Vietnamese firms will sign memorandums of understanding with U.S. partners to buy two billion dollars worth of American farm produce, the agriculture ministry said Tuesday, as part of efforts to finalize a new trade deal between the two countries.
Vietnam faces 46 percent reciprocal tariffs imposed by the Trump administration, which have been paused until July. If they take effect, these tariffs could seriously undermine Vietnam’s export-driven growth model that relies heavily on the United States, its largest market.
The new deals, signed during a visit to the United States by a delegation of 50 Vietnamese companies led by Agriculture Minister Do Duc Duy, include five memorandums to buy 800 million dollars of products from Iowa over three years, the agriculture ministry said.
The Iowa agreements cover purchases of corn, wheat, dried distillers grains and soybean meal.
Vietnam and the Trump administration have been negotiating a trade agreement, with Vietnam pledging to increase U.S. imports to help narrow the trade deficit. The United States recorded a trade deficit of 123 billion dollars with Vietnam last year.
Vietnam purchased 3.4 billion dollars of U.S. farm produce last year and exported 13.68 billion dollars of its own agricultural products to the United States, according to the Vietnam News Agency.
Vietnam has also committed to buying other American products, including Boeing planes and liquefied natural gas. It has promised to crack down on counterfeiting and digital piracy following U.S. accusations that the country is a major hub for these illegal activities.
