USDA’s Foreign Agricultural Service (FAS) is investing more than US$170,000 to help US pet food manufacturers access the Vietnamese market. In this light, we look at how this market is developing.
The trend of keeping pets in Vietnam is growing rapidly. According to a survey by TGM Pet Care67 percent of respondents in Vietnam have pets and up to 53 percent of them are keeping more than one, with dogs and cats being the most popular.
Additionally, the relationship between Vietnamese pet owners and their pets is changing as their furry friends play an ever more central role in family life, leading to increased interest in the nutrition and health of these pets. has gone
And this is what has facilitated the rapid growth of Vietnam’s pet food industry. In fact, Vietnam’s total pet food imports have increased, according to data from the American Animal Feed Industry Association (AFIA). 69 percent in the last five years.
Additionally, American pet food suppliers are ready to receive a. Promote entry into the Vietnamese market Up to $170,000 in funding from USDA’s Foreign Agricultural Service.
With this in mind, we look at opportunities for US pet food firms in Vietnam.
US investors can find attractive investment opportunities by supplying raw ingredients to pet food manufacturers.
Many pet food manufacturers in Vietnam currently lack the necessary technology to produce additional and specialized nutritional supplements for people’s pets. As a result, these raw ingredients are often imported.
For example, currently Vietnamese enterprises rely heavily on rice to feed their animals.. It is often more expensive than corn used in other countries and significantly increases production costs. Therefore, American firms may find a market that provides cheaper feed products – corn, for example – to Vietnamese pet food firms.
Another option for US investors could be to supply domestic production facilities with high-quality processing equipment and machinery.
Currently, pet food processing companies in Vietnam are constrained by outdated technology on their production lines that limit their production, use excessive resources and result in low-quality products. .
This is driving home buyers to opt for exotic pet food – a trend local firms are trying to arrest.
US government support
USDAThe Foreign Agricultural Service (FAS) is investing more than $203 million to help agricultural groups expand export markets for U.S. agricultural products and food.
In particular, FAS has sponsored AFIA, To the tune of US$170,000. These funds are earmarked to help US animal feed producers increase their market share in Asian markets, particularly in China and Vietnam.
This should lead to easier market access for US pet food firms in the near future.
Notably, Vietnam has some regulations that may apply to foreign firms that want to export animal feed products to this growing Southeast Asian country.
Decree No. 43/2017/ND-CP Outlined the key labeling requirements for pet food products imported into Vietnam. The packaging should include the following information:
- Manufacturer’s name and address;
- Company name and address of the import agent;
- Product name and information;
- details on how to use the product;
- storage instructions;
- Date of manufacture of the product; And
- Expiration date.
Importing pet food
Vietnam levies a 7 percent levy on American pet food.. When importing pet food into Vietnam, US entities must comply with the customs procedures outlined therein Circular 38/2015/TT-BTC. This includes providing the following documents:
- customs declaration,
- Commercial/Sale Agreement,
- official receipt,
- A packing list,
- Certificate of Origin (if any)
- bill of lading,
- Quality inspection records, and
- List of goods (if any).
Value Added Tax
Value Added Tax (VAT) for pet food products was abolished through amendments to the Value Added Tax Act. Law 71/2014/QH13. This law applies to both imported and domestically produced animal feed products.
A key player in Vietnam’s animal feed market
Archer-Daniels-Midland Company (ADM)
ADM is one of the world’s largest nutrition firms, specializing in human and animal nutrition. ADM supplies a variety of products in Vietnam and is headquartered in Ho Chi Minh City, South Vietnam.
Purina Pet Care
Purina Pet Care is a member of the Nestlé Group. Purina provides its premium pet food. Purina Pro Plan in Vietnam. The product is becoming increasingly popular among Vietnam’s pet-owning consumer segment due to rising disposable income and commitment to high-end products.
Charon PokeFand Group
Charon Poke Trap Group (CP) is a leading Thai firm specializing in food processing, particularly for livestock and pet farming. The company started investing in Vietnam in 1988 and has expanded to more than 90 branches spread across the country.
DoggyMan HA Co., Ltd.
Doggy Man Currently one of the most popular names in Vietnam’s pet products industry. It is a Japanese pet food manufacturer that offers a range of pet products such as chewable dog treats and chips. DoggyMan has an office in Vietnam since 2015.
Mars Pet Care
Mars Pet Care is a leading pet food manufacturing company from America. A subsidiary of Mars Incorporated, Mars Petcare distributes several well-known international brands in Vietnam such as Pedigree, Whiska, Royal Canyon, and Temptations.
As the number of pet owners in Vietnam increases, the demand for pet food will continue to increase. Along this line of thinking, investors can find numerous opportunities for profitable opportunities in a market that has a lot of room for growth.
For more information on Vietnam’s pet food market, contact business consultants at Dezan Shira and Associates.
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