Food Service - Hotel Restaurant Institutional

An Expert's View about Food Services in Vietnam

Posted on: 28 Dec 2012

This report provides information regarding developments in the Hotel, Restaurant, and Institutional (HRI) food service sector in Vietnam.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/14/2012 GAIN Report Number: VM2066 Vietnam Food Service - Hotel Restaurant Institutional December 2012 Approved By: Michael Ward Prepared By: Truong Minh Dao and Lisa Bennett Report Highlights: This report provides information regarding developments in the Hotel, Restaurant, and Institutional (HRI) food service sector in Vietnam and provides a road map for exporters wishing to enter the food service market. During the current worldwide economic slowdown, Vietnam’s GDP grew by 5.9 percent in 2011 (a strong, albeit lower level than previous years) and will likely slow further in 2012 to an estimated 5 percent. However, rising disposable incomes, urbanization, government policies encouraging market liberalization, changing consumer preferences, and growth in the tourism sector have all contributed to strong growth in the HRI food service sector making Vietnam an attractive market for U.S. consumer oriented food and agricultural products. Post: 1 Hanoi SECTION I. MARKET SUMMARY Over the last few years, a combination of strong economic growth, strong tourism growth, rising income levels (particularly disposable income), a growing middle class, a sizeable and growing youth population, and increasing exposure to Western lifestyle has fueled the rapid growth of the Hotel, Restaurant, Institutional (HRI) food service sector in Vietnam. Vietnam’s dynamic, young, and educated population of over 88 million is the driving force behind food service sector and processed food product consumption. From 2001 to 2007 the economy grew at a rate of more than 7 percent per year, the second highest growth rate in Asia. During the current worldwide economic slowdown (2008- 2011), Vietnam GDP growth was still strong at an annual average rate of 6.1 percent but has since slowed down further to an estimated 5 percent in 2012. During 2006-2011, tourism sector growth has outpaced broader GDP growth at an estimated annual average rate of over 10.5 percent (in term of number of foreign visitors) and over 18 percent (in term of tourism revenue), contributing $6.3 billion to the economy in 2011. It is expected that the sector will earn a record of $6.7 billion in 2012. Efforts by the Government of Vietnam and media has risen the public’s awareness of food hygiene and safety, and Vietnamese consumers, especially those in urban areas, prefer to visit foodservice outlets that can offer both convenience and assured food hygiene and safety. In fact, food safety and hygiene has become one of Vietnamese consumer’s most important concerns when making food purchase decisions. Vietnam’s HRI food service sector consists of over 540,000 outlets including over 430,000 street stalls/kiosks; 7,000 fast-food restaurants; 80,000 full-service restaurants; 22,000 cafeterias/bars; and more than 12,500 hotels and resorts. The total consumer food service sales in Vietnam achieved an average growth of 8.8 percent per year during 2005-2011, and are forecast to grow at a slower, but still strong, rate of 5 percent during the next five years. Despite the recent worldwide economic slowdown and Vietnam economic slowdown, the outlook for high-value food and beverage exports to Vietnam is still very promising. Hotels and Resorts: The hotel and resort subsector has grown over the last six years, and is expected to continue to grow in future years as the Government of Vietnam continues to emphasize tourism in their economic growth plans. Tourists are a driving force in the demand for imported high-value food products from the hotel and restaurant industry. Foreign and domestic tourists in 2011 totaled 6 million and 30 million, respectively, up from 3.7 million and 16 million in 2005. The number of foreign tourists has been growing at an annual rate of over 10.5 percent during 2006-2011. Despite a decrease in foreign visitors in 2009 due to the global economic downturn (16% fewer compared to 2008), foreign visitors recovered in 2010 and reached a record 6 million in 2011. In 2012, there is optimism that the number of foreign arrivals and domestic tourists will set a new record, Vietnam's tourism industry expects to welcome 6.5 million international tourists and 32 million local visitors this year, generating an estimated $6.7 billion in revenue. The number of hotels (from standard to five-star hotels) has tripled since 2005 to over 12,500 hotels providing over 250,000 rooms. Local businesses and foreign invested businesses continue to invest in 2 developing hotels and resorts in Vietnam. A number of international tourism developers have set their sights on Vietnam as a development priority. The hotels and resorts subsector remains a potential entry-point for high-value U.S. food and agricultural products. Restaurants: Household-owned small outlets still dominate total sales of the food service sector. However, Quick Service Restaurants (QSR), Full-Service Restaurants (FSR), cafeteria/bars (CB), and catering service companies have all experienced growth in recent years. Nationwide food service sales reached a record estimated $24.3 billion in 2011 (Source: Euromonitor’s data with a fixed exchange rate). Independent cafeteria/bars and full-service restaurants have sprung up around new office buildings and living spaces in urban areas to cater to an increasing modern, urbanized demographic. Asian fast food still dominates the QSR sub-sector; however western fast food chains have experienced strong growth and are likely to continue to grow in future years as chains continue to open more and more outlets in Vietnam’s major cities. “Coffee house” culture continues to grow among Vietnamese youth and these venues are an important and growing outlet for imported bakery ingredients, syrups, and nuts. Vietnamese consumers are becoming more interested in Western cuisines or restaurants designed in Western styles. International and local tourists in Vietnam are expected to seek out food service outlets that can offer higher quality food items, and sophisticated menus and cuisines from different parts of the world in both major cities and Vietnam’s key provincial cities. Institutional Contract: Catering service companies in Vietnam range from small to large-scale businesses and serve consumers such as airline caterers, industrial parks, and individual parties (e.g. weddings, birthdays). In recent years, catering companies serving customers in industrial parks have consumed a large volume of imported frozen chicken meat and pork due to cost competitiveness when compared with local sources of protein. However, outside of imported protein, Vietnamese catering companies source the preponderance of their food from local sources, due to low cost competitiveness relative to imports. Trade Situation: In 2011, Vietnamese bilateral trade with the world grew substantially from 2010. Total bilateral trade (imports from and exports to the world) reached $202 billion, a year-on-year increase of 30 percent. Total exports were valued at $96.3 billion, an increase of 33 percent over 2010. Imports were valued at $105.8 billion, an increase of 25 percent over 2010. In the first ten months of 2012, the Vietnamese bilateral trade deficit with the world was virtually erased for the first time in 10 years, exports reached $93.5 billion, a year-to-year increase of 18.4 percent, while imports reached $93.8 billion, an increase of 6.8 percent (Source: Vietnam General Statistic Office). Consumption of imported consumer-oriented foods is expanding. Unofficial trade data indicates that Vietnam imported over $1.8 billion in consumer-oriented agricultural products and $300 million in edible fishery products as part of the estimated $8 billion in agricultural, fish and forestry products imports in 2011. Note: Given Vietnam’s porous borders and under-invoicing practices, it is difficult to estimate the actual level of consumer-ready food imports. U.S. food products are favored by consumers for their high quality, safety, innovation, and consistent supply. Exports of high value and consumer-oriented U.S. agricultural and food products to Vietnam have seen rapid growth in recent years. After hovering around the $20 million mark for several years, 3 exports grew to $408 million in 2008, dropped to $394 million in 2009 due to the global economic crisis, and then reached a new record of over $697 million in 2011, an increase of 30 percent over 2010. However, due to continuing economic sluggishness, U.S. exports of consumer-oriented agricultural products in the first nine months of 2012 were only $452 million, a slight decrease of 3.2 percent in comparison with the same period last year (see tables 1, 6, and 7 for more details). In the long term, U.S. exports of these products should continue strong growth as the Vietnam economy continues to grow; disposable income continues to increase, and the Retail, HRI, and tourist sectors continue to expand. The best export prospects for U.S. consumer-oriented agricultural products include dairy products (including ingredients for manufacturing), chilled & frozen meat (beef and pork), frozen poultry, fresh fruits, dried fruits and nuts, snack foods, confectionary, packaged foods (canned fruit & vegetables, canned meat), condiments, juices, seafood, and alcoholic drinks (wine, beer, spirits). Vietnam is nonetheless both an opportunity and a challenge for exporters. At times, the maze of seemingly conflicting regulations may seem a formidable barrier to trade, but the country is evolving and becoming more business-friendly. The improved economic environment owes much to Vietnam’s integration into the global trade community. Vietnam is an active member of ASEAN, became the 150th member of WTO in January 2007, and has recently concluded Free Trade Agreements (FTAs) with many important trading partners including ASEAN, ASEAN-China, ASEAN-Korea, ASEAN- Japan, ASEAN-New Zealand-Australia, ASEAN-India, and Vietnam-Chile. These efforts have pledged to not just lower import tariffs, and eliminate quotas, but also to increase market access for goods and services, strengthen IPR protection, help enhance legislative and regulatory transparency as well as commercial dispute settlement and trade facilitation. The following factors and demand drivers affect the food service market: Vietnam’s economy has enjoyed remarkable growth in the past five years averaging 7.0 percent per year. During the current worldwide economic slowdown, Vietnam remains one of the five growing economies in Asia, but growth slowed to 5.9 percent in 2011 and is expected to further slow to 5 percent in 2012. With the economic slowdown, Vietnam’s consumer market is expected to slow as well. Vietnam inflation was very high in 2011 (over 18 percent), which made consumer confidence weaker than previous years. In 2012, GOV set controlling inflation and stabilizing the economy the top priority. With strong effort from GOV, inflation has fallen below 10 percent in 2012. GOV continues to work towards market liberalization and further reforms to the legal, financial, and institutional systems as well as state-owned enterprises which limit overall growth potential and contribute uncertainty to the macro-economic climate. Due to the economic slowdown and macro-economic climate, many enterprises closed or went bankrupt during 2011-12. Bankruptcy cases were 49,000 in 2011 and are expected to reach 100,000 in 2012 (note: 53,000 enterprises were closed in the first six months of 2012 alone). Sectors of the Vietnamese economy were impacted unequally by the global economic crisis. 4 For example, expenditure on food and beverages (including retail) by Vietnamese consumers remained strong and, in fact, increased. The number of foreign visitors and foreign remittances also increased in 2011. Tourism and foreign remittance income are vital sources of foreign exchange for Vietnam. The tourist sector’s revenue was estimated at US$ 6.25 billion in 2011 and is expected to earn $6.7 billion in 2012. In 2011, Vietnam also received $9 billion in foreign remittance income from Vietnamese living abroad. Foreign remittance income in 2012 is expected to increase by 10 percent to reach $10 billion. With a population of 88 million people, Vietnam has the second largest population in Southeast Asia and the 8th largest in Asia. The education level of the population continues to rise steadily and over half of the population is under 30 years of age. Both of these factors will drive demand for HRI food service in the future. Vietnam, with the smallest urban population in Asia (about 30 percent of the total population), has started seeing significant rural to urban migration as the economy becomes more industrialized and urbanized. New food outlets are appearing around newly constructed office and living spaces. Five key urban areas, Hanoi, Ho Chi Minh City (HCMC), Hai Phong, Danang and Can Tho, play a vital role in Vietnam’s economy, accounting for over 30 percent of GDP. Vietnam has a large percentage of the female population in the workforce, especially within the 20-40 year old age bracket, making the female consumer ever more important. Vietnam’s per capita GDP has doubled in the last 7 years, reaching $1,350 in 2011. The Vietnamese urban middle- and upper-classes are emerging, and drive consumerism. Vietnamese urban consumers have busier lives, are dining-out more than before, and have greater demand for home food delivery service. Food service outlets are used for entertainment and socializing. Consumers pay more attention and concerns to food hygiene and safety when dining out. As of January 2007, foreign food service providers were allowed to establish joint ventures with Vietnamese partners, and as of January 1, 2009, totally foreign-owned retail outlets and franchises may be established. The government reserves the right, however, to determine the “economic need” for additional outlets beyond the initial one. Franchising has become popular in Vietnam and is considered to be the fastest way for foreign food service providers to enter the market. Vietnamese brands are increasing their market share. The key constraints to the development of the food service sector in Vietnam are low consumer income (despite recent gains), a very high cost of land rental in urban areas leading to fiercer competition for 5 locations, expensive electricity, competition from local production and other countries, the current worldwide economic situation, Vietnam economy slowdown, and continued threat of high inflation stifling incomes and consumer confidence. Table 1: Advantages and Challenges Facing U.S. Products in Vietnam U.S. Advantages Challenges for U.S. Exporters Increasing incomes and a rapidly-growing Price-sensitive consumers. Significantly higher shipping middle class enamored with American culture costs and transportation time than Asia and Oceania. (music, movie, fashion) which carries over to American food. U.S. foods are recognized as high quality Strong preference to European (esp. French) and items and great value for the price. NZ/Australian foods due to America’s 20-year absence from this market. Low level of competition from some U.S Vietnamese urban dwellers are relatively slow to try new suppliers in the market. types of Western food. Vietnam’s accession to WTO in 2007 has Still-relatively-high tariffs, cumbersome and excessive helped reduce tariffs on several food items and customs requirement; non-science based sanitary and created a better business environment with phyto-sanitary requirements on animal, aquatic animal, more liberalized trading and service practices. and plant products persist and the regulations are slow to change. Low tariffs applied on food products imported from South East Asian (ASEAN) Countries; China, Japan, India, New Zealand, Australian, Chile under their respective Free Trade Agreements. Growing number of western-style fast-food U.S. exporters are often not flexible enough or responsive restaurant chains, bakeries and coffee shops, to importers’ needs or the local business environment. as franchising has been introduced, and the retail food sector now transitions to a more modern structure. Growing rural to urban migration. Limited infrastructure and distribution for perishable products (weak cold chain infrastructure) USDA’s Guarantee Export Credit Program, Limited/restricted supply of bank loans and foreign called GSM 102, has been available for use in exchange as well more fluctuation between the U.S. Vietnam since 2008. So far, nine Vietnamese dollar and the Vietnamese Dong could result in more risk commercial banks are eligible to use the for non L/C payment terms for sales of U.S. food program. products. SECTION II. ROAD MAP FOR MARKET ENTRY A. ENTRY STRATEGY Further information regarding Vietnam’s policies and regulations relevant to importing food and agricultural products is available in the FAS-Hanoi’s Vietnam Exporter Guide 2011 and the FAS FAIRS Export Certificate Report. Currently, the number of businesses specializing in supplying food and drink products directly to HRI food service sector is limited. There are fewer than ten professional companies serving this growing sector. Most of the current food and drink importers and distributors only do two steps of the distribution process; 1) importing the products and 2) delivering them to their wholesalers. They lack 6 the expertise and resources to deliver the products directly to end users (F&B managers at HRI food service outlets). Vietnam’s WTO commitment can pave the way for many foreign players to enter the HRI market, bringing innovative distribution and logistics techniques to the Vietnamese market. According to Vietnam’s WTO accession agreement, as of January 1, 2009, wholly foreign-owned food service retailers and franchises may be established without the need for a Vietnamese partner or Vietnamese investment, as was previously the case. However, the government of Vietnam still reserves the right to determine the “economic need” for additional outlets beyond the initial one. International HRI entities entering Vietnam through a franchising agreement with a Vietnamese partner are not required to determine the “economic need” of additional outlets. The best way for U.S. exporters of food and beverage products to enter the Vietnamese HRI market continues to be by appointing a local partner to directly import/distribute the products to the food service sector. The appointed local partner should be responsible to obtain the widest distribution for the imported products, as well as perform the marketing efforts needed to create product awareness among customers and chefs. Business relationships with food service operators and chefs are very important for success, and therefore regular visits with local partners, as well as, with key food service players/retailers should be a priority. It is critical for U.S. exporters to spend time and resources to study potential markets for products before initiating sales. They should also visit Vietnam to gain a first-hand feel for the market, preferably around the bi-annual Food & Hotel Vietnam Show (F&H VN) organized in Ho Chi Minh City (the next show is in April 2013). F&H VN is a USDA-endorsed trade show with a sizable U.S. pavilion. Exporters are encouraged to contact FAS-Hanoi or FAS-Ho Chi Minh City to assist with scheduling market briefings on the subsector the exporter is interested in and facilitating initial meetings with potential importers, major retailers, and key five-star hotel Food & Beverage (F&B) managers. Business culture in Vietnamese is very different from the U.S. with many different customs. Some of the most important aspects to consider include: Vietnamese prefer face-to-face meetings in the initial stages, with additional follow-up visits, phone calls, emails and faxes when appropriate. Initial face-to-face meetings without follow-up visits rarely result in sales. Sending offers and quotations without first establishing a relationship (cold calls) is highly unlikely to result in sales. Some Vietnamese entities are concerned that U.S. suppliers do not take enough time to understand their particular needs and constraints in order to build a successful commercial relationship. Vietnamese businesses may exhibit strong interest at the outset of business discussions and then start to lose interest when faced with difficulties in implementing the details. Are more sensitive about price than quality. Most local businesses are small or medium size companies that rely on bank loans to run their business, with loan sizes varying according to collateral. In times of credit uncertainty, 7 obtaining loans can be problematic. Tend not to pay close enough attention to trade policies and import regulations. When import regulations change, they often do not have accurate information about the changes which results in misinterpretation of those changes. For more accurate information, always refer to FAS trade reports and/or check with the local FAS offices. Quite often seek exclusive import and distribution rights; deferred payment terms (always risky); and large marketing budgets on new deals and new-to-market products. Vietnamese companies specializing in food import and distribution may have investments in other businesses (e.g. real estate, car dealership etc.). In certain cases, the food business may receive less attention, particularly in areas such as checking and responding to emails in a timely manner. Given this divided focus, such firms may be less engaged or focus more on the business with the better return and could discontinue areas of their enterprise that are not doing well without notice or explanation. Successfully introducing your products in the HRI market depends in large part on having a good local representative and an effective pricing strategy. The local partner should preferably be an importer and distributor capable of providing services to Vietnamese buyers (sales, delivery, and marketing) in both the food service and traditional/modern retail channels. A food supplier wishing to reach all Vietnamese consumers must work with modern food service operations, catering companies, as well as the wholesalers, street stalls/kiosks, small size independent outlets, open-air wet markets, and small shops. While HCMC, Hanoi, Haiphong, Danang, and Can Tho have a growing number of modern outlets, much of the country still relies heavily on traditional marketing channels. U.S. exporters who wish to reach their full potential in the Vietnamese market must service both the modern and traditional channels. U.S. exporters should consider the following before selecting an agent/a business partner: The agent/ business partner must have a good relationship with major food service operators (especially the F&B managers at higher-end hotels); major retailers; and an ability to deal with local regulators. The agent / business partner must have expertise in setting up a distribution network. U.S. firms should evaluate all distributor prospects, and thoroughly research the more promising ones. Check the potential agent’s reputation through local industry/trade associations (e.g. the American Chamber of Commerce in Ho Chi Minh City), potential clients, bankers, and other foreign companies. FAS-Vietnam maintains extensive lists of potential importers, which U.S. exporters are welcome to review. Note: As the number of businesses specializing in distributing food and drink products to the food service sector is small, face-to-face meetings with all of them does not consume a lot of time. A three- day visit to the market to meet with potential distributors would be worthwhile. B. MARKET STRUCTURE 8 Figure 1: Distribution channels of imported food into Vietnam Distribution of imported foods follows one of the four basic models: 1) Exporters Importers/Distributors  major food service operations 2) Exporters  Importers/Distributors  Wholesalers  food service operators and outlets 3) Exporters  Local Agent- Importers/Distributors  Wholesalers  food service operators and outlets 4) Exporters  Big food service chain (KFC, Lotteria, Jolibee, Pho 24, Trung Nguyen, Highlands Coffee) Model No.1 and No.2 are the most common practices in Vietnam. Due to relatively low purchasing power and limited access to extended trade financing, most food service operations buy imported food and drink products through importers/distributors. Only a few big chains like Lotteria, KFC have tried buying directly from foreign suppliers. 9 Vietnam’s limited distribution infrastructure and facilities for perishable products is a significant constraint to importing products. The distribution systems are often equipped with out-of-date technology, and transport products using inadequate or fragmented cold chains. C. SUB-SECTOR PROFILES Hotels and Resorts: The number of hotel rooms in Vietnam has tripled since 2004. In 2011, the country had 12,500 hotels and guesthouses with a total of 250,000 rooms (from standard to five-star hotels). Of the total, there are 53 five-star (12,120 rooms); 127 four-star (15,517 rooms); and 271 three- star hotels (18,855 rooms) (See Table 2). It is expected that the number of hotels and guesthouses could reach more than 13,000 (270,000 rooms) in 2012 due to strong investment from both local businesses and foreign invested businesses in this field. There has been a significant increase in the number of resorts along Vietnam’s beautiful coastal areas over the last 5 years. Many resorts have been built in Ba Ria, Vung Tau, Mui Ne, Nha Trang and Da Nang, and Vietnam reportedly now has over 100 resorts nationwide. New projects to develop hotels, resorts, and golf courses continue to be approved by the Vietnamese government despite the worldwide economic downturn. The growth in the number of high-end hotels and resorts also helps spur demand for imported high-quality foods and drinks. Table 2: Vietnam hotel types and number of rooms in 2010 and 2011 2010 2011 Units Number of rooms Units Number of rooms Totals, of which: 12,000 235,000 12,500 250,000 5-star 31 8,196 35 8,810 4-star 90 10,950 95 11,628 3-star 175 12,524 184 13,168 2-star 710 27,300 N/A N/A 1-star 850 19,000 N/A N/A Standard 3,000 44,030 N/A N/A Source: Vietnam Administration of Tourism The majority of international tourists arrive to Vietnam by air. Vietnam has only three international airports, namely Tan Son Nhat in Ho Chi Minh City; Noi Bai in Ha Noi; Da Nang Airport in the central of Vietnam. These airports have been recently upgraded to meet with the international standards. With over 3,000 km of coastal waterways, Vietnam is an ideal place to receive tourists via cruise ship. Over the last three years, the number of cruise ships bringing tourists to Vietnam has increased. According to unofficial reports, about 100,000-150,000 tourists come to Vietnam by sea annually. Main destination ports are Saigon port, Quang Ninh port, Da Nang Port, and Phu My Port. Table 3 is a partial list of some of the five star hotels, and resorts that are currently operating in Vietnam. Most of the hotels source their food and beverage products from a combination of importers, distributors, and local sources. The American Chamber of Commerce in Vietnam is a valuable source of information and provides company profiles and contact information for some of the companies in Table 3 ( 10 Table 3: Partial list of Five-Star Hotels in Vietnam Company Name Hotel Name/ Number of Locations Van Thinh Phat Windsor Plaza Hotel, HCMC; 6 restaurants in HCMC, Sherwood Residence Building Caravelle Caravelle Hotel, HCMC Hyatt Park Hyatt Saigon, Hyatt Regency Danang Brands include Sofitel (4 locations), Novotel (4 locations), Mercure (4 locations), La Accor Asia Pacific Residence Hotel & Spa in Hue Victoria Hotels & Resorts Group Sapa, Hoi An, Phan Thiet, Can Tho, Chau Doc, Siem Reap (Cambodia) Sheraton Hanoi Hotel; Sheraton Saigon Hotel & Towers; Sheraton Nha Trang Hotel & Sheraton Spa Green Island Hotel, Danang; The Imperial Hotel and Apartments, Vung Tau; Celadon Celadon International Palace, Hue; Celadon Lighthouse Plaza, Nha Trang Equatorial Hotel Equatorial, HCMC Life Resort Qui Nhon, Danang, , Hoi An, Halong, Phan Thiet New World Hotel New World Hotel, Saigon, HCMC Hanoi Landmark; Hanoi Westlake; Asiana Saigon, HCMC; Asiana Saigon Residences, InterContinental (IHG) HCMC; Crowne Plaza Tây Hà Nội. Majestic Hotel Majestic, HCMC Mariott Renaissance Riverside Saigon, HCMC & the Mariott in Hanoi Swiss BelHotel Golden Sand Resort & Spa, Hoi An; Mithrin Hotel, Halong Bay Movenpick Hotel Hanoi; HCMC With a sizeable expatriate community (especially in Hanoi and HCMC), growing international visitor traffic, and rising disposable income for Vietnamese consumers, the number of high end hotels and resorts and demand for high value food products should continue to grow in the coming years. Restaurants: A combination of strong economic growth, strong tourism growth, rising disposable income, a growing middle class, a sizeable young population, and an increasing exposure to a Western lifestyle are fueling growth of the restaurant sub-sector in Vietnam. Over the last five years (2006-11), consumer food service sales in Vietnam achieved an average growth of 8.8 percent per year. Food service sales are expected to continue growing over the next five years, although at a lower rate. Vietnamese consumers are becoming more interested in Western cuisines or restaurants designed in Western styles. More consumers in urban areas are shifting from eating at the ‘traditional small outlets’ to ‘modern’ high-end outlets. Table 4: Vietnam’s estimated consumer food service sales over the past six years 2006 ed growth (%) 2007 2008 2009 Averag 2010 2011 over the period Total outlets (1,000) 496.8 514.9 528.6 536.2 543.0 549 Turnover (VND T 346.6 389.2 432.9 465.0 499.8 500.6 8.8 rillion) Turnover (USD 21.67 24.18 25.97 26.15 26.21 24.26 bi llion equivalent) Source: Euromonitor data, Fix Exchange Rate, and Post Estimates Nationwide consumer food service sales were estimated at $24.26 billion in 2011. The restaurant sub- 11 sector continues to expand due to strong demand from both Vietnamese urban consumers and foreign tourists. The food service sector is expected to see further development in terms of growth and sophistication. For example, the number of outlets should continue to grow due to demand in new urbanized areas. Tougher competition will cause most outlets to diversify their menus, offering new items to customers. Services are expected to be more diversified and professional, and marketing efforts should be more focused. Eating habits have changed and eating out is more popular for busy Vietnamese urban customers. Family-owned individual small food service outlets (street stalls/kiosks, small restaurants, small catering companies) continue to dominate the food service market, often locally sourcing their products from wholesale wet markets. However, urban customers visit modern food service outlets more often than before to socialize with friends and/or business partners. As incomes increase, people increasingly demand more sophisticated food and drink menus at higher-end restaurants. Urbanization will pave the way for modern outlets to develop in Vietnam. New living areas and office buildings will lead to greater demand for modern retail and food service outlets. Many foreign investors have launched large scale construction projects in Vietnam which will further drive urbanization in the country. The Government of Vietnam has also encouraged urbanization, approving a large number of construction projects of new residential areas, office buildings, shopping centers, and supermarkets in major cities and provinces. Quick Service Food (QSF) is perceived as a modern concept, and has grown substantially the last three years. After a long period of striving for success in Vietnam, multinationals such as KFC, Lotteria, and Jolibee have started to turn a profit. In two-years time, KFC and Lotteria have doubled their numbers of stores in Vietnam. Each currently has over 120 outlets in Vietnam. Newcomers, including Carl’s Junior, Subway, Popeyes, and Burger King, have also opened a few outlets. McDonald’s has also visited Vietnam with an eye towards opening it’s first stores in the country. QSF outlets associated with Western eating habits have become popular among students, young office workers, teenagers, and children. The number of coffee chain outlets (e.g. Highlands Coffee, Trung Nguyen Coffee Company, Gloria Jean’s, Coffee Bean & Tea Leaf etc.) has also increased in the last four years. Independent Western and Asian restaurants have also seen rapid growth. Table 5 provides a list of QSF brands in Vietnam. Although domestic players continue to dominate food service in Vietnam, competition between domestic players and multinationals has become intense. Chained outlets have seen faster growth due to the improvement in legislation and regulation relating to franchising and the consumer perception that food served at chains is of better quality. Table 5: Restaurant Company Profiles Outlet Name, Type, & Purchasing Company Name Number of Outlets Cuisine Type Location Agent(s) KFC Viet Nam, Quick- Importers, Service Restaurant (130) QSF Western fast distributors, local Yum! Brands Pizza Hut (22) food National sourcing of products Importers, Jollibee, Quick-Service QSF Western fast distributors, local Jollibee Restaurant (50) food National sourcing of products 12 Importers, Pho 24, Food service distributors, local Nam An Group and beverages (60) Vietnamese National sourcing of products Trung Nguyen Coffee Importers, Trung Nguyen Coffee Company (many small distributors, local Company Ltd. outlets, over 1,000) Cafeteria National sourcing of products Viet Thai Highlands Coffee (80), International Importers, International Joint Full- service restaurant Cafeteria; western distributors, local Stock Company Hard Rock Café (1) food National sourcing of products Importers, Vietnam Lotteria distributors, local Company Ltd. Lotteria (120) Western fast food National sourcing of products Jaspas (4), Al Frescos International/ Hanoi, Ho Importers, Al Frescos Group (11), Pepperonis (11), Western Asian Chi Minh distributors, local (Institutional) Papa Joes (4) fusion City sourcing of products Van Thinh Phat Windsor Plaza Hotel, Importers, (Hotel, Restaurant, Sherwood Residence, International and Ho Chi distributors, local Institutional) restaurants (6) Vietnamese Minh City sourcing of products Imex Pacific Burger King (5) QSF National Importers, Domino Pizza (3) Western Fast Food distributors, local Popeyes (1) sourcing of products Sales results at “high-end outlets” (high-end full service restaurants, fast food chains, cafes/bars and catering services) is still small but growing fast. While it currently has a relatively small share of total food service sales, high-end outlets should continue expanding over the next five years. As mentioned in the market summary, key constraints to the development of the food service sector in Vietnam include low consumer income (despite recent gains), very high cost of land rental in urban areas leading to fierce competition for locations, expensive electricity, and the current worldwide economic slowdown. Fierce competition in the restaurant sub-sector, especially between chains and independent / standalone outlets has pushed operators to broaden the variety of services available (e.g. newspapers, free Wi-Fi internet, shoe polishing, etc). Recent years have seen an increase in extensive advertisement and promotions, both meant to attract new customers and to maintain the interest of existing customers. Below are the trends in the Restaurant sector: Urbanization and franchising will pave the way for modern outlets to develop. Diversification is likely to be a key trend as Vietnam sees increasing urbanization. More outlets have increased the amount of food services offered, especially during breakfast and lunchtime. This trend is especially evident in cafés/bars that traditionally only offered drinks, where food now accounts for over 20% of total sales. Increased attention to location and decor of the outlets. Outlets will be designed to promote convenience and a relaxing environment for customers. More value-added services will be offered. Take-away service and free Wi-Fi internet access are offered at many modern food service outlets. Large buildings (housing offices, residences, and supermarkets) often have dedicated spaces for a variety of food service operations. Cafeterias with big kitchens and modern interior decor can be found almost everywhere in 13 major cities. Many new food service operations are opening, not only in major cities, but also in provinces receiving tourists and through urbanization projects. The growing tourist industry is pushing more provinces to develop their modern service sectors, including the food service sector. The leading food service chains continue to expand across Vietnam. Fast food chains are expected to open outlets in smaller cities as well. A wide range of new tastes and eating habits will be introduced. More sophisticated taste for a wider assortment of products is expected to develop. Institutional: Catering businesses range from small to large-scale businesses and are categorized to serve the following customer groups: airline caterers, industrial parks, individual parties (wedding, birthday). These catering services use both local and imported food products, depending on their customers’ requirements. Imported products, include chicken meat, pork meat, French fries, sauces and seasonings, cheese, fresh fruits & vegetables, and seafood. Note: in recent years, catering companies serving customers in many industrial parks consume a large volume of imported frozen chicken meat and pork. SECTION III. COMPETITION Vietnamese consumer confidence in Western products is high. The Chinese milk scare in 2008 and subsequent food safety scares have caused concern among Vietnamese consumers and fosters an awareness of food quality and safety. The perception of American-made goods is one of premium quality and should continue to be a characteristic emphasized when promoting U.S. products. Vietnam’s trade infrastructure and general level of economic development are expanding quickly but are still undeveloped even when compared to most of its Southeast Asian neighbors. Brand awareness remains similarly undeveloped. U.S. products will therefore face varied opportunities and challenges. Establishing an early base during Vietnam’s developing stage is essential for future success. The biggest competitors for U.S. foods in the food service market are France, Australia, New Zealand, South America (Argentina, Chile etc.); some ASEAN countries; China and the local food industry. It is important to note that most food products from China and other ASEAN countries enjoy lower tariffs than U.S. products. Table 6 shows competitors for Vietnamese import market share for selected consumer-oriented agricultural products. Table 6: Competition for U.S. Exports to Vietnam (Selected Products): Major Supply Sources and Total Value of Advantages and Product Exports in 2011 Strengths of key Supply Dis advantages of Local Category (thousands of dollars) Countries Suppliers Poultry Meat Thailand is much closer to the Vietnamese consumers USA Vietnamese market and has are accustomed to the – 99,415 Brazil – 10,000 cheaper shipping costs. USA taste of local chicken. Korea poultry products are considered Accustomed to buying – 7,000 to be of consistent supply and chicken from the wet of high quality. market. Red Meats India (includes buffalo) USA beef products are Local pork industry is 14 Fresh/Chilled 58,000 believed to be of consistent very strong. In general, Australia - 21,000 high quality. Canadian and local pork is cheaper than USA – 199,000* Australian red meats also are imports. Local beef perceived by consumers to be production is limited and of high quality. Price of its quality is not great. Buffalo meat from India is Aslo local beef prices very reasonable in comparison have been increasing to the local bovine supply recently. Snack Foods Indonesia- Many big name snack food Local industry is still 60,000 brands have processing small but growing fast Philippines - facilities throughout Asia and 20,000 export their product from those T hailand – countries. 12,000 Fish and Norway – 33,000 Many of these competitors Local production is very Seafood Japan – 30,000 benefit from proximity to strong in seafood from Products USA – 16,000 Vietnamese market. Norway tropical climates like supplies mainly salmon, and catfish, tiger shrimp, Tuna flatfish and groundfish. USA etc. supplies mainly crustaceans. Fresh Fruits China – 70,000 Competitors like China and There is a wealth of fresh Thailand – 39,000 Thailand enjoy lower price fruits available to USA – 37,000 levels and proximity to the Vietnamese consumers Vietnamese market. from the local market. Fruit & Australia – 2,000 Made-in-USA is a symbol of Fresh-made juices are Vegetable USA – 2,800 high quality and consumers popular in Vietnam and Juices Brazil - 2,750 appreciate the quality of US more preferred to bottled juices. Australian juices juices. currently proximity and ease of transport. Juices imported from South Africa and SEA countries are more competitive than US juices. Fresh China - 132,100 China enjoys proximity and There are a lot of local Vegetables USA - none reported low import duty for vegetables fresh vegetables to the Vietnamese market. available. Vietnamese U.S. trade in this area is consumers are underdeveloped. accu stomed to buying fresh vegetables from the wet market. Processed China – 32,000 Top competitors enjoy Non-tropical fruits are Fruit & USA – 15,000 proximity to the Vietnamese imported from other Vegetables Malaysia – 3,500 market. countries. Thailand - 3,000 Tree Nuts Australia – 7,300 Australia enjoys proximity to Cashew is the USA – 2,000 the Vietnamese market. USA predominant local tree nut products are different than available. what is available locally. Wine France – 6,200 Strong preference for French Local wine industry is Chile 4,600 Australia wine and Chilean wine. still very young stage 2,000 USA – 2,000 Beer Thailand – 5,000 Netherlands, through Local beer production has German- 900 USA – 445 Heineken, enjoys the highest strongly expanded as a awareness among Vietnamese result of a great deal of 15 consumers. US beer, through foreign investment. Budweiser, has become more Brands are Saigon beer, popular in urban areas of Hanoi beer, Heineken Vietnam. (locally produced), Tiger, San Miguel, etc. Source: Vietnam Customs Data, World Trade Atlas, USDA/BICO reports *Represents total red meat exports landed in Vietnam, may not represent U.S. red meat consumption in Vietnam. SECTION IV. BEST PRODUCT PROSPECTS Table 7 shows annual U.S. export growth in the Vietnamese market, import tariff rates, key market development constraints, and market attractiveness for U.S. exporters of selected products. Many of the selected U.S. exports experienced growth in 2011 but have declined in the first 9 months of 2012 due to the economic downturn. However, some products, including tree nuts, eggs and egg products, fresh fruit, processed fruit and vegetables, wine and beer, and other consumer oriented products (primarily frozen food preparations) enjoyed positive growth during the first 9 months of 2012. Overall U.S. exports of consumer oriented food products has declined 4 percent in the first 9 months of 2012, compared to the same period in 2011. A. Products Present in the Market which have Good Sales Potential U.S. chilled and frozen meats are currently present in the Vietnamese market and have had spectacular growth over the last few years. While the worldwide and Vietnam economic downturns may reduce demand for these products in the short-run, chilled and frozen meat continue to have good sales potential. Other U.S. products that are already present in the Vietnamese market and continue to have good sales prospects include dairy products, fresh fruit, dried fruits and nuts, beer and wines. The next most important U.S. sales items in the food service sector are processed fruit and vegetables and other canned foods (mixed fruit cocktail and canned meat). Some of the best selling processed foods include frozen French fries, snack food (potato chips); biscuit/crackers, popcorn, baby foods, condiments (dressing, sauces), beer and wine. B. Products Not Present in Substantial Quantities, Which Have Good Sales Potential There are good opportunities for sales of other U.S. high value items. Many of these are not yet in the market in significant quantities. These include pears, cherries, snack foods (other than potato chips), dried fruits (other than raisins) and nuts (mainly almonds and pistachios), fresh potatoes, fruit juices, and chocolate. C. Products Not Present, Which Face Significant Trade Barriers American products that have not sold well in Vietnam include cheese and bourbon whiskey, to name a few. Whiskey faces a high import duty and public advertising restrictions which make it difficult to develop brand awareness. Vietnam is now a growth market for imported cheeses, as the QSF subsector is growing fast and consumer demand for cheese is increasing. However, French, New Zealand, and Australia dominate the cheese due to consumer preference and geographic proximity. Awareness of U.S. cheese quality and supply among chefs and consumers remains limited. However, due to the meteoric rise of the QSF sector in Vietnam, there remains major potential for U.S. cheese products. Table 7: Product Prospects in the Vietnamese HRI Food Service Market Products Impor 2011's 2011's 2011 US % Key Market 16 t Duty estimated U.S. Marke Exports Growt Constraints Attractivenes Vietnam Exports t share Jan- h over over market s for US Import ($1,000) of U.S. Sep Jan- development products ($1,000) (%) 2012 Sep 2011 Cheese 10% 18,000 360 2.0 263 46 Strong No domestic competition production. from New Recent Zealand and reductions in Australia import tariffs. Young consumers drive cheese demand. Western- styled Fastfood Restaurant Sector is growing fast Popcorn 5%- 1,200 668 55.7 692 72 Strong Young (HS100590) 30% competition consumers from drive popcorn Argentina demand. Popcorn becomes more popular. Growing number of mode rn cinemas in urban area and growing number of modern retail outlets support US popcorn sales Condiments 32% 25,000 650 2.6 591 4 Strong The growing (HS2103) competition HRI, from SEA especially fast and food sector, Australian and growing products and retail sector also from US strongly brands which support US are made condiment outside of the sales. US. Wine 50% 20,000 21,68 NA 13,103 21 There are a More and -55% 0 variety of more low priced, consumers locally prefer wine produced than beer and wines and spirits. More heavy import dining out. tariffs. Fast growing Strong HRI sector competition and re tail especially sector. from France and Italy, and Chile, Australia, South Africa, and Argentina. Vegetable 15% 3,000 1,660 55.3 1,157 -3 Domestic More and Preparation availability more dining 17 (mainly of potatoes. out. Fast potatoes -HS Competition growing HRI 2004) from Holland sector, and especially Belgium. QSF fast food, Fragmented and retail cold chain, sector. inadequate handling. Beer 35% 9,000 445 4.9 453 465 There are a One of the variety of fastest- low priced, growing locally sectors in produced Vietnam's beers and heavy import tariffs. Strong competition from Holland, Germany, and SEA countries. Raisin (HS 12% 5,491 4,312 78.5 2,650 83 Strong Raisins are 080620) competition increasingly from China. popular. Need Potential for considerable marketing market other dried development fruit (e.g. for other cranberries) dried fruits especially as inputs for baked goods. Snack Foods, 12% 120,00 8,452 7.0 6,060 20 Subject to Potato chips, Cookies, -40% 0 stiff import nuts, biscuits, Chocolates tariff rates and cookies (averaging 32 are especially percent). popular. Expensive for many consumers. Fruit Juice 20% 12,000 3,170 26.4 1,867 -23 Competition Consumption (HS 2009) -35% from of juices is Australia, increasing as South Africa, consumers are and SEA pay ing more countries. attention to maintaining a healthy diet. Apple (HS 10% 45,000 17,85 39.7 8,882 11 Domestic Apples from 080810) 7 availability USA, of fresh especially fruit. Fierce from competition Washington from China, State are Australia, becoming New increasingly Zealand, popular. South Africa, and Chile. Fragmented cold chain, inadequate handling. Pork Meat 10% 10,000 6,732 67.3 2,653 -47 Domestic Pork meat -25% availability consumption of pork will continue 18 meat. to increase Competition due to from increasing Canada. population, Fragmented growing food cold chain, processing inadequate sector and handling. also HRI. Whiskey & 48% 40,000 8,256 20.6 14,743 125 There are a Increasing Spirits variety of middle class (HS2208) low priced, and improving locally disposable produced income drive spirits and demand for heavy import wh iskey and tariffs. spirits, more Strong and more competition clubs and bars from France, operate in Scotland. urban area. Table Grapes 10% 32,000 15,86 49.6 8,653 19 Domestic Grape from (HS 080610) 4 availability USA is well- of fresh known for its fruit. Fierce high quality competition and its from China, consistent Australia, supply. South Africa, and Chile. Fragmented cold chain, inadequate handling. Food 5%- 120,00 29,63 24.7 25,063 39 Competition Consumers Preparation, 20% 0 2 from concern more Functioning Australia, about food Foods (HS New Zealand safety and 2106) and EU. health, which d rives more demand for nutritional and healthy products. Seafood (HS 10% 300,00 37,94 12.6 20,988 -13 Imports of increasing 0302-0307) -20% 0 5 seafood face middle class stiff health and improving inspection disposable requirements. income drive demand for more sophisticated and fancy seafood like lobster, king c rab, codfish etc. more and more high-end seafood restaurants operate in urban area. Fast growing seafood processing sector. Nuts 10% 17,000 88,00 N.A 67,671 193 Subject to Pistachios -30% 0 stiff import nuts are tariff rates. especially Still popular. 19 expensive for Almond nuts many are healthy consumers. products. Fast growing bakery sector. Poultry meat 20% 120,00 99,41 82.8 47,607 -36 Imports face Demand for (HS) -40% 0 5 stiff health reasonable- inspection priced dark- requirements. meat, e.g. leg Subject to quarters, high tariff of drumsticks at least 20 and wings %. continue to grow due to increasing population and strong demand from food catering sector Dairy 0%- 600,00 187,3 31.2 104,500 -34 Strong Domestic milk products (HS 15% 0 85 competition production is 0401; 0402 & from New small. 0404) incl. Zealand and Recent lactose Australia. reductions in Stiff health import tariffs. inspection Consumers, requirements. especially children and young people consume more milk than before. Beef Meat 14% 15,000 188,978 NA 136,488 8 Imports face US beef is -35% * stiff health well-known inspection for its qualilty requirements. and its taste. US beef demand is driving by increasing middle class and improving disposable income. Demand for reasonable- priced beef cuts (secondary cuts) will show strong growth in the near future due to increasing limited domestic supply. TOTAL 1,800,000 697,184 39 452,286 -3 High tariffs, In a long term CONSUMER Stiff Health view: fast -ORIENTED Inspection growing FOOD Requirement, economy, IMPORTS Stiff Food increasing Quality middle class, Registration; increasing uncertain disposable economy income, growing HRI 20 sector, Retail Sector and, Food Processing Sector. TOTAL 2,100,000 735,128 35 473,275 -4 CONSUMER ORIENTED & EDIBLE FISHERY IMPORTS Source: USDA/BICO, World Trade Atlas, Vietnam Customs Department *Represents total red meat exports landed in Vietnam, may not represent U.S. red meat consumption in Vietnam. SECTION V. POST CONTACT AND FURTHER INFORMATION U.S. Department of Agriculture / Foreign Agricultural Service First point of contact for updated reports and trade data is the USDA/FAS Web Page: The FAS web site provides information about the staff, resources, and programs coordinated by FAS to promote international trade. State Regional Trade Groups The State Regional Trade Groups (SRTG) are four regionally focused, non-profit trade development organizations that help U.S. food producers and processors sell their products overseas. USDA’s Foreign Agricultural Service, (FAS) State Departments of Agriculture and the industries fund the SRTGs. These organizations carry out promotional activities that help to increase exports of U.S. high- value food and agricultural products. Activities of these organizations are directed by state departments of agriculture and state agricultural promotion agencies and are coordinated with FAS offices in Washington and overseas. Activities include: international trade exhibitions, overseas trade missions, reverse trade missions, export education, in-country research, and point-of-sale promotions in foreign food chains and restaurants in markets around the world. The SRTGs also administer a cost- share funding program called the “Branded” program, which supports promotion of brand name foods and agricultural products in overseas markets. The SRTGs are the Western U.S. Agricultural Trade Association, (WUSATA) in Vancouver, Washington; the Food Export Association of the Midwest in Chicago, Illinois; the Southern U.S. Trade Association (SUSTA) in New Orleans, Louisiana; and Food Export USA-Northeast in Philadelphia, Pennsylvania. Refer to FAS’ website for more details. FAS Cooperators and Participants American food and agriculture industry benefits from a large number of associations and organizations that support export market development. These groups, referred to by FAS as ‘cooperators’ receive support from FAS to conduct activities overseas such as trade missions, pavilions at trade shows and informational seminars. A database of these organizations, including contact information, is available at: Partners and Cooperators which offer on-line databases and directories of suppliers are listed at 21 USDA/FAS Offices in Vietnam FAS/Agricultural Affairs Office - Hanoi, Vietnam Rose Garden Tower, 3rd Floor, 170 Ngoc Khanh, Ba Dinh District, Hanoi Tel: (84-4) 3850-5000 Email: Ms. Jeanne Bailey, Agricultural Counselor Mr. Michael Ward, Agricultural Attaché Ms. Bui Thi Huong, Sr. Agricultural Specialist Ms. Nguyen Thi Huong, Agricultural Specialist Ms. Phan Thi Thu Huong, Admin. Assistant Mr. Vu Van Dung, Clerk / Driver FAS/Agricultural Affairs Office - Ho Chi Minh City, Vietnam 8th floor, Diamond Plaza, 34 Le Duan Blvd, District 1, HCMC Tel: (84-8) 3520-4630/3520-463 Email: Mr. Dwight Wilder, Agricultural Attaché Mr. Truong Minh Dao, Sr. Marketing Specialist Mr. Tran Quoc Quan, Agricultural Specialist Ms. Nguyen Mai Van, Admin. Assistant Mr. Truong Van Phuoc, Clerk Driver Key Government Contacts Ministry of Cultural, Sports, and Tourism Vietnam National Administration of Tourism (VNAT) No 51 Ngo Quyen Street, Hoan Kiem District, Hanoi Tel: (84-4) 3.9438231, -3.9439232 Contact Mr. Nguyen Van Tuan, General Director Website: Email:; Ministry of Industry and Trade (MOIT) 54 Hai Ba Trung, Hanoi, Vietnam Tel: 844-2220 2222 Mr. Nguyễn Kim Sơn, Assistant to Minister Tel: (08) 38291011 Email: Website: Ministry of Industry and Trade - HCMC Rep. Office 45 Tran Cao Van, District 1, HCMC, Vietnam Tel : (08) 38 299 220/ 38 225 954/ 38 225 957 Contact: Mr. Phan The Hao, Chief Rep 22 Tel: (08) 38 232 239/112 Email: Mr. Le Ngoc Trung, Deputy Chief /Acting Manager, Admin. and General Coordination Dept. Tel: (08) 38 299 220/105 Email: HCMC Department of Industry & Trade 163, Hai Bà Trưng, Ward 6, District 3, HCMC Office 2 : 59-61 Lý Tự Trọng District 1, TP.HCM Tel: 08 38296 283 Website: Contact: Mr. Nguyen Van Lai, Director Tel: (0838) 237541 Email: Ministry of Agriculture and Rural Development (MARD) 2 Ngoc Ha Street, Ba Dinh, Hanoi, Vietnam Tel: 0438468161 Contact: Mr. Cao Duc Phat, Minister Tel: 37335718, 08043181 Mr. Tran Van Viet, Chief of Staff Tel: 38232752, 08043134 Email: Website: MARD: International Cooperation Department 2 Ngoc Ha Street, Ba Dinh, Hanoi, Vietnam Tel: 043-8459670 Email: Website: Contact: Mr. Luong The Phiet, Acting Director, International Cooperation Dept MARD: National SPS Notification and Enquiry office Room 105a, A10 Building, MARD, No.2 Ngoc Ha Street, Ba Dinh, Hanoi Tel: 844-3734 4764/4592146 E-mail: Mr. Vu Van Minh – Director General Website: MARD: Plant Protection Department (PPD) 149 Ho Dac Di Street, Dong Da District, Hanoi, Vietnam Tel: 84-4-38519451 E-mail: Website: Contact: Mr. Nguyen Xuan Hong, Director General 23 MARD: Plant Protection Department – HCMC Office 28 Mac Dinh Chi, Dist.1, HCMC, Vietnam Tel: 848-38248803 Email: Contact Mr. Nguyen Huu Huan, Deputy Director MARD: Plant Protection Department/Phytosanitary Sub- Dept Zone II. 28 Mac Dinh Chi, Dist.1, HCMC, Vietnam Tel: 848-38238948/8294568 Email1: Email2: Contact: Mr. Nguyen Van Nga, Director MARD: Department of Animal Health (DAH) 15, Gate 78, Giai Phong St., Phuong Mai, Dong Da District, Hà Nội, Vietnam Tel: 844-38696788 Contact: Dr. Pham Van Dong, Director General Tel: 38685691 Email: Website: MARD: Department of Animal Health-Regional Animal Health Office No. 6 124 Pham The Hien Street, District 8, HCMC, Vietnam Tel: 848-3856 8220 Contact: Mr. Nguyen Xuan Binh, Director MARD: Department of Animal Health-Ho Chi Minh City 151 Ly Thuong Kiet St, District 11, HCMC, Vietnam Tel: 38483853 6132/38444204 Contact: Mr. Phan Xuan Thao, Director MARD: National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) 10 Nguyễn Công Hoan, Ba Đình, Hà nội Tel: 0438310983,44591801 Contact: Dr. Nguyen Nhu Tiep, Deputy Director Tel: 44591848, 37715383 Email: Website: MARD: NAFIQAD Regional Branch No. 4 30 Ham Nghi, Ben Nghe Ward, District 1, HCMC, Vietnam Tel: 848-3821 0815/3914-6943/3821-4089 Email: Contact: Mr. Le Dinh Hung, Director Ministry of Health (MOH): Vietnam Food Administration (VFA) 24 138A Giang Vo Street, Hanoi, Vietnam Tel: 844- 3846 5300/3846-3839/3846 4489 Email:; Contact: Dr. Tran Van Trung, Director Website: MOH: Institute of Hygiene and Public Health 159 Hung Phu, Dist.8, Ho Chi Minh City, Vietnam Tel: 848-3855 9719 Email: Contact: Dr. Nguyen Thi Hiep, Deputy Director MOH: Department of Health-Ho Chi Minh City 59 Nguyen Thi Minh Khai St, District 1, Ho Chi Minh City, Vietnam Tel: 848-3930 9349 Contact: Dr. Le Truong Giang, Deputy Director MOH: Department of Food Safety and Hygiene Ho Chi Minh City 59 Nguyen Thi Minh Khai, District 1, HCMC Tel: 3930-7033 Mr. Huynh Le Thai Hoa, Director Email: Vietnam Directorate For Standards and Quality (STAMEQ) 8 Hoang Quoc Viet, Nghia Do, Cau Giay, Ha Noi Tel: 844-3791 1606 Email: Website: Contact: Mr. Ngo Quy Viet, General Director Tel: 04 37911607, cell: 0913 234 075 Email: QUATEST 1 (Quality Assurance and Testing Center 1) 8 Hoang Quoc Viet, Nghia Do, Cau Giay, Ha Noi Tel: 844-8361399 E-mail:;; Contact: Mr. Nguyen Canh Toi, Director Tel: 0438363795 QUATEST 3 (Quality Assurance and Testing Center 3) 49 Pasteur, District 1, Ho Chi Minh City, Vietnam E-mail: or Phone: (84-8) 382 94 274 Website: Contact: Mr. Tran Van Dung, Director Email: 25 Ministry of Planning and Investment (MPI) 6B Hoàng Diệu, Ba Đình, Hà Nội Tel: 844-8435-5298/ 08042560 Contact: Mr. Vo Hong Phuc, Minister Mr. Cao Viet Sinh, Permanent Deputy Minister Tel: 08044666 Email: Website: MPI: Center for Investment Development in the South 178 Nguyen Dinh Chieu, Street, District 3, HCMC Tel: 39303905/39306671 Contact: Nguyen The Hung, Director MPI: HCMC’s Department of Planning and Investment 32 Le Thanh Ton Street, District 1, HCMC, VN Tel:08.38294356/ 08 3829 4356/ 3827 2191 Email: Website: Contact: Mr. Thai Van Re, Director Cell: 0974595959 General Department of Vietnam Customs Address: Hai Quan Tower, E3, Duong Dinh Nghe Road, Cau Giay District, Hanoi Tel: 04 44 520 206/ 04 445 20 606 Contact: Mr. Nguyen Ngoc Tuc, General Director Website: General Department of Vietnam Customs – Southern Rep. Office 15B Thi Sach Street, Ben Nghe, District 1, HCMC Tel: 08 38299676/ 08 38243055/ 08 38220809 Department of Customs in Ho Chi Minh City Address: 2 Ham Nghi, District 1, HCMC Tel: 848-38215715 Contact: Mr. Nguyen Huu Nghiep, Deputy Director Website: Vietnam Chamber of Commerce and Industry (VCCI) VCCI Building, 9 Dao Duy Anh Street, Dong Da, Hanoi, Vietnam Tel: 844-3574-2161/(04) 574 2022 Email: Contact: Mr. Vu Tien Loc, President Website: 26 VCCI: Trade Service Company, General T
Posted: 28 December 2012