Required Report - public distribution

**Date:** 11/23/2005

**GAIN Report Number:** VM5076

**Vietnam**

**Retail Food Sector**

**2005**

**Approved by:**

![](media/image1.wmf)John Wade

#### FAS Hanoi, U.S. Embassy

**Prepared by:**

Truong Minh Dao

**Report Highlights:** Although the traditional retail sector still
dominates the retail food sector, Vietnam's retail industry continues
its steady transition away from the traditional trade to modern trade
including modern mini-marts, supermarkets, hypermarkets and superstores.
Modern trade has grown tremendously in the last six years and continues
to show strong potential for further development. Some big foreign
retail chains have closely studied this market sector for their future
investment. Local importers will continue to play a major role in
introduction, distribution, and promotion of imported food products in
Vietnam. Best prospects for U.S. food products are apples, grapes,
grocery snack foods (potato chips), dairy products, frozen potato and
packaged foods i.e. canned food, sauces. Further growth and
sophistication of the retail sector will create additional opportunities
for U.S food exporters.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Hanoi \[VM1\]

\[VM\]

TABLE OF CONTENTS

[SECTION I. MARKET SUMMARY 3](#section-i.-market-summary)

[I.1. Status of Retail Sector 3](#i.1.-status-of-retail-sector)

[Table 1: Estimated Value of Overall Retail Food Sales
4](#table-1-estimated-value-of-overall-retail-food-sales)

[Chart 1: Vietnam Food Retail Trade Structure
4](#chart-1-vietnam-food-retail-trade-structure)

[Table 2: Number of modern retail outlets and traditional outlets
5](#table-2-number-of-modern-retail-outlets-and-traditional-outlets)

[Table 3: Value of food sales of modern retail trade sector
5](#table-3-value-of-food-sales-of-modern-retail-trade-sector)

[I.2. Consumer Purchasing Behavior
6](#i.2.-consumer-purchasing-behavior)

[I.3. Trend in distribution channels
6](#i.3.-trend-in-distribution-channels)

[I.4. Trend in services offered by retailers
7](#i.4.-trend-in-services-offered-by-retailers)

[I.5. Import market 8](#i.5.-import-market)

[I.6. Advantages and Challenges Facing US Products in Vietnam
8](#i.6.-advantages-and-challenges-facing-us-products-in-vietnam)

[SECTION II. ROAD MAP FOR MARKET ENTRY
9](#section-ii.-road-map-for-market-entry)

[II.1. Entry Strategy 9](#ii.1.-entry-strategy)

[II.2. Market Structure 11](#ii.2.-market-structure)

[II.3 Trends in Distribution 12](#ii.3-trends-in-distribution)

[A: Modern retail trade sector: Super Markets/Hypermarkets/Store Chains
12](#a-modern-retail-trade-sector-super-marketshypermarketsstore-chains)

[Table 4: List of major Supermarkets/Hypermarkets/Wholesale Stores
12](#table-4-list-of-major-supermarketshypermarketswholesale-stores)

[B. Traditional Retail Trade: Wet Market & Private Small Shops
15](#b.-traditional-retail-trade-wet-market-private-small-shops)

[SECTION III. COMPETITION 15](#section-iii.-competition)

[SECTION IV. BEST PRODUCT PROSPECTS
16](#section-iv.-best-product-prospects)

[A. Products Present in the Market which have Good Sales Potential
16](#a.-products-present-in-the-market-which-have-good-sales-potential)

[B. Products Not Present in Substantial Quantities but which have Good
Sales Potential
16](#b.-products-not-present-in-substantial-quantities-but-which-have-good-sales-potential)

[C. Products Not Present Because they Face Significant Barriers
16](#c.-products-not-present-because-they-face-significant-barriers)

[SECTION V. POST CONTACT AND FURTHER INFORMATION
16](#section-v.-post-contact-and-further-information)

[State Regional Trade Groups 16](#state-regional-trade-groups)

[FAS Cooperators and Participants 17](#fas-cooperators-and-participants)

[USDA/FAS Offices in Vietnam 17](#usdafas-offices-in-vietnam)

[**\_Toc120700376**](#clearance-for-food-ingredients-and-additives)

**ECONOMIC OUTLOOK*:***

-   With an averaged annual growth rate of over 7 % in the last five
    years, Vietnam's economy enjoys second fastest growing in Asia and
    its strong economy growth is expected to continue in years given
    Government commitment for further reform in legal, financial,
    institutional system and in market liberalization.

-   This nation of over 82 million people - the second largest
    population in South East Asia - has enjoyed a young and
    well-educated population with 52% of that are under 24 years of age.

-   Per Capita income in urban area has increased by 8%-10% per annum
    and living standards continue to improve. The size of the upper and
    middle class has nearly doubled in the last five years in major
    urban areas (Ho Chi Minh City and Hanoi).

-   Vietnam exports continue to grow at a strong rate of about 20% in
    2005 and the tourist industry continues to receive an increasing
    number of foreign tourists (an expected 3.4 million in 2005, a year
    on year increase of 16%). Moreover, Vietnam annually receives more
    than \$4.0 billion in remittance from overseas Vietnamese. These all
    brings an increasing amount of foreign currency earnings to the
    country.

-   Foreign direct investment (FDI), which was registered at US\$ 4.0
    billion in 2004, continues to increase. The rapidly expanding
    private sector also defines the healthy environment for investors.

-   With such a large young consumer base, the improving per capita
    income and strong economic growth, Vietnam's best consumer years are
    still ahead and prospects for faster expansion of the retail sector
    in the next five years are very promising.

# SECTION I. MARKET SUMMARY

## I.1. Status of Retail Sector

Strong economic growth and improved per capita income has contributed to
the robust expansion of Vietnam's retail trade. Nationwide retail sales
of goods and services, which are estimated at \$19 billion to 20 billion
per year, have enjoyed a high growth rate of over 10% per year for the
last five years. As a proportion of total retail sales, food sales
account for nearly 50 percent. Food retailing in Vietnam has sales of
\$8.0 billion - \$8.5 billion and is growing at an average rate of over
9 percent per annum. With its current small share of only 9.0 percent to
10.0 percent of total food retail sales, modern trade promises to
continue expanding at the very high rate of 18% per annum -- the rate it
has grown in recent years.

Table 1 shows estimation of overall retail food sales over the past five
years.

## Table 1: Estimated Value of Overall Retail Food Sales

## 

  ------------------- -------- -------- -------- ------- ------- -----------
                      2000     2001     2002     2003    2004    2000-2004
                                                                 Average
                                                                 Growth

  Value in US\$       5.37     5.94     6.26     6.95    8.00     
  billion                                                        

  \% Growth           6.1      10.6     5.4      11      15.1    9.64

  Source: Various                                                
  Trade Sources incl.                                            
  Euromonitor,                                                   
  General Statistics                                             
  Office                                                         
  ------------------- -------- -------- -------- ------- ------- -----------

The retail food sector in Vietnam is still dominated by traditional wet
markets and small household-owned "mom and pop" shops. Modern retailers
are expanding but are still under-developed. The traditional retail
trade is being challenged by the booming modern trade with the number of
supermarkets, convenient stores, mini-marts, hypermarkets, large
wholesale stores and department stores recently increasing.

In conjunction with strong economic growth, rising income levels
(especially disposable income), a growing middle class, an increasing
young population and the expanding exposure to western lifestyle fuel
the rapid growth of modern trade in Vietnam retailing. Over the last six
years, modern trade in Vietnam has achieved an average growth of 18% per
annum and is expected to continue to grow at the same level for the next
five years. More consumers in urban areas demand an international
shopping experience and increasing numbers are shifting from the
'traditional' to the 'modern' trade.

The chart below provides general view of Vietnam food retailing
including traditional channels and modern channels:

## Chart 1: Vietnam Food Retail Trade Structure

The booming Vietnam modern retail trade sector is still limited to major
urban areas (mainly Ho Chi Minh City and Hanoi) and has been able to
obtain only 9% - 10% of total food retailing.

Food products are currently sold to over 92 modern supermarkets, 30
modern mini-marts and convenient stores, 18 shopping centers and
hundreds of thousands of traditional wet markets and small private
shops.

## Table 2: Number of modern retail outlets and traditional outlets

## 

  ------------------------- --------- --------- --------- --------- ---------
                                                                    

                            2000      2001      2002      2003      2004

  Supermarkets &            46        51        68        75        92
  Hypermarkets                                                      

  Department Stores         8         11        14        16        18

  Independent Stores        588,300   599,500   607,400   611,200   619,038

  Source: Euromonitor and                                           
  Post estimates                                                    
  ------------------------- --------- --------- --------- --------- ---------

According to market surveys conducted by consulting firms, the Vietnam
retail market is very promising and is becoming one of the most
attractive destinations for foreign investment in Vietnam. Big foreign
retail chains like Lotte Mart of Korea and Dairy Farm of Hong Kong have
looked closely at this market for their coming investments. Almost all
existing big retailers in Vietnam have committed for further expansion
not only in big cities like Hanoi and Ho Chi Minh City (HCMC) but also
in other cities (Can Tho, Da Nang, Hai Phong etc.)

In order to protect domestically-owned supermarkets, the government of
Vietnam (GOV) so far has not encouraged 100% foreign-owned investment in
the retail industry, which has slowed the growth of the modern retail
sector. However, under pressure from WTO negotiating partners for more
reforms in market liberalization and in accordance with the Bilateral
Trade Agreement (BTA) between USA and Vietnam, the GOV has indicated
that it will liberalize the sector in the very near future. Post expect
that it is quite possible the government will allow 100% FDI in
retailing and distribution within the next two-three years. Initially,
foreign companies have been approve to form joint ventures with local
partners on the condition that their control is smaller than 50 percent.
This model has worked well for the case of the Cora chain and Seyu
supermarket. One foreign retailer (Metro Cash & Carry of Germany) has
been entered the market through its 100% foreign invested "cash & carry"
operations that nominally at least requires customers to be wholesale
purchasers. . However, this investment does not have the right to import
directly.

The key constraints for modern retail development in Vietnam are low
consumer income (despite recent gains) , the high cost of land rental,
expensive electricity and growing inflation in the last two years (9.5%
for 2004 and 7% estimated for 2005).

As official data on food sales in the modern retail sector are not
available and some store- owners are reluctant to provide such data to
the public, table 3 shows our best estimation of the total value of
Vietnam modern retail trade.

## Table 3: Value of food sales of modern retail trade sector

+-----------+---------+---------+---------+---------+----------------+
| 2000      | 2001    | 2002    | 2003    | 2004    | Average Growth |
|           |         |         |         |         |                |
|           |         |         |         |         | 2000-2004      |
+-----------+---------+---------+---------+---------+----------------+
| 310       | 380     | 430     | 500     | 670     | 18.50%         |
+-----------+---------+---------+---------+---------+----------------+

## I.2. Consumer Purchasing Behavior

Vietnamese consumers spend a great portion of their expenditure on food
items. Food expenditure is about 42 to 45 percent of total consumption
expenditure, mostly for staple and basic food items like rice, meat,
salt, sugar, vegetable oils, sauces. Very little is spent on high value
processed food products. However, recent consumer surveys indicate
increased spending on high-value products such as dairy products (UHT
milk, fresh milk, yaourt, cheese etc.), meat, eggs, fresh fruits,
vegetables, confectionary and snack foods.

Vietnamese consumers habit:

-   Shop daily for their food use.

-   Prefer fresh products

-   Low percentage of people who have refrigerators and microwave.

Consumer trend in urban areas:

-   Still low average income.

-   More concern about nutrition, quality, hygiene and food safety.

-   Brand loyal but still receptive to new products.

-   Western style life is welcome.

-   More dining out than before.

-   Influenced by advertisement and promotion especially kids. One
    market researcher said that 18% of sales in modern trade are as the
    result of advertisement and promotion.

## [I.3. Trend in distribution channels]{.underline}

While HCMC and Hanoi have a growing number of modern outlets, the rest
of the country still heavily relies on traditional marketing channels.
Although small "mom and pop" shops and wet markets continue to play a
major role in food distribution, the number of supermarkets,
hypermarkets and wholesale supermarkets continues to develop fast in
urban areas because of:

-   A growing number of western-minded consumers, especially in urban
    areas.

-   A growing middle class where both parents are working and less time
    is available for shopping for food.

-   The aggressive promotion, appealing prices and discounts, and the
    wide range of products offered by large supermarkets attracting even
    lower-income consumers.

-   The increasing acceptance by the consumer of processed and packaged
    products. Many products traditionally sold in bulk are now readily
    purchased in packages.

-   Many consumers are more willing to buy from supermarkets because of
    the generally guaranteed hygiene and quality.

The five-day workweek, coupled with the expanding disposable income of
the urban family, has accelerated the trend of purchasing ready-to-eat,
snack, and luxury food items. Local food producers have begun to supply
shoppers with ready-to-eat and semi-prepared food items. The
pre-prepared food items consist of various food ingredients, chopped or
sliced and wrapped in a package for home use. This new trend is expected
to trigger demand for more varieties of ready-to-eat and semi-prepared
dishes and has greatly increased imports of Western food products. There
are ample opportunities for U.S. food products to enter this market.
Best growth products in recent years have been dairy products (i.e milk
powder enfant formula, UHT milk, cheese and butter); fresh fruits,
confectionary, snack foods, processed fruits, fruit juices, breakfast
cereal, wine, baby foods.

With a dynamic, well-educated population of 82-million consumers,
Vietnam is both an opportunity and a challenge for American high-value
consumer-oriented foods and beverages. Vietnam is evolving and is
becoming more integrated with its Association of South East Asian
Nations (ASEAN) neighbors; continues to implement a U.S.-Vietnam
Bilateral Trade Agreement (BTA); and aspires to join the World Trade
Organization (WTO) next year.

Vietnamese consumers in big cities have become accustomed to higher
quality consumer-ready products. U.S. products are appreciated as of
higher quality. However price continues to be the main factor for
purchasing of consumer-ready products. Local consumers have begun
shopping daily in supermarkets and are beginning to purchase U.S. fresh
fruit, canned goods, condiments, sauces, snack food, nuts, soups, wine,
and a variety of other products. While local products continue to be
strong sellers because of price, the quality of most locally-made
produces has not yet reached international standards. At some point in
the near future, local consumers will begin to demand higher quality
levels.

As foreign companies accessing to local trading and distribution rights
are still restricted, local importers continue to play a major role in
distributing and promoting imported products in Vietnam. Typically, they
have their own sales agents and distribution fleet and are in direct
contact with supermarkets, wholesalers, and in many cases with thousand
of grocery stores as well. Some importers are involved in imports of a
wide range of products with no particular loyalty to a specific product,
brand or origin. Other importers are working exclusively to develop
markets for specific labels. As they tend to promote their products more
heavily, these importers may require more involvement from the exporter
in order to penetrate this market.

## [I.4. Trend in services offered by retailers]{.underline}

Supermarkets in Vietnam tend to be located in big stores that include a
number of fast food restaurants, entertainments (mainly games) and
specialty shops. The number of adjacent shops varies from 18 to 25 and
is meant primarily to attract a large number of visitors. Department
stores usually devote a relatively large space for ready-to-eat food and
entertainment.

In many cities, the lack of adequate entertainment and amusement sites
draws many families to visit department stores and big supermarkets to
roam around where they often end-up buying or at least exposed to
new-to-market products.

Major retail chains have recently invested more resources in developing
fresh, chilled and frozen sections as well as ready-to-cook and
ready-to-eat food sections. They also provide additional in-store
services (i.e. acceptance of credit/debit cards, ATM services, food
courts, bakery corners, home delivery, and gift wrapping service) in
order to attract more customers and to compete effectively with open-air
wet markets. Interest in nutritional characteristics of food should
continue to grow. Saigon COOPMART chain has just started home delivery
for customers who are able to place orders over US\$7.

To support evolving consumer preferences, retailers have focused more on
marketing practices. Promotional and advertisement campaigns are more
aggressive, with in-store promotions, store fliers, seasonal discounts,
and preferences for frequent customers. Packaging sizes have been
reduced to lower the prices, and more generic brands (especially for
staple foods such as rice, salt, wheat flour and sugar) have been
introduced.

Internet sales of food products and direct selling to consumers have
just been introduced. Internet retailing should see increased sales in
coming years.

"Multi-level marketing" concept has recently been introduced in Vietnam
however it has met resistance from government officials. These officials
doubt the value of the product marketed under this concept; worry about
its over-stated and unreal advertisement skill and suspect they will
evade taxes.

## I.5. Import market

The GOV continues to discourage imports through relatively high tariffs
and non-tariff barriers. Import tariffs range from 20 percent to 50% for
processed foods and are 65 percent for wine and alcoholic drinks.

Department of Animal Health/SPS requirements for animal products and
Food Administration Department/food registration requirements for
imported foods are cumbersome. They requiring excessive documentation
and are sometimes not based on soundscience practice. Moreover, import
valuation of imported foods is in most cases not based on transaction
value contrary to Vietnam's agreement with the United States.

Consumption of imported consumer-ready food products is expanding as per
capita income is increasing in urban area. Also, Vietnam receives more
than \$4.0 billion in annual remittances from overseas Vietnamese, a
large portion of which is spent on consumer goods. The overseas
Vietnamese supports their family in Vietnam by not only sending home a
great amount of money but also by sending plenty of parcels of consumers
goods. This has helped introduce and promote western-life styled
consumption and new-to-market food products to consumers in Vietnam.
Trade data indicates Vietnam imported \$260 million of consumer-ready
foods in 2004 up from \$252 million in 2003, \$239 million in 2002, and
\$152 million in 2000. The actual level of consumer-ready imports is
higher given Vietnam's porous borders and under-invoicing problems.

US food products enjoy a wide-spread positive reputation among local
consumers for their high quality, safety and innovativeness. U.S.
exports of high value and consumer-oriented foods and beverages to
Vietnam after staying for several year at around \$20 million, in 2004
surged to a record of over 51 million, 165% higher than in 2003, but
still only 20 percent of total consumer-oriented imports. Exports of
U.S. consumer-oriented products to Vietnam in January to September, 2005
reached \$64 million, 110% higher than the export value for the same
period of 2004.

Key consumer items include: dairy products, fresh delicious fruits
(apples, table grapes), canned fruit and vegetables, confectionary
products, snacks, canned meat products, chilled and frozen meat, wine
and beverages.

## I.6. Advantages and Challenges Facing US Products in Vietnam

## 

+----------------------------------+-----------------------------------+
| **[U.S.                          | **[Challenges for U.S.            |
| Advantages]{.underline}**        | Exporters]{.underline}**          |
+----------------------------------+-----------------------------------+
| Improving income and a           | Price-sensitive consumers.        |
| rapidly-growing middle class     |                                   |
| fascinated with American culture | Shipping costs and transportation |
| (music, movies, fashion):        | time are higher than Asia, and    |
| carries over to American food.   | Australia.                        |
+----------------------------------+-----------------------------------+
| U.S. foods are recognized as     | Twenty-year absence from this     |
| high quality items, and being a  | market limits knowledge of U.S.   |
| great value for the price.       | foodstuff suppliers, and general  |
|                                  | preference is for European        |
|                                  | (French) food items.              |
+----------------------------------+-----------------------------------+
| Strong ties between the U.S.     | Difficult direct shipments from   |
| dollar and the Vietnamese Dong   | the U.S. since small lot sizes    |
| (less currency risk).            | results in transshipping through  |
|                                  | third-country ports like Hong     |
|                                  | Kong & Singapore.                 |
+----------------------------------+-----------------------------------+
| Low level of U.S. competition in | Low level of experimentation by   |
| the market.                      | Vietnamese urban dwellers with    |
|                                  | new types of Western food.        |
+----------------------------------+-----------------------------------+
|                                  | Low tariff applied on food        |
|                                  | products imported from South East |
|                                  | Asian (ASEAN) Countries under the |
|                                  | Asian Free Trade Agreement        |
|                                  | (AFTA).                           |
+----------------------------------+-----------------------------------+
| Vietnam-USA Bilateral Trade      | High tariffs, cumbersome and      |
| Agreement in place since         | excessive requirement of Customs  |
| December 2001 helps reduce       | Department, and Food              |
| tariff for some food items;      | Administration; non-science based |
| create better business           | sanitary and phytosanitary        |
| environment and further          | requirements on animal products   |
| liberalizes the trading and      | in general.                       |
| service market.                  |                                   |
+----------------------------------+-----------------------------------+
| Growing number of western-style  | US exporters not very flexible    |
| fast food restaurant chains,     | and responsive to importers'      |
| bakeries and coffee shops, as    | requirements; frequently do not   |
| retail food sector transitions   | conform with Vietnam regulations. |
| to more modern structure.        |                                   |
+----------------------------------+-----------------------------------+
|                                  | Limited infrastructure and        |
|                                  | distribution for perishable       |
|                                  | products                          |
+----------------------------------+-----------------------------------+

# SECTION II. ROAD MAP FOR MARKET ENTRY

## 

## [II.1. Entry Strategy]{.underline}

The best way to enter into this market is to appoint a local partner for
directly importing the products or to act as an agent to arrange for
importing distributing and marketing. The appointed local partner should
be responsible for the widest distribution for your products as well as
to undertake the marketing efforts necessary to create awareness for
your products among consumers.

Business relationships are very important for success and therefore
efforts to make regular visits with local partner as well as with key
retailers should be a priority.

It is critical for US exporters to spend time and effort to study
potential markets for the products before initiating sales. They should
also visit Vietnam to gain a first-hand feel of the market, preferably
around the Food & Hotel Show organized in Ho Chi Minh City in early
December of every year. US exporters are encouraged to review the FAS
exporter guide as well as trade policy reports before hand. Exporters
can contact FAS-Hanoi or FAS-Ho Chi Minh City to assist them in
conducting market briefing and setting up initial meetings with
potential importers and major retailers.

Success in introducing your product in this market depends on a good
local representative and effective pricing strategy. The local partner
should preferably be an importer and distributor who is able to strongly
enter both traditional channels and modern retail channels. A food
supplier wishing to reach all Vietnamese consumers must work with the
modern retailers as well as the open-air wet markets and shops. While
HCMC and Hanoi have a growing number of modern outlets, the rest of the
country still heavily relies on traditional marketing channels.
According to two major importers of branded food items from USA and
European countries, sales volume to supermarkets is currently under 40
percent of their total sales.

Consider the following before selecting an agent:

\- Good relationship with retailers and ability to deal with local
regulators.

\- Expertise in setting up distribution networking.

\- Those with fewer clients and smaller set-ups are easier to work with
as they are more adaptable and committed than those with a large
infrastructure and big reputations.

\- US firms should evaluate all distributor prospects, and thoroughly
research the more promising ones. Check the potential agent's reputation
through local industry/trade associations, potential clients, bankers,
and other foreign companies.

\- FAS-Vietnam maintains major lists of potential importers.

Most importers who are interested in dealing with US food suppliers
prefer to:

\* Purchase consolidated containers of many food items in small
quantities to avoid extra cost for inventory

\* Seek exclusive agreements from exporters.

\* Ask for advertisement and promotion support from exporters.

\* Ask for payment under some credit terms.

The key to success for exporters is to focus on 'reasonable' entry
pricing for their products, which is specifically targeted at the
desired consumer base.

## II.2. Market Structure

![](media/image1.wmf)

**Distribution of imported foods:**

Distribution of imported foods goes thru one of the four basic models as
follows:

**1) Exporters -Importers/Distributors \-- Big Modern Retailers**

**2) Exporters - Importers/Distributors \-- Wholesalers \--
Retailers**

**3) Exporters - Local Agent- Importers/Distributors  Wholesalers
\-- \-\-\-\-\-\-\-\-\-\-\-- Retailers**

**4) Exporters\-- Big Modern Retailers** (Big C, Metro, Saigon Coop,
Maximart)

Model No.1 and No.2 are the most common practice in Vietnam.

In Vietnam, most food importers are also distributors. They often
directly move their imported products to big retailers in urban areas
and let wholesalers and their agents help move their products to
thousands small retailers in both urban and rural areas. Due to
relatively low purchasing power, most modern retailers source their
imported foods through importers/distributors. Only a few big chain like
Metro, Cora, Saigon Coopmart, and Maximart have tried buying directly
from foreign suppliers.

Vietnam distribution infrastructure and facilities for perishable
products is a big constraint for importing products. The distribution
systems are often equipped with out-of-date technology and transport
products using an inadequate and fragmented cold chain and improper
handling.

## [II.3 Trends in Distribution]{.underline}

The modern retail sector is expanding rapidly, but the traditional
sector will continue to dominate the distribution system for some years
to come. Utilizing state-of-the-art technology and equipment and taking
advantage of strong financies, large retailers put in place central
warehousing and distribution systems in the big cities and increasingly
import directly (particularly perishable products i.e. fresh produce,
frozen meat and vegetable) from foreign suppliers. They will open more
outlets not only in the big cities but also in other regions to maximize
their capacity.

With firm commitments from the government to liberalize markets, Vietnam
will receive more foreign investments in distribution..

## [A: Modern retail trade sector: Super Markets/Hypermarkets/Store Chains]{.underline}

-   Modern retail trade is expected to continue to expand at a very fast
    pace of over 18% per annum over the next five years.

```{=html}
<!-- -->
```
-   About 16 percent -- 20 percent of imported food items are sold
    through modern outlets.

-   Most supermarkets, hypermarkets, and wholesale stores buy most of
    their imported products from importers/distributors or agents.

-   A few are importing directly from foreign suppliers, particularly
    perishable products and specialty products.

## Table 4: List of major Supermarkets/Hypermarkets/Wholesale Stores

+------------+---------+-----------+------+------------+--------------+
| **Retailer | **Owne  | **No. of  | ###  | ##         | **Imported   |
| Name/**    | rship** | Outlets** | #### | ####### ** | Food         |
|            |         |           | ## * | Locations  | Purchasing   |
| **Outlet   |         |           | *Sal | and expans | Agent**      |
| Type**     |         |           | es T | ion plan** |              |
|            |         |           | urno |            |              |
|            |         |           | ver  |            |              |
|            |         |           | (US\ |            |              |
|            |         |           | $ mi |            |              |
|            |         |           | l)** |            |              |
+------------+---------+-----------+------+------------+--------------+
| COOPMART/  | Local   | 13        | 136  | \- Mainly  | \- Mainly    |
|            | company | sup       |      | in HCMC.   | from         |
| S          | o       | ermarkets |      |            | importers/   |
| upermarket | perated |           |      | \- Just    | distributors |
| &          | under   | 6         |      | expanded   | and          |
| C          | co-op   |           |      | to Can Tho | wholesalers. |
| onvenience | erative | c         |      | and Long   |              |
| Stores     | law     | onvenient |      | Xuyen.     | \- Small     |
|            |         | stores    |      |            | portion of   |
|            |         |           |      | \- Plan:   | food         |
|            |         |           |      | other      | imported     |
|            |         |           |      | cities     | directly     |
+------------+---------+-----------+------+------------+--------------+
| CORA /     | Local   | 3         | 26   | \- HCMC,   | \- Mainly    |
| Hy         | Joint   |           |      | Dong Nai   | from         |
| permarkets | Venture | Hyp       |      | and Hanoi  | importers/   |
| and        | with    | ermarkets |      |            | distributors |
| Su         | Casino  |           |      |            | and          |
| permarkets | Group   | 1         |      |            | wholesalers. |
|            | of      |           |      |            |              |
|            | France  | Su        |      |            | \- Small     |
|            |         | permarket |      |            | portion of   |
|            |         |           |      |            | food         |
|            |         |           |      |            | imported     |
|            |         |           |      |            | directly     |
+------------+---------+-----------+------+------------+--------------+
| Maximart   | An      | 3         | 31   | \- HCMC    | \- Mainly    |
| Su         | Phong   |           |      | and Nha    | from         |
| permarkets | Privat  |           |      | Trang      | importers/   |
| and        | e-Owned |           |      |            | distributors |
| Department | Company |           |      | \- Expand  | and          |
| Stores     |         |           |      | to Cantho  | wholesalers. |
|            |         |           |      | soon       |              |
+------------+---------+-----------+------+------------+--------------+
| Citimart   | Privat  | 6         | 20   | \- HCMC,   | \- Mainly    |
|            | e-Owned |           |      | Hanoi, Can | from         |
| Su         | Company | Sup       |      | THo, Dong  | importers    |
| permarkets |         | ermarkets |      | Thap       | and          |
| and        |         |           |      |            | distributors |
| Convenient |         | 5         |      |            |              |
| Stores     |         |           |      |            |              |
|            |         | Stores    |      |            |              |
+------------+---------+-----------+------+------------+--------------+
| Intimex    | Stat    | 4         | 10   | Hanoi,     | \- Mainly    |
| Su         | e-owned |           |      | Haiphong   | from         |
| permarkets | company |           |      |            | importers    |
| and        |         |           |      |            | and          |
| Department |         |           |      |            | distributors |
| Stores     |         |           |      |            |              |
+------------+---------+-----------+------+------------+--------------+
| FIVIMART   | Privat  | 3         | 2.5  | \- Hanoi   | \- Mainly    |
|            | e-Owned |           |      | and plan   | from         |
|            | Company |           |      | to expand  | importers    |
|            |         |           |      | to HCMC    | and          |
|            |         |           |      |            | distributors |
+------------+---------+-----------+------+------------+--------------+
| Binh Dan   | Privat  | 2         | 2.5  | -HCMC      | \- Mainly    |
| Su         | e-Owned |           |      |            | from         |
| permarkets | Company |           |      |            | importers    |
|            |         |           |      |            | and          |
|            |         |           |      |            | distributors |
+------------+---------+-----------+------+------------+--------------+
| SATRA      | Stat    | 2         | 2.5  | \- HCMC    | \- Mainly    |
|            | e-owned |           |      |            | from         |
| Su         |         |           |      |            | importers    |
| permarkets | Company |           |      |            | and          |
|            |         |           |      |            | distributors |
+------------+---------+-----------+------+------------+--------------+
| Diamond    | Privat  | 6         | 2.5  | -HCMC      | \- Mainly    |
| Marts      | e-Owned |           |      |            | from         |
|            | Company |           |      |            | importers    |
|            |         |           |      |            | and          |
|            |         |           |      |            | distributors |
+------------+---------+-----------+------+------------+--------------+
| Metro Cash | 100%    | 6         | 220  | \- HCMC,   | \- Mainly    |
| & Carry    | Foreign |           |      | Hanoi, Hai | from         |
| wholesale  | I       |           |      | Phong,     | importers    |
| stores     | nvested |           |      | Cantho,    | and          |
|            | Company |           |      | Danang     | distributors |
|            | (G      |           |      |            |              |
|            | ermany) |           |      |            |              |
+------------+---------+-----------+------+------------+--------------+
| SEYU       | Local   | 1         | ?    | \- Hanoi   |              |
|            | Joint-  |           |      |            |              |
| S          | Venture |           |      |            |              |
| upermarket | with    |           |      |            |              |
|            | Seyu of |           |      |            |              |
|            | Japan   |           |      |            |              |
+------------+---------+-----------+------+------------+--------------+
| PAKSON     | Local   | 1         | ?    | \- HCMC    |              |
|            | Joint-  |           |      |            |              |
| Deparment  | Venture |           |      |            |              |
| Store      | with    |           |      |            |              |
|            | Pakson  |           |      |            |              |
|            | of      |           |      |            |              |
|            | M       |           |      |            |              |
|            | alaysia |           |      |            |              |
+------------+---------+-----------+------+------------+--------------+
| \* Metro   |         |           |      |            |              |
| Cash &     |         |           |      |            |              |
| Carry has  |         |           |      |            |              |
| government |         |           |      |            |              |
| permission |         |           |      |            |              |
| for        |         |           |      |            |              |
| wholesale  |         |           |      |            |              |
| operations |         |           |      |            |              |
| only, no   |         |           |      |            |              |
| import     |         |           |      |            |              |
| license    |         |           |      |            |              |
+------------+---------+-----------+------+------------+--------------+

The modern retail trade concept (initially called supermarkets) has
grown tremendously in the last six years, going from only 2 supermarkets
in the early stage (1998) to more than 92 in 2005. Before 1999, open-air
wet markets and non-staple food small private shops were the norm, yet
in the most recent six years, Vietnam's urban economy has begun a steady
transition away from the traditional trade (open-air wet markets and
small shops) to modern trade (supermarkets, hypermarkets, shopping
centers, etc.). More than two third of supermarkets and department
stores are based in HCMC and Hanoi. Today, Hanoi has more than 24
supermarkets, while HCMC has in excess of 50 modern shops.

Local chains are still dominating the market but foreign-invested
retailers are also very quickly in expanding, creating a good
competitive environment in the modern retail sector. The key
domestically-owned supermarket chains are Saigon Coopmart, Intimex,
Maximark, and Citimart. The three foreign-owned chains are Cora
(recently renamed "Big C", a French invesment) , Metro Cash & Carry (a
German investment) and Pakson (a Malaysian investment).

Supermarkets in Vietnam carry a wide range of goods including food,
clothing, shoes, and durable products. Most supermarkets devote about
40-50 percent of the physical space to food, and the rest is divided
among all the other commodities. The shop-owners are quite willing to
rearrange the physical space to boost the floor allocation for whichever
goods are doing best that month. Both large hypermarket and wholesale
stores (e.g. Metro and Big C) and shops within a multi-store shopping
mall (e.g. Diamond Plaza, Saigon Center, Pakson) are being built in
Vietnam. Most of the shops have made some provision for parking \-- more
for motorcycles than cars. In the Vietnamese supermarket business, it is
estimated that approximately 35%- 40% of total sales are from food, of
which imported food accounts for a small percentage ranging from 15
percent to 25 percent of total food sales. About 9% - 10% of the
country\'s total food and beverage retail sales and roughly 16%-20% of
imported food and beverage sales are sold through modern trade channels.

The largest hypermarket (in terms of checkout lanes and parking spaces)
is still the French invested Big-C Hypermarket (1998) in Dong Nai
Province, 45 minutes outside of HCMC. Big-C boasts 37 checkout lanes and
carries a wide assortment of foreign and domestically produced foods and
consumer goods. Big C currently has two hypermarkets and one supermarket
in the south of HCMC and one hypermarket in Hanoi (opened in 2004). The
Casino Group of France, who owns the Big-C chain, has announced an
investment plan to build more stores in Vietnam. They also say they will
become completely foreign owned in the coming year and unlike other
fully foreign-owned companies until this point in time retain the right
to import directly.

Ho Chi Minh City has an estimated population of nearly 8 million and is
considered the economic and commercial center of Vietnam. The city has
the largest concentration of upper and middle class consumers in Vietnam
and thus investors in retail distribution are particularly interested in
this city. Hanoi Capital has about 3.2 million people with a large
number of employees of the government, foreign missions, and
international organizations that can be targeted with modern
distribution chains. Can Tho City -- the commercial hub for the Mekong
Delta region and Danang City -- the commercial hub for the central
region are also strategic locations for setting modern retail
distribution.

Ho Chi Minh City (HCMC) - the biggest commercial center of Vietnam - is
the most economically dynamic area in the country. With the highest
annual GDP growth rate (42.5% in the four-year period of 2001-2004) in
Vietnam, HCMC has attracted the most foreign and domestic investment for
a wide range of projects. Although the national average GDP per capita
is just over \$450 per year, in HCMC it is estimated at over \$1,300. In
conjunction with strong economic growth, the supermarket sector in HCMC
has grown tremendously in recent years. HCMC is now home of 50
supermarkets, 2 wholesale stores and one hypermaket. Until early 1999,
the only Western-style shopping center (multiple stores and a parking
lot) in Vietnam was the joint venture (Singaporean investors and the
Vietnamese Army) Superbowl Shopping Center. Since 1999, there have been
at least 16 new shopping centers launched in HCMC. This retail
revolution seems certain to continue as all the domestic and
foreign-owned chains plan to develop additional shopping centers in HCMC
suburbs and surrounding regional cities. According to trade sources,
HCMC supermarkets are averaging 100,000 walk-thru customers a day, which
is good, but still a very small percentage of a city population of
nearly 8 million.

Two new upscale shopping centers Pakson and Saigon Center opened in HCMC
in 2005. Paksons Shopping Center, a Malaysian investment is located in
the center of HCMC with the goal of creating an attractive shopping
space for both foreign tourists and local people. Many additional
projects (both large and middle-sized) are due to open in HCMC, Hanoi
and the surrounding regions. Saigon CoopmartT (a state-owned supermarket
chain) currently ownis 11 stores in HCMC and takes a 50% share of
supermarket sales in HCMC. It has just opened two stores, one in Can Tho
City and one in Qui Nhon. Saigon COOPMART is planning on constructing 10
more stores in 2006 including three stores in HCMC and seven in other
cities.

Metro, the international grocery chain, known in the developing world
for their cash and carry operations, entered Vietnam by setting up two
large (each roughly 10,000 square meters) wholesale centers in HCMC. The
first store opened in April 2002 and the second store was established in
December 2002. Those stores are operating as a cash and carry operation
nominally for wholesale customers but controls on access are weak. It
offers additional services such as delivery for large customers.
Recently, Metro opened three more stores in Hanoi, Can Tho and Haiphong,
and it has announced that it will open one more center in Danang before
the end of 2005. These stores have currently attracted more than 350,000
registered customers. Metro plans to build 8 stores in Vietnam.

Metro has already had an impact on the grocery sector, but it is
important to note that Metro is not directly importing commodities.
Given Vietnam's current restrictions on distribution and importing
rights, only licensed importers may bring commodities into Vietnam. So,
until the laws are changed (it is hoped within the next 5 years), Metro
needs to work with many local (and usually small) importers to source
most of the imported goods that it needs.

Hanoi's modern retail trade sector has always lagged behind HCMC, but it
is now rapidly catching up. During 2002-2005 seven large supermarkets
opened in Hanoi and two opened in Hai Phong. Intimex has dominated
modern retail trade in the North of Vietnam with three supermarkets in
Hanoi and one in Hai Phong. Three more stores are to open with the next
year. Recently, the Big C chain has opened its first store in Hanoi. The
Big C store has 6,500 square meters of space for a wide range of goods
and an additional 6,000 square meters for restaurants. As of September
2005, Hanoi has roughly 24 large shops and supermarkets. Several of the
large domestically owned chains from HCMC, especially Saigon COOPMART
chain are looking to open outlets in Hanoi in the near future after land
and supply chain issues can be resolved.

## B. Traditional Retail Trade: Wet Market & Private Small Shops

According to the Ministry of Trade, there are about 8,000 traditional
wet markets in Vietnam and hundreds of thousands of small private shops
spread all over the country. Household-owned shops and wet markets are
still most popular in Vietnam's retail industry. Most of these outlets
offer only the basics with limited selection, lack of refrigeration,
fixed prices, no modern technology, and little or no ambience. Floor
space normally ranges from 100 to 300 square feet. Outside of HCMC and
Hanoi, food distribution heavily relies on these traditional channels.
It is estimated that 80%-84% of imported foods are distributed thru this
traditional trade.

# SECTION III. COMPETITION

The biggest competitor for US foods in the retail food market is
Australia, China, ASEAN countries and the local food industry. Potential
US exporters should understand that Vietnam's diverse agro-industrial
base already offers many products at competitive prices. The leading
multinationals from other countries have just started establishing food
processing operations in Vietnam and are able to offer a range of
western-style products at reasonable prices, though the quality may be
inferior to imported products due to the poor quality of the raw
material supplies. Most products from China, and ASEAN countries also
enjoy lower tariffs than U.S. products. While some consumers are aware
of quality differences and insist on world standards, most will
sacrifice quality for affordable prices.

Products from Australia, New Zealand, the European Union (EU) and other
Asian countries (China, Thailand) directly compete with like items from
the United States. In addition to the freight cost advantages, market
sources report that suppliers from these countries are more responsive
to importers' demands for smaller shipment sizes, and are more willing
to modify product specifications to meet Vietnam food laws, in contrast
to many US suppliers. Australia and New Zealand aggressively promote
their products in the Vietnam market. Recently, countries like Thailand
have also organized trade promotions in Vietnam. Market promotions by
these countries are mainly through trade missions, trade servicing,
in-store promotions, and participation in food shows.

# SECTION IV. BEST PRODUCT PROSPECTS

The below table shows U.S. food products present in the market that have
good sales potential including market share of some selected U.S food
products in total imports. The import data in 2004 by commodities are
our estimation as there are no published official statistics data on
imports of consumer food products for Vietnam.

Category A: Products Present In The Market That Have Good Sales
Potentials

+--------------------+-----+-----+-----+------+-----+-----+-------+
|                    | Imp | 2   | 2   | Jan  | \%  | Mar | C     |
|                    | ort | 004 | 004 | -Sep | cha | ket | ompet |
| Commodities        | Tar |     |     | 2005 | nge | sh  | iting |
|                    | iff | V   | To  |      |     | are |       |
|                    |     | iet | tal | US   | J   |     | Co    |
|                    | R   | nam | US  | Exp  | an- | of  | untry |
|                    | ate | I   | E   | orts | Sep | US  |       |
|                    |     | mpo | xpo |      | 2   | (%) |       |
|                    |     | rts | rts |      | 004 |     |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
|                    |     |     |     |      |     |     |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Beef Meat (HS      | 20% | 1,  | 9   | 792  | 8,  | 0   | Aust  |
| 020220-30)         |     | 400 |     |      | 144 | .64 | ralia |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Potato frozen (HS  | 40% | n   | 131 | 147  | 58  | n   | C     |
| 2004)              |     | .a. |     |      |     | .a. | anada |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Fruit Juice (HS    | 40% | n.a | 232 | 513  | 152 | n.a | Aust  |
| 2209)              |     |     |     |      |     |     | ralia |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Wine (HS 2204)     | 65% | 8,  | 400 | 335  | 131 | 5   | F     |
|                    |     | 000 |     |      |     | .00 | rance |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Raisin (HS 080620) | 25% | n.a | 590 | 555  | 94  | n   | Iran  |
|                    |     |     |     |      |     | .a. |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Apple (HS 080810)  | 25% | 9,  | 1,  | 1    | 239 | 10  | China |
|                    |     | 500 | 000 | ,500 |     | .53 |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Processed fruit    | 50% | 8,  | 1,  | 1    | 43  | 17  | Tha   |
| and vegetable (HS  |     | 000 | 410 | ,329 |     | .63 | iland |
| 2004, 2005)        |     |     |     |      |     |     |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Table Grapes (HS   | 25% | 6,  | 3,  | 1    | 17  | 50  | China |
| 080620)            |     | 000 | 000 | ,529 |     | .00 |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Poultry meat (HS   | 20% | 10, | 8,  | 855  | -85 | 83  | Aust  |
| 020714)            |     | 000 | 368 |      |     | .68 | ralia |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| Dairy products (HS | 2   | 1   | 29, | 39   | 124 | 18  | New   |
| 0401; 0402 & 0404) | 0%- | 60, | 140 | ,860 |     | .21 | Ze    |
|                    | 30% | 000 |     |      |     |     | aland |
+--------------------+-----+-----+-----+------+-----+-----+-------+
|                    |     |     |     |      |     |     |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+
| **TOTAL FOOD       | **  | **  | *   | **   | *   | **1 |       |
| IMPORTS**          |  ** | 260 | *50 | 64,0 | *11 | 9.4 |       |
|                    |     | ,00 | ,57 | 50** | 0** | 5** |       |
|                    |     | 0** | 7** |      |     |     |       |
+--------------------+-----+-----+-----+------+-----+-----+-------+

Source: Department of Commerce & Trade Sources

## A. Products Present in the Market which have Good Sales Potential

Of U.S. products that are already present in Vietnam market, delicious
fresh fruit especially apple and grapes continues to have the best sales
prospects. The next most important U.S. sales item in the retail sector
are dairy products, chicken meat, processed fruits and vegetables.
Canned foods, such as canned vegetables and mixed cocktail are also
common. Some of the best selling processed foods include frozen french
fries, fruit juices, breakfast cereals, snack food/biscuit/crackers,
popcorn, baby food, dressing, sauces & seasonings and wine.

## B. Products Not Present in Substantial Quantities but which have Good Sales Potential

There are also good opportunities for sales of other American high value
items. Many of these are not yet in the market in significant
quantities. These include beef, other-than-raisin dried fruits and nuts
(mainly almond and pistachios) and chocolates.

## C. Products Not Present Because they Face Significant Barriers 

American products that have not sold well in Vietnam include seafood,
bourbon whisky. Retailers that serve the middle and lower income segment
also reported difficulties in selling American wine and beer. Imports of
U.S. chicken parts, which have great potential demand in Vietnam, have
just been banned since November 04, 2005 as a result of emergency
measurement of GOV against AI outbreak and flu pandemic.

# SECTION V. POST CONTACT AND FURTHER INFORMATION

U.S. Department of Agriculture / Foreign Agricultural Service (USDA/FAS)

First point of contact for updated reports and trade data is the
USDA/FAS Web Page:

[http://www.fas.usda.gov](http://www.fas.usda.gov/)

The FAS web site will also provide additional information about the
staff, resources, and programs coordinated by FAS/Washington to promote
international trade.

## State Regional Trade Groups 

The State Regional Trade Groups (SRTG) are four regionally located,
non-profit trade development organizations that help U.S. food producers
and processors sell their products overseas. USDA's Foreign Agricultural
Service (FAS), the State Departments of Agriculture and private industry
fund the SRTG's. They carry out promotional activities that increase
exports of U.S. high-value food and agricultural products. Activities of
the organizations are directed by the State Departments of Agriculture,
state agricultural promotion agencies, and coordinated with FAS'
Washington and country offices overseas, and include: International
trade exhibitions, overseas trade missions, reverse trade missions,
export education, in-country research, and point-of-sale promotions in
foreign food chains and restaurants in markets around the world.

The SRTG's also administer a cost-share funding program called the
"Branded" program, which supports promotion of brand name food and
agricultural products in overseas markets. The SRTG's include: the
Western U.S. Agricultural Trade Association
([WUSATA](http://www.wusata.org/)), in Vancouver, Washington, the
Mid-America International Agri-Trade Council,
([MIATCO](http://www.miatco.org/)) in Chicago, Illinois, the Southern
U.S. Trade Association ([SUSTA](http://www.susta.org/)) in New Orleans,
Louisiana, and the Food Export USA ([FoodExport USA
NE](http://www.foodexportusa.org/)) in the Northeast. See the FAS web
site for more details.

## FAS Cooperators and Participants

The American food and agriculture industry benefits from a large number
of associations and organizations that support export market
development.  These groups, referred to as "participants" and
"cooperators" receive support form FAS to conduct activities overseas
such as trade missions, pavilions at trade shows and informational
seminars.

A database of these organizations, including contact information, is
available at <http://www.fas.usda.gov/scripts/mos/HomeOffDir.asp>.

Partners and Cooperators which offer on-line databases and directories
of suppliers are listed at

<http://www.fas.usda.gov/agx/Buying/Partners.htm>

## USDA/FAS Offices in Vietnam 

The physical addresses of the FAS Offices are shown below. Contact the
FAS Offices for the U.S. and Vietnamese Mailing Addresses:

**Foreign Agricultural Service / Agricultural Affairs Office (Ag
Hanoi)**

U.S. Embassy -- Annex Building

Rose Garden Building, 3^rd^ Floor

6 Ngoc Khanh, Ba Dinh District

Hanoi, Vietnam

Tel: 84-4-831- 4580 Fax: 84-4-831- 4573

Email: <AgHanoi@usda.gov>

Contacts:

Mr. John Wade - Agricultural Attaché

Ms. Bui Thi Huong - Agricultural Specialist

Ms. Nguyen Thi Huong -- Agricultural Assistant

Ms. Phan Thi Thu Huong - Administrative Assistant

**Foreign Agricultural Service / Agricultural Trade Office (ATO -
HCMC)**

U.S. Consultant General -- Annex Building

Saigon Center Building, 9^th^ Floor

65 Le Loi Street, District 1

Ho Chi Minh City, Vietnam

Tel: 84-8-825-0502 Fax: 84-8-825-0503

Email: <AtoHoChiMinh@usda.gov>

Contacts:

Mr. Truong Minh Dao - ATO Marketing Specialist

Mr. Tran Quoc Quan - Agricultural Assistant

Ms. Pham Khanh Linh - Administrative Assistant & Trade Show Coordinator

**American Chamber of Commerce---Hanoi and Ho Chi Minh City**

**American Chamber of Commerce (AmCham)**

Hanoi Chapter

Press Club, 5^th^ Floor

59A Ly Thai To Street

Hanoi, Vietnam

Tel: 84-4-934-2790; Fax: 84-4-934-2787

Email: <adam@amchamhanoi.com>

Website: [www.amchamhanoi.com](http://www.amchamhanoi.com/)

Contact: Mr. Adam Sitkoff, Executive Director

**American Chamber of Commerce (AmCham)**

**Ho Chi Minh City Chapter**

76 Le Lai Street, District 1

Ho Chi Minh City, Vietnam

Tel: 84-8-824-3562; Fax: 84-8-824-3572

Email: <amcham@hcm.vnn.vn>

Website: [www.amcham.org.vn](http://www.amcham.org.vn/)

Contact: Mr. Herb Cochran, Executive Director

**[Key Government Contacts]{.underline}**

**Ministry of Trade (MOT)**

31 Trang Tien Street, Hanoi, Vietnam

Tel: 844-825-3881 Fax: 844-826-4696

Contact: Mr. Nguyen Dinh Luong, Director, International Relations

**Ministry of Planning and Investment (MPI)**

2 Hoang Van Thu, Hanoi, Vietnam

Tel: 844-843-0333; Fax: 844-733-0536

Contact: Mr. Duong Duc Ung, Director, Foreign Economic Relations
Department

# 

**Ministry of Health (MOH)**

Food Administration Department

138A Giang Vo Street, Hanoi, Vietnam

Tel: 844-846-3839; Fax: 844-846-3739

Email: <cucqltp@hn.vnn.vn>

Contact: Dr. Tran Dang, Director, Food Administration Department

# Clearance for Food Ingredients and Additives

The Food Administration Department is the primary contact for most
questions and concerns regarding approved food ingredients, food safety
issues (Vietnamese and International Standards), general food-related
trade and food registration questions.

**Ministry of Agriculture and Rural Development (MARD)**

2 Ngoc Ha Street, Hanoi, Vietnam

Tel: 844-845-9670; Fax: 844-845-4319

Email: <leminhmard@fpt.vn>

Contact: Mr. Le Van Minh, Director, International Cooperation Dept

**\* Department of Plant Protection ( of MARD**).

189 Son Tay Street Hanoi

tel: (84-4) 851 8195

fax: (84-4) 533 0043

email: lemautoan@fpt.vn

Contact Mr Le Mau Toan

**\* Crop Protection Department / Phytosanitary Sub- Dept.**

28 Mac Dinh Chi, Dist.1, HCMC

Tel: 848-829-4568; Fax: 848-829-3266

Email: <kdtv2@hcmc.netnam.vn>

Contact Mr. Nguyen The Phu - Director

**\* Department of Animal Health of Viet Nam (Of MARD)**

No 15, Gate 78, Giai Phong St., Phuong Mai, Dong Da District

Hanoi, Vietnam

Tel: (84-4)868-7151, (84-4)869-6788 25

FAx (84-4)869-1311

Email: quanganh.dah@fpt.vn

Contact Bui Quang Anh, Director

**\* Regional Animal Health Center / HCMC**

124 Pham The Hien, Dist.8, HCMC

Tel: 848-8568-220; Fax: 848-8569-050

Email: <rahhcm@hcm.fpt.vn>

Contact: Mr. Dong Manh Hoa, Director