VIETNAM FOOD PROCESSING INDUSTRY

The global food processing industry is worth more than $ 2,000 billion with over 400,000 enterprises. According to the report of the European Food and Drink Industry, the three leading regions in revenue of global food processing are the EU which accounted for 44%, the United States and China accounted for 20% and 19%, respectively.

The global seafood processing market reached $ 202 billion by 2017 and is expected to reach $ xxx billion by 2023 with a CAGR of 4.3% in the period 2018 – 2023. Global seafood processing trade was expected to reach $ xx.xx billion in 2017, a sharp increase of 20.6% compared to 2016. The United States and Japan are the two countries having the largest processed seafood import turnover in the world in both 2016 and 2017. China and Vietnam are the largest exporters of processed seafood. If China’s turnover grew sharply in 2017, Vietnam’s export turnover was negligible.

Global fruit and vegetable processing market was estimated at xxx.xx billion in 2017 and is forecast to reach $ xxx.xx billion by 2022 with a CAGR of 7.1% in the period 2018 – 2022. North America accounted for the largest market share in terms of value, in 2017, because the fruit and vegetable processing industry was dominated by large companies such as JBT Corporation, Conagra Brands and Dole Food.

The global starch market was estimated to reach 91 million tons in 2016 with a growth rate of 3.8% over 2015. Cornstarch is the most widely produced and used product in the world and is mainly in the food processing industry. China is the second largest starch importer in 2016 and 2017. Thailand’s starch exports have fallen to 4th position in 2017 compared to the second in 2016 due to the unfavorable weather condition, resulting in reducing cassava starch supplies.

In the first quarter of 2018, the production of dried seafood was estimated at xx.xx thousand tons, a slight increase of 3% over the same period of 2017. The production of frozen seafood reached about xxx.x thousand tons, in which fish frozen shrimp reached xx.x thousand tons, frozen squid reached x.xx thousand tons and other frozen seafood reached about xx thousand tons. Meanwhile, the production of canned aquatic products is estimated at xx thousand tons, a slight increase of 5% over the same period of 2017 due to the increase in demand of some export markets (USA, EU) with main products is canned tuna.

Processed meat products exported in Q1/2018 was estimated at $ x.xx million, up 20% over the same period of 2017, the main export market of Vietnam is Japan. Exports of processed fruits and vegetables was estimated at $ xxx.xx million, an increase of 15% over the same period of 2017, in which only 6.6% of total fruit and vegetable export turnover of Vietnam.

For other products such as confectionery, ready-to-eat food, noodles, consumption and production was seen growth in 1/2018 compared to the same period of 2017, except for sugar group that had fallen due to the difficulties in 2017/2018 season.

 

 

Abbreviation
Executive summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Trade agreements
2. World market
2.1 Definition and classification
2.2. Food processing industry overview
2.3 Major groups in the industry
2.3.1 Processed seafood
2.3.2 Processed meat
2.3.4 Fresh and processed fruit-vegetables
2.3.5 Processed starch
2.4 Processed food markets in some big countries
2.5 Big companies in food processing industry
3. Vietnam market
3.1 History of industry formation and development
3.2. Major groups in the industry
3.2.1 Processed seafood
3.2.2 Canned meat and other meat products processing
3.2.3 Fresh and processed fruit-vegetables
3.2.4 Processed starch
3.2.5 Other food (sugar, confectionery, noodle, ready-made food)
4. Industry risks
4.1 SWOT analysis
4.2 Risk analysis
5. Outlook and forecast
5.1 Industry development planning
5.2 Outlook
5.3 Forecast
 6. Enterprise analysis
 6.1 Enterprise introduction
6.2 Financial analysis
7. Appendix of financial statements

Quang Ngai Sugar JSC
Dabaco Vietnam JSC
Asia Food JSC
Uniben JSC
Masan North Co
Fococev Vietnam JSC
Vifon JSC
Vietnam Flour Industry JSC
Vietnam Food Industry JSC
Bibica JSC

List of figures
Figure 1: GDP growth rate by quarter, 2015 – Q1/2018
Figure 2: GDP at current prices and GDP per capita, 2013 – Q1/2018
Figure 3: Consumption structure in Vietnam, 2017
Figure 4: Industrial production value of food processing and producing industry, 2009 – 2017
Figure 5: Industrial production index of food processing industry, 2012 – Q1/2018
Figure 6: Consumer Confidence Index by quarter, 2014 – Q4/2017
Figure 7: Retails sales of goods, 2010 – Q1/2018
Figure 8: Monthly CPI fluctuation 2014 – 3/2018
Figure 9: Total disposable income and household expenditures, 2010–2017f
Figure 10: Retail sales in Vietnam 2011–2017F
Figure 11: FDI capital in agriculture investment, 2009 – Q1/2018
Figure 12: FDI Structure in agriculture, 2015
Figure 13: The structure of the food processing industry
Figure 14: Value chain of the food processing industry
Figure 15: Proportion of food consumption in the world, 2016
Figure 16: The structure of processed meat consumption in the world, 2016
Figure 17: Turnover of food processing market in the world 2014 – 2019F
Figure 18: The proportion of ready-to-eat food consumption, 2016
Figure 19: Global fish production, 2010 – 2017e
Figure 20: Global seafood trade, 2008 – 2017e
Figure 21: Top largest seafood importing countries, 2016 – 2017 (HS 1604)
Figure 22: Processed seafood trade, 2012 – 2017e
Figure 23: Top largest seafood exporting countries, 2016 – 2017 (HS 1604)
Figure 24: Global production of main types of meat, 2013 – 2017f
Figure 25: Global consumption of main types of meat, 2010 – 2017f
Figure 26: Top largest processed meat importing countries, 2016 – 2017 (HS 1602)
Figure 27: Global processed meat trade, 2012 – 2017e
Figure 28: Top largest processed meat exporting countries, 2016 – 2017 (HS 1602)
Figure 29: Global vegetables production, 2009 – 2016
Figure 30: Top largest fresh vegetable – fruit producing countries in the world, 2016
Figure 31: Scale of global vegetable fruit processing market, 2010 – 2022F
Figure 32: Structure of global processed vegetable fruit consumption market, 2015
Figure 33: Structure of processed fruit and vegetables by variety, 2015
Figure 34: Top largest fruit and vegetable exporters, 2016 – 2017
Figure 35: Global processed fruit and vegetable trade, 2012 – 2017e
Figure 36: Top largest fruit and vegetable importers, 2016 – 2017
Figure 37: Global cereal production in 2016/2017 by type
Figure 38: Production and consumption of global cereals by season, 2011/12 – 2016/17
Figure 39: World’s top largest cereal producing countries, 2015
Figure 40: Global starch production capacity by type of material, 2015
Figure 41: Application structure of starch, 2016
Figure 42: Production structure of corn starch products in the world, 2016
Figure 43: Top largest starch importing countries, 2016 – 2017
Figure 44: Top largest starch exporting countries, 2016 – 2017
Figure 45: Number of enterprises in the food processing industry in China, 2011 – 2015
Figure 46: Revenue of China’s food processing industry, 2011 – 2015
Figure 47: Processed seafood consumption in China, 2010 – 2017f
Figure 48: Processed seafood consumption per capita in China, 2010 – 2017f
Figure 49: Processed meat consumption in the United States, 2009 – 2014
Figure 50: Sales of top US meat processing companies, 2016
Figure 51: Retail sales of processed meat products in the United States, 2017
Figure 52: Sales and consumption of processed seafood in the United States, 2010 – 2017f
Figure 53: Consumption structure of canned seafood, 2015
Figure 54: Consumption of processed seafood per capita in the United States, 2010 – 2017f
Figure 55: Labor structure in the US food and beverage industry, 2015
Figure 56: Top 10 companies having the largest revenue from processed food in the United States and Canada, 2015 – 2016
Figure 57: Number of enterprises and employees in dried and canned seafood processing, 2010 – 2016
Figure 58: Distribution of dried and canned seafood processing enterprises by region, 2010 – 2016
Figure 59: Revenue and profit of dried and canned seafood processing industry, 2010 – 2016
Figure 60: Investment capital and fixed assets of dried and canned seafood processing, 2010 – 2016
Figure 61: Seafood production from fishing and farming, 1995 – 2017e
Figure 62: Dried seafood production, 2010 – Q1/2018e
Figure 63: Canned seafood production, 2010 – Q1/2018e
Figure 64: Frozen seafood production, 2011 – Q1/2018e
Figure 65: Consumption value of canned seafood, 2010 – Q1/2018e
Figure 66: Consumption value of dried seafood, 2010 – Q1/2018e
Figure 67: Export of processed and preserved seafood products, 2012 -Q1/2018e
Figure 68: Import of processed and preserved seafood products, 2012 – Q1/2018e
Figure 69: Number of enterprises and employees in meat products processing industry, 2010 – 2016
Figure 70: Distribution of meat processing enterprises, 2010 – 2016
Figure 71: Revenue and profit of meat products processing industry, 2010 – 2016
Figure 72: Investment capital and fixed assets of meat product processing industry, 2010 – 2016
Figure 73: Production process of canned meat
Figure 74: Production process of sterilized sausage
Figure 75: Meat production, 2010 – 2017
Figure 76: Pork price fluctuation, 2016 – 2/2018
Figure 77: Canned meat production, 2010 – Q1/2018e
Figure 78: Production of other processed meat products, 2010 – Q1/2018e
Figure 79: Consumption value of meat products, 2010 – Q1/2018e
Figure 80: Market share of the top 10 processed seafood and meat consuming enterprises, 2017
Figure 81: Vissan’s market share in processed meat sector, 2016
Figure 82: Import turnover of processed meat products,  2010 – Q1/2018e
Figure 83: Export turnover of processed meat products, 2010 – Q1/2018e
Figure 84: Number of enterprises and employees in fruits and vegetables processing sector, 2010 – 2016
Figure 85: Distribution of fruit and vegetable processing enterprises by region, 2010 – 2016
Figure 86: Revenue and profit of fruit and vegetable processing sector, 2010 – 2016
Figure 87: Investment capital and fixed assets of fruits and vegetables processing sector, 2010 – 2016
Figure 88: Cultivated area of fruit trees in Vietnam, 2008 – 2017
Figure 89: Fruit production, 2008 – 2016   
Figure 90: Production output of canned vegetables and fruits, 2010 – Q1/2018e
Figure 91: Production output of fresh vegetable juice, 2010 – Q1/2018e
Figure 92: Consumption value of canned and dried fruit vegetables in Vietnam, 2010 – Q1/2018e
Figure 93: Market share of processed fruits and vegetables, 2017
Figure 94: Export turnover of processed fruits and vegetables, 2010 – Q1/2018e
Figure 95: Export structure of vegetables and fruits of Vietnam to EU, 2016
Figure 96: Export market structure of processed fruit and vegetables, 2016
Figure 97: Import value of processed fruits and vegetables, 2010 – Q1/2018e
Figure 98: Import market structure of processed fruit and vegetables, 2016
Figure 99: Number of enterprises and employees in starch and starch product processing sector, 2010 – 2016
Figure 100: Distribution of starch and starch product processing enterprises by region, 2010 – 2016
Figure 101: Revenue and profit of starch and starch product processing sector, 2010 – 2016
Figure 102: Investment Capital and fixed assets of starch and starch product processing sector, 2010 – 2016
Figure 103: Cultivated area and output of cassava, 2010 – 2017
Figure 104: Production of starch and starch products, 2010 – Q1/2018e
Figure 105: Starch production structure in Vietnam, 2017
Figure 106: Consumption value of starch and starch products, 2010 – Q1/2018e
Figure 107: Use of cassava starch in Vietnam, 2016
Figure 108: Export output of cassava starch over the years, 2013 – Q1/2018
Figure 109: Export of cassava starch by month, 2017 – 2018
Figure 110: Export market structure of cassava starch, Q1/2018
Figure 111: Export price of cassava starch in Vietnam by month, 2016 – 2017
Figure 112: Import of starch and starch products, 2010 – 2017
Figure 113: Import volume of cassava starch, 2013 – 2016
Figure 114: Number of enterprises and employees in the other food processing industry, 2010 – 2016
Figure 115: Distribution of other food processing enterprises by region, 2010 – 2016
Figure 116: Number of enterprises and employees in the other food processing industry, 2010 – 2016
Figure 117: Investment capital and fixed assets of other food processing industry, 2010 – 2016
Figure 118: Production of kinds of noodle, 2010 – Q1/2018e
Figure 119: Consumption of instant noodles in Vietnam, 2010 – 2016
Figure 120: Consumption value of noodle products, 2010 – Q1/2018e
Figure 121: Market share of instant noodles in rural areas, 2014 – 6M/2016
Figure 122: Export turnover of noodle products, 2012 – Q1/2018e
Figure 123: Import turnover of noodle products, 2012 – Q1/2017e
Figure 124: Production of other processed food, 2010 – Q1/2018e
Figure 125: Consumption value of other processed food, 2011 – Q1/2018e
Figure 126: Export of processed food, 2015 – Q1/2018e
Figure 127: Import of processed food, 2012 – Q1/2018e
Figure 128: Confectionery production, 2011 – Q1/2018e
Figure 129: Structure of confectionery production by output, 2016
Figure 130: Fluctuation of sugar prices, 2/2013 – 4/2018
Figure 131: Fluctuation of wheat prices, 9/2012 – 4/2018
Figure 132: Consumption value of confectionery in Vietnam, 2011 – Q1/2018e
Figure 133: Top 10 brands having the most advertisement in confectionery sector, 4M/2017
Figure 134: Import of confectionery and cereal products of Vietnam, 2010 – Q1/2018e
Figure 135: Import market structure of confectionery and cereal products, Q1/2018
Figure 136: Export of confectionery and cereal products of Vietnam, 2010 – Q1/2018
Figure 137: Export market structure of confectionery and cereal products, Q1/2018
Figure 138: Sugar production by season, 2009/2010 – 2017/2018e
Figure 139: Production process of sugar extracted from sugarcane
Figure 140: Situation of sugar factories in Vietnam, 2015/2016
Figure 141: Sugar production cost, 2015
Figure 142: Sugarcane production, 2009 – 2017
Figure 143: Cultivated area of sugarcane, 2010 – 2017
Figure 144: Sugar consumption in Vietnam, 2010 – 2018e
Figure 145: Inventories in sugar sector, 2004 – Q1/2018
Figure 146: Sugar imports, 2012 – 11M/2017
Figure 147: Sugar import markets of Vietnam, 11M/2017
Figure 148: Sugar exports, 2012 – 11M/2017
Figure 149: Gross profit margin, 2015-2016
Figure 150: Selling expenses/Net revenue ratio
Figure 151: Administrative and general expenses/ net revenue
Figure 152: Self-financing ratio, 2015 – 2016
Figure 153: Current ratio, 2015-2016
Figure 154: Average number of days of receivable, 2016
Figure 155: Average number of days of inventory, 2016
Figure 156: Net profit margin, 2015 – 2016
List of tables
Table 1: Consumption of some types of food per capita in China, 2013 – 2017
Table 2: Import value of processed food products of China, 2012 – 2016 (Unit: 100 USD million)
Table 3: Top largest importers of processed and preserved seafood products, Q1/2018
Table 4: Top largest importers of processed meat products, Q1/2018
Table 5: Top largest noodle exporting enterprises, Q1/2018
Table 6: Top largest noodle importing enterprises, Q1/2018
Table 7: Top largest processed food exporting enterprises, Q1/2018
Table 8: Top largest processed food importing enterprises Q1/2018