HO CHI MINH CITY, VIETNAM — Continuing growth in Vietnam’s livestock and aquaculture sectors due to an improving economy and greater exports have led to higher demand for feed and increased imports of feed ingredients, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).

In its quarterly update, the FAS estimated total feed demand at 26.83 million tonnes in 2023-24 due to a gradual rebound in demand for animal and aquafeed while revising its 2024-25 forecast up to 27.85 million tonnes as Vietnam’s economy rebounds and the husbandry and fishery sectors expand.

Lower global prices for corn and wheat have led Vietnamese importers to diversify sources for feed ingredients through lower-cost supplies. Total imports for feed ingredients are seen reaching 20.99 million tonnes in calendar year 2024, up from 20 million tonnes in 2023.

Vietnam is projected to import 8.48 million tonnes of corn in calendar year 2024, up from 7.87 million tonnes the previous year, while distiller’s dried grains with solubles (DDGS) are forecast at 1.09 million tonnes, a slight increase from 1.05 million tonnes in 2023. Feed wheat will dip slightly to 2.35 million tonnes from 2.45 million tonnes.

Argentina and Brazil are the largest and second largest corn suppliers to Vietnam, accounting for 74% and 23% of total import volume, respectively. 

While US DDGS still dominate in the Vietnam market, the US market share declined to 65% in the first eight months of 2024, down from 75% in the same period in 2023. Brazil is the second largest supplier, holding 17% of the market.

Demand for feed corn is seen at 13 million tonnes in 2024-25, up from 12 million in 2023-24, with domestic production in 2024-25 at 3.9 million tonnes. Local corn area and production have been declining annually since 2013.

“Corn is less economically viable than other crops in Vietnam, but it can be grown as a substitute rotational crop in rice fields,” the FAS said. “In addition to harvesting the corn kernels, the stalks can be added to cattle feed, providing an additional source of income for corn farmers.”

Vietnam relies entirely on imports for its wheat, and purchases in 2023-24 reached 5.4 million tonnes, 32% higher than 2022-23. Australia (32%), Brazil (21%) and Ukraine (20%) are the main suppliers to Vietnam. Imports of Australian wheat declined 43% in quantity, while imports of Brazilian, Ukrainian, and Russian wheat increased by 4 times, 6 times and 3.5 times, respectively, in comparison to 2022-23.