

European Union 1,517 2,117

Indonesia 559 667

Philippines 886 660

Cambodia 201 458

South Korea 160 327

World 9,902 14,297

TPP = Trans-Pacific Partnership.

Source: USDA, Economic Research Service using United Nations, Comtrade database.