World Grain - April 2022 - 20

COUNTRY FOCUS
US Wheat Associates (USW), " Vietnam is a quickly growing
imported wheat market with an exploding middle class eager
to consume more and better-quality wheat-based foods. "
" Bakers and end-product manufacturers are aggressive in
meeting new demand and the milling industry is increasingly
savvy in supplying higher quality flour, " USW said.
Wheat from the United States " made significant inroads in
the market, capturing considerable share of traditional products
that had long been made from Australian wheat flour and
dominating segments where US wheat classes have a clear
advantage, such as biscuits, cakes and loaf bread. "
In 2020-21, US shipments took 20% of the milling wheat
market, despite a record harvest in Australia.
" Total wheat imports by Vietnam have varied widely over
the past decade as feed millers shift more freely between
wheat and corn than their regional peers, " USW said. " Milling
wheat use is far more stable, rising consistently through
the past decade, forecast at 2.25 million tonnes for 2021-22. "
USW puts growth in milling wheat demand at an average
4.6% a year, a rate equal to that of the Southeast Asian region
as a whole.
" The annual milling wheat use increase has greatly exceeded
population growth, indicating strong growth in per capita
consumption, " USW said. " According to USDA's 2021 longterm
projections, Vietnam's wheat imports are expected to increase
to 5 million tonnes by 2030-31. "
Flour and feed milling
USW said the 29 flour mills in Vietnam have an annual capacity
of about 3.95 million tonnes of wheat, putting the industry's
actual capacity utilization at around 53%.
" New investments, mainly by foreign companies, are making
it difficult for less efficient mills to compete, " USW said.
" The larger mills are increasing capacity, with at least five recent
expansions adding 1 million tonnes in milling capacity. "
US Wheat also explained that after talks last year, which it
described as " productive, " the Vietnamese government eliminated
a 3% import tariff on US wheat on Dec. 30, 2021. The
first shipment of US wheat purchased without a tariff, more
than 68,350 tonnes of soft white and hard red spring wheat
grown in the Pacific Northwest and Northern Plains, arrived
at the port in Ho Chi Minh City on Feb. 6.
An annual attaché report on the grain and feed sector, published
April 1, 2021, said that the country's domestic pigmeat
industry had not yet recovered from the effects of the 2019
African swine fever outbreak on production, despite encouragement
from the government for producers who can meet
biosecurity requirements to increase output.
" Poultry and bovine production also expanded in 2020, with
noticeable new large-scale investments in the poultry sector, "
the attaché said. " The Vietnam feed industry continues to rely
heavily on imported ingredients with approximately 70% of
feed ingredients being imported. Although most broken rice is
supplied by local production, Vietnam imported some broken
rice from India to cope with high prices in CY2020.
20
Wheat consumption
(in 1,000 tonnes)
1,000
2,000
3,000
4,000
5,000
Wheat imports
(in 1,000 tonnes)
1,000
2,000
3,000
4,000
5,000
6,000
*projected
" Corn production continued to trend downward, and cassava
feed stock has faced competition from exports and local
industrial production. "
It also noted that " according to experts and farmers, fodder
corn is easier to grow than grain corn, requires less husbandry
efforts, and can be rotated with rice during the winter season
in the north and northern central regions. "
Increased soybean demand
In an annual report on oilseeds, dated April 13, 2021, the
USDA attaché said " soybean meal demand for feed use is
forecast to increase in MY2021-22 as the swine herd repopulates
from the impacts of African swine fever, along with a
forecasted increase in poultry production and bovine herd expansion. "
" Increased
domestic soybean crush is driven by increasing
feed and oil consumption demand, " the report added. " SoyApril
2022 / World Grain / World-Grain.com
2021-22*
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2021-22*
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
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World Grain - April 2022

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