Processing grapefruit for export at Vina T&T Group Company.

In the first two months of 2025, the total export turnover of agricultural, forestry and fishery products nationwide reached 9.38 billion USD, an increase of 8.3% over the same period in 2024. In terms of markets, exports to China decreased by 4.3% while exports to the US recorded an increase of 18.9%.

Many items have advantages

The Import-Export Department (Ministry of Industry and Trade) said that according to statistics from the US International Trade Commission, in 2024, the US imported 1.48 million tons of coffee from countries around the world, worth 8.83 billion USD.

Of which, imports from Vietnam were 96.8 thousand tons, worth 355 million USD, down 32.2% in volume but up 2.2% in value compared to 2023, making Vietnam the third largest coffee supplier to the US; the average import price of US coffee from Vietnam increased the most, up 50.9% compared to 2023, to 3,665 USD/ton.

Besides coffee, Vietnam is the largest supplier of pepper to the US in 2024, accounting for 77.17% in volume and 76.75% in value of total imports. Accordingly, US pepper imports from Vietnam reached 75.6 thousand tons, worth 414.8 million USD.

Regarding fruits and vegetables, in 2024, Vietnam will be the 15th largest supplier of vegetables, flowers, tubers, fruits and processed products to the US, worth 619.5 million USD, up 33.7% compared to 2023 and increasing from 0.82% in 2023 to 1.02% in 2024 in the total import value of the US. At the same time, Vietnam is also the 7th largest supplier of cassava to the US. Cassava starch is the fourth largest supplier to the US, reaching 5.93 thousand tons, worth 3.9 million USD.

In addition to agricultural products, seafood and forestry products are also items with high export turnover in the US market. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in 2024, Vietnam's seafood exports to the US will grow by 16%, reaching more than 1.8 billion USD thanks to the increasing trend of food consumption, including seafood. Products that recorded positive growth include shrimp, pangasius, tuna, etc.

In addition, wood and wood products are items that contribute a large amount to the total export turnover to the US. In the first two months of 2025, the total export value of wood and wood products nationwide reached 2.45 billion USD, of which exports to the US reached 1.3 billion USD, an increase of 9.5% over the same period in 2024. The US is currently the largest consumer market for wood and wood products of Vietnam, accounting for 53.1% of the total export value.

Responding to new trade challenges

Since early February 2025, the US has made changes in trade policy, specifically tax policies, which directly and indirectly affect the export activities of a number of countries. In the general context, Vietnam needs to proactively and flexibly respond to maintain this large export market for agricultural, forestry and fishery products.

Mr. Do Ngoc Hung, Trade Counselor, Head of the Vietnam Trade Office (Ministry of Industry and Trade) in the US, said: Vietnam needs to closely monitor the US trade developments to minimize risks when this country changes its policies. In the past, Vietnam has gained experience in trade defense cases through full cooperation in providing information, verification documents, and on-site investigations, thereby protecting the legitimate rights and interests of Vietnamese enterprises.

In 2024, the total two-way trade export turnover between the US and Vietnam will be about 150 billion USD, an increase of 20% compared to 2023; in which, the trade relationship between the two countries is complementary, the export and foreign trade structure between the two economies does not compete directly but complements each other. On the other hand, goods from Vietnam are also increasingly improved and enhanced in quality and competitive prices, helping American consumers access goods at reasonable prices.

However, in the current situation, Vietnam needs to urgently develop a specific roadmap to protect its trade interests against tax measures from the US. According to forecasts, the US may impose taxes on countries with large trade surpluses with the US, including Vietnam.

Therefore, authorities need to strengthen coordination with industry associations, US importers and exporters of goods, etc. to build an alliance to support expanding trade with Vietnam, minimizing risks in changing US trade policies.

Regarding the tax issue for the wood industry, Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association (VIFOREST) said: In 2024, Vietnam's wood and forest product export turnover will reach more than 17 billion USD. Of which, exports to the US will reach 9.1 billion USD; imports from the US will be about 323.7 million USD (of which 300 million USD are raw materials for round wood and sawn timber enjoying a 0% tax rate and more than 23 million USD are US wooden furniture products and are subject to a tax rate of 20 to 25%). However, currently, wood enterprises in both Vietnam and the US are very concerned and anxious about the US President's Decree dated February 13, 2025 requesting a review and reciprocal tax on 17,000 imported items into the US. Accordingly, if the US imposes reciprocal taxes on Vietnam's total export turnover of more than 9 billion USD, it will be extremely large, seriously affecting the export capacity of many Vietnamese wood enterprises.

In this situation, VIFOREST has sent a document to the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture and Environment and relevant agencies to consider reducing the tax to 0% for wooden furniture products imported from the US. The fact that the US is reviewing the possibility of imposing a 25% tax on logs, sawn timber and forest products is also a concern for Vietnamese businesses. In case the US imposes taxes on forest products, all Vietnamese wood products exported to the US will be affected.

"In fact, there is a situation where some US customers are hesitant to sign contracts to import wood from Vietnam and Vietnamese businesses are also worried. However, we want to emphasize that the wood trade relationship between the two countries is complementary and together creates added value. Vietnam is the second largest country in the world importing wood materials from the US; a lot of imported wood materials are processed into products and many of those products have been exported back to the US. This is a mutually beneficial trade relationship. Therefore, the Association hopes that Vietnam's trade representative agencies in the US will continuously update information and make timely recommendations to protect the interests of domestic wood businesses," Mr. Ngo Sy Hoai proposed.

Source: Vietnam.vn