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This agreement will establish a commitment for a major Vietnamese processor and retailer to purchase U.S. chilled and frozen pork. Vietnam Trade Alliance (VTA) is a Vietnam-based importer of food with significant U.S. ownership.

Vietnam Committed to Buying up to $500 million US Chilled and Frozen Pork in 3 years
Vietnam Pork Consortium Memorandum of Understanding between Vietnam Trade Alliance and the U.S. sellers’ group was signed recently at the Indo – Pacific Business Forum (IPBF).
This agreement will establish a commitment for a major Vietnamese processor and retailer to purchase U.S. chilled and frozen pork. Vietnam Trade Alliance (VTA) is a Vietnam-based importer of food with significant U.S. ownership.
The value of buying from the Vietnamese side is estimated to be $100 million for year one with a 3-year total deal value of up to $500 million.
 The Vietnam Trade Alliance, representing a variety of Vietnamese buyers and producers, agrees to a 3-year program for the purchase $300-500 million of U.S. chilled and frozen pork and pork products for further processing and distribution into the Vietnam market.
This includes the establishment of an agreed supply chain, specified products, and price, as well as an import mechanism for asset management. U.S. exports of pork and pork products to Vietnam have grown from $4 million in 2015 to a record $35 million in the first 8 months of 2020.
Based on these past sales, a growing Vietnamese middle class with increasing demand for meat, and the high-quality and value of U.S. agricultural products, VTA estimates that the potential of these sales under this agreement could reach up to between $500 million over a 5-year period. This export activity will also help increase overall U.S. agricultural exports to Vietnam, help address the U.S.-Vietnam trade imbalance, and directly support U.S. farmers and ranchers and processing companies.
Partners include: Vietnam Trade Alliance, acting as master importer and distributor, a variety of Vietnamese Processors and wholesalers. Smithfield Foods and other U.S. pork producers, ABA Logistics, and relevant Vietnamese banks.
Other elements: VTA is requesting an import tax exemption for this 3-year program to counter the currently high import tax rate, in the spirit of balancing the U.S./Vietnam trade imbalance.
Next steps: Vietnam Trade Alliance seeks the support of the Vietnamese Government to support the U.S.- Vietnam Pork Consortium as an example of fair trade between the two nations and as an effort to balance the trade deficit. Consideration for preferred customs clearance and a reduction in import duty to zero percent under this program would ensure the program’s long-term growth and success.
In addition, due to current challenges in Vietnam’s domestic production, this agreement will work to stabilize pork prices thereby helping Vietnamese consumers.

DIEP NGUYEN