The average current pork consumption in Vietnam currently is 33.5 kilograms/person, but by 2020, this figure is expected to be 39 kilogram.

Vietnam’s meat market is reportedly worth US$18 billion, however, the enterprise with the largest market share holds only 1%, translating into a huge potential opportunity for both local and foreign investors, Enternews reported. 

Particularly, the average current pork consumption currently is 33.5 kilograms/person, but by 2020, this figure is expected to be 39.

In October, South Korean’s SK Group announced the purchase of 110 million treasury shares of Masan Group Corporation, one of Vietnam’s largest privately-run conglomerates, thus becoming its largest foreign shareholder.

At VND100,000 (US$4.31) per share, the deal is reportedly worth US$470 million, for which SK Group, South Korean’s third largest conglomerate, will now hold a 9.5% stake of Masan Group.  

Woncheol Park, representative director of Southeast Asia Investment for SK Group, stated that Vietnam is an “important foundation” for the group’s Southeast Asia strategy, in which Vietnam’s meat market is one of its priorities. 

In September, three French companies partnered with farmers in the Mekong Delta to build a self-contained production process of 3F (feed, farms, food). In it, each business is in charge of a process. Grimaud Group will select varieties, Neovia Vietnam will produce animal food and Le Boucher Company will be in charge of product processing and distribution.

This project is named Le Porc du Mekong and now 600 local producers have been involved in it. It is expected that Le Porc du Mekong’s products will be available in supermarkets including Metro, Vinmart, Big C, Auchan, and Co.opXtra.

According to Christophe Guilaume, CEO of Neovia Vietnam, Vietnam is one of the largest pork producers in the world. Although the demand is increasing, farm productivity is still low, so it is necessary to both meet demand while ensuring food safety and transparent origin.

Previously, C.P Vietnam and Vissan almost dominated the meat sector, and then in the past few years, Masan has emerged as the most ambitious player. With the presence of French companies, the market is expected to heat up, for which financial capability would play a key role for enterprises to maintain their respective market shares. 

Source: Vietnamnet