Leaders of the U.S. Grains Council (USGC) and National Corn Growers Association (NCGA) learned firsthand about the Southeast Asian market for U.S. corn and co-products last week during a joint officers mission to Vietnam and Myanmar.
Vietnam is one of the fastest growing feed markets in the world – thanks to population and economic growth – and a major buyer of corn and dried distiller’s grains with solubles (DDGS). Ranking as the second largest buyer of U.S. DDGS, Vietnam set a new record for DDGS imports in 2018/2019, increasing purchases by 24 percent year-over-year to nearly 1.3 million metric tons, valued at $278 million.
Vietnam also shows great promise for ethanol exports. The country currently allows up to an E5 blend and is working toward a goal of adopting an E10 mandate by 2020, but ethanol import duties prevent the United States from capturing additional market share.
During meetings with government officials and fuel retailers, the delegation reiterated the need for Vietnam to reduce this import tariff to stimulate demand and improve the affordability of ethanol-blended fuels for Vietnamese customers.
Myanmar has become a priority emerging market for the Council’s work in the last five years. Statistically resembling Vietnam in the early 2000s and China in the 1990s, Myanmar is expected to steadily increase feed consumption and production over the next decade.