Vietnam

NPPC’s Position

NPPC wants Vietnam to waive all import duties, taxes, and fees associated with the importation of U.S. pork and eliminate all non-tariff barriers to U.S. pork.

 

NPPC encourages Vietnam to recognize the U.S. pork plant inspection and approval system as equivalent to its inspection system.

Background

Pork is, by far, the most consumed meat protein in Vietnam, holding an important place in the national diet and having a disproportionate impact on inflation when prices increase. Vietnam’s domestic pork consumption is more than 2.5 million metric tons (M.T.) per year, more than Mexico, where the United States exported 874,589 MT valued at $1.6 billion in 2021. In 2021, U.S. pork exports to Vietnam totaled only 5,517 MT or $14 million.

U.S. pork’s limited exports to Vietnam are because of unwarranted tariff and non-tariff barriers. Given the prevalence of African swine fever (ASF) in Vietnam, limiting domestic production, the country would significantly benefit by removing these barriers. NPPC urges Vietnam to waive duties on U.S. pork while it battles ASF and attempts to rebuild its domestic hog herd. From July 2020 to December 2020, Vietnam temporarily reduced its Most Favored Nation (MFN) tariff rates from 15 percent to 10 percent for frozen pork products, which led to U.S. pork exports doubling in those six months compared to the first half of the year.

In November 2021, Vietnam confirmed it would lower its Most Favored Nation (MFN) tariff on imported frozen pork from 15 to 10 percent. The reduction is to take effect on July 1, 2022. While welcomed news for U.S. pork producers, this tariff reduction does not leave the industry on a level playing field with Canada, Chile, and other countries with more favorable Vietnamese market access through their participation in the Comprehensive and Progressive Trans-Pacific Partnership trade agreement.

In addition, Russian pork exports face zero tariffs. The European Union (E.U.) signed a free trade agreement with Vietnam on June 30, 2019, giving the E.U. pork industry an advantage over the U.S.

Vietnam also has restricted U.S. pork by imposing non-tariff barriers, including a requirement for exporters to provide company-specific information that is administratively burdensome and irrelevant to ensuring food safety and a ban on the importation of all pork offal, which was instituted in 2011 without explanation. While in April 2011 the country lifted the import ban on red offal (e.g. heart, liver, kidney), it left the ban on “white offal” (e.g.. intestine, spleen, tongue, etc.) in place. Vietnam lifted its ban on white offal on Jan. 25, 2014. Additionally, when it entered the World Trade Organization 15 years ago, Vietnam made a bilateral commitment to recognize the U.S. pork plant inspection and approval system as equivalent to its inspection system, but it does not.

Fast Facts

2.5 million metric tons

(MT) of pork is consumed annually by Vietnam, more than Mexico.

5,517 metric tons

of U.S. pork worth $1.4 million was exported to Vietnam in 2021.

10%

will be the Vietnamese tariff on U.S. pork, beginning July 1, 2022, down from 15%.

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