Industry Report: Feed Products in Vietnam

SPEEDA Industry Report

Our Industry research reports, provides you fundamental understanding of hundereds of industries ranging from major to niche sectors, including new tech-focused trends. Reports organized by Asia-focused countries, are logically structred to cover key information such as market size, value chain, key regulations, competitive landscape and more.

Users can utilise the industry report to get a birds eye of the industry quickly (covered within 3,000 words) , also combining with our extensive private company database to further understand key players and trends related to the specific industry.

The report focus on below 3 key segments of the industry which assist users with understanding where to focus on for further deep-dive research.

Report Overview - Feed Products in Vietnam

Salient Nature/Key Features of the Industry

• Vietnam is a top 10 feed producer in APAC (4% of APAC's total feed production, 2020). The industry is heavily skewed towards animal feed (vs. aquaculture feed), being driven by the country's long history in the livestock sector
• Feed production remained resilient despite multiple challenges over 2019-21, attributable to continuing strong growth in meat production (during COVID-19) and shift to poultry consumption/production and away from pork (during African Swine Fever)

Value Chain/Business Model

• The industry is heavily dependent on imported raw material, which accounts for 70% of total input requirement, making Vietnamese feed products highly susceptible to import price risks
• By geographical distribution, feed mills are mainly concentrated in the regions where international seaports are located (Red river delta, Mekong river delta) to facilitate imported material procurement
• The feed industry is highly fragmented and dominated by foreign players, which account for ~65% of the market share as of 2020 due to their cost-effective supply chain and integrated business model (feed-farm-food)
  
  
  

Value Chain of the Vietnam Feed Product Industry

Others:

• C.P Vietnam (VNM) holds the commanding ~20.0% market share lead, followed by Cargill Vietnam (VNM) at 8.0% in 2020
• Large foreign integrated players have been expanding their production and market shares over 2020–21 whilst smaller domestic players, being more heavily impacted by the COVID-19 pandemic, struggled to keep up

Report Index

Industry Overview

• Top 10 Feed Producer in Asia Pacific Despite Being Heavily Dependent on Imported Raw Materials; Fragmented Market Dominated by Foreign Players
• Vietnam Amongst the Largest Feed Producers in Asia Pacific, with Animal Feed for Pigs Dominated the Sector Driven by High Domestic Pork Consumption
• Integrated Farms Dominate Domestic Feed Production; Imported Corn The Dominant Feed Ingredient Demand
• Industry Depends Heavily on Imported Ingredients, Resulting in High Import Price Risk
• Feed Industry Unlikely to Have Major Impact by EVFTA; Government Initiative to Expand the Feed Export Market and Quality Control

Market Trends

• Feed Production Resilient Despite COVID-19 and African Swine Fever Impact, Expected to Continue Growth Momentum Driven by Livestock Production
• Imports of Feed and Feed Ingredients Recovered After Being Affected by Falling Pork Price; Corn Remained the Most Imported Feed with Rapid Growth

Competitive Trends

• Foreign Players Dominate Fragmented Industry Due to Higher Production Capacity and Advanced Technology; Integrated Foreign Players Expanding Capacity Amidst COVID-19 Whilst Domestic Players Struggled
• Increasing Participation and Production Expansion by Both Local and Foreign Players
  • C.P. Vietnam Corporation: Market Leader in Feed Products
  • Vietnamese-French Cattle (Proconco): Leading Local Player
  • Greenfeed Vietnam Corporation: Major Domestic Player

Full report is only available for SPEEDA subscribers. To review the report, apply for free Trial HERE