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ASEAN Food and Beverage

markets - Updates and insights


from the region
25 March 2014

Webinar Panellists

Christopher Rees
Senior Trade Commissioner
Singapore

Sonya Monica
Indonesia

Rekha Isaac
Singapore

Liza Bautista
The Philippines

Renee Lee
Malaysia
(also representing BDM
from Brunei)

Tuoc Le
Vietnam

Sarakit
Thailand

Ross Bray
representing the incoming
BDM Agrifood Myanmar
Australia Unlimited

ASEAN

ASEAN represents a population of over


616 million people with a combined GDP
of US$ 2.31 trillion (2012).

Australia Unlimited

Executive Summary - ASEAN F&B Market


ASEAN represents a A$6.46 billion food, beverage and
agribusiness market for Australian exporters, making up nearly
20% of Australias total f&b/agri exports.
Business engagement (through tariff reductions and greater
investment opportunities) has increased from 1 January 2010,
when the ASEAN, Australia-New Zealand Free Trade
Agreement (AANZFTA) came into effect.
Australian food and beverage exports to ASEAN have
increased by nearly 48% since 2009.

The ASEAN Economic Community is set to be introduced next


year (2015), facilitating the free flow of goods, services and
capital.
As an economic force, ASEAN has become the third growth
engine within emerging Asia after China and India.
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Australian F&B/ Agri Exports to the main ASEAN markets


2.5

2009
2010
2011
2012
2013

A$ Billions

1.5

0.5

0
Indonesia

Vietnam

Singapore

Malaysia

Thailand

Philippines

Myanmar

Brunei
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Source of Data: Australian Bureau of Statistics

Australian F&B/Agri Main Exports to ASEAN in 2013


Partner
Country

Indonesia

Vietnam

Singapore

Malaysia

Thousands Australia
Dollars (2013)

$ 2,163,657.00

$ 1,198,667.00

$ 1,049,841.00

859,352.00

Top 5 Australian Exports


(2013)
1.
2.
3.
4.
5.

Wheat And Meslin;


Bovine Animals, Live
Meat Of Bovine Animals, Frozen;
Milk And Cream, Concentrated Or Sweetened
Flour, Meal Etc Of Meat Etc, Not For Human; Greavs

1.
2.
3.
4.
5.

Wheat And Meslin


Crustaceans Live Frsh Etc Smoked/Cooked Flours Etc
Malt, Whether Or Not Roasted
Bovine Animals, Live
Rape Or Colza Seeds, Whether Or Not Broken

1.
2.
3.
4.
5.

Fats Of Bovines, Sheep/Goats Other Than Head 1503


Milk And Cream, Concentrated Or Sweetened
Cane Or Beet Sugar & Chem Pure Sucrose, Solid Form
Wine Of Fresh Grapes; Grape Must Nesoi
Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen

1.
2.
3.
4.
5.

Wheat And Meslin


Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen
Milk And Cream, Concentrated Or Sweetened
Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc
Meat Of Bovine Animals, Frozen
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Source of Data: Australian Bureau of Statistics

Australian F&B/Agri Main Exports to ASEAN in 2013 (contd)


Partner
Country

Thailand

Philippines

Myanmar

Brunei

Thousands Australia
Dollars (2013)

Top 5 Australian Exports


(2013)

599,909.00

1.
2.
3.
4.
5.

Wheat And Meslin


Malt, Whether Or Not Roasted
Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc
Milk And Cream, Concentrated Or Sweetened
Cheese And Curd

451,665.00

1.
2.
3.
4.
5.

Wheat And Meslin


Meat Of Bovine Animals, Frozen
Malt, Whether Or Not Roasted
Milk And Cream, Concentrated Or Sweetened
Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc

88,911.00

1.
2.
3.
4.
5.

Wheat And Meslin


Food Preparations Nesoi
Milk And Cream, Concentrated Or Sweetened
Cheese And Curd
Horses, Asses, Mules And Hinnies, Live

28,010.00

1.
2.
3.
4.
5.

Meat Of Bovine Animals, Frozen


Bovine Animals, Live
Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen
Cheese And Curd
Chocolate & Other Food Products Containing Cocoa
Australia Unlimited

Source of Data: Australian Bureau of Statistics

Singapore - Overview
Total Population: 5.4 million residents
plus nearly 15.5 million tourist arrivals
per year (2013)
Multicultural Society: 74.1% Chinese,
13.4% Malays, 9.2% Indians, 3.3%
others
GDP per capita (2013): S$ 68,541 or
USD 52,051(at current market prices)
Strong trade relationship with Australia
Excellent trade infrastructure supported
by world-class air & sea ports

Entry point for the region - strong reexport/ trans shipment hub
Australia Unlimited

Market Updates & Insights Retail Sector


Dominated by grocery retail chains
Main Supermarket Players

Opportunities

Channels to Supermarkets
Via local distributor/agent
Through Australian consolidators - small volume
(LCL), niche or shorter shelf-life products
Direct Imports from source large volumes (FCL),
ambient/ long shelf-life

Have large warehousing facilities to handle


perishable goods, re-packing and distribution.

Dairy
Convenience
Functional/
Organic
Healthier
options/Natural
Private Label
Processed
Foods
Value-added
(ready to
Australia Unlimited
eat/cook)

Market Updates & Insights Foodservice &


Food Processing Sectors
Steady stream of international visitors & the
propensity of local residents to eat out keep the
foodservice sector vibrant.
Marina Bay Sands and Resort World Sentosa
have provided an impetus to the foodservice
sector.
178 gazetted hotels with a total supply of 44,037
rooms and 6,500 F&B Establishments.
Largely, hotels and restaurant groups depend on
the local importer-distributor base for their needs.

Small, but efficient food-processing sector


value-added production making up a significant
proportion.

Opportunities

Quality Meats
Seafood
Fresh
Produce
Organic
Ingredients

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Market Access Issues/ Updates

Duty free market for all food products (7% Goods and Services Tax)

Strict regulations related to nutrient function claims.

Only frozen poultry and processed poultry meat products are allowed from
Australia must come from AVA approved establishments.

Chilled fresh pork and chilled cooked/processed pork (like cooked pork rib
and moisture-infused pork) are permitted only from AVA approved
establishments.

Fresh and processed eggs may only be imported from AVA approved
establishments.

Under SAFTA, Australian beers which satisfy the Rules of Origin


requirements do not attract the customs duty of S$ 16 per litre of alcohol.

Excise duties on alcoholic beverages including wines & beers were


recently increased by 25% (w.e.f. Feb 21, 2014)
S$88.00 per litre of alcohol for wines

S$ 60.00 per litre of alcohol for beers


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Tips to Succeed in this Market


Engage closely with the market.
Understand your pricing get the quality/price ratio right.
Take a long-term view of the market, have realistic
expectations.

Manage your relationships well build long-term


relationships to build market share.
Quality, appearance, colour and freshness of product are
very important.
Innovative products, attractive packaging & packaging size
Uniqueness clear points of differentiation.
Best to work with one dedicated partner in the market or for a
particular channel.
Halal Certification.
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Useful Reference Sites Government/


Regulatory Bodies

Agri-food and Veterinary Authority of Singapore (AVA) - National Authority that


ensures food safety.

Legislation - Sale of Food Act and Singapore Food Regulations

Import conditions - the AVAs online Import Conditions Database

(Note: The onus of responsibility to ensure that food imported into Singapore is safe
and meets all local regulations lies with the local importer.)

Labelling -. A Guide to Food Labelling and Advertisements

Permitted nutrient function claims

Permitted food additives and herbal ingredients

For general classification of food and health products, refer to Classification Tree for
Products in the Food-Health Product Interface.

Import Requirements for Specific Food Products for high risk classified processed
food products like infant formula, infant cereals, packaged mineral and drinking water,
beef extract, etc.
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Malaysia - Overview

A young, growing and broad group of higher middle income


population.

Multicultural population of 29.5 mil (year 2012) with the


ethnic mix of Malay 50.4%, Chinese 24.6%, indigenous 11%,
Indian 7.1%, others 6.9%.

60.4% of the population are Muslims.

GDP (current prices - year 2013) at USD 312.4 billion; GDP per capita (year
2013) at USD 10,429.

Malaysia was Australias 3rd largest trading partner in ASEAN with total 2
way trade valued is at AUD 14.1 billion in 2013.

Malaysian food and beverage imports valued is estimated at USD 11.4


billion (year 2013)

Halal hub the gateway and re-export platform to the Muslim world (The
global Halal market in Halal foods is estimated at USD 600 billion per
annum)
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Market Updates & Insights Retail Sector

Growing middle-class / upper middle-class created new opportunities in the retail sector.

Supermarkets increasingly import more food and beverage products directly through
Traders / Agents / Consolidators to create competition differentiation.

Growing trend among consumers for healthy / nutritious food & beverage products

Leading multinational and a few local entrepreneurial


Mass Grocery Retailers in the country on expansion drive
has led to the early adoption of global retailing trends.

Dairy Milk, Processed dairy


(yogurt), Butter, Cheese & etc.

Processed Foods Sauces,


Condiments, Juices, Cereals,
Spreads & etc. (especially for
private label / contract
manufacturing)

Meats & Speciality Meats

Jaya Grocer

Seafood

Village Grocer

Halal Certified Products

Niche opportunities for organic /


healthy / functional foods snack
size packaging (sachet)

Key retailers in the market are;


GCH Retail (M) Sdn Bhd owned by Dairy Farm Group
Tesco Stores (Malaysia) Sdn. Bhd. - owned by Tesco Stores Ltd
AEON Group

Opportunities

Growing importance for food and beverage products to be


Halal certified (specifically with JAKIM).

Australia Unlimited

Market Updates & Insights Foodservice


& Food Processing Sectors
Foodservice

Sizeable and growing consumer foodservice market as more people are dining out (abundance of
foodservice outlets)

Estimated the foodservice market is valued between USD 4.9 billion to USD 5.5 billion, and has
been growing at a rapid average rate of around 6.5% per annum over the past 5 years.

Projected the foodservice market is likely to grow at between 7% - 10% per annum over the next 3
5 years.
Opportunities
Food Processing
Dairy Milk, Processed dairy

Malaysias domestic production and food processing industry


achieved approximately USD 6.7 billion in export value of food
products to over 200 countries worldwide.
The export value contributed to 10% of the Malaysia manufacturing
output and predominantly supported by small medium scale
manufacturing companies.
Food products and ingredients that are certified with Malaysian
Halal Standard, will have added marketing value in Malaysia
and in other Muslim markets as Malaysias Halal is globally
recognised.

(yogurt), Butter, Cheese & etc.

Meats

Seafood

Wines

Processed Foods Sauces,


Condiments, Juices, Spreads &
etc.

Halal Certified Products

Baking Ingredients &


Condiments
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Market Access Issues

Import regulations (import permits, packaging, labeling, testing, and ports of entry),
quotas and customs procedures create significant challenges for Australian exporters
looking to do business in Malaysia.

Malaysia Australia Free Trade Agreement (MAFTA) - came into force on 1 January
2013.

MAFTA provides for improved access for Australian exporters to the Malaysian market
and builds on the commitments made by both countries under the ASEAN-AustraliaNew Zealand FTA (AANZFTA).

Under the Agreement, 97.6 per cent of Australia's exports (2011 figures) will
immediately be tariff-free, rising to 99.0 per cent from 2017.

For more information on MAFTA, visit http://www.dfat.gov.au/fta/mafta

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Tips to Succeed in this Market

The key to market entry success is to engage with a dedicated local


importer / distributor and work closely on building the relationship for the
long term.

Visit and understand the market mechanism before exporting.

It is advisable to promote an export business with a marketing package


or a concept.

Brand building of your products over time including


conducting relevant marketing activities to support
importer / distributor.

Engage with Austrade at Post to assess, assist and


analyse opportunities in the market.

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Useful Reference Sites Government /


Regulatory Bodies
Food and beverage-related resources

The Department Of Veterinary Sciences Malaysia www.dvs.gov.my


Halal Approved Abattoirs in Australia for Malaysia www.dvs.gov.my/en/australia
Approved International Islamic Bodies Recognised by Jakim www.halal.gov.my/v3/index.php/en/list-ofapproved-islamic-bodies

Federal Agriculture and Marketing Authority Malaysia www.fama.gov.my


Malaysian Food Act 1983 www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf
Food Regulation 1985 - http://fsis2.moh.gov.my/fosimv2/HOM/frmHOMFARSec.aspx?id=21

Government, business and trade resources for Malaysia

Austrade: Malaysia Market Profile - http://www.austrade.gov.au/Export/Export-Markets/Countries/Malaysia/Marketprofile

Malaysian Government Official Portal www.malaysia.gov.my


Malaysian External Trade Development Corporation (MATRADE) www.matrade.gov.my/
Malaysian Investment Development Authority (MIDA) www.mida.gov.my
Ministry of Foreign Affairs www.kln.gov.my
Ministry of Trade and Industry (MITI) www.miti.gov.my
Department of Statistics Malaysia www.statistics.gov.my/portal
Royal Malaysian Customs Department www.customs.gov.my
Australia Malaysia Business Council www.ambc.org.au/
Malaysia Australia Business Council www.mabc.org.my/

Please note: This list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The
information provided is a guide only.
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Brunei Darussalam Overview

Population:393, 372 (2011 )


Land Size : 5,765 sq km
Religion: Muslim Majority
Currency : Brunei Dollar (on par &
interchangeable with Singapore Dollar)
Language : Malay, English, Chinese
GDP (2012): est USD16.6 billion
GDP per capita (2012) : est
USD42,211
GDP growth (2013): est 2.3%

(Data courtesy of BEDB)

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Market Updates & Insights Retail Sector


Brunei imports about 80% of its food requirements
(direct and indirect shipment/transshipment via
Singapore/Malaysia )
Healthy lifestyle trend consumer preference for healthy / nutritious
food & beverage products
Halal certified products accredited by Brunei Halal Authority
Ministry of Religious Affairs
Main retail outlets are :
Ben Foods (Supasave supermarket chain)
Hua Ho Department Store with supermarket facility
Giant (Malaysian entity)
Other hypermarts/specialised grocery retail:
TM Majeed, SKH Department Store, Guan Hock Lee,
Jaya Hypermart, Liang Toon, Freshco (newly opened
in 2014)

Opportunities
Halal food
Chilled beef
and lamb
Processed
food
Diary
products
Fruits and
vegetables
Confectionery
Organic
Australia Unlimited

Market Updates & Insights Foodservice


& Food Processing Sectors
Eating out is a lifestyle
Food & Beverage opportunities for eateries
and bakeries:
- Beverage, Baby food, Cereals & Dairy products,
Ingredients
- Chilled beef and lamb for meat processing (eg.
Sausages, burger patties, cold cuts)
- Processed foods (snacks, confectionery, canned
food)
- Dried fruits, preserves, jams & spreads

Halal Services for the F& B sector


- packaging and value adding
- raw materials

Opportunities
Ingredients
Organic
Halal beef
and lamb
Processed
food
Snack items
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Market Access Issues


Import regulations (import permits,
packaging, labeling, testing)
Customs procedures
Halal accreditation
Food safety and Quality control

Australia Unlimited

Tips to Succeed in this Market

Brand awareness
Have a close rapport with local distributor
Follow guidelines for food imports
Support in-market activities and promotions
Price sensitive market customers always
comparing
Work with Austrade to assess your market
potential
Contact: josie.abdullah@austrade.gov.au
Business Development Manager,
Austrade Brunei
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Useful Reference Sites Government/


Regulatory Bodies
Product certification, labelling and packaging
For information on Food Import regulations in Brunei, contact:
Head, Food Safety and Quality Control Division
Department of Health Services
Ministry of Health
Brunei Darussalam
Email: fsqc@moh.gov.bn
Web: www.moh.gov.bn
Tel: +673 2331 100
Fax: +673 2331 107

Food safety act: www.agc.gov.bn


Public Health Food regulation for Importers:
http://moh.gov.bn/download/index.htm
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Thailand Overview
68 million people
GDP per capita US$5,800
30th biggest economy: 2nd
biggest in ASEAN

17th largest manufacturing


output
Regional hub for agricultural
commodities, vehicles, auto
parts, consumer goods,
electronics, processed food and
beverages

TAFTA

Global ranking of selected Thai


exports
Product

Ranking in
world
export
(2012)

Share in
world
export
(2012)

Hard disk Drives

N/A

Rubber

8.5%

Sugar

8.7%

Meat, fish and seafood


preparation

16.3%

Sources:
Bank of Thailand www.bot.or.th
Board of Investment www.boi.go.th
Australian governments Department of Foreign Affairs and Trade www.dfat.gov.au
International Trade Centre www.trademap.org

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Market Updates & Insights Retail Sector


Growing affluence
Consumer power
Focus on well-being

Convenience
Growing regionalisation of Thai business
Opportunities
Dairy
Grocery
Fruit and veg
Salted snacks
Wine

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Market Updates & Insights Foodservice


& Food Processing Sectors
Thailand is a major food processing country
A popular tourist destination
952,000 Australian visitors
approx one in 25 Australians
Opportunities
Meats
Dairy
Wine
Fruit and veg
Food
ingredients

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Market Access Issues


Most processed food products must undergo registration
with the Thai FDA
The manufacturing process must have international
certification that is accredited by JAS-ANZ
Additionally, food items with meat inputs must also apply
for import permits from the Thai Livestock Department
PRAs / SSG

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Tips to Succeed in this Market


Market presence - commitment

Agent/distributor
JV
Representative office
Regional Office (special BOI privileges)

Seminars and exhibitions to showcase new products/


technologies
Closer and longer term relationships with key decision
makers and influential group
Austrade to assess, assist and analyse opportunities

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Useful Reference Sites Government/


Regulatory Bodies
Food and Drug Administration
www.fda.moph.go.th/fda_eng
JAS-ANZ www.jas-anz.org
Department of Livestock Development www.dld.go.th

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Indonesia - Overview
Population: 244.5 million
GDP 2013: AUD 967.68. Growth is
dominated by domestic consumption
Currently 16th largest economy in the world, predicted to
be 7th largest in 2030
USD 0.5 trillion market opportunity in consumer services,
agriculture and fisheries, resources and education
Source: DFAT, 2013 and McKinsey Global Institute, 2013
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Market Updates & Insights Retail Sector


Annual disposable income growing
45 million members of the consuming class and 90 million is
expected to join the consumer
Opportunities
class by 2030
Urbanisation is increasing, demanding
convenience food
Retail market is continually growing,
greater access for customers
Source: McKinsey Global Institute, 2013

Healthy
ingredients/
snacks
Non-diary
milk
RTD/RTE
Instant Meal
Breakfast
Cereal
Chips
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Market Updates & Insights Foodservice


& Food Processing Sectors
Approximately 6,000 restaurants in Indonesia
Number of food service and hospitality providers growing
Increase in the purchasing power of consumers at
foodservice outlets
Opportunities
Price sensitive
Source: Indonesian Bureau Statistic, 2013

Butter
Cheese
Cream
Beef
Lamb
Bakery
ingredients

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Market Access Issues


Duties and Taxes
Special tariff rate available under AANZFTA
value added tax of 10 percent

Product Registration

BPOM Registration (ML Number) & Entry Permit (SKI)


Labelling
Establishment pre-list for dairy and meat products
Halal

Protection on horticulture and meat


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Tips to Succeed in this Market


Appoint reputable local importers and distributor agents
Commitment in satisfying local regulation and registration
procedure
Work together with partner in marketing and building
market awareness
Understand market demand and condition closely and
thoroughly

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Useful Reference Sites Government/


Regulatory Bodies
Doing business in Indonesia:
http://www.austrade.gov.au/Export/ExportMarkets/Countries/Indonesia/Doing-business
AANZFTA Tariff Schedule:
http://www.dfat.gov.au/fta/aanzfta/annexes/annex1_tc.html
The National Food and Drug Agency Control (BPOM product
registration): http://www.pom.go.id/new/index.php/home/en

Overseas Halal Certification Bodies Approved by MUI List:


http://www.pom.go.id/new/index.php/home/en
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The Philippines - Overview


Population: over 100 million and growing
(target market is 10-15% of the population)
Per capita GDP of US$ 2,792 (2013, IMF)
Positive economic outlook, with a forecasted growth rate of
6.5% in 2014
Overseas Filipino workers (10% of the population) driving
increased domestic consumption
Food consumption in 2013 valued at US$39.7 billion,
forecasted to grow to US$54 billion in 2017

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Market Updates & Insights Retail Sector


Concentrated markets in Manila and Cebu, but expanding to other
provinces too
Annual average growth in the grocery retail sector is at 7% , with
ongoing mall and supermarket expansion
Expanding range of imported goods an objective of supermarkets;
Some supermarket chains interested in direct importation
New players in the convenience store
Opportunities
segment
Beef and
Smaller is better - sachet packs and smaller packs
lamb
preferred by lower to middle income consumers
Dairy
Fresh
produce
Health food
Convenienc
e foods
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Market Updates & Insights


Foodservice & Food Processing Sectors

Food service outlets at 80,000 and expected to grow 2%


annually
Eating out accounts for about 12% of an average
households food budget
Domestic food service growth to be spurred by expected
increase in tourism growth.
Opportunities
Many new locally grown franchises.
Beef for
A fast food culture with a growing
manufacturing
population of wine and coffee drinkers
Chicken MDM
Domestic processors
Grains and
dominate the
wheat
manufacturing sector
Craft beers
Beef and lamb

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Market Access Issues

AANZFTA in force since 1 January 2010,

but still
some issues related to the implementation of the
AANZFTA.

Long and tedious process for registering imported


products with the Food and Drug Administration
(6 months to a year)

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Tips to Succeed in this Market


On the surface, it all seems very Western but
Only work with one exclusive distributor as the market is still
not big enough to have more than one distributor
Patience is key, especially with the registration process of the
Food and Drug Administration (FDA)
More US and European brands better known in the market.
Need to develop awareness for Australian F & B brands
Distributors expect to have marketing support from suppliers
It is a very price sensitive market some suppliers say that
they have an export price for the Philippines alone

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Useful Reference Sites Government/


Regulatory Bodies

For processed food:


Food and Drug Administration (www.fda.gov.ph)

For meat and products that contain animal products:


Bureau of Animal Industry (www.bai.da.gov.ph)
National Meat Inspection Service (http://nmis.da.gov.ph)

For fruits and vegetables:


Bureau of Plant Industry (www.bpi.gov.ph)

For Minimum Access Volume (for pork, potatoes, chicken):


Department of Agriculture (www.da.gov.ph)
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Viet Nam- Overview


Population: around 88.78 million in 2013 (Source: World Bank)
GDP per capita in 2011-2013: USD1,517, USD1,749 and
USD1,890 (Source: Vietnams General Statistic Office)
GDP growth averaging 5.2% per annum from 2009-2013
(Source: World Bank)
According to the BMI, food consumption in Vietnam is
forecast to experience strong
growth (per capita in 2013 - 2015
(forecast): US$249, US$273
and US$300 respectively)
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Market Updates & Insights Retail Sector


Modern retailers are expanding to meet the growing
consumer demand in urban areas
Sales in retail food are expected to grow
75% by 2017 to $66 million (Source: Global Insight)
Direct imports of this sector is still small
Opportunities
but growing
Milk products
Fresh fruits
Chilled and
frozen beef
Confectionery
Biscuits and
cookies
Snack foods
Ready meals
Baby food
Australia Unlimited

Market Updates & Insights Foodservice


& Food Processing Sectors
Vietnamese urban consumers have busier lives, are
dining out more than before and have greater demand for
home food delivery services
Consumers pay more attention and concerns to foods
hygiene and safety when dining out.
The growth rate of the Food Processing Opportunities
Beef, pork &
Industry was 5.8% in 2013 (Source: the
chicken
Vietnams Ministry of Commerce & Industry)

Wine & beer


Concentrated
juices
Dairy products
Dried fruits &
nuts
Condiments &
flavourings
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Market Access Issues


AANZFTA: tariff reduction e.g.
https://www.dfat.gov.au/fta/aanzfta/annexes/aanzfta_annex1_vietna
m_tariffschedule.pdf
o milk & cream from 7% to 0% by 2019 or from 5% to 0% in 2016;
o cheese from 5% to 0% in 2017;
o beef from 7% to 0% in 2018

Licensing: Imported food must obtain a Food Quality


Registration Certificate issued by Vietnam Food
Administration (VFA) under the Ministry of Health
Labeling: product name, name & address of manufacturer,
ingredients, quality standards, date of manufacture & expiry date,
preservation, instructions for use, and origin
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Tips to Succeed in this Market


Business decisions are not usually made during an initial
meeting. The most important quality in negotiations is
patience.
Established contacts and networks is easier if the first
meeting is through introduction from a known contact or
through an official channel such as Austrade
Eating and drinking are a major part of doing business in
Vietnam. Dinners with local agents and customers help
to develop networks and give the local agent face
A follow-email/ call after a meeting is recommended

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Useful Reference Sites Government/


Regulatory Bodies
Austrade Vietnam: www.austrade.gov.au/vietnam

Ministry of Health: www.moh.gov.vn


Ministry of Agriculture & Rural Development: www.mard.gov.vn
The National Agro Forestry Fisheries Quality Assurance:
www.nafiqad.gov.vn
The Animal Health Department of Vietnam:
www.cucthuy.gov.vn/index.php?lang=en
Vietnam Food Administration: www.vfa.gov.vn
Vietnamese Customs Agency: www.customs.gov.vn
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Myanmar Overview

Formally known as Burma, the market is emerging from


years of stagnation
Population of approx. 64 million
Economy (2012)
GDP US$ 54bn; GDP per capita US $849; GDP growth
6.2%
Inflation 5.8%

Strong economic potential natural resources;


agriculture; tourism and manufacturing
Lots of business visitors
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Market Updates & Insights Retail Sector


City Mart premium supermarket chain, primarily located in Yangon
Growing number of western styled retail food outlets KFC and
McDonalds looking to enter the market; bakery shops opening
Challenge for chilled and frozen products due to unstable power
throughout the country
Low awareness of Australian products

Opportunities
Premium
packaged
food for
supermarkets
horticulture (grapes,
apples,
cherries &
citrus)
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Market Updates & Insights Foodservice


& Food Processing Sectors
Perceived as the next tourist market
(2 million visitors in 2013 from 300,000 in 2010)

Myanmar has more than 5,000 restaurants


(Myanmar Restaurant Association -MRA)

Accor will open six new hotels in Yangon


over the next 3 years (Sebastien Bazin, Accor Chairman
and CEO Jan 2014)

International investment in food


manufacturing is expected to grow in
Myanmar (access to large amounts of arable land)

Opportunities
Specialty
ingredients to
food
processing
Food
manufacturing
for local &
regional
markets
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Market Access Issues


The Ministry of Commerce issues food import licenses and the
Department of Food & Drug Administration (FDA) is responsible for
inspecting and clearing imported food at the border
Currently there is an import ban on liquor products, which
incentivizes alcohol imports via informal non tax paid channels.
The AANZFTA will start to deliver results for Australian exporters to
Myanmar from 2015 with some tariffs coming down across a number
of exports. Beef 2015 (10%); 2017 (5%); 2020 (0%)
No product-specific quarantine requirements for plant or animal
products, MICoR has been updated for all horticulture to Myanmar

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Tips to Succeed in this Market


Myanmar is relatively unknown and companies need to
spend time to investigate the market
Companies need to:

take a long term view;


be agile and adaptable (regulations may change); and
find the right partner.
Securing payment and establishing the credit worthiness
of a buyer in Myanmar is challenging.
Australian businesses should ensure that the buyer is
able to open a Letter of Credit (possibly through
arrangements outside of Myanmar)
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Useful Reference Sites Government/


Regulatory Bodies
Union of Myanmar Federation of Chambers of
Commerce and Industry www.umfcci.com.mm/
Austrade ASEAN Tariff Finder
http://aseantariffs.austrade.gov.au/
Further assistance
Ms Thanda Khine, Agrifood BDM

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Contact Austrade
Call 13 28 78 and speak to one of our advisers
Email info@austrade.gov.au
Visit www.austrade.gov.au
Visit www.exportawards.gov.au
Visit www.australiaunlimited.gov.au

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