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Foodservice profile – Vietnam

February 2020

Executive summary

Vietnam, with a population of approximately 95.5 million in 2018, is one of the fastest growing foodservice markets in the Southeast Asian region. Vietnam has been Canada's largest trading partner in the Association of Southeast Asian Nations (ASEAN) region since 2015.

The Vietnamese foodservice sector grew at a Compound Annual Growth Rate (CAGR) of 13.4% from 2016 to 2018, reaching US$19.1 billion sales in 2018. Vietnam's foodservice sector is forecasted to reach US$28.8 billion by 2021, growing at a CAGR of 6.9% from 2019 to 2021.

Fast food is Vietnam's largest foodservice subsector, with sales of US$15.1 billion in 2018, for a CAGR of 13.5% from 2016 to 2018. This subsector is expected to reach US$23.3 billion by 2021, with a CAGR of 15.7%. Coffee shops ranked the second biggest in terms of market value (US$4.0 billion) in 2018, followed by restaurants (US$30.1 million). All subsectors grew well from 2016 to 2018 and are expected to grow stably from 2019 to 2021.

Vietnamese consumers shifted away from western curiosities to more Asian-centric cuisine. Generation Z and young female consumers are key drivers of the Vietnamese foodservice industry.

The competition in Vietnamese foodservice market is fierce. To increase sales in this emerging market, Canadian agri-food and seafood exporters and producers need to be innovative and evaluate the opportunities and challenges highlighted in this report.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) represents a significant step toward increased trade and investment opportunities between Canada and Vietnam. The CPTPP ensures that Canadian agricultural products can compete on a level playing field with key competitors, specifically in countries where Canada faced high tariffs and did not have preferential market access through existing free trade agreements.

Consumer behaviour

Consumer trends

In 2018, global consumer confidence declined for the first time in two years (Das, 2018). Despite uncertainties remaining elevated in 2019, Asian consumers are incredibly optimistic. Vietnam is ranked as the fourth most confident economy in the world in the second quarter of 2019 after India, Philippines, and Indonesia (The Conference Board, 2019). Food and beverages, along with retail, education and healthcare will continue to attract most of the Vietnamese expenditure in coming years (Das, 2018). In Vietnam, food and non-alcoholic drinks represent 20.5% of total household expenditure, which is forecasted to grow by 11.6% from 2018 to 2022 (Nguyen, 2018). In the same period, the annual spending of alcoholic drinks and tobacco will increase by 11.7% (Das, 2018).

According to Decision Lab's 2018 report, Vietnamese cuisine dominates the Out of Home (OOH) market in the Vietnamese market as it satisfies consumers quickly, conveniently, and at a good value for money (Decision Lab, 2018). While the market share of fast food declined year-over-year, traffic growth decreased by 17% from 2016 to 2018. By contrast, Vietnamese showed more appetite for BBQ and Asian centric cuisine like hotpot and Japanese foods. These three foods are more successful than other non-Vietnamese dishes because they create a suitable environment for diverse social occasions, appeal to women, offer excellent service and facilitate exciting interactions between consumers and food (Decision Lab, 2018). As a result, Vietnamese consumers shifted away from western curiosities to more Asian-centric cuisine.

Year-over-year sales contribution growth of non-Vietnamese cuisines from Q4 2016 to Q3 2018
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  • Fast food: −25.0%
  • BBQ: 43.0%
  • Japanese: 51.0%
  • Hotpot: 59.0%
  • Italian: −42.0%
  • Other Asian: 38.0%
  • Korean: 34.0%
  • Western: −59.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 2962

KPMG's 2018 report (trends and opportunities in health and wellness for the ASEAN region) indicates that ASEAN markets have increased daily protein consumption by 50% in the past 30 years (KPMG, 2018). ASEAN countries including Vietnam are expected to consume about 5.6 kilograms more meat per capita each year by 2026 (KPMG, 2018). Due to continuous economic growth, Vietnam's emerging middle class and wealthy urban residents are consuming more high-value foods such as meat, dairy products and fruits (Baruah & Mohanty, 2019).

Due to the severe outbreak of the African swine fever (ASF) across Vietnam (Mu, 2019), many consumers have shifted to chicken and other poultry as alternate proteins. Given the increasing food safety concerns, other consumers have switched their consumption habits to buying higher-priced pork at modern supermarkets from buying newly slaughtered un-chilled pork at traditional/wet markets (Bui, 2019). Modern retailers such as CoopMart, Big C, and VinMart are beneficiaries of this new trend. Their sales of pork have increased slightly compared to the pre-ASF period (Bui, 2019). The ongoing ASF has depopulated domestic swine significantly. Vietnam may have to increase the imports of alternative meats to fill the domestic supply gap. These factors make Vietnam an emerging growth hub for Canadian premium foods industry.

Consumer segments

Generation Z

Generation Z (Gen Z) born between 2002 and 1994 (15-23 years old), account for about 15.1% of the total population in Vietnam. Gen Z is now entering the workforce and enjoy eating out of the home. This cohort contributed 19% of total OOH visits (133 million visits) in the third quarter of 2017 (Decision Lab, 2017). A typical Gen Z consumer is described, as quoted, below (Linh, 2017):

  1. Young but critical consumers
  2. Early adopters of foreign foods
  3. Spend on snacking occasions as much as main meals
  4. Consume less coffee and alcohol but more tea and milk. Bubble tea is Gen Z's signature drink
  5. Spend a high proportion of its money on purchasing food and drinks outside the home, almost 900,000 VND (approx. $40USD) a month

By 2025, Gen Z will account for almost a quarter of the Vietnamese labour work-force, which equals 15 million new demanding consumers (Nielsen, 2018). Even though this consumer segment still has weaker spending capacity than the more affluent, senior generations, Canadian food producers and exporters will need to target them as an essential driver for business growth in the Vietnamese foodservice market.

Female consumers

As more women eat out, female consumers are becoming prominent drivers of Vietnam's foodservice industry (Restaurant Association Vietnam, 2018). Decision Lab's 2018 report finds that from 2016 to 2018, female sales contribution to the OOH market revenue increased by 10.0%, while male sales contribution decreased by 8.0% (Decision Lab, 2018). Typical female consumers in the OOH market are those between 15 and 34 years old. This age group represents 82.0% of the female visits, with more than 50.0% of the visits coming from white collars workers. Young students are the other driving force of female visits at 25.0% (Decision Lab, 2018).

Year-over-year average spending growth by gender from Q4 2016 to Q3 2018
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Male Female
Full service restaurant −4.0% 2.0%
Quick service restaurant −12.0% 5.0%
Street food −10.0% 1.0%
Convenience store −22.0% 5.0%
Canteen −9.0% 16.0%
Alchohol places 2.0% 12.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 27591

The report also indicates that, compared with men, women prefer to consume food and drink together when eating out. Vietnamese women consume OOH much more than men during daytime snacking occasions (Decision Lab, 2018).

Year-over-year traffic growth by consumption type in %, from Q4 2016 to Q3 2018
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Male Female
Eat only 2.0% −2.0%
Drink only 0.0% −12.0%
Eat and drink 16.0% 23.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 27591

Compared with men, women are more likely to taste exotic cuisine and visit outlets that offer non-Vietnamese foods. Among the foreign dishes, female consumers have more appetite for hotpot, BBQ and Japanese foods (Decision Lab, 2018).

Year-over-yeartraffic growth of cuisines in foreign cuisines from Q4 2016 to Q3 2018
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Male Female
Fast food −21.0% −13.0%
Italian −27.0% −52.0%
BBQ 27.0% 68.0%
Hotspot 19.0% 62.0%
Japanese 30.0% 68.0%
Korean −15.0% 2.0%
Other Asian 47.0% −2.0%
Western −71.0% −33.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 2962

The report also demystifies the behaviours of Vietnamese female customers. For example, women are often perceived to be more health-conscious about food and drink, prefer to eat on-premises and love discounts/coupons while eating out. In actuality, men are more in favour of on-premises consumption and healthy food (Decision Lab, 2018). To increase sales in Vietnam's foodservice market, Canadian agri-food and seafood producers may need to tailor their products to ease the off-premise consumption, and capture female consumers during daytime snacking occasions.

The overall foodservice market

Vietnam, with a population of approximately 95.5 million in 2018, is one of the fastest-growing foodservice markets in the ASEAN region. Vietnam's increasing disposable incomes and growing young population stimulate their preference to dine out for convenience, to consume added value products, and to explore diverse tastes in the foodservice industry.

Opportunities and challenges facing Canadian food products in Vietnam

Opportunities/strengths:

Challenges/weakness:

Vietnam's foodservice sector grew at a CAGR of 13.4% from 2016 to 2018, reaching US$19.1 billion sales in 2018, which is US$14.7 billion higher than Malaysia. Vietnam's foodservice sector is forecasted to reach US$28.8 billion by 2021, growing at a CAGR of 6.9% from 2019 to 2021.

Foodservice value sales by selected ASEAN economy, in US$ billions – historical and forecast
Economy 2016 2018 CAGR* % 2016-2018 2019 2021 CAGR* % 2019-2021
Vietnam 14.8 19.1 13.4 25.1 28.8 6.9
Malaysia 3.9 4.4 6.3 4.7 5.2 5.1
Indonesia 2.6 3.2 11.3 4.2 4.9 8.3

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

Note: 2018 data are Mintel's forecast data made in 2016. It is treated as historical data in this report.

Fast food is Vietnam's largest foodservice subsector, with sales of US$15.1 billion in 2018, for a CAGR of 13.5% from 2016 to 2018. This subsector is expected to reach US$23.3 billion by 2021, with a CAGR of 15.7%. Coffee shops ranked the second biggest in terms of market value (US$4.0 billion) in 2018, followed by restaurants (US$30.1 million). All subsectors grew well from 2016 to 2018 and are expected to grow stably from 2019 to 2021.

Value sales and growth of Vietnam's foodservice by subsector, in US$ millions – historical and forecast
Subsector 2016 2018 CAGR* % 2016-2018 2019 2021 CAGR* % 2019-2021
Fast food and takeaways 11,696.6 15,065.5 13.5 17,371.1 23,267.5 15.7
Coffee shops 3,102.9 3,978.1 13.2 4,426.3 5,437.6 10.8
Restaurants 23.9 30.1 12.4 34.4 45.0 14.3
Total 14,823.3 19,073.7 13.4 21,831.8 28,750.2 14.8

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

Note: 2018 data are Mintel's forecast data made in 2016. It is treated as historical data in this report.

Within the restaurants subsector, fast food & limited service recorded the highest number of outlets (0.5 million) in 2016, followed by full service/traditional (0.1 million). Both outlets grew well at a CAGR of 5.2% and 3.6%, respectively, from 2012 to 2016.

Foodservice establishments in Vietnam are mainly independently owned. Within the fast food & takeaways subsector, independent operators recorded the highest number of outlets (545.1million) in 2016, followed by chain franchises (1.0 million). Both outlets grew well at a CAGR of 1.9% and 11.1%, respectively, from 2015 to 2016.

Within the coffee shop subsector, independent operators recorded the highest number of outlets (15,000) in 2016, followed by multiples (3,400). Both outlets grew well at CAGR of 4.8% and 25.5%, respectively, from 2012 to 2016.

Vietnam's foodservice by subsector and segment- historical number (000) of outlets
Subsector Segment 2012 2013 2014 2015 2016 CAGR* % 2012-2016
Restaurants Fast food and limited service 446.6 469.5 506.6 535.7 546.1 5.2
Full service/traditional 92.8 98.0 103.3 105.6 106.9 3.6
Fast food and takeaways Independent N/A N/A N/A 534,800.0 545,100.0 N/A
Chain N/A N/A N/A 900.0 1,000.0 N/A
Coffee shops Independents 12.4 12.8 13.8 14.1 15.0 4.8
Multiples 1.4 1.9 2.5 2.9 3.4 25.5

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

N/A: Not Available

Note: data for 2017 and 2018 are not available.

Foodservice: subsector analysis

Restaurants

Vietnam's restaurants increased to 687,200 outlets in 2018, for a CAGR of 2.6% from 2016 to 2018. The number of restaurants are expected to reach 819,700 by 2021, with a CAGR of 6.7% from 2019 to 2021. The country's restaurants grew at a CAGR of 12.4% from 2016 to 2018, reaching US$30.1 billion sales in 2018. The sales value was expected to reach US$45.0 billion by 2021, with a CAGR of 14.3% from 2019 to 2021. Vietnamese annual average consumption (per capita) at restaurants raised to US$315.5 in 2018, for a CAGR of 11.3% from 2016 to 2018. The annual expenditure per capita was expected to reach US$458.1 by 2021, with a CAGR of 13.3% from 2019 to 2021.

Vietnam's restaurants growth- historical and forecast
Indicators Units 2016 2018 CAGR* % 2016-2018 2019 2021 CAGR* % 2019-2021
Retail market volume (000) number of outlets 653.0 687.2 2.6 720.1 819.7 6.7
Retail market value billion US dollars 23.9 30.1 12.4 34.4 45.0 14.3
Retail market spend per capita (population) US dollars 254.7 315.5 11.3 356.6 458.1 13.3

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

Market value: based on expenditure including sales tax in these outlets

Note: 2018 data are Mintel's forecast data made in 2016. It is treated as historical data in this report.

In Vietnam, full service (FSR) and quick service (QSR) restaurants are two dominant distribution channels for food and beverage producers.

Market share of full service and quick service restaurants - % visits and servings from Q4 2016 to Q3 2018
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FSR (n = 10,288) QSR (n = 7,293)
Total out of home visits 29% 26%
Total non-alcohol ready to drink comsumption 21% 20%
Total alcohol consumption 32% 14%
Total dairy-based product consumption 17% 33%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018

Starting from the third quarter of 2017, FRS replaced FSR and became the largest foodservice channel in Vietnam. Meanwhile, visits to QSR declined from 150 million in 2017 to 109 million to 2018.

Visits to Full Service (FSR) and Quick Service (QSR) restaurants from Q4 2016 to Q3 2018 (in million)
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Full service restuarants Quick service restuarants
2016 Q3 144 150
2016 Q4 131 151
2017 Q1 118 138
2017 Q2 129 140
2017 Q3 138 114
2017 Q4 145 102
2018 Q1 135 98
2018 Q2 151 122
2018 Q3 142 109

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018

Due to food safety concerns, people are willing to consume more premium food and beverage at quality and hygienic restaurants, high-end hotels and resorts (EVBN, 2018). The Vietnamese government revealed that over one-fifth of the 3 million businesses that make up the national food industry had violated food safety regulations (VnExpress, 2017). The Vietnamese market shows high respect to food suppliers who have a good reputation for high health and hygiene standards (ASEAN, 2019). Even if Vietnamese people dine out more frequently, they still mostly share meals with family at home because of tradition and affordability (EVBN, 2018).

Fast food

Vietnam's fast foods restaurants increased to 576,700 outlets in 2018, for a CAGR of 2.8% from 2016 to 2018. The number of fast food restaurants are expected to reach 688,700 by 2021, with a CAGR of 6.7% from 2019 to 2021. The country's fast food sector grew at a CAGR of 13.5% from 2016 to 2018, reaching US$15.1 billion sales in 2018. The sales value are expected to reach US$23.3 billion by 2021, with a CAGR of 15.7% from 2019 to 2021. Vietnamese annual average fast food consumption (per capita) raised to US$ 157.7 in 2018, for a CAGR of 12.4 from 2016 to 2018. The annual fast food consumption was expected to reach US$237.0 by 2021, with a CAGR of 14.7% from 2019 to 2021.

Vietnam's fast food growth- historical and forecast
Indicators Units 2016 2018 CAGR* % 2016-2018 2019 2021 CAGR* % 2019-2021
Retail market volume (000) number of outlets 546.1 576.7 2.8 604.7 688.7 6.7
Retail market value million US dollars 11,696.6 15,065.5 13.5 17,371.1 23,267.5 15.7
Retail market spend per capita (population) US dollars 124.9 157.7 12.4 180.1 237.0 14.7

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

Market value: based on expenditure including sales tax in these outlets

Note: 2018 data are Mintel's forecast data made in 2016. It is treated as historical data in this report.

Vietnam is an emerging market for international fast food brands, but not all companies have achieved their initial growth plans (Mai, 2018). Famous brands like KFC, Burger King and McDonald's are struggling in the Vietnamese foodservice market and are experiencing slow sales growth (Nguyen, 2018; Son, 2019b). According to CNBC's 2018 report (Turner, 2018): there were over 540,000 food outlets in Vietnam, but only 7,000 of them were fast food chains; 78% of Vietnamese cash went to local vendors; only 1% of Vietnamese cash went to fast food restaurants; visits to fast food chains decreased by 31% from 2016 to 2018; visits to street food kiosks increased by 70% during the same period.

The inability to be as "fast" as local street food vendors is one of the reasons that burgers and fries fall behind their growth projections in Vietnam. The widely located traditional street food kiosks make it much easier and quicker to find food in Vietnam than in Western countries (Mayi, 2018). Plus, vibrant street food vendors are more price-competitive than foreign fast food chains. A meal at McDonald's or Burger King can be four times more expensive than a bowl of pho on the street (Saigoneer, 2017).

Still, fast food had the most significant share in the non-Vietnamese foodservice market in 2018 (Decision Lab, 2018). Non-Vietnamese fast food chains need to be more innovative and competitive to win the trust and palates of Vietnamese consumers. Foreign fast food brands could compete with street food vendors by offering hygienic food at an affordable price as the latter lack the ability to provide safe and clean food due to environment pollution and limited clean water supply (WHO, 2015).

Market share of non-Vietnamese cuisines in full service restaurant and quick service restaurant from Q4 2016 to Q3 2018 - % visits
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  • Western: 1.0%
  • Fast food: 40.0%
  • BBQ: 13.0%
  • Other Asian: 10.0%
  • Hotpot: 10.0%
  • Italian: 9.0%
  • Japanese: 9.0%
  • Korean: 8.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 2962

Coffee shops

Vietnam is the world's second biggest coffee producer and exporter and is also one of the fastest growing coffee retail markets along with Indonesia and Philippines (Mintel, 2018; Voora, Bermúdez, & Larrea, 2019). Vietnam's coffee shops increased to 21,700 outlets in 2018, for a CAGR of 8.8% from 2016 to 2018. The number of coffee shops are expected to reach to 26,400 by 2021, with a CAGR of 6.5% from 2019 to 2021. The country's coffee shop sales grew at a CAGR of 13.2% from 2016 to 2018, reaching US$4.0 billion in 2018. The sales value is expected to reach US$5.4 billion by 2021, with a CAGR of 10.8% from 2019 to 2021. Vietnamese annual average coffee consumption (per capita) raised to US$ 41.6 in 2018, for a CAGR of 12.1 from 2016 to 2018. The annual coffee consumption is expected to reach US$55.4 by 2021, with a CAGR of 9.9% from 2019 to 2021.

Vietnam's coffee shops growth- historical and forecast
Indicators Units 2016 2018 CAGR* % 2016-2018 2019 2021 CAGR* % 2019-2021
Retail market volume (000) number of outlets 18.4 21.7 8.8 23.3 26.4 6.5
Retail market value million US dollars 3,102.9 3,978.1 13.2 4,426.3 5,437.6 10.8
Retail market spend per capita (population) US dollars 33.1 41.6 12.1 45.9 55.4 9.9

Source: Mintel, 2019

*CAGR: Compound Annual Growth Rate

Market value: based on expenditure including sales tax in these outlets

Note: 2018 data are Mintel's forecast data made in 2016. It is treated as historical data in this report.

From 2017 to 2018, Vietnamese coffee consumption has increased 27% (Decision Lab, 2018). People are moving from QSR to other channels to consume their daily coffee and other non-alcohol drinks.

Year over year traffic growth with coffee[1] consumption in channels from Q4 2016 to Q3 2018 - % visits
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  • Total out of home: 12.0%
  • QSR: −29.0%
  • FRS: 39.0%
  • Street food: 43.0%
  • Convenience store: 59.0%
  • Canteen: 99.0%

Source: Decisions Lab, Aggregate Foodservice Monitor data - 2018, Sample size = 2237

1: Including non-ready to drink, freshly prepared coffee

Coffee has been embedded in Vietnamese culture since French colonists introduced it to the country in 1857 (Ipsos, 2013). The country's domestic coffee market is facing fierce competition and even famous international bands have to struggle to win an advantageous position. Vietnam is the only market in the ASEAN region (except Singapore), where Starbucks ranks low on the list of the most visited coffee chains (VOV, 2016). Compared with Thailand, Indonesia and Malaysia, Starbucks has low penetration in Vietnam even the market recorded double digit growth in 2018 (Son, 2019a). Insiders from the coffee industry concluded the following reasons why foreign coffee brands have experienced growth difficulties in Vietnam:

  1. Locals prefer cafes with domestic formulas, foreign formulas with local ingredients are not " authentic" to international visitors (VietNamNet, 2017).
  2. Local coffee chains such as Trung Nguyen and Highlands have more significant success as they understand the Vietnamese market better than their foreign competitors. Domestic coffee shops provide not only affordable local coffee, but also serve Vietnamese consumers with traditional foods like pho, hu tieu and rice (VietNamNet, 2017).
  3. Rather than biding for premium locations with high operation costs, local coffee operators like Coffee House have successfully attracted young customers by offering a reasonable and varied drink menu, high speed Wi-Fi and well created atmosphere (Nikkei, 2018; Son, 2019a).
  4. Being one of the word's largest coffee exporters, Vietnam is also good at innovating new coffee flavored drinks such as egg coffee, coconut coffee and yogurt coffee, which even win the favour of skeptical foreigners (Wernsing, 2019).

To better export coffee products to Vietnam, Canadian exporters and producers may need to take the following factors into account:

  1. A cup of coffee priced higher than 41,000 VND ( about US$1.8) is considered expensive to Vietnamese (Q&Me, 2018).
  2. The Vietnamese mostly take their coffees at independent coffee shops with a good atmosphere. They choose chain stores for brand and taste and go to local shops for price (Q&Me, 2016).
  3. Generation Z prefers bubble tea and milk more than coffee and alcohol (Decision Lab, 2017).
  4. Young Vietnamese's average monthly expenditure on local foods and drinks (sticky rice, milk tea, local coffee, etc.) is US$80-$120 (Nguyen, 2018).

Trade analysis and trends

Association of Southeast Asian Nations (ASEAN) countries

ASEAN is the world's third largest market with 642.1 million population in 2017 (ASEAN, 2018b; Rao, 2018). With a combined economic size equivalent to that of India, ASEAN was Asian third largest economy in 2018 (ASEAN, 2018a; Bloomberg, 2019). ASEAN is forecasted to become the world's fourth largest economy by 2050 after China, India, and the United States (US-ASEAN Business Council, 2019). Canadian agri-food and seafood exports to ASEAN countries combined were valued at US$1.5 billion in 2018, accounting for 2.9% of Canada's net agri-food and seafood exports to the world (US$51.1 billion). In general, Canada's exports to the region were relatively small, although export values from Canada increased by a CAGR of 4.5% from 2014 to 2018. Vietnam is the second largest ASEAN market for Canadian agri-food and seafood exporters. Canada's agri-food and seafood exports to Vietnam grew at a CAGR of 5.2% from 2014 to 2018 with a value of US$264.5 million.

Canada's exports to ASEAN countries in agri-food and seafood (HS6), in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN countries 1,279.5 1,524.9 1,145.6 1,668.1 1,525.2 4.5
Indonesia 515.6 528.2 367.8 496.1 602.3 4.0
Vietnam 216.3 280.5 198.4 470.3 264.5 5.2
Philippines 165.7 291.0 147.5 253.8 251.4 11.0
Malaysia 135.6 158.2 166.1 175.0 142.0 1.1
Thailand 121.8 176.5 129.5 128.6 138.9 3.3
Singapore 119.6 75.8 96.9 98.7 70.4 −12.4
Cambodia 0.5 8.1 21.9 27.5 45.4 213.5
Myanmar 4.0 6.0 17.0 17.8 9.4 23.7
Brunei Darussalam 0.5 0.5 0.3 0.4 0.6 3.0
Lao 0.0 0.0 0.1 0.1 0.4 N/C

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

N/C: Not Calculable

The ASEAN is a net agri-food and seafood exporter to Canada with a net value of US$101.8 million. Canada imported US$1.6 billion in agri-food and seafood from the ASEAN, while Canada's exports were valued at US$1.5 billion in 2018.

Canada's agri-food and seafood imports from ASEAN countries, in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN countries 1,555.9 1,496.8 1,501.3 1,577.1 1,627.0 1.1
Thailand 613.0 588.2 579.5 586.9 594.6 −0.8
Vietnam 395.7 371.1 368.8 410.7 448.7 3.2
Indonesia 182.5 169.5 205.0 217.5 209.1 3.5
Malaysia 181.6 171.3 165.2 162.8 163.8 −2.5
Philippines 154.6 168.6 143.2 166.1 151.1 −0.6
Singapore 20.1 18.5 21.4 20.9 50.7 26.0
Myanmar 7.2 8.7 9.5 10.5 6.4 −2.9
Cambodia 0.6 0.5 8.0 1.0 1.3 22.7
Lao 0.1 0.1 0.3 0.3 1.1 78.0
Brunei Darussalam 0.5 0.3 0.5 0.4 0.2 −14.8

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

Global market

Vietnam is net agri-food and seafood exporter to Canada with a net value of US$184.2 million. Canada imported US$448.7 million in agri-food and seafood imports from Vietnam, while Canada's exports were valued at US$264.5 million in 2018. Vietnam's total agri-food and seafood imports from the world were valued at US$31.7 billion in 2018, of which US$264.5 million was from Canada, representing 0.8% of Vietnam's total agricultural imports.

Canada's gross export gap to Vietnam in agri-food and seafood (HS6), in US$ millions
Import supplier 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Vietnam's imports from the world 23,891.6 24,377.5 28,010.9 32,123.5 31,704.1 7.3
Vietnam's imports from Canada 216.3 280.5 198.4 470.3 264.5 5.2
Gross export gap with Canada 23,675.4 24,097.0 27,812.4 31,653,2 31,439,6 7.3

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

Vietnam's top imported products from the world in 2018 were cotton (US$2.4 billion), frozen shrimp (US$2.2 billion), frozen boneless bovine meat (US$1.8 billion) and maize (US$1.8 billion). Imports of dried mushrooms and truffles (US$ 0.9 billion) grew the fastest at a CAGR of 22.3% from 2014 to 2018, followed by imports of cotton at a CAGR of 21.1%.

Vietnam's top 10 agri-food and seafood imports from the world, in US$ millions, 2014-2018
HS 6 Code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018
World total 23,891.6 24,377.5 28,010.9 32,123.5 31,703.4 7.3
5201.00 Cotton, neither carded nor combed 1,114,9 1,206.1 1,404.8 1,997.8 2,394.4 21.1
0306.17 Frozen shrimp and prawn,(excluding cold-water shrimp and prawn) 1,290.0 1,433.4 2,118.2 3,022.3 2,232.9 14.7
0202.30 Frozen, boneless meat of bovine animals 2,286.3 2,012.9 2,043.5 2,424.4 1,826.1 −5.5
1005.90 Maize (excluding seed for sowing) 945.3 1,291.4 1,366.1 1,273.6 1,806.3 17.6
2304.00 Oilcake and other solid residues, resulting from the extraction of soya-bean oil 1,446.7 1,470.3 1,735.5 1,429.1 1,719.8 4.4
0801.31 Fresh or dried cashew nuts, in shell 634.1 633.1 1,299.1 1,364.9 1,163.9 16.4
0712.39 Dried mushrooms and truffles, (excluding mushrooms of the genus "agaricus", wood ears "auricularia spp." and jelly fungi "tremella spp.") 404.4 470.6 461.1 569.6 904.2 22.3
1001.99 Wheat and meslin (excluding seed for sowing, and durum wheat) 565.3 573.3 835.5 950.7 889.2 12.0
2402.20 Cigarettes, containing tobacco 582.8 598.6 695.9 738.4 796.4 8.1
1201.90 Soya beans (excluding seed for sowing) 711.4 596.3 525.4 580.7 686.9 −0.9

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

Vietnam's agri-food and seafood imports from Canada grew at a CAGR of 5.2% from 2014 to 2018, to reach US$264.5 million in 2018. Vietnam's top imported products from Canada in 2018 were soya beans (US$75.8 million), followed by wheat and meslin (US$58.9 million) and frozen crab (US$19.9 million). Canada's soya beans accounted for 11.0% of Vietnam's total imports of that product from the world. Canadian frozen crab accounted for 55.8% of Vietnam's total imports from the world. Canada's wheat or meslin flour accounted for 46.1% of Vietnam's total imports from the world. Raw furskins of mink had the most substantial import growth with a CAGR of 85.1% from 2014 to 2018, while frozen lesser or greenland halibut was in decline with a CAGR of −24.5% over the same period.

Vietnam's top 10 agri-food and seafood imports from Canada, in US$ millions, and Canada's share, 2014-2018
HS Code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018 Canada's share % in world 2018
Canada total 216.3 280.5 198.4 470.3 264.5 5.2 0.8
1201.90 Soya beans (excluding seed for sowing) 40.5 43.9 44.7 53.2 75.8 17.0 11.0
1001.99 Wheat and meslin (excluding seed for sowing, and durum wheat) 12.5 68.1 15.8 194.9 58.9 47.5 6.6
0306.14 Frozen crab, incl. crabs in shell 15.0 10.0 9.9 15.9 19.9 7.4 55.8
4301.10 Raw furskins of mink, whole, with or without heads, tails or paws 1.6 28.2 20.1 13.0 19.3 85.1 17.3
1101.00 Wheat or meslin flour 2.9 1.8 0.0 6.2 7.2 25.9 46.1
0808.10 Fresh apples 0.9 1.7 3.9 2.9 7.0 66.2 2.8
2309.90 Preparations of a kind used in animal feeding (excluding dog or cat food put up for retail sale) 2.0 5.1 6.7 6.6 6.8 36.2 1.2
2106.90 Food preparations, n.e.s.[1] 2.5 1.8 2.3 4.0 6.3 26.1 1.1
0303.31 Frozen lesser or greenland halibut 15.2 10.4 18.8 24.2 4.9 −24.5 11.6

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

1: not elsewhere specified

Competition and opportunities

In 2018, Vietnam was Canada's second largest agricultural trade partner in the ASEAN region, behind only Indonesia. The prospect for Canadian agri-food and seafood products in the Vietnam foodservice sector is promising for multiple products, including as beef, wheat and soybeans, as long as Canadian exporters are able to meet Vietnamese import requirements. The implementation of the CPTPP will offer growing export opportunities for a wide variety of Canadian agri-food and seafood products in the coming years.

Top 10 Vietnam imports of products agri-food and seafood products and competition in 2018, in US$ millions
HS Code Description Imports in 2018 1st supplier 2nd supplier Canada ranking (market share %)
5201.00 Cotton, neither carded nor combed 2,394.4 U.S Australia N/E
0306.17 Frozen shrimp and prawns,(excluding cold-water shrimps and prawns) 2,232.9 Ecuador India 23rd (0.0)
0202.30 Frozen, boneless meat of bovine animals 1,826.1 India U.S 8th (0.2)
1005.90 Maize (excluding seed for sowing) 1,806.3 Argentina Brazil N/E
2304.00 Oilcake and other solid residues, resulting from the extraction of soya-bean oil 1,719.8 Argentina Brazil N/E
0801.31 Fresh or dried cashew nuts, in shell 1,163.9 Côte d'Ivoire Ghana N/E
0712.39 Dried mushrooms and truffles, (excluding mushrooms of the genus "agaricus", wood ears "auricularia spp." and jelly fungi "tremella spp.") 904.2 China Malaysia N/E
1001.99 Wheat and meslin (excluding seed for sowing, and durum wheat) 889.2 Russia Australia 4th (6.6)
2402.20 Cigarettes, containing tobacco 796.4 Singapore Hong Kong N/A
1201.90 Soya beans (excluding seed for sowing) 686.9 U.S Brazil 3rd (11.0)

Source: Global Trade Tracker, 2019

N/E: not exported

N/A: not available

Frozen clams and frozen fruit and nuts are two of the top three fastest-growing Vietnamese imports with a growth of 1,372.9% and 390.0%, respectively, from 2017 to 2018. Canada has the potential to increase the exports of these two products to Vietnam as its market share for these products is 61.0% and 1.5%, respectively. Canada may have the opportunity to export maize starch, frozen tuna and pig fat to Vietnam.

Top* 10 fastest growing Vietnamese imports of agri-food and seafood products inUS$ millions
HS Code Description Imports from the world in 2018 Growth from 2017 in % Canada growth from 2017 in % Canada market share in 2018 in %
0307.72 Frozen, even in shell, clams, cockles and ark shells 2.6 1372.9 2050.7 61.0
0811.90 Frozen fruit and nuts (excluding strawberries, raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries) 44.6 390.0 50.6 1.5
0210.99 Meat and edible offal, salted, in brine, dried or smoked, and edible flours and meals of meat and meat offal 4.1 317.8 N/C 23.1
0209.10 Pig fat, free of lean meat 6.4 291.7 −100.0 0.0
0304.87 Frozen fillets of tuna 14.7 242.8 N/E 0.0
1108.12 Maize starch 22.9 230.6 N/E 0.0
1602.90 Prepared or preserved meat, offal or blood 3.2 222.1 N/E 0.0
0304.49 Fresh or chilled fillets of fish, n.e.s.[1] 1.3 212.6 N/E 0.0
0305.41 Smoked pacific salmon , incl. fillets (excluding offal) 2.5 206.3 N/E 0.0
0207.11 Fresh or chilled fowls of the species gallus domesticus, not cut in pieces 1.0 204.2 N/E 0.0

Source: Global Trade Tracker, 2019

N/C: not calculable

N/E: not exported

*Top imports: limited to products that Vietnamese imports were $0.5 million or larger which Canada had the supply capacity

1: not elsewhere specified

On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam (with entry into force for Canada on December 30, 2018, and for Vietnam on January 14, 2019). The CPTPP represents a significant step toward closer trade and investment between Canada and Vietnam. Significant gains are possible for Canadian producers, who could gain market share in economies such as Vietnam. The CPTPP ensures that Canadian agricultural products can compete on a level playing field with key competitors, specifically in countries where Canada faced high tariffs and did not have preferential market access through existing free trade agreements. To obtain more information on the CPTPP regarding trade opportunities under this agreement see CPTPP for Agri-Food Exporters. To understand how the CPTPP helps Canada-Vietnam trade and investment in agricultural sector see CPTPP partner: Vietnam.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

For additional information on Food and Hotel China 2019 and Food and Hotel Asia 2020, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-food Canada
ben.berry@canada.ca

Resources

Foodservice profile – Vietnam
Global Analysis Report

Prepared by: Zhiduo Wang

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2020).

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