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제목 | 베트남 수의용 의료품 시장동향(2013.3) | ||||
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게시일 | 2016-03-03 | 국가 | 베트남 | 작성자 | 김주선(하노이무역관) |
품목 | 기타 | ||||
품목코드 | 901839 | ||||
작성일자: 2013.3.14 작성자: 하노이 무역관 Ms Nguyen Quynh Chi(Nqchi.kotra@gmail.com)
1. Overview of Veterinary Industry
○ Veterinary Industry is now still emphasized on the livestock for the food and food processing industry. The market serving for pet is still limited and individual. Vietnamese agriculture in general and its livestock sector, in particular have been developing as Vietnam is still considered an agricultural country with more than 70% of the population living on this industry. As of 2011, the gross output of agriculture reached 779,288 billion(US$ 37.5 billion), grew by 44% in comparison to 2010. Similarly, the livestock sector has been a remarkable contribution to the output(26.5%) evidenced by its year-on-year bigger share in the agricultural structure.
□ Vietnam Livestock Sector
○ Vietnam Livestock Structure - Livestock rising is a potential field in agriculture sector. Hoang Kim Giao, head of the Ministry of Agriculture and Rural Development’s Animal Husbandry Department, said under the Livestock Development Strategy, the country would increase the ratio of livestock production to 38 per cent of the total agricultural output by 2015 and 42 per cent by 2020 from the current 30 per cent. - By 2020 the livestock industry targets production of 5.5 million tonnes of meat, 14 billion eggs, and more than 1 million tonnes of milk. This translates into 56 kilogram of meat, 140 eggs, and more than 10 kilogram of milk per capita per year. - In recent year, the demand for meat increase considerably due to population and economic growth. The demand per capita in Vietnam increased by 2.7 kg for pork, 2.25 kg for poultry and 0.79kg for beef in 10 years from 2000 to 2010 and is estimated to be increased more in the next 10 years.
Source: International Livestock Research Institute
- Vietnam becomes a very potential market for livestock raising and processing. However, the market supply is still limited. Despite of the increasing demand of the market for meat, number of livestock in Vietnam has grown slowly. From 2008 to 2010, number of buffaloes increased by 0.5%, number of pig increased by 2.5% and number of poultry increased by 21%. The number of cow/ox decreased by 6.6% over 2 years from 2009 to 2011 and number of pigs decreased by more than 0.9% from 2009 to 2010.
Source: General Statistics Office, 2010
- However, production output of major livestock increased, proving the increase in productivity in livestock raising.
Source: General Statistics Office, 2010
- Consumers are now more concerned about food quality. About 97% of meat consumers state that influenza affects their consumption habit. When there is influenza on pigs, 32% of consumers changed to other kinds of meat and 11% bought pork in super market systems. When influenza on poultry occurred, 25% of consumers changed to other kinds of meat.
Source: International Livestock Research Institute
- Therefore, besides of increasing the number of livestock heads, disease control and hygiene activities are very important in developing livestock raising industry. At the moment, livestock raising activities of domestic raisers still meet up with many difficulties. One of the biggest difficulties for domestic raisers is capital for investment. As interest rate is high and the loan term is too short, there is not enough time for livestock raisers to gain profit and reinvest. That is one of the reason for increasing import meat and meat products to Vietnam market in recent years. Moreover, animal feed production and livestock breed production are also very important in developing livestock industry. At the moment, animal feed production is dominated by foreign invested company with 20 companies making up about 65-70% of the total animal feed production output. For livestock breed market, the market is controlled by 3 foreign invested companies Japfa, CP Vietnam and Emivest. Domestic companies with limited resources cannot compete with those foreign invested companies. - According to calculation of experts, the price of chicken breed that foreign invested companies sell to agents is about VND 19,500-21,000/ 1 day-old breed(The agent will sell to raisers at the price os VND 24,000-26,000/ breed). With the low cost of producing chicken breeds now, those foreign invested companies will make the profit of at least VND 14,000/ breed. Those companies are monopolizing the market for breeds so raisers also have to buy animal feed from them with the price of about 10-15% higher than market price. It can be said that animal feed and breed production are super-profitable business for investors. - To meet up with the domestic demand and for export, livestock industry is concerned by the government. In coming years, the government encourages livestock raising activities for all kinds of livestock with focus on high productive breed and bigger scale and more modern model of raising to meet the target.
○ Animal Feed and Nutrition - Vietnam is a big agriculture export country; however Vietnamese animal feed industry couldn’t take the initiative in raw material source. Vietnamese import turnover of raw materials for the animal feed industry is about US$ 3 billion annual. According to the latest statistics from General Department of Vietnam Customs(GDVC), the total import value of animal feed and feed ingredients in 2012 totaled 5 million tones valued US$ 3.7 billion. By categories, soy meal was still the commodity with the highest proportion of 47.39%; finished feed of 14.09%; corn of 13.96%; fish meal–bone meal of 13.04%; feed additives and the other materials of 11.52 %. That is the highest import level until now, and as the estimation of National Institute of Animal Husbandry, by 2020, Vietnam is still going to depend of imported material for the domestic demand(15 million tonnes /year) and the volume will occupy 50%. - The foreign companies are taking about 70% of the market share; these brands are Cargill(USA), NewHope(China)… Almost of the raw material used in husbandry industry is imported from USA, Chile and Brazil. In the market, there are many feed additive products in origin from China with the very low price but poor quality, some of them is harmful to livestock and people. - In recent months, the price of animal feed has been increasing constantly at a high level, at some moments; the animal feed price occupied about 70% of the price of livestock products. Some causes of this issue include many factors such as the foreign currency ability of domestic enterprises, high intermediate cost, tax rebate procedure, etc. But the main reason is that, Vietnamese livestock industry is depending too much on imported material sources. Therefore, when the demand and supply in the global market fluctuate, automatically the domestic market is influenced strongly. Price will be the main reason that more Vietnamese buyers are scanning the world for value-for-money and lower cost feed inputs. While this is the case, they still import ingredients and additives from the developed countries because of the requirements of technical specifications, raw material functionality in feed products and the demands of more sophisticated animal feed users.
○ Animal Health Situation - The prevalence of many animal diseases in Vietnam is influenced by nutrition stress, climate, animal production system, breed, and pattern of animal transportation and exchange. Animal diseases cause a tremendous economic loss in animal production in Vietnam. The imported exotic breeds of livestock with high productivity are normally more susceptible to disease than indigenous animals. Many infectious diseases are found in Vietnam caused by virus, bacteria, fungi and parasites. The animal diseases, vaccines, drugs, and additives are controlled by the Animal Health department, the six regional veterinary centers, and the veterinary sub-department in each province. The veterinary network covers to community level. The majority of veterinary vaccines used in Vietnam are manufactured in the two vaccine factories, which operate as self-financing Government Enterprises and are under the control of the National Center of Veterinary drug Control – Animal Health department.
□ The Veterinary Activities ○ Recently, livestock and poultry disease is increasingly developing complicatedly and affects badly the economy, living environment and community health, specially the poultry flu and livestock foot-and-mouth disease. They cause great damage directly to stockmen, the balance between the supply and demand of the food market, and influence the consumer. Dangerous disease such as poultry flu, food and mouth, green ear disease on pig damages the environment, people’s health, economy - society stability, and makes the hazard of global disease at human.
○ Vietnam is the agricultural country and animal husbandry is expanding strongly, especially the centralized husbandry with the large scale. As the report of General Statistic Office, the number of farm in July 2009 is 143000 farms, and rises 18.5% in comparison to the same period in 2008. The livestock and poultry amounts are always high, particularly the one of the pigs and poultry, and the average increase of 3.5%-4.5% at livestock and 12 % at poultry. The big amount and centralization are the main causes of the expanding sharply, when the disease appears. Therefore, using the diagnostic reagents and equipments to test and evaluate the disease in the herd of cattle is very important and is progressed much more now.
○ Vietnam is located in a subtropical area with hot and humid climatic conditions, the livestock production is mainly based on intensive production and it is gradually changing. Many diseases are prevalent and cause a tremendous economic loss in animal production. Thanks to the vaccination program, some infectious diseases have been partly controlled and eradicated. Nevertheless, the inadequate veterinary policies and regulations, the ineffective implementation of those regulations, together with the limited knowledge of the farmer in disease prevention and control, lead to the reduction of the effectiveness of veterinary practices, especially in remote or rural areas.
○ Diseases detection and control has to face many difficulties. In some places, for the concept of farmer, the slaughter control and inspection is undisciplined and nearly out of control. The disease quarantine usually takes time due to the inadequate equipment for this task. The proportion of vaccinated animal is low and the quality of vaccines needs to be improved. The veterinary network in local levels is weak and poor in activities.
○ The uncontrollable and animal and animal product at the border gates of importing and exporting lead to the spreading of many contagious disease from neighbor countries especially from China via illegal delivery. The agricultural extension system has a low investment and effectiveness. The agricultural extension services provide mainly technique, rather than market information, regulations and policies or credit conditions.
□ Veterinary Pharmaceutical Market
○ With such a large number of livestock and poultry, the demand for veterinary medicines is enormous. In addition to 70% of the demand satisfied by domestic medicinal products, foreign veterinary products have been imported in large number. Some major sources for importing consist of Korea, Thailand, Indonesia, India, France, the US, Canada, so forth. Regarding Korean companies, the list of Korean companies that are selling veterinary medicines to Vietnam is presented as follows.
Source: Ministry of Agriculture and Rural Development
○ According to Department of Animal Health of Vietnam, so far there have totaled 87 veterinary pharmaceutical manufacturers controlled by Bureau of Veterinary with 4,671 products that fulfill 70% of the demand related to prevention and treatment for livestock and poultry. Most well-known veterinary makers are Central Veterinary Co. No. 1 & 2, Vietnam Veterinary Products JSC(VINAVETCO), VEMEDIM, Bio-Pharmachemic, etc. Also, there are 190 manufacturers from 35 countries in the world who register to take 1,752 veterinary pharmaceutical products into circulation.
○ In order to enhance the competitiveness and expand the export market, domestic companies have been trying to meet international standards. Of six veterinary pharmaceutical manufacturers granted GMP(Good Manufacturing Practice), there are three manufacturers who can meet GMP-WHO standard including Bio-Pharmachemic, Anova, Vemedine, two manufacturers who can reach GMP-EU standard consisting of Minh Dung Veterinary pharmaceutical manufacturing and trading Co., Ltd. and Virbac Vietnam Joint-Venture Company and Safavedic Co., Ltd. with GMP-ASEAN. Besides, the quality control system pursuant to ISO 9001:2000 is applied in 18 factories. In addition, there are numerous pharmaceutical factories striving to meet three criteria which are GMP, GLP(Good Laboratory Practice) and GSP(Good Storage Practice) for the international integration.
○ Currently, local companies are able to produce vaccine, medicines such as antibiotics, bio products and disinfectants…Of all the local makers, the biggest are Vinavetco(103 products), Hanvet(114), Bio-Pharmachemic Joint Venture Co.(247), Minh Dung Veterinary pharmaceutical manufacturing and trading Co., Ltd.(105), Cai Lay Veterinary Medicines Joint Stock Co.(152), Vemedim Can Tho(175), A Chau Veterinary Medicines Co.(117).
2. Medical Equipment for Veterinary
○ Currently, the Vietnamese living standard is increasingly improved and that brings out the necessary demand on investing to raise the living facilities. Pet and added services for pet in Vietnam now are really the new and potential market but limited and lack of professional investment. Habits, interests, and feelings of the Vietnamese people are to love having pets in the house to relief, and create joy. The investment for breeding and pet care will be extremely large. Several clinics and few sporadic shops are not enough to meet the needs of many Vietnamese households and families getting favorite of pet.
□ Demand Seen From Pet Service Market
○ The shops providing the products and accessories for pet have appeared in the Vietnam market for 3 or 4 year. But from one recent year till now, the market of products for pet is really emerging rapidly and become a hot and dynamic business channel with the bloom of various kinds of product and ideally services. Fashion for pet including cloths and accessories, seems very popular with various size, model and color. All products also get fashionable and are collected from many sources such as China, Korea, US with many price levels from 10 usd ~ 100 usd to stratify the demand of customers.
○ For the increasing demand, the shopkeepers have to diversify the product model and frequently find the new providing sources. Besides of the usual products sold like hot cake such as cloths, cosmetic, calcium, toothbrush, comb, jewelry, basket, the facilities such as cage, house for dog, chain with nice design and color was looked forward by numerous consumers who can’t decline the opportunities to make up for their pets.
○ Caring of the pet and facilitating for the pet with the beautiful and creative products seem now the trend expanding on not only the teenage in particular, also on large community of pet owners. This trend also comes out the launching of many caring services, healthcare services and hospitality services. A 5 star hotel for pet is in building process with many functions, VIP room, CCTV to record the daily pet activities, entertainment rooms, spool, resort, stadium…with air conditioner, the average price is about 65- 825 per night.
○ According to some pet shopkeepers, in the forthcoming time, this service still is going to expand and develop very fast coming together with the increase of general income of Vietnamese people. This also makes the come-to-being of a lot of added services such as bath, claws, fur cutting; the plastic surgeries of eyelid rising, ear fixing, and fur dyeing with the fees from 10 usd to 100 usd for the precise surgery.
○ At the moment, there are few of clinic and sporadic shop to breeding and providing health service for animal in general and for pet in particular. This market in Vietnam is still quite limited for the initiative restriction of living standard and the concept of breeding the animal and pet. The infected pet at home is not interested properly. The infection that is not treated in time will greatly affect children and adults in the family. Moreover, the care and treatment of animals in Vietnam has not been fully recognized and thoroughly. The birth of the veterinary hospital and clinic will help families better understand the process as well as how to prevent and treat your pets at home. In additional, for the optimistic market signals of pet and the increasing demand of breeding pet as shown above. In the coming time the number of pet clinic is expected to increasing respectively.
○ Currently, there are just 2 professional veterinary hospitals located in 2 big cities Hochiminh and Hanoi with the full breeding and medical services and be facilitated the modern and specialized medical equipment for veterinary. The first veterinary hospital is PETCARE established in 2007 and located in Hochiminh. This is a large space, reasonable design for examination and treatment rooms. With an investment of nearly $ 150,000, Petcare is fully equipped with all modern machines needed for the care and treatment of dogs, cats, monkeys, hamsters and birds such as blood analysis, X-ray machines, and ultrasound machines. The most modern and rapid diagnosis of the world now is also equipped hospital. Team of veterinary doctors at the hospital is including professors, doctoral, master's degree in veterinary training in European countries and Vietnam. In the area of Hanoi and Hochiminh, there are around 20 registered private veterinary medical examinations and clinics. Moreover, there are the veterinary centers under Department of Animal Health at the province and districts in the whole country. However, these centers usually are just to provide the research and examination of the disease for the total livestock sector. For household breeding animal and pet, this service is still in small scale and not be seen as a professional business type.
□ Import Demand and Competition from Overseas Products
○ Currently, there is no a deep research and statistic about the veterinary equipments and accessories imported to Vietnam. Almost this kind of products have the original from overseas, however, there are some unofficial delivery ways via border from China or portable goods. The market is still depending on the overseas products. To veterinary medical equipment as the HScode 901839 on the products of needles, catheters, cannulae and like, nes, the statistic of import value as the table below:
Product: 901839 Needles, catheters, cannulae and the like, nes Unit: US Dollar thousand Sources: ITC calculations based on UN COMTRADE statistics.
○ The import volume increased slightly from 2006 to 2010 and reached US$ 25 million in 2010. The demand of import still keeps at the sustainable level and at increasing trend for the concept of farmer and Government in controlling the diseases. This market is expected to keep increasing in the coming time for the effort of government in control and reduce the influence of disease in livestock industry. In particular with the household breeding pet trend currently, it is also impact to the volume of import medical equipment for veterinary expectedly. However, these products from Korea are just occupying a very small share in the market. The volume imported from Korea now is around US$ 0.2 million.
○ As the statistic, Malaysia is still leading the export volume to Vietnam from 2006, however, the value of export is recorded a sharp decrease. The chart shows the emerging competitors of US and China with the sustainable increase of export volume. In the coming time, the products from US and China are still getting the advantages in the market. The market prefers the products from US for the high quality and from China for the low price. This statistic number is showing the Hscode 901839 of the equipment for both human and animal health. Therefore, basically, for the general evaluation based on the demand and characteristic of Vietnam veterinary market, the product from China is still the strongest competitor.
□ Product and Pricing
□ Import Tariff
○ Commodity 90.18: Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments. ○ This commodity is in the preferential list of Government and gets full support of import and VAT tax. The import tax is none and it is just taxed 5% of VAT.
Note: MFN: Most Favored Nations(Korea belongs to this group of nations) CEPT: Common Effective Preferential Tariff(ASEAN 10 member countries) AKFTA: ASEAN-Korea Free Trade Area Source: Export–Import Tariff and VAT on Imports Book(Ministry of Finance) |
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