Market Information
Southeast Asia

Fish and Seafood - Market Overview
Vietnam

July 2003

The Canadian Embassy in Vietnam
31 Hung Vuong St.
Hanoi, Vietnam
Tel.: (011-84-4) 823-5500
Fax: (011-84-4) 823-5333
E-mail: hanoi-td@dfait-maeci.gc.ca
Internet: http://www.infoexport.gc.ca/vn

Market Overview

While market prospects are limited in this sector because Vietnam is a significant producer and exporter of seafood, the abundant supply of marine products and the availability of low cost labour represents an opportunity for Canadian firms to establish processing facilities in Vietnam and export value-added products.

In 2001, Vietnam imported about $55 million⁽¹⁾ of sea products, mainly salmon, crab meat, and caviar from Norway, France, the U.S. and other countries.

Opportunities

Based on the technological inputs and available resources, Vietnam's seafood products market can be divided into two categories: semi-processed products (raw materials are simply processed and sent for further processing and packaged elsewhere), and high value-added products. For Canadian products, this sector is confined to small markets for shellfish and smoked salmon, mostly in the upscale hotel and restaurant sector, although competition here is intense.

Vietnam has ambitious plans to expand and upgrade its own production of seafood. While some of these plans will likely be scaled back due to lack of available financing and other considerations, it is still expected that the growth in seafood production (and exports) should healthily outpace the growth in population. However, with the continuing rise in income levels of many urban Vietnamese, Canadian suppliers of higher quality (and higher margin) products should be ready to anticipate growth to "critical mass" levels for export in the next five to 10 years.

The Vietnamese Ministry of Fisheries is calling for additional investment through the Overseas Development Agency (ODA) and Foreign Direct Investment (FDI) in the following areas:

• aqua-culture (with a concentration in shrimp breeding and inputs);
• upgrade of vessels for deep-sea fishing (larger engines, chilling and storing equipment); and
• upgrade of processing facilities.

Two main Vietnamese export products, catfish and shrimp, have been subjected to anti-dumping and phyto-sanitary measures from major exporters, such as the United States, the European Union and Canada.

Standards of local partners can be low and are often inefficiently managed. Deep-sea fishing by foreigners is prohibited. Tariffs for some seafood products are high, but these may be reduced during upcoming World Trade Organization (WTO) negotiations.

The following events may provide opportunities for interested Canadian companies:

Event :
Vietnam Food Show
Foodtech Vietnam 2004
Mid-April 2004
HIECC
Ho Chi Minh City, Vietnam

Organizer :
E.X. International Co., Ltd. 9A Thi Sach St., District 1, HCMC
Tel.: (011-84-8) 82-4206
Fax: (011-84-8) 82-4204
E-mail: exintl@saigonnet.vn

Key Participants

Denmark has earmarked much of their large ODA program to this sector and Danish technology is dominant. The market for value-added seafood products is led by Norway and Australia. Supply of aqua-culture technology is influenced by Thailand.

Private- and Public-Sector Customers

The local supermarket chains (Saigon Co-op, Maximark, Citimart, Metro Cash & Carry) and trading firms are the major importers.

Key Contacts

Canadian Contacts

Consulate General of Canada in Ho Chi Minh
Metropolitan Building
235 Dong Khoi St., Suite 1002
District 1
Ho Chi Minh City, Vietnam
Tel.: (011-84-8) 824-5025
Fax: (011-84- 8) 829-4528
E-mail: infocentre-hochi@dfait-maeci.gc.ca
Internet: http://www.infoexport.gc.ca/vn

Canada Business Service Centres
Toll-free: 1-888-811-1119
Internet: http://www.cbsc.org

Canadian Commercial Corporation
Metropolitan Centre
50 O'Connor St., Suite 1100
Ottawa, ON K1A 0S6
Tel.: 1-800-748-8191 or (613) 996-0034
Fax: (613) 995-2121
E-mail: info@ccc.ca
Internet: http://www.ccc.ca

Canadian Government International
Trade Centres
Internet list of addresses
by province http://strategis.ic.gc.ca/SSG/ig00008e.html
E-mail: strategis@ic.gc.ca

Department of Foreign Affairs
and International Trade
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

Export Controls Division (EPE)
Tel.: (613) 996-2387
Fax: (613) 996-9933
Internet: http://www.dfait-maeci.gc.ca/~eicb

Southeast Asia Division (PSE)
Contact: Shirley Ong
Tel.: (613) 996-8199
Fax: (613) 944-1604
E-mail: shirley.ong@dfait-maeci.gc.ca

Market Support Division (TCM)
Contact: Karolee Stevens
Tel.: (613) 996-5758
Fax: (613) 943-1103
E-mail: karolee.stevens@dfait-maeci.gc.ca

Export Development Canada
151 O'Connor St.
Ottawa ON K1A 1K3
Tel.: 1-888-332-4593 or (613) 598-2500
Fax: (613) 598-6697
E-mail: export@edc.ca
Internet: http://www.edc.ca

Vietnamese Contacts

Ministry of Trade
31 Trang Tien, Hanoi
Tel.: (011-84-4) 826-4778
Fax: (011-84-4) 934-2136
Internet: http://www.mot.gov.vn

Vietnam National Seaproducts Corporation
(Seaprodex)
2-4-6 Dong Khoi, District 1, HCMC
Tel.: (011-84-8) 829-7214
Fax: (011-84-8) 829-0146
Internet: http://www.seaprodexvn.com

Ministry of Fishery
10 Nguyen Cong Hoan, Hanoi
Tel.: (011-84-4) 835-1720
Fax: (011-84-4) 771-6702
Internet: http://www.fistenet.gov.vn

Bibliography

Economist Intelligence Unit, Country Profile-Vietnam, 2002.
Thoi Bao Kinh Te Saigon, February 27, 2003.
Saigon Times Weekly, February 22, 2003.

Useful Internet Sites

Asia Pacific Foundation of Canada: http://www.asiapacific.ca

Asian Development Bank: http://www.adb.org

Department of Foreign Affairs and International Trade: http://www.dfait-maeci.gc.ca

ExportSource: http://exportsource.ca

Governments on the WWW (links to a range of Vietnam government Web sites.): http://www.gksoft.com/govt/en/vn.html

InfoExport (Canadian Trade Commissioner Service): http://www.infoexport.gc.ca

IntellAsia: http://www.intellasia.com

International Business Opportunities Centre: http://www.iboc.gc.ca

Ministry of Agriculture and Rural Development: http://www.agroviet.gov.vn

Ministry of Fisheries http://www.fistenet.gov.vn

Ministry of Trade of Vietnam (in Vietnamese): http://www.mot.gov.vn

Strategis (Industry Canada): http://strategis.gc.ca

Tradeport: http://www.tradeport.org/ts/countries/vietnam/index.html

Vietnam Economic Times: http://www.vneconomy.com.vn

Vietnam Investment Review: http://www.vir.com.vn

World Bank (Vietnam Country Office): http://www.worldbank.org.vn

¹ All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on the Bank of Canada's annual average exchange rate, 2002.