Vietnam receives first U.S. shipment of corn since 2016

14.05.2018

The May 3 vessel was the first of three cargoes of U.S. corn arriving in the six weeks. Photos courtesy of USGC.
 
On May 3,  the first direct shipment of U.S. corn since 2016 arrived at the port of Cai Lan in Vietnam. The U.S. Grains Council (USGC) and U.S. Department of Agriculture (USDA) representatives were present to welcome the new shipment.

The detection of quarantined pests in 2016 led to import suspensions last year after the Vietnamese Plant Protection Department (PPD) issued a decision to institute new fumigation requirements for U.S. corn shipments and temporarily suspended DDGS importation.

The Vietnamese government eased requirements for phosphine fumigation treatment for U.S. corn imports and lifted its suspension of U.S. DDGS imports in September 2017, following a combined effort between by the USDA’s Animal and Plant Health Inspection Service (APHIS), the Office of the U.S. Trade Representative (USTR) and USGC in cooperation with PPD and local industry members in Vietnam. The groups worked together to address the Vietnamese government’s concerns and help return open access to one of the fastest growing feed markets in the world.

“The council, USDA and industry efforts on this specific trade barrier in Vietnam provide a remarkable example of teamwork from the council’s membership and government agencies in both countries,” said Manuel Sanchez, USGC regional director for Southeast Asia. “This cargo represents the success of U.S. coarse grains and co-products freely competing in the largest market in Southeast Asia.”

According to USGC, the cargo of 67,000 tonnes (2.64 million bushels) of U.S. corn originated in the Pacific Northwest and is the first of three cargoes arriving into the port in the next six weeks. Vietnamese importers in attendance noted the high quality of the corn and the importance of strong relationships with U.S. suppliers.

USGC USDA welcome corn shipment in Vietnam

Representatives from the USGC and USDA, including Robert Hanson, agricultural counselor at the U.S. Embassy in Hanoi (center), welcomed the shipment of U.S. corn to Vietnam in May 2018.
 
The feed ingredients will be delivered to end-users in Vietnam’s rapidly expanding dairy and livestock sectors. Vietnam produces approximately 30 million tons of feed annually. U.S. corn and other feed ingredients are helping fill that demand with exports nearing $700 million per year.

“Vietnam is the largest corn importer in Southeast Asia with tremendous growth opportunities for U.S. coarse grain imports over the next five years,” Sanchez said. “Vietnam’s growing population, urbanization and rapid economic growth have encouraged tremendous feed demand expansion in Vietnam’s commercial feed and livestock sectors.”

“Thus far in the 2017-18 marketing year (September 2017-March 2018), Vietnam has imported nearly 321,000 tons (12.6 million bushels) of U.S. corn, a 61% increase year-over-year, in addition to 572,000 tons of U.S. DDGS,” the USGC said. “These strong upward sales are promising for the market’s return as one of the top markets for U.S. corn and co-products.”

The USGC said it helps support the export of U.S. corn through trade servicing and technical education with Vietnamese end-users. Vietnam has also re-emerged as a top importer of U.S. DDGS, used mainly in swine and poultry diets to complement the use of imported corn and soybean meal.


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