Vietnam Firms Expected to Sign $2B US Farm Produce Deals

Vietnamese companies are set to sign memorandums of understanding (MOUs) to purchase $2 billion worth of U.S. agricultural products, including a significant $800 million in goods from Iowa over the next three years. This move is part of ongoing efforts to finalize a new trade agreement between Vietnam and the United States, aimed at narrowing the $123 billion trade deficit the U.S. holds with Vietnam. The agreements were signed during a visit to the United States by a delegation of 50 Vietnamese companies led by Agriculture Minister Do Duc Duy. While the Trump administration imposed 46 percent reciprocal tariffs on Vietnamese goods, these tariffs have been suspended until July, but their potential activation threatens Vietnam’s export-driven growth model, which relies heavily on the U.S. market. Vietnam has also pledged to increase imports from the U.S., including farm products, Boeing planes, and liquefied natural gas, while committing to crack down on counterfeiting and digital piracy. These developments highlight the complex dynamics of trade relations between the two countries amid tariff uncertainties and ongoing negotiations.