American goods flood into Vietnam

The Vietnamese government has in recent months been exhorting local businesses to buy more American products to ensure trade balance.

Cotton topped the list of imports at nearly $940 million, up 56%, according to Vietnam Customs. Purchases of raw plastics rose by nearly 49% to $656 million.

Steel scrap imports doubled to $125 million, reflecting signs of recovery by the construction industry.

Vegetable and fruit purchases rose by 47% to $353 million, and animal feed imports were up 27% to $447 million. There was an 8% rise in soybean imports to $248 million.

A June visit by Agriculture and Environment Minister Do Duc Duy secured nearly $3 billion in U.S. farm goods deals and broader cooperation.

In July, Washington lowered reciprocal tariffs for Vietnam from 46% to 20%, while Hanoi cut duties on many U.S. products, including seafood and agriculture, to 0% from early August.

American agricultural and food products are increasingly favored by Vietnamese consumers. U.S. beef is popular due to high demand and insufficient local supply.

But tariffs remain a drag, with boneless beef taxed at 14% and bone-in beef at 20%.

According to the U.S. Meat Export Federation in Vietnam, if tariffs are cut to 0% imports could jump by 20–30% within six months as prices become more competitive with Australian and Canadian imports.

U.S. short plate beef retails for VND400,000–500,000 (US$15-19) per kilogram and is widely used in high-end restaurants.

American fruits like apples, grapes, cherries, and nectarines are also becoming popular. Earlier this month imported fruit counters at premium food stores in HCMC were crowded.

American lobsters seen at a restaurant in HCMC, Photo by Tran Van Truong

California nectarines, available in Vietnam for the first time at nearly VND500,000 (18.96) per kilogram, have become instantly popular, while American cherries sold out as prices dropped by 30–50% from a year earlier.

Some fruits have had import tariffs reduced to around 3% since late March, making them cheaper. The U.S. has promoted some of its products through food events.

The American Cuisine Week in HCMC, held with the participation of 10 restaurants, showcased dishes made of beef and poultry, California cheese, New York wine, Washington apples, blueberries, potatoes, and northeastern seafood.

While U.S. imports provide more options for consumers and producers, they also put pressure on domestic producers, according to the Vietnam Fruit and Vegetable Association.