General Information. Total Area: 331,210 squared kilometers (128,565 squared miles) Capital: Hanoi Time Zone: Standard time zone: UTC/GMT + 7 hours

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Giles French
7 years ago
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1 VIETNAM

2 General Information Total Area: 331,210 squared kilometers (128,565 squared miles) Capital: Hanoi Time Zone: Standard time zone: UTC/GMT + 7 hours 2013 GDP Growth Rate: 5.42% compared to other countries: - USA: 1.9% - Indonesia: 5.81% - India: 5% - China: 7.7%

3 Demography Population: - Vietnam: 92 million - Philippines: 104 million - Indonesia: 313 million - India: 1.21 billion - China: 1.34 billion (Source: FAS/HCMC-Vietnam) World Population Rank: 14 - Urban: 30.6% of total population - Rural: 69.4% of total population Population Density: people per squared kilometer, or people per squared mile

4 Market Overview Vietnam is a dynamic country with population over 90 million One of the highest annual GDP growth rates in Asia More income, people requires more high-value imported food and beverage products. Hot products: dairy products, chilled and frozen meat (beef & pork), frozen poultry, fresh fruits/ dried fruits, nuts, snack foods, confectionery foods, packaged foods, condiments, juices, drinks. Retail sector is growing rapidly, especially the modern retail trade. People more prefer to shop in supermarket/ hypermarket for hygiene and high quality foods.

5 Consumer s Habits Daily shopping for food items Prefer fresh produces, esp. red meats, poultry and seafood More awareness and concern about nutrition, quality, hygiene and food safety. Brand loyalty, can receptive to new products Western lifestyle and products are welcomed Dining out becomes more frequent Advertisement and promotions are effective, particularly for children.

6 Requirements for Import For import wine, the importer must have the Designate Letter from winery (supplier) to appoint their agent in Vietnam. Live lobsters (Homarus Americanus) are not allowed to import to Vietnam. General document includes Sale contract, invoice, packing list, Certificate of analysis (1 issued by producer, 1 issued by an authorized 3rd party), certificate of origin (issued by authorized agent), certificate of health (issued by authorized agent), sanitary certificate, Freesale, HACCP or ISO certificate (issued by a 3rd Party for that producer)

7 Packaging and Labeling Label Requirements: Common name of product List of ingredients in descending order by proportion of weight Net quantity Manufacturer date, Expiry date Original Name of manufacturer Usage Instruction (in case there is not enough space for printing, that recommendation must be printed in a flyer enclosed with the product) Extra Label Requirements (!!!) Government strongly requests the extra label in Vietnamese for imported products. The information includes: name of product, ingredients, manufacturer date and expiry date, usage instruction, storage condition, name of manufacturer, name of importer (address, phone), name of distributor (if any) with address and phone.

8 Packaging and Labeling Nutrition Facts Table: The nutritional panel must contain the serving size, calories and mandatory listed as a per cent of daily value. The nutrients include: total fat (saturated fat, trans fat), cholesterol, sodium, total carbohydrate (dietary fiber, sugar), protein, vitamins, calcium, iron. Additional nutrients would be declared and placed preferably at the bottom of the Nutrition Facts Table. Language: All labels are in English spelling or the native language of exporter and Vietnamese. If the label is just in English or the native language of exporter, then it is requested to have an extra label in Vietnamese.

9 U.S. Products Exported to Vietnam Records

10 Best U.S. Products for Vietnam Market Dairy products (milk powder infant formula, cheese, etc.) Snacks (popcorn, potato chips, etc.) Confectionery (chocolates, cookies, etc.) Packaged foods (canned fruit & vegetable, canned meat) Condiments (mayonnaise, tomato ketch-up, sauces) Chilled & frozen meat (beef, pork), frozen poultry Dried fruits (raisin, berries), nuts Fresh fruits (apples, grapes, pear) Wines & Juices

11 Advantages for U.S. Products Consumers more concern about high-end products, new trend products U.S. foods are recognized high-value and high quality items, more awared of U.S. products by consumers Voluntary tariff reduction on dairy products, corn, soybeans, soybean meals. Growing number of Western-style fast food restaurant chains, bakeries, coffee shops. Growing modern retail outlets GSM.102 of USDA since 2008 assists importers more in importing U.S. products.

12 Challenges for U.S. Products Vietnamese has strong preference for European (esp. French) and NZ/ Australian The sensitivity on price Transportation costs Low tariffs for ASEAN countries, and China under Free Trade Agreements. The flexibility and responsiveness to importer s needs or local business environment. Limited infrastructure and distribution for perishable products Limited/ restricted supply of bank loans and foreign exchange, more risk for non L/C payment terms for sales of U.S. foods. Many required importation documents

13 Business Tips Exporting to Vietnam, U.S. suppliers should consider to: Set up business network with Vietnamese importer to import and to contribute products into market. Set up Representative Offices in local market. Work with In-market Representative to find more right business partners and to understand more about the market s situations and trends. Vietnamese business people: Prefer face-to-face meetings in the initial stages with additional follow-up visits, phone calls, s, and faxes. Prefer small volume of new product for market trial Sometimes complain U.S. suppliers on effort to understand the needs and constraints. Very sensitive in price Request exclusive import, contribution rights, and supports from supplier for developing new product. Invest more businesses than just foods

14 Retail Sector Vietnam Retail Market is among the profitable markets of the world. Forecast in , the average development of Vietnam Retail Market will be estimated from 23 25%. Vietnam is a good and attractive market for foreign retail contribution system. Supermarkets and Hypermarkets have proliferated in urban areas providing ease of access to a wider consumer base.

15 Retail Opportunities Presently retail modern trade takes 10 12% market The Ministry of Trade and Industry estimates that it will take 30% forecasted in next 10 years. Sales in Vietnam s retail food and beverage sector are expected to grow 75 percent by 2017 to $66 billion (Source: Global Insight). The country currently has more than 600 modern retail stores including supermarkets, 100 shopping centers, convenient stores, mini marts and 8,590 traditional markets.

16 Retail Opportunities Target for , import turnover is US$ 146 billion in 2015, increase 11.5% per year. Average growth of Vietnam retail sector at about 23% - 25% per year in the period of More potentials for growth of Vietnam s modern retail sector: A growing number of western-minded consumers, especially large numbers of young consumers in urban areas. A growing middle-class people with increased disposable incomes to purchase higher-value food products. Attracting even lower-income consumers with wide range of products Consumers more concern about nutrition, quality, hygiene, and food safety Brand loyalty, but still receptive to new products Increasing consumer acceptance of processed and packaged products

17 4 Most Concerns for Food Products Food safety Fresh and good Acceptable price No contain chemicals or preservatives

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