Analysis Reports

Vietnam Agricultural Market Overview

MARKET SNAPSHOT

Vietnam had a gross domestic product (GDP) of US$186.2 billion in 2014, which is expected to grow by 11.7% in 2015,
Vietnam is the fourteenth-most populous country in the world with 91.6 million people. The population is expected to reach 94.1 million by 2017. Annual per capita consumer expenditure was US$1,285 in 2014, with food and non-alcoholic beverages representing US$453 or 35.2% of that total.
The consumer foodservice industry is expanding alongside a rising middle-class population, and is forecast to reach total value sales of US$60.3 billion by 2018. With growing disposable incomes, Vietnamese consumers are seeking products that offer convenience. Packaged food sales continue to grow rapidly, and are expected to reach a value of US$17.2 billion by 2019.
The top packaged food company in the market is currently PepsiCo Inc with a 25.1% value share, followed by Tan Hiep Phat Group (17.5%) and JG Summit Holdings Inc (10.6%).
The agriculture sector employs 47% of the workforce and is estimated at 18.4% of GDP. Agriculture’s share of economic output is expected to decrease as the country moves toward economic modernization.

2559 10

General Assessments 2015: Agriculture, Natural Resources And Environment

By 2010, agriculture's share of gross domestic product (GDP) was 20% but is declining, while output is expanding and the sector remains a key contributor to exports (accounting for 25% of export value) and employment (70% of rural households). Although agriculture is increasingly becoming a part-time activity, the sector continues to provide a safety net for rural people in Viet Nam. Rice continues to dominate production. From 1990 to 2008, the area under rice cultivationgrew by about 20%, but national production almost doubled. By 2008, in addition to 6.6 million hectares (ha) of rice, over 3 million ha are planted in perennial crops, and over 2.1 million ha in annual crops.

1703 2