Vietnam Cuts Import Tariffs, Boosting Opportunities for US Agricultural Exports

Hanoi, Vietnam – April 2025 — (Vietnam Insider)  A wide range of U.S. agricultural products is set to become more competitive in the Vietnamese market, following Vietnam’s latest move to lower import tariffs under Decree No. 73/2025/ND-CP, which took effect on March 31, 2025.

• The Ministry of Finance confirmed that the tariff adjustments align with Vietnam’s broader strategy to advance trade liberalization, especially with key partners such as the United States, while supporting domestic consumption and industrial growth.

Key tariff reductions include:

• Frozen chicken thighs: reduced from 20% to 15%
• Nuts and fruits (such as unshelled pistachios, almonds, fresh apples, cherries, and raisins): reduced from 8–12% to 5%
• Corn for animal feed and soybean meal: slashed from 1–2% to 0%

These changes are expected to increase consumer access to high-quality imported products while lowering input costs for critical sectors such as livestock farming. In 2024 alone, Vietnam imported nearly $3.04 billion worth of corn—an essential ingredient for animal feed—marking a 6.1% year-over-year increase.

The decree also applies to a variety of non-agricultural goods:

• Ethanol: reduced from 10% to 5%
• Liquefied natural gas (LNG): reduced from 5% to 2%
• Passenger cars (HS codes 8703.23.63 and 8703.23.57): reduced from 64% to 50%
• Cars (HS 8703.24.51): reduced from 45% to 32%
• Wood products (HS 44.21, 94.01, 94.03): reduced to 0%, down from 20–25%

The United States remains a key supplier of agricultural commodities to Vietnam. In 2024, U.S. exports of cotton, soybeans, and tree nuts to Vietnam totaled $3.4 billion, accounting for more than 25% of total U.S. exports to the country. U.S. fruit exporters have long viewed Vietnam as a high-potential market, yet high tariffs previously posed a significant barrier. With the new changes, that outlook is expected to improve dramatically.

In 2024, Vietnam’s imports of U.S. fruits and vegetables reached $550 million, representing a sharp 64% increase from the previous year. Ongoing bilateral discussions are also aiming to expand Vietnam’s market access for more U.S. fruits, such as tangerines, lemons, and plums.

Economist Dinh Trong Thinh noted that the tariff cuts will likely boost overall import turnover, improve consumer affordability, and enhance market access for essential goods. “This move not only strengthens Vietnam’s trade relationship with the U.S. but also helps diversify the country’s import sources,” he added.

The policy is part of Vietnam’s continued efforts to address trade imbalances, stimulate domestic production, and provide more choices for Vietnamese consumers at better prices.

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Source: Vietnam Insider