Trade and production: Vietnam

Agriculture is an important part of the economy at 12.6% of GDP and employs 29% of the labour force (World Bank 2023). Agriculture’s share of GDP has declined quite rapidly over the last few decades from 42% in 1989. The main cash crops in Vietnam are rice, maize, coffee, cotton, peanuts, rubber, sugarcane and tea.

Rice is the staple crop, and pork and poultry are the main protein sources due to their affordability and availability. Vietnam is one of the biggest pork producers in Asia; however, there has been a growth in egg and dairy production and consumption.

The UK does not currently have export health certificates (EHCs) for red meat products into Vietnam.

Beef

Cattle were originally kept in Vietnam for draft power in agricultural production, but since the introduction of machinery, the focus has changed to milk and meat production.

Consumption of beef in Vietnam has increased significantly over the last decade and is currently 5.09 kg/per person/year; this is expected to increase to nearly 6 kg per person by 2030. With increasing consumption and changing diets, the Vietnamese beef industry has not been able to satisfy domestic demand and therefore relies on imports of 323 Kt on average each year, worth nearly £800m. The key suppliers were India, Australia, Canada, the USA and Argentina.

It exported a very small amount of beef, less than 1 Kt on average per year between 2019 and 2021, mainly to China and Cambodia.

Table 1. Beef annual production and trade (2019–2021 average)

Source: Trade Data Monitor

Sheep meat

Sheep production in Vietnam is low at 21 Kt a year, although it is forecast to increase to 30 Kt by 2030.

Consumption is markedly lower than beef and pork – currently 0.19 kg per person per year – but is forecast to increase by 2029 (OECD).

Sheep production almost satisfies consumer demand, but a small amount is imported – an average of 2.2 Kt of lamb per year between 2019 and 2021, worth around £7.5m. The main suppliers were Australia, Argentina, Mexico and New Zealand.

Table 2. Sheep meat annual production and trade (2019–2021 average)

Source: Trade Data Monitor

Pork

Vietnam is one of the largest producers and consumers of pork in the world. An average of 3,301 Kt a year was produced between 2019 and 2021, which is forecast to increase to nearly 5,000 Kt by 2030 (OECD). Production is still predominantly small-scale, although the number of large commercial farms has increased in recent years.

Pork is the most consumed protein in Vietnam, currently 26.89 kg/per person/year and expected to increase to 36.18 kg by 2030 (OECD). Consumption is predominantly satisfied by domestic production. An average of 105 Kt per year was imported between 2019 and 2021, worth almost £163m. The key suppliers were Russia, Brazil, the EU and Canada.

There was a small number of pork exports, averaging 7.6 Kt per year between 2019 and 2021, mainly to nearby countries such as Thailand, Hong Kong and Laos.

Table 3. Pork annual production and trade (2019–2021 average)

Source: Trade Data Monitor

Dairy

The dairy industry in Vietnam is relatively small. However, it has set targets to increase production across the country by improving facilities and technology.

Milk and dairy product consumption is low compared with other countries. Consumption of liquid milk is 26 L a year, while it is 80–100 L across Europe. Processed dairy products consumption is modest – 0.2 and 1.13 kg/per person/year of butter and cheese, respectively.

An average of 169 Kt of butter per year was imported between 2019 and 2021, worth almost £66m. New Zealand supplied 99% of this, with the remainder coming from the EU.

An average of 12 Kt of cheese per year was imported between 2019 and 2021, worth almost £73m. The key suppliers were the EU, UK and New Zealand.

Due to the dairy industry being so small, exports were limited.

Table 4. Butter annual production and trade (2019–2021 average)

Source: Trade Data Monitor

Table 5. Cheese annual production and trade (2019–2021 average)

Source: Trade Data Monitor