Vietnam AgribusinessSector Overview

Vietnam Agribusiness
Sector Overview
Hanoi, Vietnam
March 2014
Presentation and Marketing Material
I. Sector Structure and Overview
Agriculture has 3 major components: Farming, Livestock, and Agri-service Description of Agribusiness in Vietnam:
 Agriculture:
• Farming: +Seeds
+Plantation
+Processing
• Livestock: +Feeds
+Raising
+Processing
• Agri-service: +Agrichemicals
+Agri-product Retailing
Vietnam’s agriculture industry was estimated at US$38.9bn in 2011
• Vietnam boasts impressive figures in regards to its agricultural production. It is the world’s second-largest exporter of rice, and one of the world’s largest exporters of coffee and cashews. It is also a major producer of various fruits, sugar, rubber and cotton. This high output is mainly due to Vietnam’s climate and geography.
II. Livestock Sector
A. Livestock sector: pig farming is the most dominant segment.
Total market size: Out of total US$10.3bn total market size of livestock, we have estimated that total meat production for three categories namely pork, poultry and beef amounting to approximately US$6.3bn by 2012.
• Segmentation: Within the Vietnamese livestock industry, pig farming is by far the most dominant sector, with pork production comprising about two-thirds of total meat production in 2011/12.
• Meat consumption: Meat consumption in Vietnam has risen significantly over the last
decade, with per capita consumption rising by 87% from 2001 to 2011 to reach 36.7kg per year.
B. Animal feed sector are dominated by foreign players
Vietnam's feed industry is one of the world's fastest growing agribusiness markets. The animal feed industry has been receiving significant - mainly foreign -investment in recent years.
• Demand exceeds supply: The government has since placed a high priority on the development of industrial farming and expects the use of industrial feed to increase
from 56% in 2010 to 70% in 2020 .
• Local firms are disadvantaged as foreign firms enjoy economies of scale. The good prospect of the domestic animal feed sector has attracted huge interest from foreign firms with newer technology, build large-scale operations, lower production cost. In contrast, local firms are relatively small in terms of production capacity.
• Pricing power in the hands of “Big Four”: In developed countries such as the US and Canada, animal feed accounts for 50-55% of the cost of pork.
III. Farming Sector
A. Coffee: Vietnam is the largest producer of Robusta coffee with total export value of US$3.7bn in 2012
Production and Supply:
• Vietnam's coffee sector has grown significantly over the last 20, the area planted expanding from 42,000 hectares (ha) to more than 509,000ha.
• Vietnam is the world's biggest producer of robusta coffee.
• Coffee plantation is mainly in the Central of Vietnam (top coffee harvesting provinces are Daklak, Lam Dong, and Gia Lai).
Coffee consumption and export:
• Domestic consumption is about 6% of total production. The 94% export (mainly robusta coffee) is amounting to US$3.7bn in 2012.
• Vietnam accounts for approximately 17.7% of the world’s total coffee exports. Exports made to more than 80 countries.
B. Rice: Vietnam is the largest rice exporter by volume yielding US$3.7bn value in 2012
Rice is the main food staple for Vietnamese. Vietnam currently has about 4 million ha rice farming with total production volume of about 26.9 million tonnes in 2012.
• Vietnam becomes the largest exporter of rice
recently with total export volume of 7.5mn tonnes in 2012. However rice export prices are normally 20-25% discount comparing to peers such as Thailand and India.
C. Sugar: Vietnam has 40 mills with annual of 1.3mn tonnes in 2012
Vietnam has 40 sugar mills with total refining capacity of 129,200 tonnes of sugarcane per day.
• Total production volume in 2011/2012 is 1.3m tonnes of sugar, a 13.5% y.o.y increase.
• Vietnam sugarcane yield is 61.7 tonnes/ha in the 2011/2012 crushing season which is 25% lower than the Thai’s yields. Main reasons for this is the low sugarcane quality from the fragmented farmland.
IV. Introduction about StoxPlus Corporation and Research Capability
A. Areas of Existing Business:
StoxPlus Corporation:
+Information Services: Pioneer in data feed services to financial sector in Vietnam
+Stock Analytic Tools: An in-house built analytic platform for institutional investors and sophisticated investors.
+ Research Services: A team of seasoned professionals delivering market research, company research and market entry services. Clients include Fortune 500 company.
B. Research Services
+Our Research division has been established as an independent research house in Vietnam to provide local insights to our clients at quality standards of the World’s prestige advisory firms.
+Our research team with a team of 5 experienced analysts and researchers with CFA Charterholders, ACCA Chartered Accountants and MBAs with extensive experience in investment, banking, corporate finance and technology with well respected firms in the United Kingdom, Australia and Vietnam.
+Our research services consists of : Standard research reports (ready for sales via our website www.stoxresearch.com).Customisable services based on specific requirements. +Our team covers all key sectors of Vietnam including Financials, Logistics, Healthcare, Homebuilding, etc .
+Our research clients are mostly foreign institutional investors and industry players who are penetrating into Vietnam.

We provide sector research reports for all key industries as well as comprehensive analysis and local insights customized for your Vietnam market entry solutions. Our research services include:
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Industries we regularly cover
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