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Market Overview – Vietnam

May 2019

Market snapshot

Vietnam had a gross domestic product (GDP) of US$244.1 billion in 2018, a 9.1% increase from US$223.7 billion in 2017.

Vietnam is the fifteenth-most populous country in the world, with 97.1 million people by March 2019. The population is expected to reach 102.8 million by 2025.

Annual per capita consumer expenditure was US$1,773.4 in 2018.

Vietnam is a net importer of agri-food and seafood products, with total imports of US$18.5 billion in 2017, an increase of 4.3% from 2016 (US$17.8 billion). Canada was Vietnam's eleventh largest supplier of agri-food and seafood products valued at US$475.6 million in 2017, an increase of 226.4% from 2016, with a 2.3% market share. Top exports were wheat, soybeans, frozen lesser or Greenland halibut, raw mink furskins and frozen lobster.

Vietnam's processed food and beverage imports from the world were valued at US$7.5 billion in 2017, having increased by a compound annual growth rate (CAGR) of 1.8% between 2013 and 2017. Canada's share was 1.5% (US$110.7 million).

Packaged food sales increased by a CAGR of 8.1% from 2014 to 2018, with a further increase of 10.0% forecasted to 2023. Packaged food sales were valued at 11.9 billion in 2018 and are anticipated to reach US$19.1 billion by 2023.

The health and wellness sector grew by a CAGR of 11.3% from 2013 to 2017 and is expected to grow by a CAGR of 8.8% over the 2018-2022 period.

Production

Rice is Vietnam's primary domestic crop, with production remaining almost the same each year. Volume production of rice decreased by −0.3% annually over the 2013 to 2017 period. Coconuts and coffee increased the most over the same period, both by a CAGR of 3.6%.

Pork production increased by a CAGR of 2.4% from 2014 to 2018, while poultry and beef production increased by 7.3% and 3.3%, respectively.

Chickens increased by a CAGR of 5.9% from 2013 to 2017, while ducks and pigs increased by 2.0% and 1.1%, respectively.

Crop production in Vietnam 2013-2017
Top 10 crops (million tonnes) 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Rice, paddy 44.0 45.0 45.1 43.4 42.8 −0.3
Sugar cane 20.1 19.8 18.3 16.3 18.4 −5.1
Vegetables, fresh 12.2 13.0 12.9 13.5 14.2 2.6
Cassava 9.8 10.2 10.7 11.0 10.3 2.9
Maize 5.2 5.2 5.3 5.2 5.1 0.0
Fruit, fresh 2.8 2.8 2.9 3.0 3.0 1.7
Bananas 1.9 1.9 1.9 1.9 2.0 0.0
Coconuts 1.3 1.4 1.4 1.5 1.5 3.6
Coffee, green 1.3 1.4 1.5 1.5 1.5 3.6
Sweet potatoes 1.4 1.4 1.3 1.3 1.4 −1.8

 Source: Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) Agricultural Production, March 2019

*CAGR: Compound annual growth rate

Meat production in Vietnam 2014-2018
Meat 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Pork ('000 MT CWE[1]) 2,431 2,548 2,701 2,741 2,675 2.4
Poultry ('000 tonnes) 633 701 741 795 840 7.3
Beef and veal ('000 MT CWE) 208 212 217 226 237 3.3

Source: United States Department of Agriculture (USDA) database, 2019

*CAGR: Compound annual growth rate

1: Metric tonnes - carcass weight equivalent

Livestock in Vietnam 2013-2017
Livestock (million head) 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Chickens 235 246 259 277 295 5.9
Ducks 69 69 70 71 75 2.0
Pigs 26 27 28 29 27 1.1

Source: FAOSTAT Agricultural Production, March 2019

*CAGR: Compound annual growth rate

Trade

Vietnam is a net importer of agri-food and seafood products, with total imports of US$18.5 billion in 2017, which was an increase of 4.3% from 2016 (US$17.8 billion). Vietnam's top agri-food and seafood imports from the world in 2017 were cashew nuts in shell, cotton, soymeal, maize and wheat. Key supplying countries were Côte d'Ivoire, the United States, Argentina and Australia.

Canada was Vietnam's eleventh largest supplier of agri-food and seafood products in 2017, an increase of 226.4% from 2016, with a 2.3% market share. Canada's agri-food and seafood exports to Vietnam were valued at US$475.6 million in 2017. Top exports were wheat, soybeans, frozen lesser or Greenland halibut, raw mink furskins and frozen lobster. In 2017, Canada registered an agri-food and seafood trade surplus of US$95.6 million with Vietnam (Canada having imported US$380 million from Vietnam).

Vietnam's top 10 agri-food and seafood imports from the world, 2017
Commodity Import value US$ millions Top suppliers and market share % Canada's share %
1 2 3
Fresh or dried cashew nuts in shell 2,516.7 Côte d'Ivoire: 32.9 Tanzania: 13.2 Nigeria: 12.0 0.0
Cotton 2,331.8 United States: 50.5 Australia: 12.7 India: 11.3 0.0
Soymeal 1,727.0 Argentina: 84.8 Brazil: 6.4 United States: 6.0 0.0
Maize (excludes seed for sowing) 1,283.1 Argentina: 59.6 Brazil: 36.2 Ukraine: 1.9 0.0
Wheat (excludes seed for sowing and durum wheat) 835.7 Australia: 50.8 Canada: 23.6 Argentina: 18.8 23.6
Soybeans (excludes seed for sowing) 707.4 United States: 46.8 Brazil: 35.9 Canada: 12.9 12.9
Palm oil and its fractions 568.7 Malaysia: 77.2 Indonesia 22.76 Japan: 0.004 0.0
Food preparations, n.e.s.[1] 504.4 United States: 30.4 Singapore: 17.7 Malaysia: 10.8 0.6
Frozen shrimps and prawns 426.9 India: 78.1 Ecuador: 7.5 Argentina: 4.6 0.03
Pet food (excludes dog or cat food for retail sale) 418.5 China: 26.4 United States: 14.0 France: 5.0 1.9

Source: Global Trade Tracker, 2019

[1]: Not elsewhere specified

Note: Data available until 2017

Vietnam's processed food (excluding seafood) and beverage imports from the world were valued at US$7.5 billion in 2017, having increased by a CAGR of 1.8% between 2013 and 2017. Canada's share was 1.5% (US$110.7 million). Argentina, the United States, Malaysia, China and Indonesia were the largest suppliers of processed food and beverage to Vietnam, together accounting for 54.0% of the total supply in 2017.

Retail sales

Packaged food sales increased by a CAGR of 8.1% from 2014 to 2018, with a further increase of 10.0% forecasted to 2023. Packaged food sales were valued at 11.9 billion in 2018 and are anticipated to reach US$19.1 billion by 2023. Within this category, from 2014 to 2018, the best-performing segment above US$1 billion retail sales was dairy, registering a CAGR of 10.9%, followed by sauces, dressings and condiments at 9.6% and rice, pasta and noodles at 6.8%.

Urbanization is a core factor affecting the packaged food industry and will continue to accelerate. With consumers being 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.

Packaged food retail sales in Vietnam historic in US$ millions, fixed 2019 exchange rate
Category 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Packaged food 8,692.8 9,392.3 10,106.7 10,936.1 11,885.0 8.1
Dairy 2,147.4 2,435.3 2,666.4 2,936.3 3,248.1 10.9
Rice, pasta and noodles 1,283.2 1,335.7 1,418.0 1,527.2 1,668.8 6.8
Baby food 1,201.9 1,275.9 1,351.9 1,416.1 1,484.9 5.4
Edible oils 1,069.8 1,108.2 1,160.3 1,223.9 1,298.1 5.0
Sauces, dressings and condiments 821.7 896.6 977.5 1,073.5 1,184.7 9.6
Baked goods 610.3 659.7 719.1 783.3 843.0 8.4
Savoury snacks 404.4 445.1 491.3 544.3 602.8 10.5
Confectionery 405.7 428.3 453.5 485.2 521.0 6.5
Sweet biscuits, snack bars and fruit snacks 270.8 293.7 323.2 360.0 397.8 10.1
Processed meat and seafood 300.8 316.9 326.6 342.9 364.8 4.9
Ice cream and frozen desserts 91.1 102.4 116.7 131.5 147.4 12.8
Ready meals 61.5 68.6 74.3 81.8 91.0 10.3
Processed fruit and vegetables 12.3 12.8 13.3 13.9 14.6 4.4
Sweet spreads 7.5 8.1 8.7 9.3 10.0 7.5
Breakfast cereals 4.4 5.0 5.9 6.9 7.9 15.8
Soup N/A

Source: Euromonitor International, 2019

*CAGR: Compound annual growth rate

N/A: Not available

Packaged food retail sales in Vietnam forecast in US$ millions, fixed 2019 exchange rate
Categories 2019 2020 2021 2022 2023 CAGR* % 2019-2023
Packaged food 12,989.2 14,233.7 15,638.2 17,225.7 19,029.6 10.0
Dairy 3,601.9 3,997.9 4,440.5 4,936.7 5,495.0 11.1
Rice, pasta and noodles 1,846.1 2,061.3 2,321.6 2,637.1 3,020.6 13.1
Sauces, dressings and condiments 1,317.1 1,469.9 1,645.3 1,847.1 2,079.9 12.1
Baby food 1,561.3 1,639.4 1,719.9 1,802.3 1,887.9 4.9
Edible oils 1,385.8 1,483.1 1,592.1 1,713.3 1,848.5 7.5
Baked goods 911.6 986.0 1,066.5 1,153.7 1,248.3 8.2
Savoury snacks 669.7 743.9 826.0 917.2 1,018.3 11.0
Confectionery 561.2 604.7 652.0 702.8 757.4 7.8
Sweet biscuits, snack bars and fruit snacks 440.4 487.7 539.7 597.1 660.2 10.7
Processed meat and seafood 391.5 423.0 460.0 503.4 554.2 9.1
Ice cream and frozen desserts 165.5 185.7 208.1 232.8 260.2 12.0
Ready meals 101.5 112.6 124.3 136.4 149.2 10.1
Processed fruit and vegetables 15.5 16.6 17.8 19.1 20.7 7.5
Sweet spreads 10.9 11.8 12.8 13.9 15.2 8.7
Breakfast cereals 9.0 10.2 11.5 12.8 14.2 12.1
Soup N/A

Source: Euromonitor International, 2019

*CAGR: Compound annual growth rate

N/A: Not available

Health and wellness food products

The health and wellness sector grew by a CAGR of 8.5% from 2014 to 2018 and is expected to grow by 8.7% over the 2019-2023 period. Consumers are interested in products that can provide health benefits at a good value.

Fortified/functional and free-from foods showed the largest growth, at CAGRs of 8.9% and 8.5%, respectively, in the 2014-2018 period. Fortified/functional and better-for-you products will lead the way, at CAGRs of 8.9% and 9.2%, respectively, over the 2019-2023 period.

Health and wellness food product retail sales in Vietnam, historic in US$ millions, fixed 2019 exchange rate
Category 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Health and wellness 3,998.5 4,459.2 4,762.6 5,122.5 5,534.8 8.5
Fortified/functional (FF) 2,710.4 2,986.7 3,251.3 3,519.9 3,817.9 8.9
Naturally healthy (NH) 1,056.8 1,211.7 1,233.4 1,304.9 1,396.1 7.2
Free from 217.2 245.2 261.1 279.8 301.2 8.5
Better for you (BFY) 14.2 15.6 16.7 17.9 19.6 8.4
Organic 0.0 0.0 N/A

Source: Euromonitor International, 2019

*CAGR: Compound annual growth rate

N/A: Not Available

Health and wellness food product retail sales in Vietnam, forecast in US$ millions, fixed 2019 exchange rate
Category 2019 2020 2021 2022 2023 CAGR* % 2019-23
Health and wellness 6,002.5 6,514.4 7,075.7 7,690.8 8,368.8 8.7
Fortified/functional (FF) 4,151.6 4,515.0 4,913.6 5,350.0 5,830.8 8.9
Naturally healthy (NH) 1,503.6 1,622.8 1,752.6 1,894.6 2,050.9 8.1
Free from 325.8 353.1 383.9 418.3 456.7 8.8
Better for you (BFY) 21.4 23.5 25.6 28.0 30.4 9.2
Organic 0.0 0.0 0.0 0.0 0.0 0.0

Source: Euromonitor International, 2019

*CAGR: Compound annual growth rate

Opportunities for Canada

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 provides Canada with greater market access to CPTPP countries with a similar level of tariff as major regional competitors such as Australia and New Zealand for key sectors, including beef, pork, seafood, cereal and many others. To obtain more information on the CPTPP regarding trade opportunities under this agreement see CPTPP for Agri-Food Exporters.

The CPTPP Agreement, along with NAFTA and free trade agreements with the European Union (CETA) and South Korea (CKFTA), will make Canada the only G7 nation with free trade access to the Americas, Europe and the Asia-Pacific region. All Canadian provinces and territories are expected to benefit from the CPTPP.

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.

Resources

Market Overview – Vietnam
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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