Vietnam has lowered its Most-Favored-Nation (MFN) import tariff on ethanol from 10% to 5%, a move that is expected to benefit exporters, including those in the United States. The change is part of a broader tariff reduction decree issued by the Vietnamese government on March 31, which also applies to several other agricultural and food products, reports Ethanol Producer Magazine.
According to a report by the U.S. Department of Agriculture’s Foreign Agricultural Service, the updated tariff rates apply to imports from the U.S. and mark the second ethanol tariff reduction by Vietnam in recent years. In mid-2023, the country lowered the MFN rate from 15% to 10%.
Other products affected by the new decree include soybean meal, corn, shelled almonds, in-shell pistachios, fresh apples, fresh cherries, raisins, frozen chicken drumsticks, and wood products.
In 2024, the U.S. exported 9.44 million gallons of ethanol to Vietnam—less than 1% of the 1.91 billion gallons of ethanol shipped globally by the U.S. last year, according to USDA data.
Vietnam’s Ministry of Industry and Trade has also been working to boost domestic biofuel use. In December 2024, the ministry issued a directive urging government agencies to develop a more competitive pricing structure for ethanol-blended gasoline, with the goal of making it a viable alternative to standard gasoline.
The USDA FAS report provides further details and is available on the agency’s Global Agricultural Information Network website.
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