Vietnam to increase corn imports as bioethanol production expands
Vietnam is expanding bioethanol production, driving corn imports to a projected 15 million tonnes in 2026/27 as domestic output declines. Feed manufacturers are increasing feed wheat use, while rice exports remain strong, keeping Vietnam the world’s second-largest rice exporter.
Vietnam is expanding domestic bioethanol production and imports, reshaping demand for feed grains. Following the introduction of a nationwide mandatory bioethanol blending requirement for gasoline in early June, the country is significantly increasing corn consumption, as corn is the primary feedstock for ethanol production, according to the USDA’s Foreign Agricultural Service (FAS).
Domestic corn production continues to decline as farmers switch to more profitable crops such as fruit and coffee, while imported corn remains more competitively priced. As a result, Vietnam’s corn imports are forecast at 13.5 mln tons in MY 2025/26 and are expected to rise further to 15 mln tons in MY 2026/27. During the first half of 2026 alone, the country imported 6.8 mln tons of corn, up 49% year on year.
Rising demand from the ethanol industry is prompting feed manufacturers to substitute corn with lower-priced imported feed wheat. Wheat imports are projected to reach 7.28 mln tons in MY 2025/26 before easing to 6.2 mln tons in MY 2026/27 due to large carryover stocks.
Despite lower feed use, wheat consumption for food continues to grow, supported by expanding food processing and strong demand for instant noodles, pasta, and other wheat-based products. Around 40% of all wheat flour produced in Vietnam is used by large instant noodle manufacturers and export-oriented pasta producers.
Meanwhile, Vietnam continues to strengthen its position in the global rice market. Despite export challenges, rice exports are forecast at 8.2 mln tons in MY 2025/26 and 8 mln tons in MY 2026/27, keeping the country as the world’s second-largest rice exporter after India.
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Source: UkrAgroConsult
