Market Information
Southeast Asia

Bio-Industry - Sector Profile - 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: www.infoexport.gc.ca/vn

Market Overview

Biotechnology in Vietnam is a high priority for the government. Research activities in government-own institutes are focused on molecular biology and genetic engineering; microbial biotechnology for the production of bioactive compounds, biofertilizers; environmental protection and soil remediation; enzyme biotechnology; plant biotechnology for in-vitro conservation; the propagation of superior germplasm (plant tissue culture for mass propagation of planting material for horticulture, fruit and forestry industries and for developing high yield plants); and animal biotechnology methods. However, these research activities are heavily dependent on government funding or overseas development assistance (ODA) support. To date, there has been little domestic or foreign investment in the sector.

The government has been developing standards for the industry, with a focus on developing regulations to control imports of genetically modified organisms (GMOs) and genetically modified foods (GMF) and to improve food safety.

Opportunities

Current priorities for biotechnology development in Vietnam focus on the agricultural and forestry sector. The import of hybrid seeds (potatoes, rice, ornamental trees), bio-fertilizers and pesticides is important. Opportunities in the form of technology transfer and for services and equipment are expected to grow, particularly in the area of plant tissue culture and molecular biology. A few laboratories have been built to conduct research on plant tissue technology for developing high yield crops and the propagation of plants for afforestation.

Vietnam imports modest amounts of laboratory and clinical equipment each year to support its research activities. Canadian equipment has been reasonably successful. Several projects are under way involving Canadian companies looking to improve the genetic stock of livestock in Vietnam, but these may be impacted by the BSE outbreak, despite a recent signature of Animal Health Protocol between the two countries for various animal products (including a certificate for exporting swine).

Market Access Considerations

Although government interest is high, there is limited funding available to address the challenges that Vietnam faces in developing its agri-food sector. Government revenues spent on this sector are less than $3.14 million(1) per annum, with the balance funded by ODA or the private sector. Specifically, there are concerns regarding Vietnam's poor record in intellectual property protection, as well as shortages of qualified technical staff. This limits the demand for biotechnology in the short term. With limited expertise on the local market, interested exporters should look at partnering with a regional company that is likely to have better connections within Vietnam, and more interest in investment.

Key Participants

Since rice is the dominant commodity in Vietnam's agricultural sector, holding position number 2 in exporting rice worldwide, it has received the most attention from the biotech industry. Rice seed products from China and Taiwan dominate, and Korea and Japan have also been active. Suppliers of laboratory equipment for biotech research are mainly from the United States, Germany, the United Kingdom and Japan.

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: www.infoexport.gc.ca/vn

Canada Business Service Centres
Tel.: 1-888-811-1119
Internet: 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: www.ccc.ca

Canadian Government International
Trade Centres
See list of addresses by province
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: www.dfait-maeci.gc.ca

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

International Business Opportunities Centre (IBOC)
Tel.: (613) 944-6000
Fax: (613) 996-2635
E-mail: iboc@dfait-maeci.gc.ca
Internet: www.iboc.gc.ca

Market Support Division (TCM)
Contact: Robyn Devine
Tel.: (613) 996-3535
Fax: (613) 943-1103
E-mail: robyn.devine@dfait-maeci.gc.ca

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

Tariffs and Market Access Division (EAT)
Tel.: (613) 992-2177
Fax: (613) 992-6002
E-mail: eat@dfait-maeci.gc.ca

Technical Barriers and Regulations Division (EAS)
Tel.: (613) 944-0756
Fax: (613) 943-0346
E-mail: eas@dfait-maeci.gc.ca
Internet: www.dfait-maeci.gc.ca/tna-nac

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: www.edc.ca

Vietnamese Contacts

Ministry of Agriculture & Rural Development
International Cooperation Department
Contact: Le Van Minh, Director General
2 Ngoc Ha, Hanoi, Vietnam
Tel.: (011-84-4) 843-7520
Fax: (011-84-4) 845-4319
Email: leminhmard@fpt.vn

Institute of Biotechnology (IBT)
National Center for Natural Science & Technology
18-Hoang Quoc Viet Rd.
Cau Giay, Hanoi, Vietnam
Tel.: (011-84) 4-756-4691
Fax: (011-84) 4-836-3144
E-mail: binh@ibt.ac.vn
Internet: www.ibt.ac.vn

Vietnam Association of Food Science and Technology (VAFST)
K10 bis To Hien Thanh St.
Dist. 10, Ho Chi Minh City, Vietnam
Tel.: (84-8) 8646775
Fax: (84-8) 8644670
E-mail: dzuan@hcm.vnn.vn

Bibliography

Akram-Lodhi, A. H. (2001, September). Vietnam's Agriculture: Is there an Inverse Relationship? (Working Paper series No. 348). Ho Chi Minh City: Institute of Social Studies and Ho Chi Minh University of Economics.

National Environment Agency (2002). Sustainable Development in Vietnam: A Review of the Past Ten Years and the Path Ahead. Hanoi: Ministry of Science, Technology and Environment, Vietnam.

Nguyen Dinh Huong (Ed.). (1999). San xuat va doi song cua cac ho nong dan thieu hoac khong co dat o dong bang song Cuu Long: Van de va giai phap [Production and Living Standards of Farmer Households Which do not Have or Lack Land in the Mekong River Delta: Situation and Solutions]. Hanoi: The Political Publishing House.

Useful Internet Sites

Asia Pacific Foundation of Canada: www.asiapacific.ca

Asian Development Bank: www.adb.org

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

ExportSource: exportsource.ca

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

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

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

IntellAsia: www.intellasia.com

Ministry of Trade of Vietnam: www.mot.gov.vn

Promoting Ethnic Minorities' Development: www.undp.org.vn/undp/docs/2002/vdg

Strategis (Industry Canada): strategis.gc.ca

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

Vietnam Economic Times: www.vneconomy.com.vn

Vietnam Investment Review: www.vir.com.vn

Vietnam Ministry of Agriculture and Rural Development www.mard.gov.vn

Vietnam Ministry of Finance www.mof.gov.vn

Vietnam Ministry of Planning and Investment www.mpi-oda.gov.vn

World Bank (Vietnam Country Office): 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.