The first objective of U.S. exporte

The first objective of U.S. exporters new to the Vietnam market should be to gather information about potential buyers (Contact FAS Vietnam for lists of potential importers). A business trip should be scheduled to maximize business contacts in a minimal amount of time. The initial trip to Vietnam will likely include multiple business meetings each day to identify potential buyers. To the extent possible, these meetings should not seem hurried. During this visit, it is important to reserve time to briefly meet with each company a second time. Additional meetings over coffee or lunch/dinner in the city center are the best approach for making successful business contacts. Although the meetings will probably be conducted in English, it is always best to have an interpreter on hand to make sure that everyone completely understands the terms of the agreement. What may sound simple and clear to you may not be so simple and clear in Vietnamese, or in the Vietnamese business context. Any verbal agreement should be quickly followed up with a written agreement.

U.S. exporters should perform adequate due diligence on potential customers to ascertain if they have the requisite permits and capital resources to meet their responsibilities. Success in introducing your product in this market depends on a good local representative and an effective pricing strategy. The local partner should preferably be an importer and distributor, capable of maneuvering in both traditional and modern retail channels.

(2) Consumer Preferences
Vietnam’s consumer market is still in the early stages of development but has been one of fastest growing markets in Southeast Asia due to a youthful population, continuing strong economic growth, and rising disposable income.

Vietnamese consumers dispense a sizeable portion of their income on food items. More than half of total expenditures are for food, mostly basic food items like rice, salt, sugar, meat, vegetable oil, and sauces. The average household spends very little on high-value processed food products. Nevertheless, recent consumer surveys point to an increase in spending on high-value foods such as dairy products
(UHT and fresh milk, yogurt, cheese etc.) meats, eggs, fresh fruits, imported vegetables, confectionary, snack foods, and packaged food items.

Vietnamese consumer habits:
• Shop daily for food items. (This is changing somewhat among the younger urban generation)
• Prefer fresh products, especially for red meats, poultry meat and seafood. (However, frozen foods are gaining popularity because more and more consumers in urban areas believe them to be more hygienic.)
• Low ownership rate for refrigerators and microwave ovens. (Only 20% of Vietnamese households have microwave ovens).

Consumer trends in urban areas:
• Low (but increasing) average income.
• Growing awareness and concern about nutrition, quality, hygiene, and food safety. (Clear indication of nutritional value on the package has been a good marketing strategy for health foods.)
• Brand loyalty; still receptive to new products.
• Western lifestyle is welcomed.
• Dining out has become more frequent.
• Advertisements and promotions are effective, particularly for children.

(3) Food Standards and Regulations
It is a real challenge for any food exporter to fully understand the complexity caused by overlapping and frequently-changed regulations on food standards and safety in Vietnam. It is strongly recommended that U.S. exporters, especially new comers to Vietnam market, should refer the following reports to have a more comprehensive view on Food Standards and Regulations:

+ FAIRS report VM3032 provides an un-official translation of the Vietnam Food Safety Law (FSL) promulgated by Order No.06/2010/L-CTN, and ratified by the National Assembly on June 17, 2010, and brief introduction on the Decree 38/2012/ND-CP detailing implementation of some articles of the FSL. The FSL, which entered into force on July 1, 2011, is the umbrella guidance on food safety and responsibility for testing and enforcement of food safety among the appointed Ministries of Agriculture and Rural Development (MARD), Health (MOH), and Industry and Trade (MOIT).

+ GAIN report VM4029 provides an unofficial translation of the Inter-Ministerial Circular 13/2014/TTLB-BYT-BNNPTNT-BCT, dated April 9, 2014 regarding guidelines for assignments and coordination of state management of food safety. This Circular provides more detail on the product responsibilities of the three key ministries charged with ensuring food safety in Vietnam as stipulated in the Vietnam Food Safety Law and Decree 38/2012/ND-CP.

+ GAIN report VM1052 provides an unofficial translation of the Circular 25/2010/TT- BNNPTNT (Circular 25), dated April 8, 2010, guiding on the food hygiene and safety control for imported foodstuffs of animal origin. The Circular 25 requires foreign governments and exporters to be approved by MARD’s National Agro-Forestry Fisheries Quality Assurance Department (NAFIQAD) before being allowed to unload their exported product at any Vietnamese port.

+ GAIN report VM4010 provides an un-official translation of the Ministry of Health’s (MOH) Circular 19/2012/TT-BYT, issued on November 9, 2012, providing Guidance on the Declaration of Conformity to Technical and Food Safety Regulations. This is one of MOH’s legal circulars implementing the Vietnam Government’s Decree 38/2012/ND-CP implementing the Vietnam Food Safety Law.

+ GAIN report VM4004 provides an un-official translation of the Ministry of Industry and Trade (MOIT)’s Circular 28/2013/TT-BCT, dated November 6, 2013, on the “Regulation on State Inspection of Food Safety for Imported Food Products under MOIT’s management.” Under the present Food Safety Law, MOIT is responsible for the food safety of some imported processed food products, such as alcohol, beer, beverages, processed milk, and vegetable oil, among other products.

(*) Special note on Food Quality/Standards Registration
Locally produced and imported foodstuffs must obtain a Food Quality/Standards Registration Certificate (RC). The Vietnam Food Administration (VFA) of the Ministry of Health (MOH) is responsible for issuing these certificates for imported foods. Further details can be found in GAIN Report VM4010 providing Guidance on the Declaration of Conformity to Technical and Food Safety Regulations.
This registration process is cumbersome. The Ministry of Health imposes excessive documentation requirements with respect to imported food products. Importers are required to apply for registration for each food item imported. The process requires a certificate of analysis (CA) so detailed that some U.S. companies are unwilling to provide it because they feel it violates their confidentiality. For mixed containers of processed foods, where each product in the container must have a RC, the requirements can be both costly and burdensome.

Results (Vietnamese) 1:

The first objective of U.S. exporters new to the Vietnam market should be to gather information about potential buyers (Contact FAS Vietnam for lists of potential importers). A business trip should be scheduled to maximize business contacts in a minimal amount of time. The initial trip to Vietnam will likely include multiple business meetings each day to identify potential buyers. To the extent possible, these meetings should not seem hurried. During this visit, it is important to reserve time to briefly meet with each company a second time. Additional meetings over coffee or lunch/dinner in the city center are the best approach for making successful business contacts. Although the meetings will probably be conducted in English, it is always best to have an interpreter on hand to make sure that everyone completely understands the terms of the agreement. What may sound simple and clear to you may not be so simple and clear in Vietnamese, or in the Vietnamese business context. Any verbal agreement should be quickly followed up with a written agreement.U.S. exporters should perform adequate due diligence on potential customers to ascertain if they have the requisite permits and capital resources to meet their responsibilities. Success in introducing your product in this market depends on a good local representative and an effective pricing strategy. The local partner should preferably be an importer and distributor, capable of maneuvering in both traditional and modern retail channels.(2) Consumer PreferencesVietnam’s consumer market is still in the early stages of development but has been one of fastest growing markets in Southeast Asia due to a youthful population, continuing strong economic growth, and rising disposable income.Vietnamese consumers dispense a sizeable portion of their income on food items. More than half of total expenditures are for food, mostly basic food items like rice, salt, sugar, meat, vegetable oil, and sauces. The average household spends very little on high-value processed food products. Nevertheless, recent consumer surveys point to an increase in spending on high-value foods such as dairy products(UHT and fresh milk, yogurt, cheese etc.) meats, eggs, fresh fruits, imported vegetables, confectionary, snack foods, and packaged food items.Vietnamese consumer habits:• Shop daily for food items. (This is changing somewhat among the younger urban generation)• Prefer fresh products, especially for red meats, poultry meat and seafood. (However, frozen foods are gaining popularity because more and more consumers in urban areas believe them to be more hygienic.)• Low ownership rate for refrigerators and microwave ovens. (Only 20% of Vietnamese households have microwave ovens).Consumer trends in urban areas:• Low (but increasing) average income.• Growing awareness and concern about nutrition, quality, hygiene, and food safety. (Clear indication of nutritional value on the package has been a good marketing strategy for health foods.)Lòng trung thành của thương hiệu •; vẫn còn tiếp nhận để sản phẩm mới.• Tây lối sống được hoan nghênh.• Ăn uống ra đã trở thành thường xuyên hơn.• Quảng cáo và khuyến mãi có hiệu quả, đặc biệt là cho trẻ em.(3) thực phẩm tiêu chuẩn và quy địnhNó là một thách thức thật sự cho bất kỳ doanh nghiệp xuất khẩu thực phẩm để hoàn toàn hiểu sự phức tạp do chồng chéo và thường xuyên thay đổi quy định về tiêu chuẩn thực phẩm và an toàn tại Việt Nam. Nó được khuyên rằng Hoa Kỳ xuất khẩu, đặc biệt là comers mới cho thị trường Việt Nam, nên tham khảo các báo cáo sau đây để có một cái nhìn toàn diện hơn về thực phẩm tiêu chuẩn và quy định:+ Hội chợ báo cáo VM3032 cung cấp một bản dịch không chính thức của Việt Nam thực phẩm an toàn pháp luật (FSL) ban hành bằng bộ No.06/2010/L-CTN, và thông qua bởi Quốc hội vào tháng sáu 17, 2010, và giới thiệu ngắn gọn về nghị định 38/2012/NĐ-CP thực hiện chi tiết một số điều của FSL. FSL, nhập vào lực lượng trên 1 tháng bảy, 2011, là sự ô hướng dẫn về an toàn thực phẩm và trách nhiệm để thử nghiệm và thực thi pháp luật an toàn thực phẩm trong số các bộ nông nghiệp bổ nhiệm và phát triển nông thôn (MARD), y tế (bộ y tế), và ngành công nghiệp và thương mại (bộ).+ GAIN report VM4029 provides an unofficial translation of the Inter-Ministerial Circular 13/2014/TTLB-BYT-BNNPTNT-BCT, dated April 9, 2014 regarding guidelines for assignments and coordination of state management of food safety. This Circular provides more detail on the product responsibilities of the three key ministries charged with ensuring food safety in Vietnam as stipulated in the Vietnam Food Safety Law and Decree 38/2012/ND-CP.+ GAIN report VM1052 provides an unofficial translation of the Circular 25/2010/TT- BNNPTNT (Circular 25), dated April 8, 2010, guiding on the food hygiene and safety control for imported foodstuffs of animal origin. The Circular 25 requires foreign governments and exporters to be approved by MARD’s National Agro-Forestry Fisheries Quality Assurance Department (NAFIQAD) before being allowed to unload their exported product at any Vietnamese port.+ GAIN report VM4010 provides an un-official translation of the Ministry of Health’s (MOH) Circular 19/2012/TT-BYT, issued on November 9, 2012, providing Guidance on the Declaration of Conformity to Technical and Food Safety Regulations. This is one of MOH’s legal circulars implementing the Vietnam Government’s Decree 38/2012/ND-CP implementing the Vietnam Food Safety Law.+ GAIN report VM4004 provides an un-official translation of the Ministry of Industry and Trade (MOIT)’s Circular 28/2013/TT-BCT, dated November 6, 2013, on the “Regulation on State Inspection of Food Safety for Imported Food Products under MOIT’s management.” Under the present Food Safety Law, MOIT is responsible for the food safety of some imported processed food products, such as alcohol, beer, beverages, processed milk, and vegetable oil, among other products.(*) Special note on Food Quality/Standards RegistrationLocally produced and imported foodstuffs must obtain a Food Quality/Standards Registration Certificate (RC). The Vietnam Food Administration (VFA) of the Ministry of Health (MOH) is responsible for issuing these certificates for imported foods. Further details can be found in GAIN Report VM4010 providing Guidance on the Declaration of Conformity to Technical and Food Safety Regulations.This registration process is cumbersome. The Ministry of Health imposes excessive documentation requirements with respect to imported food products. Importers are required to apply for registration for each food item imported. The process requires a certificate of analysis (CA) so detailed that some U.S. companies are unwilling to provide it because they feel it violates their confidentiality. For mixed containers of processed foods, where each product in the container must have a RC, the requirements can be both costly and burdensome.