Open opportunities for Vietnamese agricultural products to enter the US market

Mr. Do Ngoc Hung, Head of the Vietnam Trade Office in the US.

Sir, what are the favorable conditions for agricultural products currently exported to the US market?

The US is always a very important market for Vietnamese businesses. According to statistics, in 2022, Vietnam's total export turnover of agricultural, forestry and fishery products to the US has reached more than 13 billion USD, accounting for more than 24% of the total export turnover of agricultural, forestry and fishery products from Vietnam to countries around the world.

Currently, the United States remains Vietnam's 8th largest trading partner and the largest export market with total exports exceeding $100 billion for the first time in 2022. This has significantly contributed to elevating the trade surplus between Vietnam and the United States to a very high level, increasing Vietnam's trade surplus with countries worldwide. Among these contributions, agricultural products play a crucial role, as they directly bring high added value to farmers, businesses, and job creation, while also enhancing the presence of Vietnamese export items in the U.S. market.

Although Vietnam's exports to the US are in surplus, Vietnam's export products are basically complementary and supportive to the US market, not directly competitive. Thereby helping American market consumers access products in Vietnam with good quality, reasonable prices and increasingly improved designs.

Accordingly, Vietnamese agricultural products have a huge advantage in the US market. First, this is a large import market, with more than 330 million consumers with different consumer needs. Vietnamese agricultural products shipped to the US have been trusted and accepted by American consumers.

Secondly, Vietnamese manufacturers and exporters have, over the past period, built a solid image and reputation, becoming reliable, sustainable trading partners who collaborate in development with American importers and businesses.

In particular, deeply engaging in the distribution system of the U.S. market has enabled Vietnamese agricultural products to progressively expand and penetrate this market. Currently, Vietnamese agricultural products are primarily imported and distributed through various wholesale and retail chains in the United States, such as Amazon, Walmart, Costco, and more.

Besides the above advantages, what are the difficulties that Vietnamese agricultural products are facing today, sir?

First, Vietnamese agricultural products face very strong direct competition from countries with more favorable logistics conditions in the Americas, Latin America and some US partners in Southeast Asia.

Second, although the market capacity is very large, Vietnamese enterprises mostly export and distribute through brokers and intermediary distribution channels, not directly reaching the final consumer. This situation has reduced added value as well as profits for both Vietnamese manufacturers and exporters.

Third, in some cases, to protect the interests of domestic producers, the US government regularly imposes trade defense measures on Vietnamese exports, including agricultural products. product. This increases trade defense taxes and makes Vietnamese goods less competitive in the US market.

From such reality, how do you assess the prospects of Vietnamese agricultural products after US President Joe Biden's recent visit to Vietnam?

From the perspective of the trade agency in the United States, President Joe Biden's visit and high-level leadership exchanges between the two countries will continue to provide a solid foundation and expand opportunities for Vietnamese businesses to maintain a strong presence, leverage the market, and increase exports to the U.S. market. Particularly, in the post-Covid-19 context, consumer demand in the U.S. has shown significant recovery, and the inventory levels of distribution systems have decreased. These are positive signals indicating that American importers will increase their purchases of Vietnamese exports, especially agricultural products.

Thank you, Sir!