Vietnam Signs $800 Million Midwest Agriculture Purchase Agreements

Vietnamese officials have signed five memorandums of understanding to purchase $800 million worth of agricultural products from Iowa and other Midwestern states, including soybeans, corn, dried distillers grain, pork, and ethanol byproducts. These agreements are part of broader trade negotiations aimed at reducing the U.S. trade deficit with Vietnam, with Vietnamese companies planning to buy $2 billion in U.S. farm products overall. Iowa Secretary of Agriculture Mike Naig described the deals as historic and emphasized Vietnam's growing market potential due to its young population and expanding economy. Vietnam is currently the tenth largest market for U.S. agricultural exports, with Iowa companies alone exporting $244 million worth of goods to Vietnam in 2024. The trade agreements come amid ongoing tensions as the Trump administration has imposed, but temporarily paused, 46% reciprocal tariffs on Vietnamese products, highlighting the strategic importance of diversifying supply chains. Both sides are engaging in efforts to deepen economic ties, with Vietnam also pledging to crack down on counterfeits and increase purchases of other American goods such as Boeing planes and liquefied natural gas.