The government’s decision to reduce import taxes to 0% for key raw materials such as soybean meal and corn is giving a strong boost to the domestic animal feed production sector, opening up opportunities to cut costs and enhance competitiveness.
On March 31, 2025, Decree No. 73/2025/ND-CP was officially issued, amending and supplementing preferential import tariffs for various essential goods. Notably, the import tax on crucial livestock feed ingredients like soybean meal and corn has been reduced to 0%.
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.
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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.
