Vietnam Agribusiness Report Q4 2016
OREANDA-NEWS. RnR Market Research Offers Report by Research on Vietnam Agribusiness Report Q4 2016.
BMI View: Recent developments in Vietnam's economic and business environments add further weight to our positive view on its agribusiness sector. The industry holds strong growth opportunities in terms of production, exports and retail sales, particularly with regard to the rice, coffee, livestock and dairy sectors. Moreover, economic and financial integration in South East Asia will benefit Vietnam's exports of rice, dairy and coffee. However, Vietnam faces growing competition in its key markets. The fulfilment of its promising potential will only be achieved if the country steps up its competitiveness and improves product quality and supply chain efficiency. Vietnam will have to significantly ramp up investments on crop productivity in order to not be left behind and, if it does, it will be able to produce more value-added crops and maintain its status as an export spearhead.
- Pork production growth to 2019/20: 19.9% to 3.0mn tonnes. After going through challenging times amidst high feed costs, disease outbreaks and weaker growth, the livestock sector has been on the recovery trend since 2014-2015. Growth will remain strong in the medium term, helped by higher local meat prices and economic growth.
- Milk production growth to 2019/20: 61.9% to 876,000 tonnes. Dramatic increases in cattle numbers and increased public and private sector investment - part of the effort to reduce the country's growing import dependency - will be the main boost to growth. Commercialisation will also play a key role as larger, more efficient farms come to play a greater role in milk production.