The European Union supports campaigns that promote high quality agricultural products.

Vietnam is a country with a dynamically growing level of disposable income. This increase in wealth is linked to increased consumption, directly affecting the quality and value of consumed products on the food market. For example: according to estimates of the EU-Vietnam Business Network, food expenditures (category of Food, Beverages, Tobacco) will have increased in the period 2014 – 2019 by over 50%, from the level of 517 EUR in 2014 to 778 EUR in 2019. [1]

A natural consequence of the increase in wealth is the increased role of meat in people’s diet. According to data of the USDA, the total production of beef, pork and poultry in Vietnam amounted to 5.1 million tons in 2017.[2] However, the only type of meat for which the demand is satisfied by local production is pork. In the case of poultry, in spite of a considerable 68% increase in production in the years 2010-2017[3], there remains to be a high need for imported meat. According to data of the OECD-FAO, over the years 2018-2027 poultry consumption in Vietnam is to grow by 36%, while production – by 25%.[4]  This forms an additional gap in demand, which will be covered by poultry produced outside Vietnam.

The increasing wealth of Vietnamese society means that there is growing interest in products of premium quality, including food imported from Europe. An additional benefit of foodstuffs imported from EU countries may be seen in the marks of quality, such as Quality Assurance for Food Products (QAFP), with which high-quality poultry, among others, is marked.

The UE-28 is the fifth largest trading partner of Vietnam, with a 6% share in the total value of imported goods.[5] Vietnam’s position as an importer of European poultry is dynamically growing – this country is currently the seventh-largest trading partner in this category. In the period of January-September 2018, according to data of the European Commission,[6]  an increase as large as 63% in the size of export to the Vietnamese market from EU countries was noted, which makes it a record among the leading ten importers. In 2018 import of poultry from the European Union will likely have reached 85,000 tons, making it four times higher over the last 5 years.[7]

Poultry originating from the European Union, marked with the QAFP sign of quality, is well suited to meet the trends and expectations of consumers on a market that is gradually increasing in wealth. Its high quality, microbiological stability and safety are becoming increasingly important factors in selection – both for distributors as well as for the final consumers – and everything indicates that the importance of the European Union as a trading partner of Vietnam will continue to grow in the area of poultry products over the coming years.

[1] EVBN Research Report Agrobusiness: The Meat Sector in Vietnam, 2016

[2] GAIN Report Number: VM8019, 4.12.2018

[3] General Statistics Office of Vietnam

[4] Own calculation based on data of the OECD-FAO Agricultural Outlook 2018-2027

[5] EVBN Research Report Agrobusiness: The Meat Sector in Vietnam,2016

[6] European Commission, EU market situation for Poultry, , 13.12.2018

[7] Calculation of KRD-IG based on data, European Commission, EU market situation for Poultry, 13.12.2018