In the first 6 months of 2024, imports of animal feed exceeded US$2.56 billion, according to Vietnam General Department of Customs data. This was a 9.6 percent increase in imports year-on-year.
This is in line with an animal feed industry that is heavily reliant on imported raw materials–it is estimated that imported animal feed ingredients account for about 65 percent of the total domestic demand for animal feed.
This is partly because corn and soya beans, common components in animal feed, are produced domestically but at low yields and subsequently a higher cost compared to global prices. Vietnam imports these commodities from countries such as Brazil, Argentina, and the United States. In the first half of 2024, Vietnam’s import value of corn and soya beans reached US$1.2 billion and US$561 million respectively.
Vietnam’s animal feed market is largely dominated by foreign companies and their market share is increasing. From 59.8 percent in 2018 that number blew out to 62.5 percent in 2022. Key FDI players in this sector are Thailand’s CP, US Cargill and Netherlands’ De Heus, Nutreco NV.
In the pangasius and shrimp feed sectors, in particular, foreign firms account for 70 percent and 100 percent of the market, respectively. The Vietnam animal feed market is expected to grow from US$8.5 billion in 2021 to US$11 billion in 2028, with a compound annual growth rate of 3.68 percent, according to Knowledge Source Intelligence
See also: How to Open a Factory in Vietnam: Ultimate Guide 2024