Vietnam a sweet spot for exports

WHEN it comes to Asian ­opportunities for agriculture exports, Vietnam may be the sweet spot.

It has one of the fastest-growing economies in Asia, with a young population that is increasing its consumption of wheat, dairy and beef.

According to ANZ Bank Vietnam chief executive Dennis Hussey, the Asian ­nation only “opened for business” in the mid 1990s when the US lifted trade sanctions after decades of war and ­conflict.

But he said the nation had been making up for lost time.

Mr Hussey said Vietnam’s gross domestic product had grown by about 6.5 per cent a year in the past decade, and the bank predicted this to ­increase to 6.9 per cent this year.

“But this is below what we think the Vietnam economy could achieve,” he said.

Market: Vietnamese demand for Australian live animal exports has jumped. Picture: Emma Field

Ernst & Young Vietnam partner Vin Du Tran said the economy was growing fast, but agriculture had little room for expansion due to restrictions on selling farm land and population pressures.

“The biggest weakness in Vietnam is we have very small farms, yet there is a big population to feed,” he said.

Vietnam has the fastest-growing middle and affluent class in the cluster of Asian nations known as ASEAN and the country’s middle class is predicted to rise from 12 million people in 2012 to 33 million in 2020.

Singapore-based ANZ Bank economist Weiwen Ng said household consumption would double from 2010 to 2025.

And by 2020, Vietnam’s average income would rise from $1400 in 2012 to $3400 a year.

According to Meat and Livestock Australia, Vietnam is already an important live animal export market for Australia, but demand has jumped in recent years.

“In the past decade the ­demand for protein in Vietnam has been stuck, but from 2013 it has increased rapidly,” Mr Ng said.

Wheat consumption is also expected to increase — currently Vietnamese ­on ­average consume 10kg a person ­annually, which is one of the lowest figures in the region. Indonesians consume 16kg a head and South ­Koreans 62kg a head ­annually.

Khoa Le

Source: Weekly Times Now