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INVESTMENT REPORT VIETNAM'S AGRICULTURE & FEED INDUSTRY 9 MONTHS OF 2021

Although Vietnam is currently promoting the development of industry and service sector, the agricultural and fishery sector still plays the role as a pedestal of the economy during the pandemic. The GDP share of Agriculture and Fishery in total GDP of country increased not much but steadily through the first 03 Quarters of 2021.

The GDP of Agricultural and Fishery sector decreased in Q.I of 2021. But in Q.II these two sectors improved and increased 7% and 26% accordingly compared with Q.I. In Q.III, this was the most serious period because of Covid-19 pandemic, however the numbers recorded by these two sectors were still positive. Especially in 9 months of 2021, the agricultural and fishery sectors increased 34% and 23% compared with same period of 2020.

The agriculture and feed projects are located mainly in the South with more than 75% of project quantity, and 25% in the Central. Most of projects are ten of million USD in scale. There are no projects in the North in the first 9 months of this year. The South has favorable climate conditions, the average annual temperature is about 27°C, the terrain is flat, especially the Mekong Delta is mainly alluvial soil, the population is large, all is very suitable conditions for agricultural and fishery development. industry and fisheries.  In the Central with the focus on investment in irrigation and infrastructure projects in the agricultural sector, it greatly contributes to the restructuring of central agriculture towards sustainability. In the North with high mountainous terrain, there is less area than other regions for agricultural development. However, the government is trying to promote the development of agricultural projects in the mountainous provinces, creating favorable conditions for the North to attract more attention from investors in this field.

The numbers of agriculture and feed FDI projects in 9 months of 2021 was not much. Vietnam recorded the largest number of registered projects and total registered capital in the Q.2. But then it decreased in the Q.3 due to the strong impact of the Covid-19 epidemic on production and business, especially human resource issues in the recent Covid-19 outbreak. Most of projects are invested by partners from Singapore, Thailand.

Among new licensed projects in the first 9 months of 2021, most of big registered capital value projects are located in Binh Phuoc Province, followed by Binh Dinh and Ba Ria-Vung Tau province. Vinh Long and Khanh Hoa were also in top of provinces attracting a lot of investment in agriculture and feed industry in Vietnam.

Projects are planned to be formed in the future

Our data shows that at the end of September 2021, in term of total investment capital, the expansion project is quite small compared to the new construction projects. However, the number and land area of expansion projects are much bigger than the new construction projects. This shows that more and more investors tend to expand production, but the scale is not too large. In addition, new construction projects are smaller in number, but the investment capital scale reaches great numbers. It can be seen that the trend of new investment in large-scale projects is still going on in the Vietnam market.

The agriculture and feed projects are located mainly in the South where have the highest project numbers. However, the project scale in Central is biggest compared to other regions, both in terms of the registered capital value and land area.

The 2018/2019 crop year recorded sugar production of 179 million tons, down 7.9% compared to the 2017/2018 season. According to USDA forecasts global crop sugar production for the year 2019/2020 will drop 6 million tons to 174 million tons. The main reason is due to the reduction of sugar production and sugarcane area from India. Sugar consumption depends on key factors such as population growth rate, available income level and income growth rate, sugar price is correlated with other products (energy price, sweetener price). Other), cultural characteristics and awareness of health issues. Vietnam’s sugar consumption in the 2018/2019 season is about 1.69 million tons, up 1.8% from the previous crop. Vietnam’s sugar consumption per capita Men tend to increase day by day. Vietnam’s import value of sugar in the first 10 months of 2019 reached US $ 1.26 million, down 22% compared to the same period in 2018. Compared to 2018, the wholesale price of sugar in 2019 remained low and tended to decrease...