Vietnam's Agri-Food Sector And The Trans-Pacific Partnership

This report is issued by United States Department of Agriculture, in which start from Vietnam economic overview to specific agriculture consumption and trade. Under the impact of TPP, import-export is considered as a main concern so an analysis of trade and tariff structure for Vietnam’s top traded commodities in the content could be a useful reference.

No. of pages: 40

In 1986, Vietnam embarked on a gradualist approach to market reform and steadily pursued trade agreements under a strategy of export-led growth. The country has since emerged as one of Asia’s dynamic economies and a growing market for agri-food trade. The proposed Trans-Pacific Partnership (TPP) is Vietnam’s next step toward increased economic integration.

This report provides an overview of Vietnam’s agri-food sector and an analysis of its trade with potential TPP partners. Examination of Vietnam’s trade and tariff structure suggests modest agricultural trade growth potential from the proposed TPP agreement. Vietnam’s current preferential trade agreements (PTAs) with many of the negotiating TPP countries already provide low or duty-free rates. Major Vietnamese exports, such as coffee and natural rubber, are not expected to gain from an agreement.

Nevertheless, even though many of Vietnam’s PTAs overlap with potential TPP partners, TPP could provide new opportunities where those agreements did not liberalize market access. Rice and smaller export sectors (cassava starch, pepper, processed foods, honey) could grow. For U.S. agricultural exporters, Vietnam’s already low tariff rates on animal feed and commodities for industrial inputs do not provide much growth opportunity for its top products; however trade liberalization could lead to increased U.S. markets for consumer-oriented exports including meats, dairy products, fruits, and other high-value U.S. food products. Additional economic growth generated by an agreement would also increase Vietnam's import demand.

INDEX

Summary 
 

Introduction 
     Economic Overview of Vietnam  
     Reform of Centrally Planned Economy
     Export-led Growth and Rise of Manufacturing Sector 
     Vietnam Today 
 

Agriculture and Food Consumption 
     Vietnamese Agricultural Production 
     Food consumption 
 

Vietnam and Agricultural Trade 
     Trade Liberalization and Trade Growth 
     Trade Policy and Barriers 
     Agricultural Trade With Trans-Pacifc Partnership Partners 
 

Analysis of Trade and Tariff Structure for Vietnam’s Top Traded Commodities 
     Export Profle
     Export Tariff Structure
     Import Profle 
     Import Tariff Structure  
     Market Potential for U.S. Exports  
 

Conclusion
References
Appendix