Vietnam Agriculture Food Market 2018 Report

VIETNAM
AGRICULTURE
AND FOOD
MARKET
REPORT
2018
CRAFT DRIVEN
MARKET RESEARCH
VIETNAM AGRICULTURE AND FOOD
MARKET REPORT 2018
TABLE OF
CONTENTS
1. EXECUTIVE SUMMARY...................................................................5
2. OVERVIEW OF AGRICULTURE AND FOOD INDUSTRY..........7
2.1. AGRICULTURE MARKET......................................................7
2.1.1 INTRODUCTION..........................................................7
2.1.2 CROPS...........................................................................8
2.1.3 LIVESTOCK..................................................................9
2.1.4 FISHERIES..................................................................10
2.2 FOOD MARKET......................................................................10
2.2.1 INTRODUCTION........................................................10
3. KEY FOOD PROCESSING COMPANIES.....................................12
4. TRADE STATISTICS........................................................................14
4.1. OVERVIEW...........................................................................14
4.2. KEY AGRICULTURAL PRODUCTS IMPORT...................15
4.3. KEY AGRICULTURAL PRODUCTS EXPORT...................15
4.4. AGRICULTURAL IMPORTS AND EXPORTS BY
COUNTRY...............................................................................16
4.5. TRADE WITH KOREA..........................................................21
MARKET REPORT 2018
5. DISTRIBUTION............................................................................22
5.1. OVERVIEW.......................................................................22
5.2. DISTRIBUTION STRUCTURE.......................................23
5.3. RETAIL CHANNEL.........................................................23
5.4. TRADING COMPANIES AND AGENTS- AGRO-
BASED PRODUCTS......................................................26
6. TRENDS......................................................................................27
6.1. INCREASING SHIFT IN THE CONSUMPTION
PATTERN.......................................................................27
6.2. GROWTH IN THE PURCHASE OF ITEMS VIA
MODERN CHANNELS................................................29
6.3. PREFERENCE TOWARDS DINING OUT.................30
7. GOVERNMENT FOOD POLICIES..........................................31
8. KEY PRODUCTS THAT REQUIRE IMPORT........................33
8.1. COTTON........................................................................33
8.2. SOYBEANS AND SOYBEAN MEAL........................33
8.3. WHEAT.........................................................................34
8.4 DAIRY PRODUCTS.....................................................35
8.5. CORN BY-PRODUCTS...............................................35
8.6. RED MEAT..................................................................36
MARKET REPORT 2018
9. IMPLICATION AND EXPORT POTENTIAL FOR

KOREAN FOOD PRODUCTS.................................................37
9.1. REASONS TO INVEST IN VIETNAM FOR
KOREAN MARKETS...................................................37
10. IMPORT AND REGULATIONS AND STANDARDS..........38
10.1. CUSTOM PROCEDURES...........................................38
10.2. IMPORT DUTIES AND FEES....................................39
10.3. DOCUMENTS DOSSIER...........................................39
10.4. FOOD STANDARDS..................................................39
10.5. SPS REQUIREMENT..................................................40
10.6. LABELLING.................................................................40
10.7. PACKAGING...............................................................41
10.8. DOCUMENTS TO BE SUBMITTED AND
PRESENTED FOR PERMISSION............................41
10.9. DOCUMENTS TO BE ADDITIONALLY
SUBMITTED................................................................41
10.8. EXEMPTIONS FROM GOOD INSPECTION..........42
1. Executive Summary:
Since 2000, the agriculture and food industry of Vietnam has performed significantly well
and has reflected a CAGR greater than 5.0% over the last five years. After receiving a
setback in 2016 due to El Nino weather transformation, the agriculture industry of Vietnam
has relaunched itself quickly. The export policies have been particularly successful and in
addition, aquaculture production increased significantly. In parallel, there is a significant rise
in exports of coffee beans, catfish, and other industrial crops. Domestic consumption has
witnessed a noteworthy change owing to the influence of Westernised lifestyle.
One of the major challenges that Vietnam’s agriculture sector faces is the suitability of the
land. For certain crops, the agriculture land of Vietnam has been deemed to be unsuitable,
or it gives less output per hectare. For example, soybean is particularly imported since it
faces stiff competition from corn crop which gives relatively higher output from the same
land and under the same condition. Vietnam agriculture industry depicts strong influence
from the Doi Moi reforms taken during the late 1980s.
The country has shown reliance on self-sufficiency in the past five years. The government of
Vietnam has designated some agriculture land as reserved for paddy in order to make the
country self-sufficient for its staple food. In addition, export of agriculture products has
decreased from USD 20.0 Billion in 2016 to USD 15.0 Billion in 2017. Major exports include
seafood; cashew nuts; fresh and processed fruits and vegetables; rice; cassava; coffee; tea
and pepper. The export value of rice declined from 2016 to 2017 due to lack of quality and
brand value.
The government needs to consider the changing dining trends of the population in urban
regions and the emergence of supermarkets and other commercial centers in contrast to
the traditional shops. Although, traditional retail accounts for 50.0% of the total retail sales,
modern retailers, supermarkets, and hypermarkets are witnessing a growth of more than
15.0%. Apart from purchasing behavior, another point that the government needs to focus
on is changing consumption habits. Rice is the staple food for Vietnamese population and
without any doubt, it will remain a primary source of calorie intake, yet the urban
population has started showing signs of Westernised lifestyle. The urban population has
started looking at other options for food such as wheat, which the country must import to
fulfill the domestic demands. Government policies, however, still prioritize rice cultivation
over other crops and regulate the land to be kept reserved for the purpose.
Retailing of food and agriculture products has garnered much attention in the past one
decade. The rise in the sale of packaged food products is mainly driven by increasing
purchasing power of the consumers. The upper middle class has risen significantly in the
country in the past one decade and this has resulted in greater demand for packaged food
products.
Page 5 | CRAFT DRIVEN

Dairy products, confectionary, ready meals and processed fruit and vegetables have an
estimated CAGR over 6.0% between 2016 and 2020. The transparent growth has also invited
new food and beverage manufacturers in the industry. The number of food manufacturers
has increased at an annual rate of 5.0% and that of beverage manufacturers as 3.0%. This is
noteworthy that besides manufacturers, service industry for food and beverage is increasing
significantly further opening new opportunities for the industry.
The domestic consumption of food and agriculture products has increased, which has been
largely explained by the increased modern retail infrastructure that offers greater options to
the customers. For the purchasing from the modern outlets, the age bracket of 15-35 is
dominant.
The dining trends of the customers reveal a great share of customers’ preferring quick
service and fast casual kind of restaurants. Both the sectors collectively attract more than
70.0% of the customers. Contrastingly, unlike Western countries, there is the lesser interest
of the customers towards bars, clubs, fine dining, and hotels. The Vietnamese people prefer
practicality and ease of access more over their health concerns from the food outlets and
this is driving the sales of quick and fast food restaurants. Among different cuisines, more
than 50.0% of the population prefer Asian or Vietnamese food.
Regarding the government intervention in regulating the food and agriculture industry,
several policies have been put forward by the Government to ensure food safety and
balanced trade. The policies have been introduced in the sector of- forestry products,
livestock products, sustainable agriculture reforms, aquaculture development, irrigation
facilities, agriculture and rural development, paddy land reservation and quality assurance.
Government is also keen to provide credit facilities to those in the agriculture industry.
Some of the major countries that Vietnam has strong trade ties are China, Korea, Japan,
Taiwan, Thailand, the USA, Australia, Germany, Hong Kong, United Kingdom, Netherlands,
UAE, Belgium, Sweden, Chile, Poland and Slovakia. This is worth mentioning that many of
these are European nations, however, in the past two years, certain security checks have
been implemented by the EU region that has developed challenging trade conditions for
some of the products such as rice.
There is no denying the fact that Vietnam is increasingly being seen as a country for great
foreign investment. Foreign investments are tax-free for many products and otherwise, also
the laws are not stringent unless food security is the concern. Vietnam has been increasingly
regarded as a country with easy accessibility, duty-free policies, strong distribution channel,
less volatility of the market, low labor costs and increased domestic market.

2. Overview of Agriculture and Food Industry:
2.1. Agriculture Market

2.1.1. Introduction:
The agriculture sector of Vietnam accounts for 20.0% of the total GDP of the country. The
total production in 2016 was 3.6 Million Tons, which valued USD 9.3Million. Agriculture
output grew at a CAGR of 5.3% between 2012 and 2016.
Vietnam’s agriculture industry has kept a clear focus towards becoming a producer and
exporter of high-standard food products that can increase the demand overseas and lead to
enhance its export of value-added products.
The country is known for cheap agricultural exports such as coffee. It is a source for 50.0%
of the world’s Robusta beans and catfish. Rice cultivation in submerged fields and silkworm
culture is also practiced in Vietnam. In addition, it is among the top five producers of aquatic
products, coffee, rice, tea, cashews, black pepper, rubber, and cassava. There is a 12-month
growing season in Vietnam resulting in two or three rice harvests in a year. With technology
intervention in the sector, it is expected that agro-industry share will increase significantly
touching USD 51.0Billion by the end of 2020.
Figure 1: Agricultural Production: Volume (Million Tons) Vs Value (Million USD), (2012-2016)
9.3
8.5
8
3.3 3.4 3.6
2014 2015 2016
Volume Value
Source- Food and Agriculture Organisation

2.1.2. Crops:
Considering the area of the plantation for each of the crops, cereal crops dominate the
agriculture sector with 9.0Million ha land, which is approximately 40.0% of the total
agriculture land. This is followed by paddy with coverage over 35.0%.
Table 1: Total Crops Plantation Area, Million Hectares (20132016)
Major Crops 2013 2014 2015 2016
Cereal Crops 8.8 9.1 9.0 9.0
Paddy 7.7 7.9 7.8 7.8
Maize 1.1 1.2 1.2 1.1

Sweet
0.1 0.1 0.1 0.1
Potato
Spring Paddy 3.1 3.1 3.1 3.0
Cassava 0.5 0.5 0.6 0.6
Soya Bean 0.1 0.1 0.1 0.1
Sugar Cane 0.3 0.3 0.2 N/A1
Peanut 0.2 0.2 0.2 N/A

Source- Knoema
In terms of volume of the agriculture crops, paddy dominates the Vietnamese market with
the production of approximately 45.0 Million tons. The production has decreased against
the previous year, by an estimated 1.6%. In 2016, the country was affected by the drought
season that was caused by El Nino weather pattern which led to the worst saltwater
intrusion in a hundred years. However, the market regained itself in the year 2017.
Table 2: Total Crops Production, Million Tons (2013-2016)
Sugar-
Year Paddy Maize Peanut Soybean Cotton
cane
2013 44.0 20.1 5.2 0.5 0.2 0.003
2014 45.0 19.8 5.2 0.4 0.2 0.003
2015 45.1 18.3 5.3 0.5 0.1 0.001
2016 43.6 17.2 5.2 0.4 0.1 0.001
Source- General Statistics Office of Vietnam
1
N/A: Data not available

2.1.3. Livestock:
The livestock sector observed a rise in the production of all the major products. Production
of fresh milk saw the highest growth over the years with CAGR of 10.0%. The adoption of
Good Animal Husbandry Practices (GAHP) has proven strikingly effective in increasing the
livestock production. In 2013, the country witnessed a major fall in the total production as is
evident in the table below; this was primarily due to inefficient feed to the animals and
prevalent diseases.
Table 3: Production of Livestock, 2012- 2016
Production 2012 2013 2014 2015 2016
Fresh Milk
381.7 456.4 549.5 723.0 795.1
(Million Litres)
Honey (Million
12.3 12.8 14.2 15.5 16.5
Tons)
Egg (Billion.
7.29 7.75 8.27 8.87 9.44
Pieces)
Silkworm Cocoon
7.5 6.4 6.8 6.5 6.9
(Million Ton)
Living Weight of
3.2 3.2 3.4 3.5 3.6
Pig (Million Tons)
Slaughtered
Poultry (Million 0.73 0.77 0.87 0.90 0.96
Tons)
Living Weight of
Cattle (Million 0.29 0.28 0.29 0.29 0.3
Tons)
Living Weight of
Buffaloes (Million 0.088 0.085 0.086 0.086 0.087
Tons)

2.1.4. Fisheries:
The fisheries sector has seen a continuous growth since past few years. According to the
statistics, nearly 10.0% of the population of Vietnam derives its income from fisheries and it
accounts to 4.0-5.0% of the total GDP of the country while employing more than 4.0 million
people in the sector. The fisheries sector of Vietnam has been facing the threat of punitive
trade measures from the EU, however, Vietnam Government’s Master Five Year Plan 2020
for Fisheries sector is expected to bring in more investments and development of major
fishing centers in five provinces which will further boost the sector.
Table 4: Fisheries Production, Million Tons (2013-2016)
Year Total Catch Aquaculture
2013 6.1 2.8 3.2
2014 6.3 2.9 3.4
2015 6.5 3.0 3.5
2016 6.8 3.1 3.6
2.2. Food Market
2.2.1. Introduction:
According to Statista, the revenue of the food and beverage industry of Vietnam is expected
to reach USD 90.0Million by the end of 2018. From 2018 to 2022, the industry will reflect a
CAGR of 15.2% which will double the current market by 2022 at USD159 Million.
Considering the overall production of food products, rice dominates the market and shows
an annual compounded growth of 2.5%.
The retail sales of packaged foods in Vietnam increased at a CAGR of 14.0% from 2011 to
2015 and are forecasted to increase further by 5.3% until 2020. The rise in the sales of
packaged food products is mainly driven by increasing uppermiddle-class population in
Vietnam and exposure to Westernised lifestyle.

Table 5: Food Production Volume,’000 Tons (2012-2015)
Estimated %
Food products 2012 2013 2014 2015 CAGR- 2016-
2020
Dairy 32,020.6 37,022.1 42,957.2 49,667.7 6.3
Baby Food 19,055.1 23,229.9 28,085.5 30,471.0 7.5
Oil and Fats 21,640.5 24,323.5 26,318.3 29,058.0 4.3
Rice, Pasta, and

Noodles 20,308.4 22,729.8 25,227.5 28,190.0 2.4
Bakery 13,400.5 15,049.0 16,974.4 19,349.8 5.7
Sauces, Dressings
14,561.2 16,482.6 18,438.6 20,774.1 3.8
and Condiments
Sweet and
6,147.5 6,991.5 7,719.9 8,591.6 3.5
Savoury Snacks
Confectionery 6,209.3 6,773.6 7,571.7 8,375.6 7.8
Processed Meat
4,360.4 5,154.4 5,901.6 6,815.2 3.0
and Seafood
Ice Cream and

1,579.5 1,838.9 2,063.9 2,322.9 6.5
Frozen Desserts
Ready Meals 557.0 668.9 816.0 976.7 8.8
Processed Fruit
205.9 240.5 278.7 326.2 7.3
and Vegetables
Source- Euromonitor International, 2016

3. Key Food Processing Companies:
Table below shows the major food processing companies in Vietnam:
Company Picture Sales
Việt Nam Dairy

Products Joint USD 1.7 Billion in
Stock Company
2015
USD 1.9 Billion (only

Masan Consumer
food and beverage) in
Corporation
2016
Acecook Việt
Nam Joint Stock N/A
Company
Nestle Việt Nam More than USD 100

Company Limited Million in 2016
KIDO Group NA
Corporation
C.P Việt Nam

Livestock Na
Corporation
VISSAN Joint
USD 162 Million
Stock Company
Quảng Ngãi Sugar

Joint Stock USD 1.7Billion in 2016
Company

The number of food manufacturers in Vietnam is increasing at an annual rate of 5.6%
whereas beverage manufacturing industry is growing at a CAGR of 3.4%. A Factor worth
mentioning is the increase in the service industry that consumes a great share of food and
beverage manufacturing output.
Table 6: Number of Food and Beverage Manufacturing Enterprise
Category/ (s) 2011 2012 2013 2014 2015
Food and
Beverage
5,862 6,091 6,388 7,433 8,586
services
activities
Food
5,498 5,708 5,820 6,275 6,630
Manufacturers
Beverage
1,968 2,043 2,073 2,116 2,190
Manufacturers
Source- General Statistics Office and Ministry of Planning and Investmentt

4. Trade Statistics:
4.1. Overview:
Though total exports touched USD 214Billion in 2017, against USD 176 Billion in 2016,
agricultural exports have increased from USD 21.0Billion to USD 23.0Billion.The graph does
not reflect a constant growth. Several factors impact the growth such as domestic demand
has increased over the years. The EU region has enhanced food security inspection
processes further lowering its trade. Food imports have grown from USD 7.9 Billion to USD
11.0 billion and thus certifying the increasing domestic demand. Increase in demand of
wheat in urban areas has also impacted greater imports.
Figure 2: Total Export Vs Agricultural Export, USD Billion, (2013-2017)
250
214
200 176
162
150.2
150 132
100
50 21 23
14 15.2 14.8
0
2013 2014 2015 2016 2017
Total exports (USD Billions) Agricultural exports (USD Billions)
Source- General Office of Statistics Vietnam
Figure 3: Total Import Vs Agricultural Import, USD Billion, (2013-2017)
250
211
200
174
165
150 132 138
100
50
5 6 7.4 7.9 11
0
2013 2014 2015 2016 2017
Total Imports (USD Billions) Agricultural imports (USD Imports)
Source- General Office of statistics Vietnam

4.2. Key Agricultural Products Import:
Table7: Agriculture Import: Value (Billion USD)
Commodity 2013 2014 2015 2016 2017 CAGR
Fishery
0.7 1.0 1.0 1.1 1.4 14.8%
Products
Dairy
1.1 1.1 0.9 0.8 0.8 -6.1%
Products
Fresh and
Processed
0.4 0.5 0.6 0.9 1.5 30.2%
Vegetables
and Fruits
Cashew Nut 0.6 0.6 1.1 1.6 2.5 33.0%
Wheat 0.6 0.6 0.6 1.0 0.9 8.4%
Maize 0.7 1.2 1.6 1.6 1.5 16.4%
Soybeans 0.8 0.9 0.7 0.6 0.7 -2.6%
Vegetable
0.7 0.7 0.7 0.7 0.7 0%
Oil and Fats
4.3. Key Agricultural Products Export:

Table 8: Agriculture Export: Value (Billion USD)
Commodity 2013 2014 2015 2016 2017 CAGR
Sea food 6.7 7.8 6.5 7.0 8.3 4.3%
Fresh and
processed
1.0 1.5 1.8 2.5 0.8 -4.3%
Vegetables
and Fruit
Cashew Nuts,
1.6 2.0 2.4 2.8 3.5 16.9%
Shelled
Coffee 2.7 3.5 2.6 3.3 3.5 5.3%
Tea 0.3 0.3 0.2 0.2 3.2 60%
Pepper 0.9 1.2 1.6 1.4 0.2 -25.9%
Rice 3.0 3.0 2.8 2.2 1.1 -18%
Cassava and
1.1 1.1 1.3 0.9 1.0 -1.8%
Products

4.4. Agricultural Imports And Exports By Country:
There are several countries in the exporting list of Vietnam that makes a strong impact on
the economy of the country. The ASEAN countries Korea and Japan are the biggest
exporters as well as importers for Vietnam agricultural products, which is then followed by
the EU region.
Table 9: Imports by Country (USD Billions), 2013-17
Country 2014 2015 2016 2017 CAGR

China,
43.8 49 49 58.5 10.1%
PR
Korea,
21.7 27.6 32 46.7 29.1%
Rep
Japan 12.9 14.2 15 16.5 8.5%
Taiwan 11.1 10.9 11 12.7 4.6%
Thailand 7.1 8.2 8.8 10.5 14.0%
US 6.3 7.8 8.7 9.2 13.4%
Australia 2.1 2.3 2.4 3.1 13.8%
Germany 2.6 3.2 2.8 3.1 6.0%
Hong
1.0 1.3 1.5 1.6 17.0%
Kong
United
0.6 0.7 0.7 0.7 5.3%
Kingdom

Table 10: Exports by Country (USD Billions), 2013-17
Country 2014 2015 2016 2017 CAGR
United
28.6 33 38 41 9.4%
States
China
15.0 16.5 21 35.4 24%
Republic
Japan 14.7 14 14.7 16.8 3.4%
Korea 7.1 8.9 11 14.8 20%
Hong Kong 5.2 6.9 6.1 7.6 9.9%

Netherlands 3.8 4.8 6.0 7.1 17.0%
Germany 5.2 5.7 5.9 6.3 4.9%
United Arab
4.6 5.7 5.0 5.0 2.1%
Emirates
United
3.6 4.6 4.9 5.4 10.7%
Kingdom
Thailand 3.5 3.1 3.7 4.8 8.2%
Source: General Statistics Office of Vietnam

Table 11: Import of Key Products Country-wise- Country (Value-USD Millions, 2017)
Country Imports 2017- USD Millions
MAIZE
Argentina 764.0
Braxin 464.4
Thailand 54.0
Campuchia 2.2
India 1.6
FISHERIES
India 357.0
Norway 122.0
China 112.0
Taiwan 103.0
Japan 83.8
CASHEW NUTS, SHELLED
Côte d'lvoire 849.4
Campuchia 168.0
Indonesia 87.0
Singapore 0.2
DAIRY PRODUCTS
New Zealand 232.8
Singapore 122.4
United states 67.7
Germany 60.0
Thailand 56.7

WHEAT
Ucraina 424.0
Canada 197.0
Russian Federation 140.9
Braxin 21.0
United States 14.0

Table 12: Export of Key Products Country-wise- Country (Value-USD Millions, 2017)
Country Exports 2017- USD Millions
SEA FOOD
United States 1,407.0
Japan 1,302.0
China 1,087.0
Korea 778.0
Netherlands 303.0
CASHEW NUTS, SHELLED
United States 1,219.0
Netherlands 541.8
China 469.4
United Kingdom 149.0
Australia 133.0

COFFEE
Germany 476.4
United States 406.5
Italy 271.0
Spain 220.0
Japan 209.7
TEA
Pakistan 68.7
Taiwan 27.3
Russian Federation 24.8
China 14.6
United Arab Emirates 10.2
FRESH PROCESSED VEGETABLES AND FRUITS
China 2,650.0
Japan 127.2
United States 102.1
Korea 85.6
Netherlands 64.4

4.5. Trade With Korea:
On December2015, the Free Trade Agreement between Korea and Vietnam came into effect
and with the agreement; certain preferences were stated by both the countries to be given
to each other in terms of goods, services, and investment. Within two years, by the end of
the year 2017, bilateral trade between the two countries reached USD 58.5 billion, an
increase of 43.0% on the previous year. The free trade increased the export of Vietnam in
the first 11 months of 2017 by 22.3% which amounted to USD 14.8Billion. With the
realization of the trade agreement, Korea has become one of the biggest investors in the
Vietnam market.
It has been estimated that trade between Korea and Vietnam will reach USD 100 Billion by
2020. Korea has invested in more than 5,700 projects from 6,000 enterprises, some in
association with multiple companies. Currently, automobile, machinery, and automobiles
are the major sectors of investment for Korea in Vietnam, however, in the near future; food
and agriculture will be one of the major investment sectors with a greater investment in
supermarkets and hypermarkets.
Table 12: Exports to Korea: Quantity (Tons), Value (Million USD)
Commodity Quantity (Tons) Value (M USD)
Fishery
N/A 179
Products
Fruits and
N/A 24
Vegetables
Coffee 9,518 20
Pepper 1,194 4.8
Cassava and
22,001 5.7
products
Wood and
Wooden 78,100,103 20.7
Products
Source- General Department of Customs and Ministry of Finance of Vietnam

Table 13:Imports to Korea: Quantity (Tons), Value (Million USD)
Commodity Value (Million

Quantity (Tons)
USD)
Fishery Products N/A 16
Milk and Milk Products N/A 2.1
Fruits and Vegetables N/A 8.2
Animal, Vegetable Fats and

N/A 1.1
Oils
Source- General Department of Customs and Ministry of Finance of Vietnam
5. Distribution:
5.1. Overview:
As of Jan 1, 2009, foreign-owned companies could also engage in distribution services across
the country if the product is legally imported or domestically produced within the country.
Distribution services in the country include the following four elements:
Figure 4: Distribution Service Elements
Commission
Wholesaling Retailing Franchising
Agent Sales
Source-Circular No. 34/2013/TT-BCT dated Mar 28, 2013
Some of the products that are prohibited for foreign-invested enterprises’ distribution
channels are cigarettes and cigars, newspapers and magazines, books, precious stones and
gems, video recordings, drugs and medicines, processed and crude oil, explosives, cane and
beet sugar and rice.

5.2. Distribution Structure:
Source- USDA
Traditional distribution stated in the above flowchart is the most common channel.
However, the emergence of e-commerce and technological advancement is leading to the
elimination of mid-steps. For many industries including the agriculture and food,
manufacture can directly sell their items to the customers.
For online trade, e-commerce platform, if owned by another company acts as an agent and
directly sells the products to the customers. Most food manufacturers or the importers are
also the distributors and they directly sell the items to the customers as well as employs
middle-men in the form of agents and wholesalers to reach the customers that they cannot
tap. Regarding the imported food products, the small-sized retailers buy from the
wholesalers or the distributors while the big retail centres often buy directly from the
foreign suppliers.
5.3. Retail Channels:

Considering the local market that has direct interaction with the end consumer, local home-
based chains and shops are dominant over the foreign-invested chains. However, the trend
is rapidly changing and a modern competitive environment is building up in the Vietnamese
market. The home-based traditional stores have dominance owing to the following factors:
 Lower Rental and Operation Costs- Knowledge of the market and personal
relationships provide economic options for the stores to operate. The area required
is less and operation costs are thus lesser.
 High-Frequency Purchases In Small Quantity- Traditional retail channels account for
80.0% of the total food and agriculture sales in Vietnam.

Modern retail options include-
 Supermarkets
 Hypermarkets
 Mini-marts
 Convenience Stores
 Department Stores
These modern retail channels are more prevalent in the key markets of Hanoi, Ho Chi Minh
City, Hai Phong, Danang, Can Tho, Nha Trang, Quang Ninh and Binh Duong.
Table 14 Key Supermarket Brands of Vietnam
Company Revenue (Million USD)
Big C Supercentre 800, 34 outlets
MM Mega Mart 550, 19 outlets
Saigon NA, 3 outlets
Hapro NA, 21 outlets
Intimex NA, 14 outlets
Lotte Mart NA, 14 outlets
Aeon Mega Mart NA, 4 outlets
Aeon Fivimart NA, 24 outlets
Co.op Mart 980, 80 outlets

Source- USDA
The supermarkets and hypermarketsare mostly located in Ho Chi Minh City and Hanoi
where Hanoi has more than 38 stores while Ho Chi Minh City has more than 65 modern
retail centers.

Table 15: Retail Sales by Channels (Trillion VND)2
Type of
2011 2012 2013 2014 2015
channel
Traditional
708.2 880.2 1048.4 1203.9 1302.2
retailers
Supermarkets 21.6 26.1 29.7 33.8 39.8
Hypermarkets 8.5 10.2 14.7 23.2 27.2
Convenience
0.7 1.0 1.2 1.6 2.3
stores
Source- Euromonitor
Sales from modern as well as traditional sellers are increasing; however, overall rate of
growth is decreasing every year. The rate of growth decreased from 29.0% in 2011 to 9.0 %
in 2015.
The number of commercial centers and supermarkets are rapidly increasing in the country
and are set to pose a stiff competition for the traditional markets. Currently, the numbers
are not highly competitive in terms of units, yet modern retail centers have started
reflecting positive outcome in terms of total sales which is increasing at the same rate as
that of traditional retail sales.
Table 16: Number of Traditional Markets, Supermarkets, andCommercial Markets
2013 2014 2015 2016
Markets 8,546 8,568 8,660 8,513
Supermarkets 724 762 812 869
Commercial Centres 130 139 162 170
2
Considering current exchange rate i.e. 1 USD = 22,789 VND

5.4. Trading Companies And agents- Agro-Based Products:
Table 17: Key Trading Companies
Company Description
 Big C has supermarket and hypermarket kind of

stores all across Vietnam.
 It is 100% owned by Central Group Thailand.
 Its sales exceed USD 800 Million.
 It has more than 34 outlets in the country.
 Sells dry foods/ beverages mainly from local
producers/ distributors/ wholesalers and direct
imports of fresh and frozen foods.
 It’s a local company belonging to Saigon Corp which

is operative under co-operative law.
 The sales exceed USD 980 million.
 There are more than 80 outlets across the country.
 Mainly concentrated in Ho Chi Minh city (32 stores).
 Procure food items mainly from local producers/
importers/ distributors/ wholesalers
 Direct imports are there but in fewer amounts, also
does private labelling.
 It’s a foreign invested company (Korea).

 There are 14 stores across the country.
 The stores are located in HCMC (5), Binh Duong (1),
Dong Nai (1), Phan Thiet (1), Danang (1), Hanoi (2),
Vung Tau (1), Can Tho (1), Nha Trang (1)
 Mainly source from local producers/ importers/
distributors
 Fresh and frozen foods are imported directly.
 It is 100% owned by Thailand based TTC.

 Sales likely exceed USD 550 million.
 Source food products mainly from the local
producers/ importers/ distributors.
 Perishable items are directly imported.

 It’s a private owned company.
 Dry foods and beverages are mainly sourced from
local producers and importers.
 Perishable items are sourced from the importers
directly.
 It’s a private owned company.

 There are more than 80 outlets across the country
and has stores nationwide.
 Dry foods and beverages are sourced from the local
producers/ importers/ wholesalers and distributors.
 Direct importers are taken.
6. Trends:
6.1. Increasing Shift In The Consumption Pattern:
In the past few years, the consumption of food and beverage has increased. In 2016, the
industry’s total consumption rose 9.3% as compared to 7.2% in 2015, mainly driven by
increasing development of modern retail system and consumers adopting western lifestyle.
The youth in the age bracket of 15-35 years dominates the market with a most number of
visits to F&B outlets boosting the growth of quick service restaurants and fast food outlets
in the country.
The consumption of majority of food products has not changed much over the years and it
has remained either the same or increased slightly except for the rice. The per capita
monthly consumption of rice has fallen from 11.4 kg in 2006 to 8.8kg in 2016. The decrease
is majorly due to increasing availability of a variety of food items and rising spending power.

Table 18: Average Monthly Consumption of Major Goods Per Capita, (2006-2016)
Commodity 2006 2008 2010 2012 2014 2016
Rice (Kg) 11.4 11.0 9.7 9.6 9.0 8.8
Other Foods
(In Rice
1.0 0.9 1.1 1.0 1.0 1.1
Equivalence)
(Kg)
Egg (Piece) 2.5 2.9 3.6 3.6 3.7 4.2
Meat of all
1.5 1.4 1.8 1.8 1.9 2.1
kinds (Kg)
Vegetable 2.4 2.3 2.3 1.9

2.1 1.8
(Kg)
Shrimp, Fish
1.5 1.4 1.4 1.5 1.4 1.5
(Kg)
Wine, Beer
0.7 0.7 0.9 0.9 0.9 1.0
(Litre)
Other Drink
0.3 0.6 0.7 0.6 1.2 1.3
(Litre)
Fruit (Kg) 0.9 0.9 1.0 0.9 0.9 0.9
Sugar,
Molasses,
Milk, Cake,
0.5 0.5 0.6 0.5 0.6 0.6
Candy,
Candied
Fruits (Kg)
Tofu (Kg) 0.4 0.4 0.5 0.5 0.5 0.5
Fish Sauce
and Dipping 0.4 0.3 0.3 0.3 0.3 0.3
Sauce (Litre)
Tea, Coffee
0.1 0.1 0.1 0.1 0.1 0.1
(Kg)
Bean of all
0.1 0.1 0.1 0.1 0.1 0.1
kinds (Kg)
Peanut,
Sesame Seed 0.1 0.1 0.1 0.1 0.1 0.1
(Kg)
(Source- General Statistics Office of Vietnam

Table 19: Consumption Growth Rate of F&B Manufacturing Industries, % (2013-2016)
Sector/ (s) 2013 2014 2015 2016
Food
108.7 105.5 108.1 105.5
manufacturing
Beverage
112.9 106.4 106.3 113.1
industry
6.2. Growth In The Purchase of Items Via Modern Channels:

In the urban areas of Vietnam, the trend of online purchasing and phone has started picking
up the pace, yet it is too soon to justify the trend. Formal wet market dominates the outlet
types and hypermarkets prove to be an emerging trend with more than 10.0% share in each
category of the food items purchased.
Table 20: Food Products Sale from Corresponding Retail Channels

Formal Semi-
Mini- Speciality Online Phone
Foods Hypermarkets wet Traditional permanent
mart shop shopping Order
market stand
Milk & milk

54.59 2.96 0.05 0.00 0.00 3.52 34.72 2.26
product
Processed
42.77 2.84 .37 .02 .11 11.39 26.69 11.19
food
Oil and fats 30.66 3.32 .09 0 0 44.36 13.17 5.03
Sugar, spices
26.52 1.67 .09 0 0 42.69 22.71 1.05
and sauces
Beverages 20.45 1. 73 1.17 0 3.81 8.63 47.84 9.97
Processed
14.82 3.32 0.19 0 0 27.90 7.69 30.32
Cereals
Meat & eggs 12.40 0.85 0.13 0.01 0.06 69.25 2.44 2.55
Fruit 10.06 0.53 0.24 0 0 62.11 0.29 13.47
Pulses, nuts &

7.62 0.61 0.80 0.96 0.86 67.93 6.26 4.27
beans
Rice 5.22 0.94 0 0 3.16 30.67 10.64 39.35
Vegetables 7.67 0.83 0.19 0.01 0 75.42 0.16 1.21

6.3. Preference Towards Dining Out
In Vietnam, out of home consumption of food can be categorized into seven categories
namely- quick service restaurants, full-service restaurants, street food, bar/ café,
convenience stores, hotels, and canteen. Considering the age group, people under age 15-
35 are the highest visitors.
Table 21: Percentage of Customers Preferring the SpecificEating Outlet
Category/ (s) Percentage
Quick Service 36.0%
Fast-Casual 35.0%
Street Food 11.0%
Convenience Store 8.0%
Canteen 6.0%
Fine Dining 2.0%
Bar/ Club 1.0%
Hotel 0.4%
Source- Research Vietnam Business
Quick service restaurants dominate the preference for eating out of home due to the
increasing working class in Vietnam where people can easily and quickly access food from
such restaurants and skip making it at home. It is also worth noting that Vietnamese people
opt for a restaurant considering the practicality and the accessibility or the taste (95%)
instead of selecting the one that provides healthy options (5%).
Table 22: Preference Over Restaurant Type
Type of restaurant Percent of visits
Asian (Vietnamese, Korean, Japanese,

53%
Thai etc.)
Coffee, Tea Shops, Bakery, Canteen etc 40%
Western Restaurants (Italian, French,

7%
American etc)
Source- Research Vietnam Business

Online food ordering is picking up the momentum in the country and some of the
restaurants that have the facility of online ordering stated that their revenue from the
online orders is approximately half of the total revenue3. One of the major impacting factors
behind this is the increasing use of smartphones by the youth and internet penetration.
7. Government Food Policies:
Vietnam has issued several policies in order to protect its agricultural land due to the fact
that the country’s large share of total incomes comes from agricultureproduction and its
exports. Food supply has been given much consideration by the concerned departments,
Table 23: Government Food Policies

 On May 02, 2007 issued the policy which
stated strategy for forest development
during 2008-2020.
 The policy entails development of
Forestry Produce Management forests, and its produce, improving the
efficiency, preventing exploitation and
cutting of forests, processing of forest
produce, and tourism balance for the
forests.
 On 16 Jan, 2008, the government issued

the decision, which stated the strategic
development of livestock industry till
Livestock Policy
2020.
 The policy encourages individuals to
invest in the related companies.
 On April 16, 2012, the Ministry of

Agriculture and Rural Development
issued a project that underlined the
Sustainable Agriculture
need to develop the cultivation industry
through sustainable methods. The
timeline was suggested to be 2020.
 On August 16, 2013, The Prime Minister

Aquaculture Policy issued a decision, which suggests a plan
for development of aquaculture industry
until 2020.
3
Source Business Insider, Available Link- http://www.businessinsider.com/sc/online-ordering-helps-restaurant-business-
2015-10

 The same plan also works towards
providing vision for 2030.
Irrigation Policy  On May 25, 2012, the Prime Minister

issued a decision that approves the plan
to develop an irrigation plant over
Mokong river delta from 2012-2020.
 The purpose of the plan will be effective
till 2050
Agriculture and Rural Development  This policy works towards the credit
programme for usage of hi-technology
to the agriculture products and
machinery.
 This decision also works towards
engaging farmers as well as enterprises
to improve overall agriculture practices
Paddy Land Policy  In 2012, the government provided

guidelines for using and managing the
paddy land.
 The government also provides financial
support to the farmers having land
specific for paddy as well as those who
use paddy as other crop.
Irrigation Policy  This policy was issued on 10thSeptember,

2012 and it exempts certain individuals
and households from irrigation fee
which in turn decreases around 5-10%
cost to the farmers.
Quality Production Policy  On Jan 21, 2010, the government issued

introduced this policy to make sure that
good quality seeds, good variety of
livestock, and aquaculture reach the
customers. The policy also regulated the
use ofGenetically Modified Organisms
(GMO).
Source- FFTC Agriculture Policy Platform
Apart from the above policies, there is several new and existing credit support policies that
the farmers or those related to agriculture can take benefit from. Financial institutions also
have certain policies in place that are supported by the government.

8. Key Products That Requires Imports:
8.1. Cotton:
Cotton is largely imported due to less production of the crop in the country. The US is one of
the major exporters of cotton for Vietnam.
Table 24: Cotton Market in Vietnam, Million Tons (2014-2017)

Cotton
2014 2015 2016 2017
Market
Total
0.6 0.8 1.0 1.1
Consumption
Total Local
1.27 0 0 0
Production
Total Imports 0.8 1.1 1.2 1.3
Total Exports 0 0 0 0
Source- Vietnam Statistics Office and Vietnam General Customs Department
8.2. Soybeans And Soybean Meal:

Vietnam is an over importer of soybeans and the meals since the domestic demand does
not get fulfilled by the amount it can produce. Vietnam has a shortage of growing area for
soybean due to stiff competition from the field crops such as corn. In addition, biotech has
achieved advancement in the production of corn in the country while there are fewer
upgradations to soybean which further reduces the attractiveness of the crop to the
farmers. In 2015, soybean’s import level reached 1.71MilliIion Tons.
Table 25: Soybeans Market in Vietnam, Million Tons (2014-2017)

Soybeans
2014 2015 2016 2017
Market
Total
1.7 1.6 1.7 1.8
consumption
Total Local
0.2 0.1 0.2 0.2
Production
Total
1.6 1.7 1.7 1.8
Imports

Table 26: Soybean Meal Market in Vietnam
Soybean
2014 2015 2016 2017
Meal
Total
4.5 5.0 5.2 5.3
Consumption
Total Local
0.9 0.8 0.8 0.9
Production
Total
3.6 4.5 4.6 4.7
Imports
Total Exports 0.08 0.3 0.3 0.3
8.3. Wheat:
Wheat is one of the important staple crops (after rice) that are used in Vietnam and the
country is a net importer of Wheat. With Australia, Vietnam has duty free access for
Australian wheat and from other countries,, the import duties are 55% for wheat and 15%
for wheat flour. In urban Vietnam, wheat is consumed in different forms such as in bread,
baked goods, and its usage by several international food chains.
Table 27: Wheat Market in Vietnam, Million Tons (2014-2017)
Wheat 2014 2015 2016 2017
Total
1.90 2.3 2.3 2.4
consumption
Total Local
0 0 0 0
Production
Total
2.0 2.3 2.6 2.7
Imports
Total Exports 0.1 0.2 0.2 0.3
(Source- Vietnam Statistics Office and Vietnam General Customs Department)

8.4. Dairy Products:
Vietnam government is working towards implementing several policies that can enhance
the production of dairy; however, the local produce only covers 30.0% of the total
consumption. The major exporting countries are New Zealand, the US and EU region.
Table 28: Dairy Products Market in Vietnam (2014-2017)
Item/ (s) 2014 2015 2016 2017
Dairy Cow
Population 227,708 275,300 316,500 354,400
(Head)
Local Fresh
Milk
549,500 659,400 758,300 849,200
Production
(Tons)
Source-GSO, MARD
8.5. Corn By-Products:

The import duty on corn grains is 0% which has given many foreign firms to invest in the
industry and play a major role in the feed industry. Imported corn by-products are used by
the Vietnamese feed industry and it is imported from the US, Canada, and China.
Table 29: Corn By-Products Market in Vietnam, ‘1000 Tons (2014-2017)
Corn By-
2014 2015 2016 2017
Product
Total
640 660 700 720
consumption
Total Local
0 0 0 0
Production
Total
640 660+ 700 720
Imports
Import is basically done to meet the increasing demands of poultry meat at home and it is
imported majorly from Hong Kong (~75%) and the US (~25%).

8.6. Red Meat:
There is availability of red meats in Vietnam but the whole demand is not met by the local
producers. It is imported mainly from India and Hong Kong.
Table 30: Red Meat Market in Vietnam, ‘1000 Tons (2014-2017)
Red Meat 2014 2015 2016 2017
Total
1,054 1,061 1,075 1,099
consumption
Total Local
379 385 393 400
Production
Total Imports 209 212 216 220

9. Implication And Export Potential For Korean Food Products:
Vietnam and South Korea have signed a free trade agreement that was enforced in 2016.
South Korea has already established its supermarket chains such as Lotte Mart and Emart in
Vietnam. South Korean food products have an advantage to sell in Vietnam market owing to
its good quality and hygienic preparation that is tested for all the imports of Vietnam. All the
South Korean agriculture and food products meet the standards set by Vietnam. In addition,
the similarity in the culture and food habits has created a significant door of opportunity for
South Korean food market in Vietnam.
Trend of Korean Imports in Veitnam ('000 USD)

3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17
Source- Trading Economics
Considering the overall trend, the imports from Korea are increasing. The trend is expected to
receive a much-needed boost in the coming years resulting from the trade efforts being done by
both the governments. Currently, USD 26.6 Billion is the amount of total imports from South Korea.
9.1. Reasons To Invest In Vietnam For Korean Markets:

 Increased market accessibility
 Easy policies for investment, duty free for several products
 A strong infrastructure in terms of distribution channel
 Less volatility of Vietnamese market
 Similar food habits and culture
 Low labour costs in Vietnam
 Increased per person spending capacity in Vietnam

10. Import Regulations and Standards:
10.1. Custom Procedure:
Foreign companies mostly appoint a local agent or broker that can take care of all the
market regulations. The custom procedures take the following steps:
Submit the customs declaration form- There are e-forms available and all the declaration must be
done clearly. New Vietnam Automated Cargo Clearance and Port Consolidated System (VNACCS)
also apply and their declaration forms are different.
After the clearance from the department, goods are classified into one of the three categories and
next steps will be done accordingly:
 Green Lane- Unconditional-Simply loads down the products at the port, without need of
doing anything further. Conditional- they might ask for supporting documents
 Yellow Lane- Present the dossiers with the documents- customs declaration, commercial
invoice, quality control certificates.
 Red Lane- Goods are checked after paper records. It is time consuming and costlier. It is the
duty of the declaration person to take the goods to the inspection room and then carry them
from there.
Payment of taxes depending upon the products imported. Different taxes are levied on different
types of products. There is import tax, VAT, and in some cases Special Consumption tax.
Inspection of the products is done which may take up to 15 days depending upon the type of
product. For food products, Receipt(s) of Announcement on the Conformity to Technical
Regulations and/or Announcement on the Conformity with the Food and Safety Regulations must
be obtained and carried along. Importer must register for Food Safety Inspection at least 24 hours
( prior to reaching.
Source- 
Food and Beverage Vietnam Market Entry Handbook by EU Commission

10.2. Import Duties And Fees:
Import duty is calculated by the General Customs Department and the STA. Vietnam’s
Government has issued a Decree 8/2015/NDCP which came into effect om 15th March 2015
and is based on “regulation on the calculation of customs value for imported/exported
goods.”The import duty to be paid by the importer is the cost of total shipment at the first
entry point of Vietnam and the cost will be decided based upon the Common Trade and
Customs Convention and/or any other International Commitment that Vietnam has signed.
It is the duty of the importer to have the knowledge of the taxes that will be levied on his/
her products based upon the country of export. First entry destination point (FEDP) could
be:
 By ship or airplane: The unload port or the airport stated in the invoice
 By train: The international station at the border gate
 By land and waterway transport: The border gate where the goods firstly come to
Vietnam.
Inspection fees of the products are decided based upon the total retail value of the goods.
For the food products, it is either 0.1% of the retail value or VND 300,000 whichever is
larger.
10.3. Documents Dossier:

The importer needs to compile all the relevant documents translated in the Vietnamese
language in a single dossier. The documents include:
 Customs declaration application / Registration for inspection form

 Copy of the trade contract or letter of credit (L/C)
 Bill of Lading
 Invoice
 Packing List
 Certificate of Origin (must be original)
 Documents certifying the safety and quality of the foods (Export Certificates)
 Certificate of free sales
10.4. Food Standards:

Decree 38/2012/ND-CP declares the Vietnam Food Safety Law and the importer need to
fully evaluate the regulations, since these keep changing. F&B exporters need to obtain a
Food Quality/ Standards Registration Certificate. This certificate is issued by The Vietnam
Food Administration (VFA) of the Ministry of Health (MOH) after clear inspection.

10.5. SPS Requirement:
Phytosanitary and sanitary health inspections are required for the imports of animal
products (including dairy products), plants and plant products, and edible fishery products
to get the clearance certificate. The certificate and standard analysing is under Plant
Protection Department (PPD) and Department of Animal Health (DAH). Relevant documents
may be necessary depending upon the type of products and certificate of free sale is also
required if applicable.
10.6. Labeling
Vietnamese laws are quite stringent for correct labeling that includes proper shelf life,
expiry date of products for pre-packaged products. These laws are applicable to all the food
products in circulation in the Vietnamese market whether they are home grown and
packaged or imported. Labeling should be in the Vietnamese language while including all
the necessary and required details. If details are listed in a foreign language along with the
Vietnamese language, there should be no change in the derived meaning and the font size
should not be larger than the Vietnamese font size. Some of the mandatory labeling
requirements are:
 Product name;
 Composition;
 Product weight;
 Production date;
 Timeline for use;
 Direction for use and storage instruction;
 Name of the person or the organization responsible for the goods;
 Origin;
 Number of receipts of conformity statement or certificate in accordance with the
provisions of food safety; and
 Recommendations or warning on food safety.
Additional labels can be added to the products provided they are in Vietnamese language
and do not misrepresent the actual content which was written in a foreign language.
However, these are not required for the food samples that are put for testing or research
purpose, display in an exhibition, raw materials, food additives, food processing aids and
food packaging containers imported for internal production, not for selling in the market.

10.7. Packaging:
For safe packaging, Vietnam’s Ministry of Health has issued three technical regulations to
ensure that the food product inside the package remains hygienic and safe to consume.
 QCVN 12-1:2011/BYT- For synthetic resin packages, containers and equipment in

direct contact with food
 QCVN 12-2:2011/BYT-For rubber packages containers and equipment in direct
contact with food
 QCVN 12-3:2011/BYT- For metallic packages containers and equipment in direct
contact with food
If any packaging is in violation, then permission is required before circulating in the market.
10.8. Documents To Be Submitted And Presented For Permission:

 The import goods declaration forms: 2 originals
 The goods purchase and sale contract or papers of equivalent legal value: 1
duplicate
 The commercial invoice: 1 original
 The bill of lading: 1 duplicate
10.9. Documents To Be Additionally Submitted For The Following Cases:

 The packing list of goods (for lots of goods of many categories): 1 original and
1 duplicate
 The import goods declaration forms (for cases applied according to GATT): 2
originals
 The import permit of the competent State body (for goods on the list of
goods banned from import or subject to conditional import):
 + Single importation: 1 original
 + Multiple importation: 1 duplicate, submit the original
 The certificate of origin (C/O) (for cases requiring the submission as
prescribed): 1 original
 The entrusted import contract (if undertaking the entrusted import): 1
duplicate
 The written registration for goods quality inspection or inspection exemption
notice issued by the State quality inspection agency (for import goods
included in the list of those subject to state quality inspection): 1 original
 The written quarantine registrations issued by quarantine agencies (for
import goods subject to quarantine): 1 original.

 When carrying out customs procedures for goods imported through seaports,
the customs declarers must additionally submit the delivery order (D/O).
Source- Vietnam customs Information Department
10.10. Exemption From Goods Inspection:

 The importer is importing the same product for 2 or more than 2 years
 The importer has never been handled for violation of custom rules.
 Goods belong to one of these categories-equipment, machinery, fresh and raw
foodstuffs, goods requiring special preservation; goods stored in bonded
warehouses, goods stored in tax-suspension warehouses; imports to be taken into
export processing zones, tax-suspension warehouses or other customs preferences
zones; liquid and bulky goods and goods items whose volume, quality and categories
must be determined on the basis of competent State bodies or expertise
organizations; regularly imported goods; other goods stipulated by the Government.
Source- Vietnam customs Information Department

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VIETNAM

9. IMPLICATION AND EXPORT POTENTIAL FOR

Page 5 | CRAFT DRIVEN

Page 6 | CRAFT DRIVEN

2.1. Agriculture Market

3.3 3.4 3.6

2014 2015 2016

Source- Food and Agriculture Organisation

Page 7 | CRAFT DRIVEN

Table 1: Total Crops Plantation Area, Million Hectares (20132016)

Major Crops 2013 2014 2015 2016

Cereal Crops 8.8 9.1 9.0 9.0

Paddy 7.7 7.9 7.8 7.8

Maize 1.1 1.2 1.2 1.1

Cassava 0.5 0.5 0.6 0.6

Soya Bean 0.1 0.1 0.1 0.1

Sugar Cane 0.3 0.3 0.2 N/A1

Peanut 0.2 0.2 0.2 N/A

Table 2: Total Crops Production, Million Tons (2013-2016)

2013 44.0 20.1 5.2 0.5 0.2 0.003

2014 45.0 19.8 5.2 0.4 0.2 0.003

2015 45.1 18.3 5.3 0.5 0.1 0.001

2016 43.6 17.2 5.2 0.4 0.1 0.001

Source- General Statistics Office of Vietnam

Page 8 | CRAFT DRIVEN

Table 3: Production of Livestock, 2012- 2016

Production 2012 2013 2014 2015 2016

Source- General Statistics Office of Vietnam

Page 9 | CRAFT DRIVEN

Table 4: Fisheries Production, Million Tons (2013-2016)

Year Total Catch Aquaculture

2013 6.1 2.8 3.2

2014 6.3 2.9 3.4

2015 6.5 3.0 3.5

2016 6.8 3.1 3.6

Source- General Statistics Office of Vietnam

2.2. Food Market

Page 10 | CRAFT DRIVEN

Dairy 32,020.6 37,022.1 42,957.2 49,667.7 6.3

Baby Food 19,055.1 23,229.9 28,085.5 30,471.0 7.5

Oil and Fats 21,640.5 24,323.5 26,318.3 29,058.0 4.3

Rice, Pasta, and

Bakery 13,400.5 15,049.0 16,974.4 19,349.8 5.7

Confectionery 6,209.3 6,773.6 7,571.7 8,375.6 7.8

Ice Cream and

Ready Meals 557.0 668.9 816.0 976.7 8.8

Page 11 | CRAFT DRIVEN

Table below shows the major food processing companies in Vietnam:

Company Picture Sales

Việt Nam Dairy

USD 1.9 Billion (only

Nestle Việt Nam More than USD 100

C.P Việt Nam

Quảng Ngãi Sugar

Page 12 | CRAFT DRIVEN

Table 6: Number of Food and Beverage Manufacturing Enterprise

Category/ (s) 2011 2012 2013 2014 2015

Source- General Statistics Office and Ministry of Planning and Investmentt

Page 13 | CRAFT DRIVEN

Figure 2: Total Export Vs Agricultural Export, USD Billion, (2013-2017)

Total exports (USD Billions) Agricultural exports (USD Billions)

Source- General Office of Statistics Vietnam

Figure 3: Total Import Vs Agricultural Import, USD Billion, (2013-2017)

150 132 138