0% import tax: A boost for Vietnam’s animal feed industry

The reduction of import tax rates to 0% helps businesses optimize raw material costs.

This move is expected to significantly lower production costs for businesses, as raw materials currently account for 60-70% of total animal feed production expenses.

A vibrant imported raw material market

According to data from the General Department of Customs, Vietnam imported over 703,000 tons of soybeans in the first four months of 2025, worth approximately USD 318 million. Although this represents a 7.8% decline in volume and a 22% decrease in value compared to the same period last year, price trends are proving highly favorable for Vietnamese businesses.

Specifically, soybean imports from the US surged by 47% in volume, reaching over 414,000 tons, with a value exceeding USD 186 million. Remarkably, the average import price of US soybeans has fallen by about 19% year-over-year, now averaging just USD 451 per ton.

In addition to soybeans, Vietnam imports around 10-11 million tons of corn and 4-5 million tons of soybean meal annually to meet domestic feed production needs. Vietnam currently ranks as the world’s third-largest importer of soybean meal and ninth-largest importer of soybeans.

Positive outlook for the entire industry

The reduction of import taxes on key raw materials to 0% is seen as a crucial driver, helping Vietnam’s animal feed industry reduce dependence on expensive supplies while gaining a competitive edge over regional rivals.

Amid rising demand for livestock products, this policy is considered a key factor enabling domestic companies to optimize costs, expand production scale, and improve operational efficiency in the near future.