WASHINGTON, D.C. (RFD-TV) — In the midst of a critical week of bilateral talks, a Vietnam–United States trade deal is edging closer to finalization, with agriculture at the center.
Delegations from both nations are meeting this week in Washington to advance the framework set out in late October, outlining a “reciprocal, fair and balanced” agreement that keeps U.S. tariffs on Vietnamese goods at 20 percent while granting the U.S. zero-tariff access on certain products.
The agriculture and textile sectors emerge as key leverage points. Vietnam has rapidly increased imports of U.S. cotton, accounting for more than 48 percent of its cotton imports and purchasing some 2.9 million U.S. bales during the 2024/25 marketing year.
With the new trade deal, U.S. cotton exporters may be well-positioned to expand sales into Vietnam’s large textile and apparel manufacturing base, especially if Vietnam secures favorable terms for U.S. goods and streamlines non-tariff barriers. Below the surface, broader ag flows are in motion: Vietnamese firms have signed memorandums of understanding to buy over $2 billion in U.S. agricultural commodities — including corn, wheat, soybean meal, and DDGs.
For U.S. producers and exporters, the deal could open new channels for Diverted demand from China and strengthen feed-grain, cotton, and oilseed product flows to Vietnam. The textile tie-in is especially strong: U.S. cotton’s premium fiber quality and origin transparency give the U.S. a competitive edge as Vietnam works to meet rules-of-origin standards for its apparel exports to key Western markets.
Farm-Level Takeaway: With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could gain significant access into one of Southeast Asia’s fastest-growing manufacturing markets — locking in new demand lanes just as global supply shifts.
Tony St. James, RFD-TV Markets Specialist
Lyndsey Smith with Real Ag Radio joined RFD-TV to share a Canadian perspective on the discussions.
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