
WORLD PERSPECTIVE

In global meat production, only pork production places Vietnam among the top 10 countries with the highest production output (Vietnam does not rank in the top 10 for other types of meat). This highlights that pork is a core and key product for Vietnam when compared to other countries worldwide.

China is the country with the largest pork production in the world, accounting for 50% of the total global pork production. Vietnam ranks sixth with a 3% market share, and it has been on an upward trend for the past 10 years since 2014.
Apart from China, the EU and the United States also rank among the top 2 and top 3 countries with the largest pork production globally.

Global pork exports are forecasted to increase by 4% year-over-year (yoy), reaching 10.5 million tons due to the growth in major pork-exporting countries such as the United States, the EU, Brazil, and Canada.
Among these, EU exports are expected to increase by 3% yoy as production rises and competitive pricing in the second half of the year creates growth opportunities. Exports from the EU to the United States are expected to rise significantly.
Brazil’s exports are forecasted to increase by 5% yoy, especially to the Philippines, Chile, and Hong Kong. Canada’s exports are expected to rise by 1% yoy, with a slight increase in exports to Japan and South Korea.
The United States’ exports are also forecasted to grow strongly compared to 2023, increasing by 8% yoy, driven by strong export activity to South Korea and Australia
DOMESTIC PERSPECTIVE
The growth value of the livestock sector in 2023 is estimated to reach 5.72%, with the industry’s revenue exceeding $33 billion. It contributes 26% to agricultural GDP and over 5% to the country’s total GDP. Pork remains the dominant sector, accounting for over 62% of the total carcass meat output from domestically produced livestock.
Vietnam continues to mainly import livestock products (with export value being only 10% of import value). The reasons for Vietnam being a net importer of livestock products are:
The cost of livestock production is relatively high, making it difficult to compete. Consequently, Vietnam mainly imports cheaper meat products from other countries.
Many countries have strong protectionist policies for their livestock industries. For instance, in Japan, businesses have to spend 4 to 5 years negotiating to enter the market. However, such high levels of imports lead to smuggling issues, which can spread diseases, especially dangerous ones such as African swine fever, avian influenza, and lumpy skin disease in cattle.
Vietnam has the second-highest per capita pork consumption in the world, only behind China. Besides pork, the consumption rate of poultry meat in the country is also high, making Vietnam one of the leading animal protein consumers among emerging markets. With a population of over 100 million and increasing per capita income, Vietnam's meat industry has significant potential in the next 5-10 years.

Market Size:
Pork market: $10 billion.
Poultry meat market: $2.5 billion.
Processed meat market: $3 billion.
By the end of 2023, the total pig herd reached 30.06 million, an increase of 4.2% compared to the same period in 2022. This is the highest number in the past 5 years, with an average annual growth rate of 6% during this period.
Despite its large potential, the Vietnamese meat market is underdeveloped, lacking standardized regulations. Both the pork and poultry meat sectors are quite fragmented with low productivity. The processed meat sector still has room for growth as there are not many established brands yet.
In terms of quantity, poultry (chickens, ducks, and mandarins) still has the largest number among all poultry and livestock in Vietnam, with chickens accounting for 76% of the total.
However, in terms of the number of animals sent to slaughter, pigs hold the largest share—62% of the total number of animals slaughtered.

The average growth rate for pigs is the highest compared to other livestock and poultry, at 6.3% per year. In contrast, buffaloes have a negative growth rate over the years, at -2.8% per year.

Large companies with modernized farming models, such as Dabaco, Masan, Tân Long, and foreign enterprises like CP and Japfa Comfeed, are leading in the development of integrated farm systems. This is an inevitable trend in the process of restructuring livestock farming, aiming towards modernization and value enhancement.
Source: Department of Animal Husbandry, Animal Husbandry Journal, USDA & TPS Research Compilation, VIRAC - Compiled by Virtus Prosperity.
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