A growing urban middle-class with increased disposable income and changing consumption patterns is creating new opportunities for Australian exporters in Vietnam, particularly in food and beverages.
Vietnam has an estimated population of over 92 million, with nearly 60 per cent aged under 30 and is said to have the fastest growing middle class in the Southeast Asian region.
A recent Boston Consulting Group Survey has projected Vietnam’s middle class to be around 33 million in 2020 with higher disposable incomes and a greater interest in western products and services.
Austrade’s Acting Senior Trade Commissioner for Vietnam, Janelle Casey, said domestic and foreign retailers, as well as food and beverage outlets, require more quality international products to enhance their offerings and to meet local market demand.
‘Vietnamese consumers are increasingly aware of health and wellness issues and are paying greater attention to the quality and safety of foods – key factors which are driving change in consumption patterns’ said Casey.
‘Local restaurants and importers are also keen to access more Australian food and beverage products, as they are highly regarded and viewed by Vietnamese consumers as high quality.’
Australian food trade show to be held in Vietnam
To help Australian exporters access these opportunities and raise the profile of Australian capability a Taste of Australia in Vietnam 2016 trade promotion will be held from 19-22 April.
Held in partnership with the Department of Foreign Affairs and Trade and AusCham Vietnam, the week-long event in Vietnam is a promotion of premium, safe and high-quality Australian food and beverage products.
‘The event will enable participants to learn about the business opportunities, showcase their products and network with Vietnamese retail outlets, distributors, importers, food service providers and processed food manufacturers in Hanoi and Ho Chi Minh City, ’ said Casey.
‘Participants will be also be able to obtain advice and links to help secure a local importer and distribution partner which are essential in Vietnam; especially as direct importation is uncommon. The right partner can also assist with the range of documentation needed from health authorities and customs,’ added Casey.
Vietnam is party to the ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA) which entered into force on 1 January 2010 and was Australia’s first multi-country FTA.
Casey encouraged exporters to also examine the recent tariff changes to a range of food and beverage exports to Vietnam under AANZFTA which came into effect on 1 January 2016, making the products more competitive.
To assist Australian exporters determine the applicable tariff rate for their products, Austrade has developed the AANZFTA tariff finder reference guide.
