Vietnam Animal Feed Market 2016

‹#›
Vietnam Animal Feed Market 2016
Date of the report: August 25th, 2016
Part of StoxPlus’s Market Research Report Series for Vietnam
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Date: 25th August, 2016
Dear Our Valued Customer,
Re: The publication of Vietnam Animal Feed Market 2016 Report
I am pleased to pleased to announce the publication of Vietnam
Animal Feed Market 2016 Report.
The purpose of research work is to have an in-depth understanding
of animal feed market in Vietnam and assessing potential of the
market. We also highlighted current market size as well as
potential demand of commercial cold storage for each segment.
We believe it should be further studied and evaluated.
In addition to our experience in this industry, we have conducted
various discussions and interviews with industry players,
distribution partners at executive levels to grasp local insights and
the practical ways of the market in Vietnam.
We understand that this is a targeted but also an open research.
We would be happy to provide any further information to address
any questions that you may have, for any specific sector or target
business in Vietnam. Our ultimate objective is to bring real values
to our clients via in-depth research and practical local insights.

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Table of Contents
Part Content Page
Executive Summary 4 - 7
Abbreviation 8
1 Section 1: Agribusiness in Vietnam 9 - 20
1.1 Market structure 9 - 10
1.2 Market size and segmentation 11 - 20
2 Section 2: Animal feed in Vietnam 21 - 83
2.1 Market size and segmentation 21 - 30
2.2 Value chain analysis 31 – 33
2.3 Demand analysis 34 – 39
2.4 Supply analysis 40 – 62
2.5 Costing analysis 63 - 69
2.6 Competition landscape 70 - 83
3 Macroeconomics 84 - 96
3.1 Macroeconomics 84 – 90
3.2 Legal environment 91 - 96
Part Content Page
4 Appendix 97 - 105
4.1
Appendix 1: Livestock farming in Vietnam by
provinces, 2014
4.2
Appendix 2: Livestock companies by provinces,
2013
4.3
Appendix 3: The volume of maize imported by
key players in 2015
4.4
Appendix 4: The volume of rice/wheat bran
imported by key players in 2015
4.5
Appendix 5: The volume of roasted soybean
4.6
Appendix 6: The volume of protein powder
4.7
Appendix 7: The volume of DDGS imported by
key players in 2015

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Executive Summary
We have completed the review of Vietnam
animal feed industry landscape. Information
covered include market size, competition
dynamics, analysis of potential demand from
end-used markets, profiles of major key players.
One of the focuses of this report is the
emergence of Vietnamese giant companies in
this sector and its sale strategies to getting
more market share from current players in the
market. Ultimately, we assessed the feasibility
of the market potentials as well as notable
common issues that animal feed players and
investors should be aware of when operating in
Vietnam.
Below are the most critical findings:
1) Agriculture, forestry and aquaculture
sector (“agri-sector”) continues to grow,
however the growth rate is in a decreasing
trend in 2015
2015 is a hard year for agri-sector on overall.
2) Vietnam Livestock Market still has a
positive outlook despite the economic
integration causes many fluctuations
Figure: Market size of Vietnam livestock sector,
2011-2015
2011 2012 2013 2014 2015
US$mn
3)
Vietnam is a agricultural country with 70% of
electors are involved in agriculture sector
including farming, livestock and fishery.
Figure: Estimated consumption of industrial feed
in Vietnam, 2011-2015
2011 2012 2013 2014 2015
Milliontone
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5
Executive Summary (cont.)
5) Over
6
Figure:
2015
2014
Figure: Animal feed demand from main livestock,
2015-2020
2015 2016 2020
Milliontone

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8) Typical distribution system of animal
feed in Vietnam
9) 55% of main materials
As the two main ingredients in feed formula,
corn and roasted soybean has the largest
proportion in total import volume of feed’s
raw materials in Vietnam 2015.
10) The price of Vietnam animal feed is
20% higher than other countries in ASEAN
area
11) Many brand name companies in global
animal feed market are already in Vietnam
and dominating the market
.
Figure: Distribution system of animal feed in
Vietnam
Figure: Animal feed price per tone of selected
companies in Vietnam, 2015
US$ Figure: Market share of Vietnam animal feed market,
2013

7
12) New trend in Vietnam animal feed
market .

8
Abbreviation
No. Abbrev. Stand for
1 Agri-sector Agriculture, forestry and aquaculture sector
2 CARG Compound Annual Growth Rate
3 DDGS Distillers dried grais with solubes
4 FCR Feed conversion rate
5 FDI Foreign direct investment
6 FTAs Free Trade Agreements
7 HVG Hung Vuong Corp
8 IPPC International Plant Protection Convention
9 JV Joint Venture
10 L/C Letter of credit
11 MARD Minister of Agriculture and Rural Development
12 OECD Organization for Economic Cooperation and Development
13 OIE World Organisation for Animal Health
14 OLED Organic light-emitting diode
15 R&D Research and Development
16 ROA Return on Asset
17 ROE Return on Equity
18 SPS Sanitary and Phytosanitary
19 TPP Trans-Pacific Partnership Agreement
20 VCCI Vietnam Chamber of Commerce and Industry

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Section 1: Agribusiness in Vietnam
Contents
1.1 Market structure
1.2 Market size and segmentation

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Agribusiness is the business of agricultural production. It includes crop production
(farming and contract farming), seed supply, agrichemicals, farm machinery,
distribution, processing, marketing, and retail sales.
Figure 1: Agribusiness market structure in Vietnam
Source: StoxPlus
Agriculture
Farming
Livestock
Agriservice
Seed
Plantation
Processing
Feeds
Raising
Processing
Agrochemicals
Agriproduct
Retailing
Cattle feeds
Poultry feeds

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Contents

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Agriculture, forestry and aquaculture sector (“agri-sector”) continues to grow,
however the growth rate is in a decreasing trend in 2015
Figure 2: Market size of Vietnam agribusiness by value, 2011-2015
Source: StoxPlus
1.2 Market size and segmentation | Total industry
2011 2012 2013 2014 2015
US$mn

13
Farming is the biggest segment in agriculture sector with total value of
Figure 3: Breakdown of Vietnamese Agriculture Industry by
value, 2011-2015
Source: StoxPlus
1.2 Market size and segmentation | Farming
2011 2012 2013 2014 2015
US$mn
Figure 4: Market size of Vietnamese farming by value, 2011-2015
Source: StoxPlus

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The production of meat in Vietnam is behind the demand
Figure 5: Production and consumption of main meat in Vietnam
Source: StoxPlus from OECD, Custom, MARD
Notes:
1.2 Market size and segmentation | Livestock

15
Vietnam Livestock Market still has a positive outlook despite the economic integration
causes many fluctuations
Figure 6: Market size of Vietnam livestock sector, 2011-2015
Source: StoxPlus
1.2 Market size and segmentation | Livestock Domestic supply
Million heads of
livestock
Thousand tones
of meat
Pig
Beef and buffalo
Chicken and other poultry
Others

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Figure 7: Breakdown of livestock company by type of business, 2014
1.2 Market size and segmentation | Livestock
Above 90% of livestock farming in Vietnam is operating at small or very small scale
Domestic supply
Figure xx: Breakdown of pig company by size, 2014
Figure xx: Breakdown of chicken company by size, 2014
Source: StoxPlus from MARD

17
Each year, Vietnam spend more than
Figure 8: Domestic production vs Import of livestock’s products, 2015
Source: StoxPlus
Notes:
Figure 9: The import of meat in Vietnam via official trade in 2015
Source: StoxPlus from MARD
1.2 Market size and segmentation | Livestock Import
'000tone

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Figure 10: Import of livestock’s products by value, 2015
1.2 Market size and segmentation | Livestock Import
Source: StoxPlus from IPSARD, MARD

19
Figure 11: Cost structure of pork production in Vietnam, 2015
Source: StoxPlus
Figure 12: Cost structure of pork production in USA, 2015
Source: StoxPlus
1.2 Market size and segmentation | Livestock Cost structure
Cost to raise one kilogram of pig
Vietnamese livestock farms
Vietnamese livestock household
USA livestock farms
Figure xx: Cost to raise one kilogram of pig, 2015
Source: StoxPlus from IPSARD, MARD
Farm modelHousehold
0%
20%
40%
60%
80%
100%
Vietnamese farm Vietnamese household USA farm
Cost for animal feed Cost for breed Cost for veteriany Labour cost Lending cost Cost of marketing Others

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Most of Vietnam livestock’s products are consumed via traditional markets
Figure 13: Where’s Vietnamese people buy pork?
Source: StoxPlus from IPSARD
1.2 Market size and segmentation | Livestock Distribution

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Section 2: Animal feed in Vietnam
Contents
2.2 Value chain analysis
2.3 Demand analysis
2.4 Supply analysis
2.5 Costing analysis
2.6 Competition landscape

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Historical of Animal feed sector
Proconco was the
first animal feed in
Vietnam, established
in Bien Hoa Dong Nai
CP Group, one of the
largest Asian animal
feed producer,
established of CP
Vietnam Livestock Ltd
Cargill Vietnam , the
subsidiary of leading
agriculture enterprise
and ANT were founded
Anco was established
in Dong Nai province
while Greenfeed
opened in Long An
province
Masan participates in
the market, invest in
52% stock of Proconco
and have 70%
ownership of Anco
EastHope (Chinese
company) established
East Hope company
Ltd
20151991 1993 1995 2003 2010 2013
Vietnam exports 895
tone animal feed, with
amount equivalent to
200mm USD
• Vietnam livestock industry appears and develops spontaneously. For the first stage of its development, farmers
mainly utilize by-products from agriculture to feed their livestock.
• By the early 20th century, the animal feed industry appears and grows rapidly along with the development of science
and technology. In 1991, Vietnamese-French joint venture Proconco , the first animal feed company in Vietnam,
established and built the factory located in Bien Hoa, Dong Nia. Up to 2003, there were 136 factories participating
in this sector with capacity of 3.5mm tones per year.
• Vietnam is listed as one of 20 biggest countries of feed producing. Vietnam started to export animal feed in 2013 and
in the year of 2014, Animal feed was exported to over 10 countries including US, Japan, Malaysia.
2.1 Market size and segmentation |Historical and Development

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2.1 Market size and segmentation |Market size
Figure 14: Vietnam livestock, 2011-2015
Source: StoxPlus
2011 2012 2013 2014 2015
Figure 15: Estimated consumption of industrial feed in Vietnam, 2011-2015
Source: StoxPlus’s estimation from AgroMonitor
Note:
2011 2012 2013 2014 2015
Milliontone

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2.1 Market size and segmentation | Segmentation
Figure 16: Domestic consumption of industrial feed by type of
livestock,2015
Source: StoxPlus
Domestic consumption by type of livestock
Livestock Total number (Million heads)
Poultry
Chicken
Duck
Goose
Pig
Beef
Buffalo
Others
Total
Figure xx: Breakdown of livestock in Vietnam by type, 2015
Source: StoxPlus from Department of Livestock production, MARD
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demo purpose

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2.1 Market size and segmentation |Segmentation
Figure 17: Industrial feed and self-made feed consumed by pig, 2015
Source: StoxPlus from AgroMonitor
Pig
Milliontone
Milliontone
demo purpose

26
The situation of poultry industry is same with pig industry…
Figure 18: Industrial feed and self-made feed consumed by poultry, 2015
Poultry

27
The North is
2.1 Market size and segmentation |Segmentation Domestic consumption by Region
Distribution of livestock by regions
The North Buffalo Beef Pig Poultry Others
Red river delta
Northern midland
and mountainous
Source: StoxPlus
The South Buffalo Beef Pig Poultry Others
Southeast
Mekong river delta
The Central Buffalo Beef Pig Poultry Others
North central and
central coast
Central Highlands
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of animal feed was consumed by provinces in the North in 2015
Figure 19: Vietnam’s livestock by region, 2015
Source: StoxPlus
Figure 20: Animal feed consumption by region, 2015
Source: StoxPlus
Millionhead
Domestic consumption by Region
demo purpose

29
Pig’s demand for feed is decreasing in the late stage of feeding period while poultry’s
demand is increasing
Figure 21: Pig and Chicken’s life cycle, 2015
Source: StoxPlus
Source: StoxPlus
Domestic consumption by month

30
Vietnam receives over US$ 500mn from exporting animal feed and its materials
Figure 22: Export of Vietnam animal feed and its materials, 2013-2015
Source: StoxPlus
Figure 23: Breakdown of feed and its materials exported by
country, 2014-2015
Source: StoxPlus
Export
By value

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Contents
2.3 Demand analysis
2.4 Supply analysis

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Value chain of Vietnam animal feed
2.1 Market size and segmentation |Value chain analysis
Figure 24: Value chain of Vietnam animal feed, 2015
Source: StoxPlus

33
2.1 Market size and segmentation |Value chain analysis
Roles for each participant in the business chain

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Contents
2.3 Demand analysis
2.4 Supply analysis

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Demand for poultry feed and cattle will increase in line with the change in livestock’s
structure under the Decision No.10/2008/QD-TTg
2.2 Demand analysis
Figure 25: Structure of Vietnamese meat by volume in 2015
Source: StoxPlus
Figure 26: Planned structure of Vietnamese meat by volume in 2020
Source: StoxPlus
Demand by type of products

36
Despite of the plan in 2008, as an forecast from Department of livestock production in 3/2016, the
livestock structure will not change much in 2016-2020. From this forecast,
2.2 Demand analysis
Figure 27: Vietnam livestock, 2015-2020
Source: StoxPlus from Department of livestock production
Figure 29: Animal feed demand from main livestock, 2015-2020
Source: StoxPlus
Note: The estimation is based on the average industrial feed demand per million livestock
Millionheads
MillionheadsMillionheads
Livestock
Million
heads
Million
tone feed
Feed demand per
million livestock
Pig
Poultry
Cattle, buffalo, goats, sheep
Figure 28: Industrial feed demand per million heads, 2015
Source: StoxPlus
Total demand
demo purpose

37
Livestock allocation is planned to change from now to 2020 pushing the change in feed
demand of each area in Vietnam
2.2 Demand analysis
Figure 30: Pig allocation by regions, 2015-2020
Source: StoxPlus from Department of Livestock production
Demand from main livestock by regions

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Demand for industrial feed will increase due to the change in livestock farming’s
structure under the Decision No.10/2008/QD-TTg
2.2 Demand analysis
Figure 31: Pig farming vs household by pig volume, 2013-2020
Figure 32: Poultry farming vs household by poultry volume, 2013-
2020
Total demand

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PIG Current structure Million heads
Total demand
for feed
% of industrial
feed in total
demand
Total demand
for industrial
feed
PIG New structure Million heads
Total demand
for feed
% of industrial
feed in total
demand
Total demand
for industrial
feed
Poultry 392.39
POULTRY Current structure Million heads
Total demand
for feed
% of industrial
feed in total
demand
Total demand
for industrial
feed
POULTRY New structure Million heads
Total demand
for feed
% of industrial
feed in total
demand
Total demand
for industrial
feed
Examples about the increase in demand of industrial feed when structure of livestock
farming changing
2.2 Demand analysis
Figure 33: Demand of animal feed per million heads
(thousand tones), 2015
Farm Household
Industrial
feed
Self-made
feed
Industrial
feed
Self-made
feed
Pig
Poultry
Figure 34: Feed structure by livestock farming and
household, 2015
Source: StoxPlus from AgroMonitor
Total demand
Demand of
industrial feed
Demand of Self-
made feed
Total
demand
Assumption Estimation of feed demand in 2020 from pigs and poultry
Source: StoxPlus

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Contents
2.3 Demand analysis
2.4 Supply analysis

41
2.3 Supply analysis | Finished products
Figure 35: Total supply of animal feed in Vietnam, 2000-2015
Source: StoxPlus from Department of Livestock Production (MARD)
Total supply
Milliontone

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Pig feed remains its largest proportion in total animal feed in Vietnam
Figure 36: Volume of industrial feed supplied by type of livestock, 2014
Source: StoxPlus
Figure 37: Volume of industrial feed supplied by type of livestock, 2015
Source: StoxPlus
Supply by type of products
2014 2015

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comes from Red river delta and Southeast area
Figure 38: Production volume of Industrial feed by regions, 2014
Source: StoxPlus
Supply by regions
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purpose

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Figure 39: Number of animal feed companies by regions, 2014
Allocation of animal feed companies
Figure 40: Volume of animal feed produced by regions, 2014
Source: StoxPlus Source: StoxPlus
Company
Milliontones

45
Figure 41: Number of animal feed companies in the North
Source: StoxPlus
Animal feed companies in the North
Northern midland and mountainous
Red river delta
• Northern midland and mountainous: Ha Giang, Cao Bang, Lao Cai, Bac
Kan, Lang Son, Quang Ninh, Tuyen Quang, Yen Bai, Thai Nguyen, Vinh Phuc,
Phu Tho, Bac Giang, Bac Ninh, Lai Chau, Đien Bien, Son La, Hoa Binh
• Red river delta: Bac Ninh, Ha Nam, Ha Nội, Hai Duong, Hai Phong, Hung
Yen, Nam Dinh, Ninh Binh, Thai Binh and Vinh Phuc
for demo purpose

46
Figure 42: Number of animal feed companies in the Central
Source: StoxPlus
North Central Coast
Hoang Sa
• North Central Coast: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien-Hue; Da Nang, Quang Nam,
Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan
• Central Highlands: Kon Tum, Gia Lai, Dak Lak, Dak Nong and Lam Dong

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Figure 43: Number of animal feed companies in the South
Source: StoxPlus
Southeast
Truong Sa
Mekong river delta
• Southeast: Ho Chi Minh, Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Dong Nai,
Tay Ninh
• Mekong river delta: Long An, Tien Giang, Ben Tre, Vinh Long, Tra Vinh, Hau
Giang, Soc Trang, Dong Tháp, An Giang, Kiên Giang, Bac Lieu and Ca Mau.

48
Figure 44: Distribution system of animal feed in Vietnam
Source: StoxPlus
Distribution
Typical distribution system of animal feed in Vietnam
Level 1 Agency
Payment condition and commission

49
2.3 Supply analysis | Raw materials
Source: StoxPlus Source: StoxPlus
Basic formula of feed supplied

50
Figure 47: Feed’s raw materials imported vs local production, 2015
Source: StoxPlus
Figure 48x: Supply of main raw materials for producing animal feed, 2015
Source: StoxPlus

51
Figure 49: Imported volume by type of products, 2015
Source: StoxPlus
Figure 50: Imported raw materials by countries, 2015
Source: StoxPlus

52
Figure 51: Corn by source of providing, 2015
Corn
Import

53
Figure 52: Top 10 importers of corn in the North, 2015
Corn
Source: StoxPlus
Figure 53: Top 10 importers of corn in the South, 2015
Source: StoxPlus
Thousand tones

54
Local production accounted for 87% total supply of rice and wheat bran in 2015
Figure 54: Rice and wheat bran by source of providing, 2015
Rice/wheat bran
Bran
Wheat bran
Rice bran
Figure xx: by region, 2015
Source: StoxPlus

55
Top 10 importers of rice bran in two main areas of Vietnam
Figure 55: Top 10 importers of rice bran in the North, 2015 Figure 56: Top 10 importers of rice bran in the South, 2015
Source: StoxPlus
Rice bran
63

56
Top 10 importers of wheat bran in two main areas of Vietnam
Figure 57: Top 10 importers of wheat bran in the North, 2015
Source: StoxPlus
Figure 58: Top 10 importers of wheat bran in the South, 2015
Source: StoxPlus
Wheat bran
of Vietnam by trading companies.

57
Figure 59: Roasted soybean by source of providing, 2015
Roasted soybeans
Roasted
Soybean
Why is Argentina?

58
Figure 60: Top 10 importers of Roasted soybean in the North, 2015
Source: StoxPlus
Figure 61: Top 10 importers of Roasted soybean in the South, 2015
Source: StoxPlus
Roasted soybeans
Only 30%

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100% DDGS using in feed industry is imported from others countries
Figure 62: DDGS imported by countries, 2015
DDGS
Figure 63: Top 10 DDGS importers in the North, 2015
Source: StoxPlus
Figure 64: Top 10 DDGS importers in the North, 2015
DDGS

60
Majority of cassava used for producing feed is supplied by domestic sources.
Figure 65: Cassava by source of providing, 2015
Cassava
Cassava

61
70% protein powder using in Vietnam is imported
Figure 66: Protein powder by source of providing, 2015
Protein powder
Vietnam could produce approx.
of
Meat &
Bone
Fish
Protein
powder
An Giang

62
Top 10 importers of protein powder in two main areas of Vietnam
Figure 67: Top 10 importers of protein powder in the North, 2015
Source: StoxPlus
Figure 68: Top 10 importers of protein powder in the South, 2015
Source: StoxPlus
Protein powder

63
Contents
2.3 Demand analysis
2.4 Supply analysis

64
The price of Vietnam animal feed is 20% higher than other countries in ASEAN area
2.4 Costing analysis | Pricing
Figure 70: Animal feed price per tone of selected companies in Vietnam,
2015
Source: StoxPlus
US$

65
Feed price and cost structure of C.P Vietnam
2.4 Costing analysis | Cost structure
Figure 71: Price per tone of animal feed produced by C.P Vietnam, 2013-
2015
Source: StoxPlus
Figure 72: Cost structure of C.P Vietnam, 2014
Source: StoxPlus
Note:

66
Feed price and cost structure of Greenfeed
Figure 73: Price per tone of animal feed produced by Greenfeed, 2013-2015
Source: StoxPlus
Figure 74: Cost structure of Greenfeed, 2014
Source: StoxPlus
Note:

67
Feed price and cost structure of Cargill
Figure 75: Price per tone of animal feed produced by Cargill Vietnam, 2013-
2015
Source: StoxPlus
Figure 76: Cost structure of Cargill Vietnam, 2014
Source: StoxPlus
Note: Raw

68
Feed price and cost structure of Dabaco
Figure 77: Price per tone of animal feed produced by Dabaco, 2015
Source: StoxPlus
Figure 78: Cost structure of Dabaco, 2015
Source: StoxPlus
Note: Raw

69
Feed price and cost structure of Proconco
Figure 79: Cost structure of Proconco, 2014
Source: StoxPlus
Note: Raw

70
Contents
2.3 Demand analysis
2.4 Supply analysis

71
Many brand name companies in global animal feed market are already in Vietnam and
dominating the market
Figure 80: Market share of Vietnam animal feed market, 2013
Source: StoxPlus from Vietnam Animal Feed Association
Animal feed
Foreign-dominated market
Rise of local companies ?
How could top 10 dominate the market?

72
Figure 81: Number of animal feed companies by type of company, 2015 Figure 82: Volume of animal feed supplied by type of company, 2015
Source: StoxPlus from Department of Livestock Production
Source: StoxPlus from Department of Livestock Production
Foreign companies

73
Foreign players are expanding and expanding their business in Vietnam
Source: StoxPlus
Figure 83: New investments from foreign companies in animal feed
2.5 Competition landscape Foreign companies
No Owner Type of
investment
Location Year in
Operation
Capacity Total
area
(m2)
Total
Investment
(US$)
Main content of project
1
2
3
4
5
6

74
Figure 84: Number of animal feed companies in Vietnam, 2013-2015
Source: StoxPlus
Source: StoxPlus
Figure 85: Number of local animal feed companies by regions, 2013-2015
Local companies

75
If Masan joins the market via M&A, Hung Vuong and Hoa Phat decide to make a new
investment in this sector
Source: StoxPlus
Figure 86: New investments from local companies in animal feed
2.5 Competition landscape Local companies
No Owner Type of
investment
Location Year in
Operation
Capacity Total area
(m2)
Total
Investment
(US$)
Main content of project
1
2
3
4
5

76

77

78
Who is Hoa Phat?
What do they do to meet their target in animal feed?
Core business
Expand
Plan

79
Main products, Target market and Distribution systemCompany Profile
CP Vietnam
Source: Reported Financial Statements
Financial Indicators
Source: StoxPlus

80
Proconco
Financial Indicators ROA & ROE IN 2012, 2013 & 2014
Source: StoxPlus

81
Cargill Vietnam

82
Greenfeed Vietnam

83
DABACO GROUP
Financial Indicators ROA & ROE IN 2012 - 2015
Source: StoxPlus

84
Section 3: Macroeconomics
Contents
3.1 Macroeconomics
3.2 Legal environment

85
Section 3: Macroeconomics & Regulatory Framework
Macroeconomics
Vietnamese economy to slow down after a strong year
Figure 87: Vietnam’s GDP growth (q-o-q) and CPI over the last 11 year
Source: StoxPlus, GSO
GDP Growth 1H2016
CPI 1H2016
Well performed
Struggled
Restructured & recovered

86
Macroeconomics
Figure 88: GDP Growth by sector 2015 (%)
Source: StoxPlus, GSO

87
Macroeconomics
Figure 89: Exchange rate fluctuation 2010 - 2015
Source: StoxPlus from VCB
Exchange Rate (VND/USD)

88
No. Country No. of projects US$mn
1 South Korea
2 Japan
3 Singapore
4 Taiwan
5 Hong Kong
6 China
7 British Virgin Islands
8 Malaysia
9 Cayman Islands
10 Other
TOTAL
Macroeconomics
Foreign direct investment (“FDI”) to climb up in 1H2016
Figure 90: Vietnam’s GDP growth (q-o-q) and CPI over the last 11 year
Source: StoxPlus, MPI
Registered 1H2016
Disbursed 1H2016
Figure xx: Registered FDI into Vietnam, 1H2016

89
3.2 Legal environment/ TPP
Contents Main content Challenges & Real Implications
National
Treatment
and Market
Access for
Goods
Sanitary and
Phytosanitar
y (SPS)
Measures
Technical
Barriers to
Trade
Investment
TPP request Vietnam animal feed sector to enhance to competitiveness via increase supply ability
and set the standards on quality and technical management to meet international requirement

90
3.2 Legal environment/ Management and Technical Standard
Countries Applicable
Year
Agreement
Korean
Asean, Japan, Australia,
New Zealand, Indian
Japan
USA and 11 other countries
Taxation on Maize and soya-bean oil
Tax rate
of Maize
Tax rate
of soya-
bean oil
Effective date
Favour
ASEAN (ATIGA)
ASEAN -China (ACFTA)
ASEAN - Korea (AKFTA)
ASEAN - Australia - New
Zealand (AANZFTA)
ASEAN - India (AIFTA)
Figure 91: The import tax of Maize (corn) starchFigure 90: The schedule to reduce Tax to 0%
The schedule to reduce Tax following TPP and FTAs

91
Contents
3.1 Macroeconomics

92
Some main contents of regulations on Animal feed managements
Item Term Regulation
Effective
year
Main Contents
Management Management of
animal feed
25/03/2010
Technical
Standard
National
Technical
standard in
animal feed
sector
12/03/2012

93
Before Circular 50
After Circular 50
Animal feed

94
The legal framework for foreign companies to invest in Vietnamese market
Note for investors
Licensing process for manufacturing and trading animal feed

95
Animal feed product not subject to VAT, reducing burden and cost for players
3.2 Legal environment/ Taxation
Advantages Disadvantages

96
3.2 Legal environment/ Taxation
Government increases the imported tax for animal feed, causing higher cost for
material

97
Section 4: Appendix
Contents
4.1 Livestock farming by provinces
4.2 Animal feed companies by provinces
4.3 Maize imported by key players
4.4 Rice & wheat bran imported by key players
4.5 Roasted soybean imported by key players
4.6 Protein powder imported by key players
4.7 DDGS imported by key players

98
Livestock farming in Vietnam by provinces, 2014
Section 4: Appendix
4.1 Livestock farming
No Province/City No. of Farms No Province/City No. of Farms No Province/City No. of Farms
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

99
Livestock companies by provinces, 2013
No. Province/City Capacity(MT/Year)
No. of
manufacturers
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
No. Province/City Capacity(MT/Year)
No. of
manufacturers
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Section 4: Appendix
4.2 Animal feed companies by regions

100
The volume of maize imported by key players in 2015
Section 4: Appendix
4.3 Maize imported by key players
No Company Type of company % volume imported
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

101
The volume of rice bran imported by key players in 2015
Section 4: Appendix
No Company Type of company
% volume
imported
% volume of
imported
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
The North The South

102
The volume of wheat bran imported by key players in 2015
Section 4: Appendix
No Company
Type of
company
% volume
imported
No Company
Type of
company
% volume
imported
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
The North The South

103
The volume of roasted soybean imported by key players in 2015
Section 4: Appendix
4.5 Roasted soybean imported by key players
The North The South
% volume
imported
% volume
imported
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21

104
The volume of protein powder imported by key players in 2015
Section 4: Appendix
4.6 Protein powder imported by key players
The North The South
No Company
Type of
company
% volume
imported
No Company
Type of
company
% volume
imported
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21

105
The volume of DDGS imported by key players in 2015
Section 4: Appendix
4.7 DDGS imported by key players
The North The South
% volume
imported
% volume
imported
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21

106
Publishing License No. 1528-2016/CXBIPH/76-29/HD dated on May 20th, 2015

‹#›
Contact us at StoxPlus
Hoang Le
Manager, Biinform
+84 (0) 43562 69 62 (ext. 108)
+84 (0) 98 515 2028
Hoang.le@stoxplus.com
Head Office
5th Floor, Anh Minh Building
36 Hoang Cau Street
Hanoi, Vietnam
+ 84 (4) 3562 6962
Ho Chi Minh City Branch
2nd Floor, 63D Vo Van Tan
Ward 06, District 03
Ho Chi Minh City, Vietnam
+84 (8) 3823 3485
Lan Nguyen
Managing Director, Biinform
+84 (0) 43562 69 62 (ext. 109)
+84 (0) 964 946 760
lan.nguyen@stoxplus.com
Anh Nguyen
Associate, Biinform
+84 (0) 43562 69 62 (ext. 108)
+84 (0) 1228 377 555
Anh.phuong@stoxplus.com

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