Vietnamese firms will sign memorandums of understanding with U.S. partners to buy $2 billion worth of American farm produce, the agriculture ministry said on Tuesday, part of efforts to seal a new trade deal between the two countries.
Vietnam has been slapped with 46% "reciprocal" tariffs by the Trump administration. Though they have been paused until July, if they come into effect they could seriously undermine a growth model that relies on exports to the United States, its top market.
The new deals, signed during a visit to the United States by a delegation of 50 Vietnamese companies led by agriculture minister Do Duc Duy, include 5 MoUs to buy $800 million of products from Iowa over three years, the agriculture ministry said.
The Iowa MoUs involve purchases of corn, wheat, dried distillers grains and soybean meal, it added.
Vietnam and the Trump administration have been holding negotiations on a trade agreement, with Vietnam pledging to allow more U.S. imports to narrow the trade gap between the two countries. The United States registered a trade deficit of $123 billion with Vietnam last year.
Vietnam last year bought $3.4 billion worth of U.S. farm produce, and exported $13.68 billion of its own agricultural products to the United States, Vietnam News Agency reported.
Vietnam has also pledged to buy other American products, including Boeing planes and liquefied natural gas. It has also promised to crack down on counterfeits and digital piracy after the U.S. accused the country of being a major hub for these illegal activities.
