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Vietnam Agricultural & Agri-products Market Overview

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Vietnam Agricultural & Agri-products Market Overview

  1. 1. MARKET ACCESS SECRETARIAT Global Analysis Report Market Overview Vietnam October 2015 MARKET SNAPSHOT • Vietnam had a gross domestic product (GDP) of US$186.2 billion in 2014, which is expected to grow by 11.7% in 2015, • Vietnam is the fourteenth-most populous country in the world with 91.6 million people. The population is expected to reach 94.1 million by 2017. • Annual per capita consumer expenditure was US$1,285 in 2014, with food and non-alcoholic beverages representing US$453 or 35.2% of that total. • The consumer foodservice industry is expanding alongside a rising middle-class population, and is forecast to reach total value sales of US$60.3 billion by 2018. • With growing disposable incomes, Vietnamese consumers are seeking products that offer convenience. Packaged food sales continue to grow rapidly, and are expected to reach a value of US$17.2 billion by 2019. • The top packaged food company in the market is currently PepsiCo Inc with a 25.1% value share, followed by Tan Hiep Phat Group (17.5%) and JG Summit Holdings Inc (10.6%). • The agriculture sector employs 47% of the workforce and is estimated at 18.4% of GDP. Agriculture’s share of economic output is expected to decrease as the country moves toward economic modernization. CONTENTS Market Snapshot .............................1 Production .......................................2 Trade...............................................3 Consumer Foodservice ...................4 Retail Sales .....................................5 Resources .......................................6 Visit our online library of public reports for more information on this and other markets.
  2. 2. Page | 2 PRODUCTION • Rice remains Vietnam’s primary domestic crop, with production increasing steadily each year. Volume production increased by a compound annual growth rate (CAGR) of 2.5% over the 2010 to 2014 period. The top growing crops by volume production in the same years were sugar cane and watermelons, which grew by a CAGR of 5.5% and 5.3%, respectively. • Poultry production increased by a CAGR of 4.0%, while pork and beef production increased by 1.3% and 1.0%, respectively. • Live chickens increased by a CAGR of 0.2% over the 2010-2014 period, while both pigs and cattle showed negative growth over the same years. Crop Production and Livestock in Vietnam Top ten crops ('000 tonnes) 2010 2011 2012 2013 2014 Rice 40,005.6 42,398.3 43,661.6 44,076.1 45,206.8 Sugar cane 16,161.7 17,539.6 19,017.2 20,018.4 21,089.7 Maize 4,606.8 4,835.7 4,803.2 5,193.5 5,356.5 Bananas 1,489.7 1,523.4 1,560.0 1,596.6 1,626.3 Cashews 1,242.0 1,237.3 1,190.9 1,197.9 1,185.7 Cabbages and other brassicas 805.3 774.9 785.0 796.2 793.7 Pineapples 521.6 533.4 540.0 551.1 559.3 Watermelons 388.5 467.6 470.0 478.3 503.3 Groundnuts 487.2 468.4 470.6 468.4 463.2 Potatoes 394.9 425.0 440.0 445.0 458.9 Source: Euromonitor, FAOSTAT Agricultural Production, February 2015 Meat indigenous ('000 tonnes) 2010 2011 2012 2013 2014 Pork 3,036.4 3,098.9 3,160.0 3,194.5 3,238.5 Poultry 531.4 599.4 617.9 620.7 645.5 Beef and Veal 384.3 386.5 393.3 400.1 404.5 Source: Euromonitor, FAOSTAT Agricultural Production, February 2015 Livestock ('000 head) 2010 2011 2012 2013 2014 Chickens 218,201.0 225,820.0 215,950.0 220,290.0 220,870.3 Pigs 27,373.3 27,056.0 26,493.9 26,261.4 25,952.5 Cattle 5,808.3 5,436.6 5,194.2 5,156.7 4,975.7 Source: Euromonitor, FAOSTAT Agricultural Production, February 2015
  3. 3. Page | 3 TRADE • Vietnam is a net exporter of agri-food and seafood products. In 2013, Vietnam’s agri-food and seafood trade surplus was US$7.3 billion with imports valued at US$12.7 billion, and US$20.0 billion in exports. Vietnam’s agri-food and seafood imports have been growing at an average rate of 20.3% over the last three years. • Vietnam’s top agri-food and seafood imports in 2013 were soybean meal, cotton, soybeans, corn, and non-durum wheat. Key supplying countries were the United States, Argentina, Brazil, India, and China. Canada was Vietnam’s nineteenth-largest supplier of total agri-food and seafood products in 2013, with a 1.0% share. Vietnam’s Top Agri-Food and Seafood Imports from the World, 2013 Commodity Import Value US$ millions Top Suppliers & Market Share Canada's Share1 2 3 Soybean meal 1,743.3 Argentina 57.0% Brazil 14.2% India 12.9% 0.0% Cotton, not carded or combed 1,154.6 United States 39.8% India 15.9% Australia 7.2% 0.0% Soybeans 784.2 Brazil 42.3% United States 41.0% Argentina 5.1% 3.2% Corn 624.2 India 48.7% Brazil 34.1% Argentina 7.2% 0.0% Non-durum wheat 614.7 Australia 69.9% Canada 7.4% United States 6.7% 7.4% Cashews 589.7 Côte d’Ivoire 33.1% Ghana 13.5% Cambodia 11.5% 0.0% Palm oil 511.0 Malaysia 83.6% Indonesia 16.4% -- 0.0% Food preparations 369.0 United States 32.5% Singapore 14.7% Malaysia 8.3% 0.3% Animal feed 361.0 China 19.3% Thailand 14.7% United States 13.4% 0.6% Skim milk powder 294.9 United States 58.5% New Zealand 17.7% Netherlands 9.3% 1.5% Source: Global Trade Atlas, 2015 • Vietnam’s processed food imports were valued at US$7.0 billion in 2013. Canada’s share was 0.6%. Argentina, the United States, Malaysia, Thailand, and China were the largest suppliers of processed food to Vietnam, providing 51.4% of the market in 2013. Vietnam’s processed food imports grew by a CAGR of 9.2% between 2011 and 2013. • Canada’s agri-food and seafood exports to Vietnam were valued at US$216.1 million in 2014. Top exports were soybeans, canola meal, frozen turbot, frozen halibut, and frozen crab. In 2014, Canada registered an agri-food and seafood trade deficit of US$179.5 million with Vietnam.
  4. 4. Page | 4 CONSUMER FOODSERVICE • The foodservice industry in Vietnam grew in value sales by a CAGR of 12.3% over the period 2009 to 2013 and further growth of 11.0% is projected to 2018. • Over the forecast period of 2014 to 2018, the 100% home delivery/takeaway sector will be the best performing category with a CAGR of 44.1%, albeit the smallest category within consumer foodservice, followed by pizza consumer foodservice and fast food at 22.6% and 14.8%, respectively. Consumer Foodservice Sales in Vietnam Historic in US$ Millions, Fixed 2013 Exchange Rate Category 2009 2010 2011 2012 2013 CAGR* % 2009-13 Consumer Foodservice by Type 22,785.8 24,556.4 30,826.5 33,132.6 36,189.7 12.3 Full-Service Restaurants 11,925.6 12,962.5 17,006.3 18,387.6 20,367.7 14.3 Street Stalls/Kiosks 9,015.9 9,556.8 11,282.0 11,902.4 12,627.7 8.8 Cafés/Bars 1,557.6 1,710.7 2,122.2 2,361.6 2,642.1 14.1 Fast Food 286.7 325.3 412.4 475.5 542.4 17.3 Pizza Consumer Foodservice 30.6 38.8 55.6 62.4 75.1 25.1 100% Home Delivery/Takeaway - 1.1 3.5 5.4 9.8 - Self-Service Cafeterias - - - - - - Consumer Foodservice Sales in Vietnam Forecast in US$ Millions, Fixed 2013 Exchange Rate Category 2014 2015 2016 2017 2018 CAGR* % 2014-18 Consumer Foodservice by Type 39,743.9 44,179.1 48,983.2 54,356.3 60,296.0 11.0 Full-Service Restaurants 22,774.1 25,783.4 29,123.7 32,929.3 37,236.1 13.1 Street Stalls/Kiosks 13,413.8 14,391.3 15,363.5 16,375.4 17,384.1 6.7 Cafés/Bars 2,927.4 3,279.0 3,659.2 4,082.0 4,548.0 11.6 Fast Food 614.4 704.5 806.7 926.2 1,066.2 14.8 Pizza Consumer Foodservice 89.7 109.4 133.9 164.6 202.8 22.6 100% Home Delivery/Takeaway 14.3 20.9 30.2 43.3 61.6 44.1 Self-Service Cafeterias - - - - - - Source for both: Euromonitor International, 2015 *CAGR: Compound Annual Growth Rate **Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100% home delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the consumer foodservice total. As such, pizza consumer foodservice is not counted as its own sector within the consumer foodservice total.
  5. 5. Page | 5 RETAIL SALES • Packaged food sales increased by a CAGR of 15.9% from 2010 to 2014, with a further increase of 13.2% forecasted to 2019. Within this category, from 2010 to 2014, the best performing segment was chilled processed food, registering a CAGR of 22.8%, followed by frozen processed food at 22.6% and ready meals at 20.8%. The health and wellness sector experienced a CAGR of 20.4% from 2010 to 2014 and will continue to grow by a CAGR of 17.5% from 2015 to 2019. Consumers are interested in products that can provide health benefits at a good value. • Urbanization is a core factor affecting the packaged food industry, and will continue to accelerate. With consumers increasingly exposed to a Western lifestyle, they are seeking easy-to-prepare products that help them save time. As consumers look for products that are convenient and offer a longer shelf life, packaged food sales will continue to see growth. Agri-Food Retail Sales in Vietnam Historic in US$ Millions, Fixed 2014 Exchange Rate Category 2010 2011 2012 2013 2014 CAGR* % 2010-14 Health and Wellness by Type 1,686.0 2,106.1 2,526.2 2,991.1 3,540.9 20.4 Better For You (BFY) 16.3 19.6 24.8 28.9 33.7 20.0 Fortified/Functional (FF) 1,079.5 1,336.5 1,557.3 1,830.6 2,166.3 19.0 Naturally Healthy (NH) 590.2 750.0 944.0 1,131.6 1,340.9 22.8 Packaged Food 5,100.1 6,099.5 7,075.3 8,053.4 9,199.1 15.9 Baby Food 688.6 817.5 903.8 1,055.5 1,237.0 15.8 Bakery 667.7 786.1 901.1 1,009.0 1,151.7 14.6 Canned/Preserved Food 81.6 101.7 121.1 140.6 162.6 18.8 Chilled Processed Food 25.5 32.4 40.8 48.2 57.9 22.8 Confectionery 227.7 265.6 294.9 321.7 353.4 11.6 Dairy 1,050.9 1,330.0 1,589.2 1,835.9 2,131.7 19.3 Dried Processed Food 713.6 831.9 966.7 1,082.2 1,202.9 13.9 Frozen Processed Food 64.0 80.5 99.1 119.9 144.3 22.6 Ice Cream 52.1 61.9 75.1 87.4 100.4 17.8 Meal Replacement 45.8 52.9 63.5 74.3 88.1 17.8 Noodles 693.9 807.5 936.6 1,044.7 1,156.7 13.6 Oils and Fats 744.7 878.8 1,028.7 1,156.3 1,310.0 15.2 Pasta 5.8 7.3 8.5 10.0 11.5 18.5 Ready Meals 17.8 21.8 26.5 31.8 37.9 20.8 Sauces, Dressings and Condiments 522.0 607.9 692.2 782.5 876.7 13.8 Spreads 5.4 6.2 6.9 7.5 8.3 11.2 Sweet and Savoury Snacks 210.6 246.2 292.2 332.4 374.2 15.4 Hot Drinks 340.3 383.5 443.8 503.2 569.4 13.7 Soft Drinks 764.4 1,033.8 1,320.7 1,618.9 1,961.1 26.6 Pet Care 9.0 11.3 13.9 16.6 19.1 20.6 Source: Euromonitor International, 2015 *CAGR: Compound Annual Growth Rate
  6. 6. Page | 6 Agri-Food Retail Sales in Vietnam Forecast in US$ Millions, Fixed 2014 Exchange Rate Categories 2015 2016 2017 2018 2019 CAGR* % 2015-19 Health and Wellness by Type 4,204.4 4,967.4 5,843.6 6,849.7 8,007.6 17.5 Better For You (BFY) 39.0 44.5 50.4 56.8 63.9 13.1 Food Intolerance - - - - - - Fortified/Functional (FF) 2,558.8 3,014.4 3,536.4 4,137.6 4,828.5 17.2 Naturally Healthy (NH) 1,606.5 1,908.5 2,256.8 2,655.3 3,115.1 18.0 Organic - - - - - - Packaged Food 10,487.7 11,906.7 13,482.7 15,251.4 17,242.5 13.2 Baby Food 1,444.1 1,682.1 1,950.8 2,257.8 2,606.4 15.9 Bakery 1,313.6 1,494.3 1,698.4 1,932.6 2,202.2 13.8 Canned/Preserved Food 188.0 215.8 246.7 280.3 317.8 14.0 Chilled Processed Food 68.8 81.1 94.6 109.9 126.4 16.4 Confectionery 386.2 421.3 461.4 507.5 560.4 9.7 Dairy 2,470.8 2,843.1 3,260.6 3,731.0 4,260.7 14.6 Dried Processed Food 1,334.1 1,468.0 1,608.7 1,757.9 1,920.6 9.5 Frozen Processed Food 172.8 204.6 240.2 279.0 320.8 16.7 Ice Cream 118.0 142.5 170.0 204.2 247.8 20.4 Meal Replacement 101.8 117.4 135.1 155.3 177.4 14.9 Noodles 1,277.6 1,399.1 1,525.8 1,659.7 1,805.4 9.0 Oils and Fats 1,481.1 1,668.9 1,876.9 2,109.7 2,370.0 12.5 Pasta 13.3 15.4 17.5 19.9 22.5 14.0 Ready Meals 45.0 52.80 61.3 70.9 81.3 15.9 Sauces, Dressings and Condiments 980.7 1,092.5 1,211.7 1,340.9 1,482.2 10.9 Snack Bars - - - - - - Soup - - - - - - Spreads 9.0 9.7 10.5 11.4 12.4 8.4 Sweet and Savoury Snacks 418.7 465.3 517.0 573.7 637.4 11.1 Hot Drinks 652.5 744.7 848.0 963.9 1,094.8 13.8 Soft Drinks 2,395.8 2,896.0 3,475.6 4,146.4 4,928.2 19.80 Pet Care 22.4 25.6 29.0 32.7 36.7 13.1 Source: Euromonitor International, 2015 *CAGR: Compound Annual Growth Rate RESOURCES Euromonitor International (2015). FAOSTAT (2015). Agricultural Production – Vietnam. Global Trade Atlas (2015). Import and export statistics – Vietnam. World Bank (2015).
  7. 7. Page | 7 Market Overview: Vietnam Global Analysis Report Prepared by: Karen Guilbault, Data Analyst © Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2015). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. For additional copies, to request an alternate format, and for all other inquiries regarding this publication, please contact: Agriculture and Agri-Food Canada, Global Analysis 1341 Baseline Road, Tower 5, 3 rd floor Ottawa, ON Canada K1A 0C5 E-mail: infoservice@agr.gc.ca The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.

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