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Pet Industry in Vietnam 08 15

Pet Industry in Vietnam > News and Views
Vietnam should become a source of low cost pet product manufacturing
with a specialization in pet food production

W

ith the vast amount of
food
production
from
both land and sea, along with
cost effective advantages of
low cost manufacturing, the
questions is; why are there very
few international pet food and
non-food product manufacturers
producing for export, and for the
growing demand from local pet
owner markets in Vietnam?
Vietnam already has a solid reputation,
globally, for the production of poultry,
seafood, rice, fruits and vegetables; the
basic ingredients of pet food. Vietnam is
also known for their quality production
of apparel & garments, furniture and a
handicraft industry, why cannot these
core industries convert their experience
and skills to produce pet products. The
potential to produce, locally, brands of
premium pet food and non-food products
in Vietnam for export to large pet markets
in China, Japan, Korea and other
Southeast nations is a sound business
idea and could be very profitable.
International pet companies looking
for reduced wages and costs should be
encouraged with incentives to locate their
pet products manufacturing to Vietnam,
especially from countries like China with
fast raising wages and dubious quality of
products. And, there is a young, growing
demographic of Vietnamese pet owners
looking for premium products for the
pets, now being considered as part of the
family; a demand not being fulfilled.

Here is a short list of business development
ideas that could develop creative product
solutions(food and non-food), made in
Vietnam:
Vietnam’s abundant agricultural products
In the very competitive global
pet
industry there is continuous search for
alternative and exotic ingredients for new
pet products, demanded by discerning
pet owners. Vietnam is a country that
has abundant exotic sources of proteins,
grains, fruits and vegetables. The country
is the second largest rice exporter in the
world and produces a large variety of
fruits, vegetables (especially green leafy
and grassy type of vegetables, high in
nutrition) and a myriad of seafood and
fish.
If you are a potential or existing pet food
manufacturer sourcing new ingredients
for pet food, consider Vietnam as a superior
source of “super foods” that are abundant
in this region. For example, consider the
fruit called Gấc, found in Vietnam and
neighbouring ASEAN countries. The
gac fruit is reduced to a liquid (oil) and
mixed with other foods, or made into
supplements. Gac is a powerhouse of antioxidants, very large amounts of Vitamin A,
C, D and E and Omega 3, 6 and 9! Healthy
Pet supplements can also be developed
besides as an ingredient in pet foods.
Development of new products influenced
by the environment and climate of
Southeast Asia

Asia region, with a combined market of
half a billion people. Granted, there are
myriad cultural differences within the
individual nations of ASEAN, however,
by focusing on similar environmental
and living conditions such as climate,
population density, safely & security,
insects & parasites and how they affect
dogs and cats within the family house
and outside, helps reduce the diversity
and find solutions to common problems
by producing localized products, and
services. And any product that helps
pet owners in this Asian region further
develop ‘pet humanization’ qualities,
could lead to unique premium product
development.
One example of product development
should consider the cooling down, or
calming of an dog and cat in this region.
The heat and humidly is strong and
constant in Vietnam. The rainy season
brings massive displays of noise, light
and water. Unfortunately, the rainy season
is 6 months long and sometimes produce
powerful storms every day. So products
that can be developed to make cats and
dogs calm during these conditions would
be appreciated by pet owners.
Successful companies that either localize
their products or develop a new pet
product for one country, say Vietnam,
will allow access to five other growing
pet markets; Singapore, Thailand,
Philippines, Indonesia and Malaysia.

For new product development, focus on
the emerging pet markets in the Southeast

Benefits & Advantages of Low Cost Manufacturing of Pet Products in Vietnam
01 First mover opportunity - no local or international company manufacturing pet food in Vietnam
02 Create good quality, inexpensive products for local and neighbouring ASEAN countries
03 Low cost labour (less than Thailand and China where other pet manufacturers operate)
04 Usage of inexpensive local food (meat and vegetables and grains) products
05 Close proximity to East Asian (China, Japan, Korea and Taiwan) pet markets
06 Close proximity to South East Asian (Thailand, Singapore, Indonesia and Malaysia) pet markets

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