Required Report - public distribution

**Date:** 9/8/2006

**GAIN Report Number:** VM6054

VM6054

**Vietnam**

**Livestock and Products**

**Annual**

**2006**

**Approved by:**

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

FAS Hanoi, U.S. Embassy

**Prepared by:**

Nguyen Thi Huong

**Report Highlights:**

Poultry production in Vietnam has stabilized and shown modest increases
over the past year as the Avian Influenza situation in the country has
improved significantly. This and FMD outbreaks have moderated the very
strong growth in pork production of recent years. Overall consumption of
meat and dairy products will continue to grow strongly as prospects for
Vietnam's development remain positive, creating opportunities for
imports particularly of dairy and beef.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Hanoi \[VM1\]

\[VM\]

# 

# Contents: 

# 

Total Livestock Sector 3

Swine Sector 6

Cattle Sector 10

Dairy 12

Poultry 14

#  

# TOTAL LIVESTOCK SECTOR

The government reported that the value of Vietnam's livestock production
in 2005 occupied 25% of the total value of Vietnam's agricultural
production. The government expects the country will raise the proportion
of livestock to 30% by 2010 and 35% by 2015.

The value of Vietnam's total livestock in 2005 grew 11.6% while the
total agricultural sector increased only by 3.2% (see table 1). This was
significantly higher than in 2004 because of increased swine and beef
production and stabilization of the poultry number after the drop of
2004. In 2005, total meat production (live weight) increased by 12.3%,
of which pork increased 13.7%, beef by 18.7%, buffalo by 4%, and poultry
meat by 1.74%. Poultry egg production increased by 1% compared with the
year before.

### Table 1: Vietnam's livestock sector annual growth rate 

+-----------+--------------------+--------------------+----------------+
| **Year**  | **Total Ag         | **Crop             | ##             |
|           | Sector**           | Production**       | #### Livestock |
+-----------+--------------------+--------------------+----------------+
| 2000      | 5.4                | 5.2                | 6.7            |
+-----------+--------------------+--------------------+----------------+
| 2001      | 2.6                | 2.3                | 4.2            |
+-----------+--------------------+--------------------+----------------+
| 2002      | 6.2                | 5.5                | 9.9            |
+-----------+--------------------+--------------------+----------------+
| 2003      | 4.2                | 3.2                | 8.2            |
+-----------+--------------------+--------------------+----------------+
| 2004      | 4.2                | 4.7                | 2.3            |
+-----------+--------------------+--------------------+----------------+
| 2005      | 3.2                | 1.3                | 11.6           |
+-----------+--------------------+--------------------+----------------+

*Source: General Statistical Office (GSO)*

Vietnam's 2006 animal meat production is expected to reach 3,028
thousand metric tons (TMT) live weight, about 7% higher than 2005's
production (see table 2). Currently, pork still plays by far the
dominant role at 81% of total livestock production. The share of poultry
meat is about 11.5% and all other kinds of meat including beef, buffalo,
and goat meat occupy only 7.5%. In terms of relative proportion of
different meats in livestock production, post sees no big change in the
next two years.

### Table 2: Vietnam - Key Livestock Components - 2004-2007

+----------------------+--------------+--------+------+------+-------+
|                      | **Unit**     | **     | **20 | **20 | *     |
|                      |              | 2004** | 05** | 06** | *2007 |
|                      |              |        |      |      | e     |
|                      |              |        |      | **es | st.** |
|                      |              |        |      | t.** |       |
+----------------------+--------------+--------+------+------+-------+
| Swine population     | Thousand     | 26,144 | 27   | 28   | 2     |
|                      | heads        |        | ,435 | ,369 | 9,059 |
+----------------------+--------------+--------+------+------+-------+
| Beef cattle          | Thousand     | 4,908  | 5    | 5    | 6,160 |
| population           | heads        |        | ,541 | ,870 |       |
+----------------------+--------------+--------+------+------+-------+
| Dairy cattle         | Thousand     | 95.794 | 10   | 1    | 145.9 |
| population           | heads        |        | 4.12 | 26.9 |       |
+----------------------+--------------+--------+------+------+-------+
| Buffalo population   | Thousand     | 2,870  | 2    | 2    | 2,981 |
|                      | heads        |        | ,922 | ,951 |       |
+----------------------+--------------+--------+------+------+-------+
| Poultry population   | Thousand     | 2      | 219  | 228  | 24    |
|                      | heads        | 18,200 | ,911 | ,500 | 0,000 |
+----------------------+--------------+--------+------+------+-------+
| Goats and sheep      | Thousand     | 1,023  | 1,3  | 1    | 1,641 |
|                      | heads        |        | 14.2 | ,492 |       |
+----------------------+--------------+--------+------+------+-------+
| **Total meat         | **tmt**      | **2,51 | **2  | **3  | *     |
| production**         |              | 3.07** | ,821 | ,420 | *3,75 |
|                      |              |        | .8** | .9** | 4.8** |
| **(live weight)**    |              |        |      |      |       |
+----------------------+--------------+--------+------+------+-------+
| *of which pork meat* | tmt          | *      | *    | *2,  | *2    |
|                      |              | 2,012* | 2,28 | 446* | ,617* |
|                      |              |        | 8.3* |      |       |
+----------------------+--------------+--------+------+------+-------+
| *Poultry meat*       | tmt          | *3     | *321 | *    | *893  |
|                      |              | 16.41* | .89* | 747. | .5\** |
|                      |              |        |      | 5\** |       |
+----------------------+--------------+--------+------+------+-------+
| *Beef meat*          | tmt          | *      | *14  | *    | *164* |
|                      |              | 119.8* | 2.2* | 153* |       |
+----------------------+--------------+--------+------+------+-------+
| *Buffalo meat*       | tmt          | *      | *59  | *6   | *     |
|                      |              | 57.46* | .80* | 2.2* | 64.7* |
+----------------------+--------------+--------+------+------+-------+
| #######  Other meat  | tmt          | *7.4*  | *    | *12  | *1    |
|                      |              |        | 9.6* | .17* | 5.59* |
+----------------------+--------------+--------+------+------+-------+
| Share of pork        | \%           | 80     | 81   | 71.5 | 69.7  |
| meat/total meat      |              |        |      |      |       |
+----------------------+--------------+--------+------+------+-------+
| Share of poultry     | \%           | 12.6   | 11.4 | 21.9 | 23.8  |
| meat/total meat      |              |        |      |      |       |
+----------------------+--------------+--------+------+------+-------+
| Share of beef meat   | \%           | 4.8    | 5    | 4.5  | 4.4   |
+----------------------+--------------+--------+------+------+-------+
| Share of buffalo     | \%           | 2.3    | 2.1  | 1.8  | 1.7   |
| meat                 |              |        |      |      |       |
+----------------------+--------------+--------+------+------+-------+
| Other meat           | \%           | 0.3    | 0.3  | 0.3  | 0.4   |
+----------------------+--------------+--------+------+------+-------+
| **Total Egg          | **Billion    | **3    | *    | *    | **4.  |
| production**         | pieces**     | .939** | *3.9 | *4.2 | 765** |
|                      |              |        | 48** | 87** |       |
+----------------------+--------------+--------+------+------+-------+

Source: GSO, MARD

+-----------------------------------------------------------------------+
| *(Notes: \* MARD's estimate due to different statistic way to compare |
| with GSO's data based on poultry production cycle per annum)*         |
|                                                                       |
| ###                                                                   |
|                                                                       |
| ### Chart 1- Vietnam's total meat production in 2000-2007             |
+-----------------------------------------------------------------------+

###### ![](media/image2.wmf)

# Consumption

According to the General Statistic Office of Vietnam, Vietnam\'s GDP for
2005 grew at the remarkable rate of 8.4%, led by gains in construction,
tourism and telecommunications. GDP growth in 2006 is predicted at 8
percent according to the Asian Development Bank (ADB). The country's
economic development has had a strong influence on consumer spending.
According to GSO, consumer spending and retail sales in Vietnam rose 21%
in 2005. As a result, Vietnam's per capita meat consumption is
increasing as well.

### Table 3: Vietnam's per capita meat & egg consumption (2004-2007)

+-----------------------+---------------+------+-------+-------+------+
|                       | **Unit**      | **20 | **2   | **2   | **   |
|                       |               | 04** | 005** | 006** | 2007 |
|                       |               |      |       |       | es   |
|                       |               |      |       | **e   | t.** |
|                       |               |      |       | st.** |      |
+-----------------------+---------------+------+-------+-------+------+
| Per capita meat       | kg/head/year  | 3    | 33.95 | 35.99 | 3    |
| consumption (live     |               | 0.64 |       |       | 8.16 |
| weight)               |               |      |       |       |      |
+-----------------------+---------------+------+-------+-------+------+
| Pork (live weight)    | kg/head/year  | 2    | 27.53 | 29.07 | 3    |
|                       |               | 4.53 |       |       | 0.72 |
+-----------------------+---------------+------+-------+-------+------+
| *Pork (in CWE)*       | *             | *17  | *1    | *2    | *21  |
|                       | kg/head/year* | .17* | 9.27* | 0.35* | .50* |
+-----------------------+---------------+------+-------+-------+------+
| Poultry meat (live    | kg/head/year  | 3.86 | 3.87  | 4.22  | 4.58 |
| weight)               |               |      |       |       |      |
+-----------------------+---------------+------+-------+-------+------+
| *Poultry meat (in     | *             | *2   | *     | *     | *3   |
| CWE)*                 | kg/head/year* | .66* | 2.67* | 2.91* | .16* |
+-----------------------+---------------+------+-------+-------+------+
| Beef (live weight)    | kg/head/year  | 1.46 | 1.71  | 1.82  | 1.93 |
+-----------------------+---------------+------+-------+-------+------+
| *Beef (in CWE)*       | *             | *0   | *     | *     | *0   |
|                       | kg/head/year* | .73* | 0.85* | 0.90* | .96* |
+-----------------------+---------------+------+-------+-------+------+
| Buffalo meat (live    | kg/head/year  | 0.7  | 0.72  | 0.74  | 0.76 |
| weight)               |               |      |       |       |      |
+-----------------------+---------------+------+-------+-------+------+
| *Buffalo meat (in     | *             | *0   | *     | *     | *0   |
| CWE)*                 | kg/head/year* | .30* | 0.31* | 0.32* | .33* |
+-----------------------+---------------+------+-------+-------+------+
| Other meat (live      | kg/head/year  | 0.09 | 0.12  | 0.14  | 0.18 |
| weight)               |               |      |       |       |      |
+-----------------------+---------------+------+-------+-------+------+
| *Other meat (in CWE)* | *             | *0   | *     | *     | *0   |
|                       | kg/head/year* | .03* | 0.04* | 0.04* | .06* |
+-----------------------+---------------+------+-------+-------+------+
| Per capita egg        | Pie           | 4    | 47.50 | 50.94 | 5    |
| consumption           | ces/head/year | 8.02 |       |       | 5.93 |
+-----------------------+---------------+------+-------+-------+------+

*Source: MARD*

Vietnames are big consumers of pork and prefer pork to chicken and beef.

In the Vietnamese diet, fresh meat from recently slaughtered animals is
still the favorite animal protein source. However, Vietnamese people in
the cities are now also accepting frozen meat either produced
domestically or imported from other countries. They are also consuming
more ready-made food such as canned meat or prepared sausages. Frozen
imported beef and chicken meat are used by restaurants and hotels in big
cities as they are concerned about meat quality and hygiene.

In 2005, pork wholesale prices recorded an average annual increase of
21% over 2004 due primarily to the impact of bird flu which lead to
sharp increases in demand for pork. However, after peaking in January -
February 2006, pork prices have been dropping as the bird flu situation
has improved. Last year, chicken meat prices increased about 20% over
2004 due to tight supply and renewed demand. In recent months, prices
have moderated due to increased supply.

### Table 4. Domestic prices of livestock in Vietnam of Aug. 15, 2006 

(US\$ 1= VND 16,020)

  -------------------------------- ------------------- -------------------
                                   **in Northern       **In Southern
                                   provinces**         provinces**

  Pork meat (live weight) (VND/kg) 13,000-14,500       17,000-21,500

  Chicken meat (live weight)(local 3,000- 33,000       40,000-42,000
  indigenous type) (VND/kg)                            

  Chicken meat (carcass            60,000-65,000       65,000-70,000
  weight)(local indigenous type)                       
  (VND/kg)                                             

  Beef (VND/kg)                    70,000-85,000       75,000-80,000

  Chicken Eggs (VND/ten eggs)      14,000-15,000       15,000-16,000

  Duck Eggs (VND/ten eggs)         12,000-13,000       13,000-14,000
  -------------------------------- ------------------- -------------------

*Source: MARD, FAS*

## 

# Policy

In conjunction with the Vietnam-U.S. bilateral WTO accession agreement
signed this year, the Vietnamese recognized the U.S. meat and poultry
food safety system as equivalent to Vietnam's. Accordingly the
Vietnamese government agreed to no longer require a HACCP certificate
and Certificate of Free Sale before granting import permits for U.S.
meat and poultry. The only health certification now required is the USDA
Food Safety Inspection Service Export Certificate of Wholesomeness. This
removes an irritant from trade as the Vietnamese requirements duplicated
certifications already implicit in the Certificate of Wholesomeness

# 

# SWINE SECTOR

##  

## Production

### Table 5: Vietnam's Swine Production, Supply and Distribution (PS&D)

+-------------------+------+------+-------+---------+----+---------+
| **Country**       | **V  |      |       |         |    |         |
|                   | ietn |      |       |         |    |         |
|                   | am** |      |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| **Commodity**     | **An |      |       |         | (  |         |
|                   | imal |      |       |         | 10 |         |
|                   | Numb |      |       |         | 00 |         |
|                   | ers, |      |       |         | H  |         |
|                   | Swi  |      |       |         | EA |         |
|                   | ne** |      |       |         | D) |         |
+-------------------+------+------+-------+---------+----+---------+
|                   | 2005 | Rev  | 2006  | E       | 20 | F       |
|                   |      | ised |       | stimate | 07 | orecast |
+-------------------+------+------+-------+---------+----+---------+
|                   | USDA | Post | USDA  | Post    | US | Post    |
|                   | Offi | Esti | Off   | E       | DA | E       |
|                   | cial | mate | icial | stimate | Of | stimate |
|                   | \[O  |      | \[    |         | fi |         |
|                   | ld\] | \[N  | Old\] | \[New\] | ci | \[New\] |
|                   |      | ew\] |       |         | al |         |
|                   |      |      |       |         | \  |         |
|                   |      |      |       |         | [O |         |
|                   |      |      |       |         | ld |         |
|                   |      |      |       |         | \] |         |
+-------------------+------+------+-------+---------+----+---------+
| **Market Year     |      | 01/  |       | 01/2006 |    | 01/2007 |
| Begin**           |      | 2005 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| TOTAL Beginning   | 0    | 2    | 0     | 27435   | 0  | 28369   |
| Stocks            |      | 6145 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Sow Beginning     | 0    | 3882 | 0     | 3930    | 0  | 4002    |
| Stocks            |      |      |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Production (Pig   | 0    | 3    | 0     | 39795   | 0  | 42226   |
| Crop)             |      | 7543 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Intra EC Imports  | 0    | 0    | 0     | 0       | 0  | 0       |
+-------------------+------+------+-------+---------+----+---------+
| Total Imports     | 0    | 2    | 0     | 1       | 0  | 1       |
+-------------------+------+------+-------+---------+----+---------+
| TOTAL Imports     | 0    | 2    | 0     | 1       | 0  | 1       |
+-------------------+------+------+-------+---------+----+---------+
| TOTAL SUPPLY      | 0    | 6    | 0     | 67231   | 0  | 70596   |
|                   |      | 3690 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Intra EC Exports  | 0    | 0    | 0     | 0       | 0  | 0       |
+-------------------+------+------+-------+---------+----+---------+
| Total Exports     | 0    | 0    | 0     | 0       | 0  | 0       |
+-------------------+------+------+-------+---------+----+---------+
| TOTAL Exports     | 0    | 0    | 0     | 0       | 0  | 0       |
+-------------------+------+------+-------+---------+----+---------+
| Sow Slaughter     | 0    | 1    | 0     | 1       | 0  | 1       |
+-------------------+------+------+-------+---------+----+---------+
| OTHER SLAUGHTER   | 0    | 3    | 0     | 38837   | 0  | 41532   |
|                   |      | 6253 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Total Slaughter   | 0    | 3    | 0     | 38838   | 0  | 41533   |
|                   |      | 6254 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Loss              | 0    | 0    | 0     | 24      | 0  | 4       |
+-------------------+------+------+-------+---------+----+---------+
| Ending            | 0    | 2    | 0     | 28369   | 0  | 29059   |
| Inventories       |      | 7435 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| TOTAL             | 0    | 6    | 0     | 67231   | 0  | 70596   |
| DISTRIBUTION      |      | 3689 |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Calendar Yr. Imp. | 0    | 110  | 0     | 0       | 0  | 0       |
| from U.S.         |      |      |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+
| Calendar Yr. Exp. | 0    | 0    | 0     | 0       | 0  | 0       |
| to U.S.           |      |      |       |         |    |         |
+-------------------+------+------+-------+---------+----+---------+

*Source: MARD, GSO, FAS*

Pig crop production has been increasing since 2001. In 2005 production
increased at a particularly rapid rate of 13.7% due to the impact of the
avian influenza outbreak that led to less competition from poultry
production. A smaller increase of 6% is forecast for 2006 and 2007 with
the recovery of the poultry sector. An upsurge of foot and mouth disease
is also lowering hog prices and dampening growth.

Vietnam's swine production is comprised mostly of backyard/household
operations. At present, about 85%-90% of swine are raised in
backyard/household operations while the rest come from commercial farms.
(In Vietnam, farms are considered commercial if they have 20 sows). As
commercial farms are more efficient, only 75-80% of total pork
production was from backyard/household operations, while 20-25% came
from commercial farms. The government wishes to increase commercial
swine production to 30-35% by 2010.

### Table 6: Vietnam's average hog price

  ---------------- ---------------------- ------------ -------------------
  **Prices Table**                                     

  **Country**      Vietnam                             

  **Commodity**    Animal Numbers, Swine               

  Prices in        VND                    per uom      kg of live weight

  Year             2005                   2006         \% Change

  Jan              26500                  31000        17%

  Feb              27600                  26000        -6%

  Mar              32000                  32000        0%

  Apr              32400                  31600        -2%

  May              33300                  29400        -12%

  Jun              34800                  29000        -17%

  Jul              34200                  28500        -17%

  Aug              33400                  27500        -18%

  Sep              34200                               -100%

  Oct              34200                               -100%

  Nov              30400                               -100%

  Dec              32200                               -100%
  ---------------- ---------------------- ------------ -------------------

*Source: MARD*

To support commercial swine production, Vietnam often reduces or
eliminates land rents (the government owns most land in Vietnam and
rents it long-term) and grants preferential tax rates for commercial
farms, large-scale slaughter facilities and livestock processing
factories. Special breaks are also given for investment projects in
disadvantaged districts in mountainous areas. Further, the Vietnamese
government has special support programs for the swine industry including
exotic sow development and increased artificial insemination.

### Table 7: Vietnam's pork meat Production, Supply and Distribution

+---------------------+-------+-------+-------+-------+-------+-------+
| **Country**         | *     |       |       |       |       |       |
|                     | *Viet |       |       |       |       |       |
|                     | nam** |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**       | **    |       | (1000 |       |       |       |
|                     | Meat, |       | MT    |       |       |       |
|                     | Sw    |       | CWE)  |       |       |       |
|                     | ine** |       | (1000 |       |       |       |
|                     |       |       | HEAD) |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     | 2005  | Re    | 2006  | Est   | 2007  | For   |
|                     |       | vised |       | imate |       | ecast |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                     | Off   | Est   | Off   | Est   | Off   | Est   |
|                     | icial | imate | icial | imate | icial | imate |
|                     | \[    |       | \[    |       | \[    |       |
|                     | Old\] | \[    | Old\] | \[    | Old\] | \[    |
|                     |       | New\] |       | New\] |       | New\] |
+---------------------+-------+-------+-------+-------+-------+-------+
| **Market Year       |       | 01    |       | 01    |       | 01    |
| Begin**             |       | /2005 |       | /2006 |       | /2007 |
+---------------------+-------+-------+-------+-------+-------+-------+
| Slaughter           | 0     | 38838 | 0     | 38838 | 0     | 41533 |
| (Reference)         |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks    | 0     | 14    | 0     | 16    | 0     | 17    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Production          | 0     | 1602  | 0     | 1713  | 0     | 1832  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Intra EC Imports    | 0     | 0     | 0     | 0     | 0     | 0     |
+---------------------+-------+-------+-------+-------+-------+-------+
| Total Imports       | 0     | 1.5   | 0     | 1.5   | 0.0   | 2.0   |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports       | 0     | 1.5   | 0     | 1.5   | 0.0   | 2.0   |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY        | 0     | 1     | 0     | 1     | 0.0   | 1     |
|                     |       | 617.5 |       | 730.5 |       | 851.0 |
+---------------------+-------+-------+-------+-------+-------+-------+
| Intra EC Exports    | 0     | 0     | 0     | 0     | 0     | 0     |
+---------------------+-------+-------+-------+-------+-------+-------+
| Total Exports       | 0     | 18    | 0     | 15    | 0     | 18    |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Exports       | 0     | 18    | 0     | 15    | 0     | 18    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Human Dom.          | 0     | 1     | 0     | 1     | 0     | 1815  |
| Consumption         |       | 583.5 |       | 698.5 |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Other Use, Losses   | 0     | 0     | 0     | 0     | 0     | 0     |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.          | 0     | 1     | 0     | 1     | 0     | 1815  |
| Consumption         |       | 583.5 |       | 698.5 |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks       | 0     | 16    | 0     | 17    | 0     | 18    |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL DISTRIBUTION  | 0     | 1     | 0     | 1     | 0     | 1851  |
|                     |       | 617.5 |       | 730.5 |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Calendar Yr. Imp.   | 0     | 0     | 0     | 0     | 0     | 0     |
| from U.S.           |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Calendar Yr. Exp.   | 0     | 0     | 0     | 0     | 0     | 0     |
| to U.S.             |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+

*Source: MARD,GSO, FAS*

In line with swine inventory growth, pork production increased quickly
in 2004 and 2005 as bird-flu dampened poultry demand, but growth has
moderated in 2006 as Vietnam's bird-flu situation has improved.

### Table 8: Average pork wholesale price 

  ---------------------- -------------- ----------- ----------------------
  **Prices Table**                                  

  **Country**            Vietnam                    

  **Commodity**          Meat, Swine                

  Prices in              VND            per uom     kg of live weight

  Year                   **2004**       **2005**    **% Change**

  Jan                    12200          17600       44%

  Feb                    13500          18400       36%

  Mar                    13300          17500       32%

  Apr                    13900          17800       28%

  May                    14300          18300       28%

  Jun                    14500          18800       30%

  Jul                    14400          18200       26%

  Aug                    16200          16200       0%

  Sep                    15800          16500       4%

  Oct                    15900          17000       7%

  Nov                    15800          17900       13%

  Dec                    16400          18400       12%

  **Average**            **14683**      **17716**   **21%**
  ---------------------- -------------- ----------- ----------------------

*Source: MARD, Trade*

## 

## Trade

######## Swine

Vietnam needs to import breeding stock as it continues to boost its
swine production. The country has in recent years imported breeding pigs
and semen from the United States Canada, Thailand, Korea and Belgium.
According to U.S. trade data, in the period of 2000-2004, the United
States exported 1,374 live pigs to Vietnam with a value of \$ 708,000.
However, since the beginning of 2005 Vietnam has not imported any live
swine from the United States. Breeding farms currently feel that the
cost of U.S. breeding swine is too high and have looked to other
sources.

### Table 9: Swine Import Trade Matrix

  ----------------------- ------------- ----------------------- ------------
  **Country**             Vietnam                               

  **Commodity**           Animal                                
                          Numbers,                              
                          Swine                                 

  Time Period                           Units: head             

  **Imports for:**        **2004**                              **2005**

  U.S.                    110           U.S.                     110

  Others                                Others                  

  Canada                  77            Korea (Republic)        1090

  Thailand                1084          UK                      576

                                        Belgium                 37

                                        Thailand                229

                                        Laos                    95

                                        Japan                   37

  ***Total for Others***  ***1161***                            ***2064***

  **Grand Total**         **1271**                              **2174**
  ----------------------- ------------- ----------------------- ------------

*Source: MARD,GSO, FAS*

Pork

In Vietnam, almost all pork production is for local demand. Only 1-2% of
total pork production was for export. The main pork export for Vietnam
is suckling pigs. These in the past have been to several nearby
countries, but disease concerns have recently restricted exports only to
the biggest market, Hong Kong. The government hopes to become a major
exporter of pork, but strong and growing domestic demand and other
countries health restrictions make this very unlikely anytime soon.

Vietnam also imports pork, but volumes are very small, far less than one
percent of consumption. Almost all is processed meat. With WTO
accession, tariff rates will drop but Vietnam is still expected to
supply most of its pork demand domestically except possibly for offal,
where the Vietnamese affinity for cuts unpopular in Western diets might
result in significant imports.

### Table 10: Vietnam's swine meat export trade matrix (2000-2005)

Unit: MT

<table>
<colgroup>
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>Exports for:</strong></td>
<td><strong>2000</strong></td>
<td></td>
<td><strong>2001</strong></td>
<td></td>
<td><strong>2002</strong></td>
<td></td>
<td><strong>2003</strong></td>
<td></td>
<td><strong>2004</strong></td>
<td></td>
<td><strong>2005</strong></td>
</tr>
<tr class="even">
<td><strong>U.S.</strong></td>
<td></td>
<td><strong>U.S.</strong></td>
<td></td>
<td><strong>U.S.</strong></td>
<td></td>
<td><strong>U.S.</strong></td>
<td></td>
<td><strong>U.S.</strong></td>
<td></td>
<td><strong>U.S.</strong></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Others</strong></td>
<td></td>
<td><strong>Others</strong></td>
<td></td>
<td><strong>Others</strong></td>
<td></td>
<td><strong>Others</strong></td>
<td></td>
<td><strong>Others</strong></td>
<td></td>
<td><strong>Others</strong></td>
<td></td>
</tr>
<tr class="even">
<td>Russia</td>
<td>1,500</td>
<td>Russia</td>
<td>15,000</td>
<td>Russia</td>
<td>3,100</td>
<td>Russia</td>
<td>100</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Hong Kong</td>
<td>8,000</td>
<td>Hong Kong</td>
<td>8,800</td>
<td>Hong Kong</td>
<td>10,000</td>
<td>Hong Kong</td>
<td>12,000</td>
<td>Hong Kong, Malaysia</td>
<td>20,000</td>
<td>Hong Kong &amp; Taiwan</td>
<td>18,000</td>
</tr>
<tr class="even">
<td>Malaysia</td>
<td>700</td>
<td>Malaysia</td>
<td>700</td>
<td></td>
<td></td>
<td>Malaysia</td>
<td>4,000</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>China, Singapore &amp; other</td>
<td>2,000</td>
<td>China, Singapore &amp; other</td>
<td>1,500</td>
<td><p>China, Singapore</p>
<p>&amp; other</p></td>
<td>1,900</td>
<td><p>China, Singapore</p>
<p>&amp; other</p></td>
<td>400</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Grand Total</strong></td>
<td><strong>12,200</strong></td>
<td></td>
<td><strong>26,000</strong></td>
<td></td>
<td><strong>15,000</strong></td>
<td></td>
<td><strong>16,500</strong></td>
<td></td>
<td><strong>20,000</strong></td>
<td></td>
<td><strong>18,000</strong></td>
</tr>
</tbody>
</table>

*Source: MARD*

# 

# 

# CATTLE SECTOR

## Production

In 2005, the beef cattle inventory in Vietnam was 5.541 million head, up
13% compared with 2004(see table 2). The cattle population is spread
relatively evenly throughout the country.

There are still many difficulties for development of the beef cattle
industry such as a lack of good quality cattle breeds, unstable prices
of live cattle, lack of breeding skill, lack of advanced technology in
artificial insemination, not enough grazing with appropriate grass
varieties, lack of knowledge of cattle nutrition and scarce veterinary
services. Vietnam's government so far does not have a specific program
for beef cattle development like it does for dairy cattle development.

Of the total cattle population, about 90% is raised in
backyard/household farms and only about 10% come from commercial
operations. To change this ratio of commercial farms vs. backyard
operation, Vietnam's government has policies to encourage commercial
farms such as tax and land-use preferences, support for artificial
insemination, policies to increase available grass forage and vaccine,
and agricultural extension training.

Total beef production of Vietnam in 2005 reached 142 TMT, a 19% increase
compared to 2004 as domestic demand was high. However, beef production
remained relatively small at only 5% of total meat production. Besides
good quality cattle breeds, feeding also plays very important role in
beef cattle development. In Vietnam at present local farmers are unable
to provide enough grazing for cattle to expand production greatly. The
government encourages many regions in the country to increase grass
areas but with demand on land high for other purposes, the success of
this is dubious. No official data of area devoted to grass is collected
to measure growth.

Due to low domestic beef production, imports of beef are expected to
continue growing to meet local beef meat consumption in the future.

### Chart 2: Vietnam's beef meat production (2001-2005)

![](media/image3.wmf){width="3.9993055555555554in"
height="2.1909722222222223in"}

*Source: MARD*

**Policy**

As part of the Vietnam-U.S. WTO accession agreement for market access,
Vietnam has agreed to allow all type of U.S. beef with appropriate
certification per World Organization for Animal guidelines to prevent
the spread of BSE .

## Trade 

Since 2001, Vietnam has imported over 10,000 dairy cattle from various
sources but these imports have slowed. In 2006, there are no reported
imports of dairy cattle. Live beef breeding cattle imports have been
negligible. Bovine semen imports are currently the main source of cattle
genetic imports.

Beef is Vietnam's largest meat import. The total value was \$ 3.2
million in 2005 (about 730 thousand MT of all types of beef meat). Beef
came from a variety of sources including Argentina, the United States,
Australia, New Zealand, India, and Malaysia. Exports were very small at
a total value of only \$ 40,000 with Hong Kong the biggest market.

Due to low domestic beef production in the country and limited resources
particularly for grazing, imports of beef are expected to continue
growing to meet local consumption, especially in hotels and restaurants
in big cities.

### Table 11: Vietnam's beef meat import-export value in 2004-2005 

(Unit: US\$)

+----------------------------------+--------+-------+--------+-------+
| **Items**                        | **     |       | **     |       |
|                                  | 2004** |       | 2005** |       |
+----------------------------------+--------+-------+--------+-------+
|                                  | Import | E     | Import | E     |
|                                  |        | xport |        | xport |
+----------------------------------+--------+-------+--------+-------+
| Meat of bovine animals, fresh or | 1,1    | 2     | 1,6    | 0     |
| chilled                          | 59,700 | 5,284 | 19,900 |       |
|                                  |        |       |        |       |
| (HS 0201)                        |        |       |        |       |
+----------------------------------+--------+-------+--------+-------+
| Meat of bovine animals, fresh or | 1,2    | 1     | 1,6    | 3     |
| chilled                          | 96,444 | 6,464 | 72,924 | 9,815 |
|                                  |        |       |        |       |
| (HS 0202)                        |        |       |        |       |
+----------------------------------+--------+-------+--------+-------+

*Source: MARD, GSO*

# DAIRY 

## Production

Ninety-five percent of the dairy cow heard is raised in
backyard/household farms with an average number of 4-5 dairy cows per
farm (in the north) and 7-10 cows per farm (in the south). Only 5% of
the national herd is in what are considered commercial operations with a
thousand cows or more. The largest populations are in the provinces of
Ho Chi Minh City (56,162 head), Long An (5,326 head), Son La (4,491
head), Ha Tay (4,083 head) and Tuyen Quang (4,090 head). In Vietnam,
Holstein Friesland and Jersey dairy cattle breeds dominate the herd.

The government reports that Vietnam's dairy cattle population increased
significantly from 41,241 heads in 2001 to 104,120 heads in 2005 after
it instituted its dairy cattle development program. In 2003, Vietnam's
dairy cattle production growth rate peaked at 42%. In 2004 its growth
rate slowed to 20 percent and to 9% in 2005 as milk prices moderated and
feed prices rose, particularly in the winter season. Post foresees in
2006 that the growth rate of the dairy cattle population in Vietnam will
continue to slow as profits stay relatively anemic.

### Table 13. Vietnam's dairy cow population (2001-2005) 

Unit: head

+---------------+--------+--------+--------+-------+------+---------+
| **Areas**     | **     |        |        |       |      |         |
|               | Year** |        |        |       |      |         |
| **Provinces,  |        |        |        |       |      |         |
| Cities**      |        |        |        |       |      |         |
+---------------+--------+--------+--------+-------+------+---------+
|               | **     | **     | **     | **2   | **20 | **2005  |
|               | 2001** | 2002** | 2003** | 004** | 05** | pro     |
|               |        |        |        |       |      | portion |
|               |        |        |        |       |      | of      |
|               |        |        |        |       |      | total   |
|               |        |        |        |       |      | country |
|               |        |        |        |       |      | dairy   |
|               |        |        |        |       |      | cattle  |
|               |        |        |        |       |      | pop     |
|               |        |        |        |       |      | ulation |
|               |        |        |        |       |      | (%)**   |
+---------------+--------+--------+--------+-------+------+---------+
| **Whole       | **41   | **55   | **79   | **95, | **1  | **100** |
| country**     | ,241** | ,848** | ,243** | 794** | 04,1 |         |
|               |        |        |        |       | 20** |         |
+---------------+--------+--------+--------+-------+------+---------+
| **North**     | **6    | **8    | **17   | **24, | **   | **      |
|               | ,170** | ,216** | ,885** | 151** | 26,3 | 25.27** |
|               |        |        |        |       | 08** |         |
+---------------+--------+--------+--------+-------+------+---------+
| Red River     | 3,543  | 5,040  | 9,033  | 1     | 11   | 11.5    |
| Delta         |        |        |        | 1,424 | ,975 |         |
+---------------+--------+--------+--------+-------+------+---------+
| North East    | 0      | 746    | 2,910  | 4,832 | 5    | 5.24    |
| Area          |        |        |        |       | ,458 |         |
+---------------+--------+--------+--------+-------+------+---------+
| North West    | 2,613  | 2,103  | 4,044  | 5,048 | 5    | 4.86    |
| Area          |        |        |        |       | ,058 |         |
+---------------+--------+--------+--------+-------+------+---------+
| North Central | 14     | 327    | 1,898  | 2,847 | 3    | 3.67    |
| Area          |        |        |        |       | ,817 |         |
+---------------+--------+--------+--------+-------+------+---------+
| **South**     | **35   | **47   | **61   | **71, | **   | **      |
|               | ,071** | ,632** | ,358** | 643** | 77,8 | 74.73** |
|               |        |        |        |       | 12** |         |
+---------------+--------+--------+--------+-------+------+---------+
| South Central | 132    | 848    | 3,532  | 5,902 | 3    | 2.89    |
| Area          |        |        |        |       | ,014 |         |
+---------------+--------+--------+--------+-------+------+---------+
| Central       | 804    | 1,007  | 1,732  | 2,119 | 2    | 2.45    |
| Highlands     |        |        |        |       | ,549 |         |
+---------------+--------+--------+--------+-------+------+---------+
| South East    | 32,298 | 41,937 | 51,098 | 5     | 63   | 61.41   |
| Area          |        |        |        | 6,799 | ,939 |         |
+---------------+--------+--------+--------+-------+------+---------+
| Mekong River  | 1,837  | 3,840  | 4,996  | 6,823 | 8    | 7.98    |
| Delta         |        |        |        |       | ,310 |         |
+---------------+--------+--------+--------+-------+------+---------+

*Source: MARD*

Government statistics currently put farm gate price of milk at between
VND3,800- VND4,200/kg, (\$0.24-\$0.26/kg). These prices are increasingly
unattractive to particularly to small farmers and many are selling their
dairy cattle. Post believes that large-scale commercial operations will
continue to quickly replace the small backyard/household farms.

Vietnam's fresh milk production has increased from 53 thousand tons in
2000 to 198 thousand tons in 2005. This increase has been greater than
increases in dairy cattle as cow quality and yields have improved. High
demand for fresh dairy products in Vietnam, particularly is big cities,
is driving this increase in local production. Fresh milk production per
capita is 2.38 kg/person in 2005, a 29% increase compared with the year
before.

According to government statistics, the milk yield of hybrid cows per
305-day cycle increased from 3,000 liters in 2000 to 3,500 liters in
2005 and for Holstein cows from 3,800 liters to 4,600 liters.

### Table 14: Vietnam's Fresh Milk Production (2000-2005)

  ----------------- ------------- ---------- ---------- ---------- ---------- ---------- ----------
                                  **2000**   **2001**   **2002**   **2003**   **2004**   **2005**

  Dairy cow         Thousand head 35,000     41,241     55,848     79,243     95,794     104,120
  population                                                                             

  Fresh milk        Thousand tons 52.200     64.703     78.453     126.697    151.314    197.679
  production                                                                             

  Vietnam's         Million       77.63      78.7       79.7       80.9       82         83.1
  population        persons                                                              

  Fresh milk        Kg/person     0.67       0.82       0.98       1.57       1.84       2.38
  production per                                                                         
  capita                                                                                 
  ----------------- ------------- ---------- ---------- ---------- ---------- ---------- ----------

*Source: MARD*

### Table 15: Vietnam's Fresh Milk Production Plan (2006-2015)

  ----------------- ------------- ---------- ---------- ---------- ---------- ---------- ----------
                                  **2006**   **2007**   **2008**   **2009**   **2010**   **2015**

  Dairy cow         Thousand head 126.9      145.9      163.5      181.4      200        350
  population                                                                             

  Fresh milk        Thousand tons 215        243        275        310        350        550
  production                                                                             

  Vietnam's         Million       84.1       85.1       86.1       87.2       88.4       93.4
  population        persons                                                              

  Fresh milk        Kg/person     2.6        2.9        3.2        3.6        4.0        5.9
  production per                                                                         
  capita                                                                                 
  ----------------- ------------- ---------- ---------- ---------- ---------- ---------- ----------

*Source: MARD*

The state-owned company, Vinamilk, collects about 60 percent of fresh
milk produced in Vietnam. Dutch Lady Company collects another 20 percent
while the remainder is collected by a number of smaller processing
companies. Fresh milk production in Vietnam is small even after recent
gains. Local dairies meet only about 22% of the demand for dairy
products.

## 

## Trade

After eliminating an import quota scheme, Vietnam's dairy product
imports increased 47 percent to over \$300 million in 2005. Although
growth will not be as rapid in 2006, Vietnam is on track to exceed this
record again with imports of \$168 million through the first six months.
Vietnam imported dairy products from various countries including the
United States, Australia, Korea, and Netherlands. The volume of US milk
and milk product imports has increased sharply from 2001 to 2005.
Vietnam's dairy product import growth is forecast to continue as
improvements in living standards especially in big cities increases
demand well beyond the capacity of local production to expand.

### Table 16: Vietnam's milk & milk product import/exports in 2000-2004

+-----------------+-----+------+------+------+------+------+--------+
|                 | **  | **20 | **20 | **20 | **20 | **20 | *      |
|                 | Uni | 01** | 02** | 03** | 04** | 05** | *Jan.- |
|                 | t** |      |      |      |      |      | Jun.** |
|                 |     |      |      |      |      |      |        |
|                 |     |      |      |      |      |      | **06** |
+-----------------+-----+------+------+------+------+------+--------+
| Export: Milk &  | 1,  | 42   | 187  | 88   | 64   | 34   | N/A    |
| milk products   | 000 | ,612 | ,665 | ,413 | ,201 | ,243 |        |
|                 | D   |      |      |      |      |      |        |
|                 | oll |      |      |      |      |      |        |
|                 | ars |      |      |      |      |      |        |
+-----------------+-----+------+------+------+------+------+--------+
| Import: milk &  | 1,  | 138  | 229  | 129  | 209  | 307  | 1      |
| milk products   | 000 | ,567 | ,989 | ,569 | ,000 | ,000 | 68,000 |
| (from HS0401 to | D   |      |      |      |      |      |        |
| HS0406)         | oll |      |      |      |      |      |        |
|                 | ars |      |      |      |      |      |        |
+-----------------+-----+------+------+------+------+------+--------+

*Source: MARD, GSO*

### 

### Table 17: U.S. milk & milk products exports to Vietnam 

+--------------+--------+------+------+------+-------+-------+-------+
|              | **     | **20 | **20 | **20 | **2   | **2   | **J   |
|              | Unit** | 01** | 02** | 03** | 004** | 005** | an.-J |
|              |        |      |      |      |       |       | un.** |
|              |        |      |      |      |       |       |       |
|              |        |      |      |      |       |       | *     |
|              |        |      |      |      |       |       | *06** |
+--------------+--------+------+------+------+-------+-------+-------+
| Milk         | MT     | 3,3  | 1,3  | 7    | 10,   | 16,   | 6,    |
| concentrated |        | 67.3 | 12.0 | 80.4 | 383.0 | 591.0 | 398.9 |
|              |        |      |      |      |       |       |       |
| (HS: 0402)   |        |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+
|              | 1000   | 7    | 1    | 1    | 2     | 3     | 1     |
|              | d      | ,129 | ,730 | ,145 | 1,050 | 5,647 | 3,919 |
|              | ollars |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+
| Milk powder  | MT     | 7    | 8    | 7    | 7,    | 16,   | 6,    |
| \<1.5% FA    |        | 84.0 | 00.9 | 80.4 | 575.4 | 591.0 | 362.0 |
|              |        |      |      |      |       |       |       |
| (HS: 040210) |        |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+
|              | 1,000  | 1    | 1    | 1    | 1     | 3     | 1     |
|              | d      | ,727 | ,110 | ,145 | 5,720 | 5,647 | 3,865 |
|              | ollars |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+
| Whey,        | MT     | 1,3  | 2,3  | 3,1  | 4,    | 6,    | 5,    |
| Natural milk |        | 64.6 | 04.1 | 86.8 | 467.8 | 752.1 | 098.0 |
|              |        |      |      |      |       |       |       |
| (HS: 0404)   |        |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+
|              | 1,000  | 748  | 1    | 1    | 2,529 | 3,257 | 3,571 |
|              | d      |      | ,317 | ,412 |       |       |       |
|              | ollars |      |      |      |       |       |       |
+--------------+--------+------+------+------+-------+-------+-------+

*Source: U.S. Trade*

# POULTRY

## Production 

# 

Of the total poultry population, about 50 percent are raised from
backyard/household farms of up to 200 birds; 25-30% are raised on what
are termed commercial poultry farms of from 200 to 2,000 birds; and
18-20% are in industrial farms that can range anywhere from
2,000-100,000 birds. The biggest poultry farms are joint ventures or
wholly foreign-owned companies.

### Table 18: Vietnam's poultry production (2001-2005)

  -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
                 **Unit**   **2000**   **2001**   **2002**   **2003**   **2004**   **2005**   **2006
                                                                                              est.**

  Total poultry  Million    198.05     218.12     233.3      254.06     218.15     219.9      228.5
  population     heads                                                                        

  Chicken        Million    147        158        159        185        159        159.8      173
  population     heads                                                                        

  Duck           Million    51         57.97      63.65      69.39      58.92      60.01      55.5
  population     heads                                                                        

  Poultry meat   Thousand   286        322.6      388.4      372.72     316.41     321.89     747.5\*
  production     metric ton                                                                   

  Poultry egg    Billion    3.7        4.16       4.53       4.85       3.94       3.95       4.28
  production     pieces                                                                       
  -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------

*Source: GSO; MARD*

*(Notes: \* MARD's estimate due to different statistic way to compare
with GSO's data based on poultry production cycle per annum)*

In the 3 years before avian influenza outbreaks began in late 2003,
Vietnam's poultry population's growth rate was 8.6% per year, with the
chicken population increasing by 8.3% and the duck (waterfowl)
population increasing by 9.4%. However in 2004, due to the highly
pathogenic avian influenza outbreak in Vietnam, the poultry population
dropped 14%, and poultry meat production decreased by 15%. However, the
poultry sector stabilized in 2005 as the avian influenza situation
improved. It increased by 0.08 percent in population and 1.7% in total
meat production. Post expects the recovery from AI to be slow as the
risk from new outbreaks remains and government measures in place to
control AI will continue to inhibit growth particularly in the duck
population. The duck population in 2006 is expected to decrease 7.5% to
55.5 million head.

According to the government, Vietnam has destroyed 51 million poultry
since December 2003 as a result of AI outbreaks. Local producers are
still hesitant to invest in this sector due to the continued risk of
avian influenza. Vietnam still uses vaccination as the main control
measure for HPAI.

## Poultry trade

Vietnam imports significant numbers of live poultry for breeding. Due to
the bird flu outbreaks in the country, the live poultry import value
decreased from \$3.27 million in 2002 to \$2.58 million in 2003 and
\$1.58 million in 2004 (see table 20). However, according to the
government, in 2005, Vietnam increased spending to \$2.7 million for
live poultry imports (about 667 thousand birds) as it began rebuilding
its flock. Currently imports mainly come from the United Kingdom, the
United States, France and Netherlands. Vietnam exported a small quantity
of live poultry to neighboring countries such as Laos, Cambodia and
Myanmar (see table 21).

###  

### Table 19: Vietnam\'s live poultry import value

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 9%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 10%" />
<col style="width: 1%" />
<col style="width: 8%" />
<col style="width: 3%" />
<col style="width: 13%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>Item</strong></td>
<td></td>
<td><strong>2000</strong></td>
<td><strong>2001</strong></td>
<td><strong>2002</strong></td>
<td colspan="2"><strong>2003</strong></td>
<td colspan="2"><strong>2004</strong></td>
<td><strong>2005</strong></td>
</tr>
<tr class="even">
<td><p>Live poultry</p>
<p>(HS 0105)</p></td>
<td>In US Dollars</td>
<td>1,439,039</td>
<td>1,700,344</td>
<td>3,276,338</td>
<td colspan="2">2,584,289</td>
<td colspan="2">1,586,374</td>
<td>2,740,064</td>
</tr>
<tr class="odd">
<td colspan="10"><p><em>Source: MARD, GSO</em></p>
<h3 id="table-20-vietnams-live-poultry-export-value">Table 20: Vietnam's
live poultry export value</h3></td>
</tr>
<tr class="even">
<td><strong>Item</strong></td>
<td></td>
<td><strong>2000</strong></td>
<td><strong>2001</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td colspan="2"><strong>2004</strong></td>
<td colspan="2"><strong>2005</strong></td>
</tr>
<tr class="odd">
<td><p>Live poultry</p>
<p>(HS 0105)</p></td>
<td>In US Dollars</td>
<td>117,792</td>
<td>0</td>
<td>3,841</td>
<td>79,388</td>
<td colspan="2">34,536</td>
<td colspan="2">N/A</td>
</tr>
</tbody>
</table>

*Source: MARD, GSO*

### Table 21: Vietnam\'s poultry meat import value

+------------+-----+------+------+--------+-------+--------+--------+
| **Item**   |     | **20 | **20 | **     | **2   | **     | **     |
|            |     | 00** | 01** | 2002** | 003** | 2004** | 2005** |
+------------+-----+------+------+--------+-------+--------+--------+
| Poultry    | In  | 59   | 17   | 3,5    | 1,41  | 2,8    | 3,5    |
| meat       | US  | ,375 | ,483 | 21,704 | 2,153 | 31,080 | 84,874 |
|            | D   |      |      |        |       |        |        |
| (HS 0207)  | oll |      |      |        |       |        |        |
|            | ars |      |      |        |       |        |        |
+------------+-----+------+------+--------+-------+--------+--------+

*Source: MARD, GSO*

### Table 22: Vietnam\'s poultry meat export value

+------------+-----+------+------+--------+------+---+--------+--------+
| **Item**   |     | **20 | **20 | **     | **20 | * |        | **     |
|            |     | 00** | 01** | 2002** | 03** | * |        | 2005** |
|            |     |      |      |        |      | 2 |        |        |
|            |     |      |      |        |      | 0 |        |        |
|            |     |      |      |        |      | 0 |        |        |
|            |     |      |      |        |      | 4 |        |        |
|            |     |      |      |        |      | * |        |        |
|            |     |      |      |        |      | * |        |        |
+------------+-----+------+------+--------+------+---+--------+--------+
| Poultry    | In  | 405  | 55   | 3,7    | 1    |   | 1,6    | 35,352 |
| meat       | US  | ,365 | ,218 | 23,503 | ,482 |   | 13,119 |        |
|            | D   |      |      |        | ,304 |   |        |        |
| (HS 0207)  | oll |      |      |        |      |   |        |        |
|            | ars |      |      |        |      |   |        |        |
+------------+-----+------+------+--------+------+---+--------+--------+

*Source: MARD, GSO*

In November 2005 due to bird flu outbreaks, the Vietnamese government
banned imports of live birds as well as poultry products from all
countries. However, after pressure from trading partners and an improved
AI situation, in January 2006 the Vietnamese government lifted this ban
for imports of poultry and poultry products from countries that are free
from highly pathogenic Avian Influenza. As a result, in 2006 Vietnam's
imports of live poultry and poultry products have increased
significantly. Despite a slight recovery of local poultry production in
2005 and 2006 due to the improvement of the bird flu situation in the
country, imports of chicken meats are expected to continue to increase,
particularly for use by the food processing industry.

## 

High prices following the AI outbreak are fueling the current increasing
in imports. Since recovery is expected to be slow, this attractive
market should continue in the near term at least. After AI fears recede,
the extent the industry can expand in the long term will determine how
much imports will eventually grow. However high Vietnamese demand for
offal and dark meat cuts that are relatively unpopular in the United
States should continue to create opportunities for U.S. exporters
particularly if progress can be made in reducing tariffs currently
ranging up to 20%.