ASEAN Food and Beverage

markets - Updates and insights

from the region

25 March 2014
Webinar Panellists

Christopher Rees Rekha Isaac Renee Lee Sarakit

Senior Trade Commissioner Singapore Malaysia Thailand
Singapore (also representing BDM
from Brunei)

Sonya Monica Liza Bautista Tuoc Le Ross Bray

Indonesia The Philippines Vietnam representing the incoming
BDM Agrifood Myanmar
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 ASEAN represents a population of over
ASEAN 616 million people with a combined GDP
of US$ 2.31 trillion (2012).

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Executive Summary - ASEAN F&B Market
• ASEAN represents a A$6.46 billion food, beverage and
agribusiness market for Australian exporters, making up nearly
20% of Australia‟s total f&b/agri exports.
• Business engagement (through tariff reductions and greater
investment opportunities) has increased from 1 January 2010,
when the ASEAN, Australia-New Zealand Free Trade
Agreement (AANZFTA) came into effect.
• Australian food and beverage exports to ASEAN have
increased by nearly 48% since 2009.
• The ASEAN Economic Community is set to be introduced next
year (2015), facilitating the free flow of goods, services and
capital.
• As an economic force, ASEAN has become the third growth
engine within emerging Asia after China and India.
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Australian F&B/ Agri Exports to the main ASEAN markets
2.5

2009
2010
2011
2 2012
2013

1.5
A$ Billions

0.5

0
Indonesia Vietnam Singapore Malaysia Thailand Philippines Myanmar Brunei
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Source of Data: Australian Bureau of Statistics
 Australian F&B/Agri Main Exports to ASEAN in 2013

Partner Thousands Australia Top 5 Australian Exports

Country Dollars (2013) (2013)

1. Wheat And Meslin;

2. Bovine Animals, Live
3. Meat Of Bovine Animals, Frozen;
Indonesia $ 2,163,657.00 4. Milk And Cream, Concentrated Or Sweetened
5. Flour, Meal Etc Of Meat Etc, Not For Human; Greavs

1. Wheat And Meslin

2. Crustaceans Live Frsh Etc Smoked/Cooked Flours Etc
3. Malt, Whether Or Not Roasted
Vietnam $ 1,198,667.00 4. Bovine Animals, Live
5. Rape Or Colza Seeds, Whether Or Not Broken

1. Fats Of Bovines, Sheep/Goats Other Than Head 1503

2. Milk And Cream, Concentrated Or Sweetened
3. Cane Or Beet Sugar & Chem Pure Sucrose, Solid Form
Singapore $ 1,049,841.00 4. Wine Of Fresh Grapes; Grape Must Nesoi
5. Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen

1. Wheat And Meslin

2. Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen
3. Milk And Cream, Concentrated Or Sweetened
Malaysia $ 859,352.00 4. Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc
5. Meat Of Bovine Animals, Frozen

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Source of Data: Australian Bureau of Statistics
Australian F&B/Agri Main Exports to ASEAN in 2013 (cont’d)

Partner Thousands Australia Top 5 Australian Exports

Country Dollars (2013) (2013)

1. Wheat And Meslin

2. Malt, Whether Or Not Roasted
Thailand $ 599,909.00 3. Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc
4. Milk And Cream, Concentrated Or Sweetened
5. Cheese And Curd

1. Wheat And Meslin

2. Meat Of Bovine Animals, Frozen
Philippines $ 451,665.00 3. Malt, Whether Or Not Roasted
4. Milk And Cream, Concentrated Or Sweetened
5. Malt Ext; Food Prep Of Flour Etc Un 40% Cocoa Etc

1. Wheat And Meslin

2. Food Preparations Nesoi
Myanmar $ 88,911.00 3. Milk And Cream, Concentrated Or Sweetened
4. Cheese And Curd
5. Horses, Asses, Mules And Hinnies, Live
1. Meat Of Bovine Animals, Frozen
2. Bovine Animals, Live
3. Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen
Brunei $ 28,010.00 4. Cheese And Curd
5. Chocolate & Other Food Products Containing Cocoa

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Source of Data: Australian Bureau of Statistics
 Singapore - Overview
• Total Population: 5.4 million residents
plus nearly 15.5 million tourist arrivals
per year (2013)
• Multicultural Society: 74.1% Chinese,
13.4% Malays, 9.2% Indians, 3.3%
others
• GDP per capita (2013): S$ 68,541 or
USD 52,051(at current market prices)
• Strong trade relationship with Australia
• Excellent trade infrastructure supported
by world-class air & sea ports
• „Entry point for the region‟ - strong re-
export/ trans shipment hub
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Market Updates & Insights – Retail Sector
• Dominated by grocery retail chains
• Main Supermarket Players

Opportunities
 Dairy
• Channels to Supermarkets
 Convenience
– Via local distributor/agent
 Functional/
– Through Australian consolidators - small volume
(LCL), niche or shorter shelf-life products Organic
– Direct Imports from source – large volumes (FCL),  Healthier
ambient/ long shelf-life options/Natural
 Private Label
• Have large warehousing facilities to handle  Processed
perishable goods, re-packing and distribution. Foods
 Value-added
(ready to
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eat/cook)
 Market Updates & Insights – Foodservice &
Food Processing Sectors
• Steady stream of international visitors & the
propensity of local residents to eat out keep the
foodservice sector vibrant.
• Marina Bay Sands and Resort World Sentosa
have provided an impetus to the foodservice
sector.
Opportunities
• 178 gazetted hotels with a total supply of 44,037
 Quality Meats
rooms and 6,500 F&B Establishments.  Seafood
 Fresh
• Largely, hotels and restaurant groups depend on
Produce
the local importer-distributor base for their needs.  Organic
 Ingredients
• Small, but efficient food-processing sector –
value-added production making up a significant
proportion.
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 Market Access Issues/ Updates
• Duty free market for all food products (7% Goods and Services Tax)
• Strict regulations related to nutrient function claims.
• Only frozen poultry and processed poultry meat products are allowed from
Australia – must come from AVA approved establishments.
• Chilled fresh pork and chilled cooked/processed pork (like cooked pork rib
and moisture-infused pork) are permitted only from AVA approved
establishments.
• Fresh and processed eggs may only be imported from AVA approved
establishments.
• Under SAFTA, Australian beers which satisfy the Rules of Origin
requirements do not attract the customs duty of S$ 16 per litre of alcohol.
• Excise duties on alcoholic beverages including wines & beers were
recently increased by 25% (w.e.f. Feb 21, 2014)
– S$88.00 per litre of alcohol for wines
– S$ 60.00 per litre of alcohol for beers

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Tips to Succeed in this Market
 Engage closely with the market.
 Understand your pricing – get the quality/price ratio right.
 Take a long-term view of the market, have realistic
expectations.
 Manage your relationships well – build long-term
relationships to build market share.
 Quality, appearance, colour and freshness of product are
very important.
 Innovative products, attractive packaging & packaging size
 Uniqueness – clear points of differentiation.
 Best to work with one dedicated partner in the market or for a
particular channel.
 Halal Certification.
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 Useful Reference Sites – Government/
Regulatory Bodies
• Agri-food and Veterinary Authority of Singapore (AVA) - National Authority that
ensures food safety.
• Legislation - Sale of Food Act and Singapore Food Regulations
• Import conditions - the AVA‟s online Import Conditions Database
(Note: The onus of responsibility to ensure that food imported into Singapore is safe
and meets all local regulations lies with the local importer.)
• Labelling -. A Guide to Food Labelling and Advertisements
• Permitted nutrient function claims
• Permitted food additives and herbal ingredients
• For general classification of food and health products, refer to Classification Tree for
Products in the Food-Health Product Interface.
• Import Requirements for Specific Food Products for „high risk‟ classified processed
food products like infant formula, infant cereals, packaged mineral and drinking water,
beef extract, etc.
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Malaysia - Overview
• A young, growing and broad group of higher middle income
population.
• Multicultural population of 29.5 mil (year 2012) with the
ethnic mix of Malay 50.4%, Chinese 24.6%, indigenous 11%,
Indian 7.1%, others 6.9%.
• 60.4% of the population are Muslims.
• GDP (current prices - year 2013) at USD 312.4 billion; GDP per capita (year
2013) at USD 10,429.
• Malaysia was Australia‟s 3rd largest trading partner in ASEAN with total 2
way trade valued is at AUD 14.1 billion in 2013.
• Malaysian food and beverage imports valued is estimated at USD 11.4
billion (year 2013)
• Halal hub – the gateway and re-export platform to the Muslim world (The
global Halal market in Halal foods is estimated at USD 600 billion per
annum)
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Market Updates & Insights – Retail Sector
• Growing middle-class / upper middle-class created new opportunities in the retail sector.

• Supermarkets increasingly import more food and beverage products directly through
Traders / Agents / Consolidators to create competition differentiation.

• Growing trend among consumers for healthy / nutritious food & beverage products

• Leading multinational and a few local entrepreneurial Opportunities

Mass Grocery Retailers in the country on expansion drive  Dairy – Milk, Processed dairy
(yogurt), Butter, Cheese & etc.
has led to the early adoption of global retailing trends.
 Processed Foods – Sauces,
Condiments, Juices, Cereals,
• Key retailers in the market are; Spreads & etc. (especially for
private label / contract
 GCH Retail (M) Sdn Bhd – owned by Dairy Farm Group manufacturing)
 Tesco Stores (Malaysia) Sdn. Bhd. - owned by Tesco Stores Ltd
 Meats & Speciality Meats
 AEON Group
 Jaya Grocer  Seafood

 Village Grocer  Halal Certified Products

 Niche opportunities for organic /

• Growing importance for food and beverage products to be healthy / functional foods – snack
size packaging (sachet)
Halal certified (specifically with JAKIM).
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Market Updates & Insights – Foodservice
& Food Processing Sectors
Foodservice
• Sizeable and growing consumer foodservice market as more people are dining out (abundance of
foodservice outlets)

• Estimated the foodservice market is valued between USD 4.9 billion to USD 5.5 billion, and has
been growing at a rapid average rate of around 6.5% per annum over the past 5 years.

• Projected the foodservice market is likely to grow at between 7% - 10% per annum over the next 3
– 5 years.
Opportunities
Food Processing  Dairy – Milk, Processed dairy
(yogurt), Butter, Cheese & etc.
• Malaysia‟s domestic production and food processing industry
achieved approximately USD 6.7 billion in export value of food  Meats
products to over 200 countries worldwide.
 Seafood
• The export value contributed to 10% of the Malaysia manufacturing  Wines
output and predominantly supported by small – medium scale
manufacturing companies.  Processed Foods – Sauces,
Condiments, Juices, Spreads &
• Food products and ingredients that are certified with Malaysian etc.
Halal Standard, will have added marketing value in Malaysia  Halal Certified Products
and in other Muslim markets as Malaysia‟s Halal is globally
recognised.  Baking Ingredients &
Condiments

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Market Access Issues
• Import regulations (import permits, packaging, labeling, testing, and ports of entry),
quotas and customs procedures create significant challenges for Australian exporters
looking to do business in Malaysia.

• Malaysia – Australia Free Trade Agreement (MAFTA) - came into force on 1 January
2013.

• MAFTA provides for improved access for Australian exporters to the Malaysian market
and builds on the commitments made by both countries under the ASEAN-Australia-
New Zealand FTA (AANZFTA).

• Under the Agreement, 97.6 per cent of Australia's exports (2011 figures) will
immediately be tariff-free, rising to 99.0 per cent from 2017.

• For more information on MAFTA, visit http://www.dfat.gov.au/fta/mafta

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Tips to Succeed in this Market
• The key to market entry success is to engage with a dedicated local
importer / distributor and work closely on building the relationship for the
long term.

• Visit and understand the market mechanism before exporting.

• It is advisable to promote an export business with a marketing package

or a concept.

• Brand building of your products over time including

conducting relevant marketing activities to support
importer / distributor.

• Engage with Austrade at Post to assess, assist and

analyse opportunities in the market.

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Useful Reference Sites – Government /
Regulatory Bodies
Food and beverage-related resources
• The Department Of Veterinary Sciences Malaysia – www.dvs.gov.my
• Halal Approved Abattoirs in Australia for Malaysia – www.dvs.gov.my/en/australia
• Approved International Islamic Bodies Recognised by Jakim – www.halal.gov.my/v3/index.php/en/list-of-
approved-islamic-bodies
• Federal Agriculture and Marketing Authority Malaysia – www.fama.gov.my
• Malaysian Food Act 1983 – www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf
• Food Regulation 1985 - http://fsis2.moh.gov.my/fosimv2/HOM/frmHOMFARSec.aspx?id=21

Government, business and trade resources for Malaysia

• Austrade: Malaysia Market Profile - http://www.austrade.gov.au/Export/Export-Markets/Countries/Malaysia/Market-
profile
• Malaysian Government Official Portal – www.malaysia.gov.my
• Malaysian External Trade Development Corporation (MATRADE) – www.matrade.gov.my/
• Malaysian Investment Development Authority (MIDA) – www.mida.gov.my
• Ministry of Foreign Affairs – www.kln.gov.my
• Ministry of Trade and Industry (MITI) – www.miti.gov.my
• Department of Statistics Malaysia – www.statistics.gov.my/portal
• Royal Malaysian Customs Department – www.customs.gov.my
• Australia Malaysia Business Council – www.ambc.org.au/
• Malaysia Australia Business Council – www.mabc.org.my/

Please note: This list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The
information provided is a guide only.
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Brunei Darussalam – Overview
• Population:393, 372 (2011 )
• Land Size : 5,765 sq km
• Religion: Muslim Majority
• Currency : Brunei Dollar (on par &
interchangeable with Singapore Dollar)
• Language : Malay, English, Chinese
• GDP (2012): est USD16.6 billion
• GDP per capita (2012) : est
USD42,211
• GDP growth (2013): est 2.3%
(Data courtesy of BEDB)

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Market Updates & Insights – Retail Sector
• Brunei imports about 80% of its food requirements
(direct and indirect shipment/transshipment via
Singapore/Malaysia )
• Healthy lifestyle trend – consumer preference for healthy / nutritious
food & beverage products
• Halal certified products – accredited by Brunei Halal Authority –
Ministry of Religious Affairs
Opportunities
Main retail outlets are :  Halal food
 Ben Foods (Supasave supermarket chain)  Chilled beef
 Hua Ho Department Store with supermarket facility and lamb
 Processed
 Giant (Malaysian entity)
food
 Diary
Other hypermarts/specialised grocery retail: products
TM Majeed, SKH Department Store, Guan Hock Lee,  Fruits and
Jaya Hypermart, Liang Toon, Freshco (newly opened vegetables
in 2014)  Confectionery
 Organic
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Market Updates & Insights – Foodservice
& Food Processing Sectors

• Eating out is a lifestyle

• Food & Beverage opportunities for eateries

and bakeries:
- Beverage, Baby food, Cereals & Dairy products,
Ingredients
- Chilled beef and lamb for meat processing (eg.
Sausages, burger patties, cold cuts) Opportunities
- Processed foods (snacks, confectionery, canned  Ingredients
food)  Organic
- Dried fruits, preserves, jams & spreads  Halal beef
and lamb
• Halal Services for the F& B sector  Processed
- packaging and value adding food
- raw materials  Snack items

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Market Access Issues

• Import regulations (import permits,

packaging, labeling, testing)
• Customs procedures
• Halal accreditation
• Food safety and Quality control

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Tips to Succeed in this Market

• Brand awareness
• Have a close rapport with local distributor
• Follow guidelines for food imports
• Support in-market activities and promotions
• Price sensitive market – customers always
comparing
• Work with Austrade to assess your market
potential

• Contact: josie.abdullah@austrade.gov.au
Business Development Manager,
Austrade Brunei

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Useful Reference Sites – Government/
Regulatory Bodies
Product certification, labelling and packaging
• For information on Food Import regulations in Brunei, contact:
Head, Food Safety and Quality Control Division
Department of Health Services
Ministry of Health
Brunei Darussalam
Email: fsqc@moh.gov.bn
Web: www.moh.gov.bn
Tel: +673 2331 100
Fax: +673 2331 107

• Food safety act: www.agc.gov.bn

• Public Health Food regulation for Importers:

http://moh.gov.bn/download/index.htm

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Thailand – Overview

› 68 million people
› GDP per capita US$5,800
› 30th biggest economy: 2nd
biggest in ASEAN Global ranking of selected Thai
exports
› 17th largest manufacturing Product Ranking in Share in
output world
export
world
export
(2012) (2012)
› Regional hub for agricultural Hard disk Drives 1 N/A
commodities, vehicles, auto
Rubber 2 8.5%
parts, consumer goods,
electronics, processed food and Sugar 2 8.7%

beverages Meat, fish and seafood 3 16.3%

preparation
› TAFTA Sources:
Bank of Thailand www.bot.or.th
Board of Investment www.boi.go.th
Australian government‟s Department of Foreign Affairs and Trade www.dfat.gov.au
International Trade Centre www.trademap.org

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Market Updates & Insights – Retail Sector

› Growing affluence
• Consumer power
• Focus on well-being
› Convenience
› Growing regionalisation of Thai business
Opportunities
 Dairy
 Grocery
 Fruit and veg
 Salted snacks
 Wine

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Market Updates & Insights – Foodservice
& Food Processing Sectors

› Thailand is a major food processing country

› A popular tourist destination
› 952,000 Australian visitors
› approx one in 25 Australians

Opportunities
 Meats
 Dairy
 Wine
 Fruit and veg
 Food
ingredients

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Market Access Issues

› Most processed food products must undergo registration

with the Thai FDA
› The manufacturing process must have international
certification that is accredited by JAS-ANZ
› Additionally, food items with meat inputs must also apply
for import permits from the Thai Livestock Department
› PRAs / SSG

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Tips to Succeed in this Market

› Market presence - commitment

› Agent/distributor
› JV
› Representative office
› Regional Office (special BOI privileges)
› Seminars and exhibitions to showcase new products/
technologies
› Closer and longer term relationships with key decision
makers and influential group
› Austrade to assess, assist and analyse opportunities

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Useful Reference Sites – Government/
Regulatory Bodies
• Food and Drug Administration
www.fda.moph.go.th/fda_eng

• JAS-ANZ www.jas-anz.org

• Department of Livestock Development www.dld.go.th

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Indonesia - Overview

• Population: 244.5 million

• GDP 2013: AUD 967.68. Growth is

dominated by domestic consumption

• Currently 16th largest economy in the world, predicted to

be 7th largest in 2030

• USD 0.5 trillion market opportunity in consumer services,

agriculture and fisheries, resources and education

Source: DFAT, 2013 and McKinsey Global Institute, 2013

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Market Updates & Insights – Retail Sector

• Annual disposable income growing

• 45 million members of the consuming class and 90 million is

expected to join the consumer
class by 2030 Opportunities

 Healthy
• Urbanisation is increasing, demanding ingredients/
convenience food snacks
 Non-diary
milk
• Retail market is continually growing,  RTD/RTE
greater access for customers  Instant Meal
 Breakfast
Cereal
Source: McKinsey Global Institute, 2013
 Chips
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Market Updates & Insights – Foodservice
& Food Processing Sectors
• Approximately 6,000 restaurants in Indonesia
• Number of food service and hospitality providers growing
• Increase in the purchasing power of consumers at
foodservice outlets
• Price sensitive Opportunities
Source: Indonesian Bureau Statistic, 2013
 Butter
 Cheese
 Cream
 Beef
 Lamb
 Bakery
ingredients

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Market Access Issues

• Duties and Taxes

– Special tariff rate available under AANZFTA
– value added tax of 10 percent

• Product Registration
– BPOM Registration (ML Number) & Entry Permit (SKI)
– Labelling
– Establishment pre-list for dairy and meat products
– Halal

• Protection on horticulture and meat

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Tips to Succeed in this Market

• Appoint reputable local importers and distributor agents

• Commitment in satisfying local regulation and registration

procedure

• Work together with partner in marketing and building

market awareness

• Understand market demand and condition closely and

thoroughly

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Useful Reference Sites – Government/
Regulatory Bodies
• Doing business in Indonesia:
http://www.austrade.gov.au/Export/Export-
Markets/Countries/Indonesia/Doing-business

• AANZFTA Tariff Schedule:

http://www.dfat.gov.au/fta/aanzfta/annexes/annex1_tc.html

• The National Food and Drug Agency Control (BPOM product

registration): http://www.pom.go.id/new/index.php/home/en

• Overseas Halal Certification Bodies Approved by MUI List:

http://www.pom.go.id/new/index.php/home/en
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The Philippines - Overview

• Population: over 100 million and growing

(target market is 10-15% of the population)
• Per capita GDP of US$ 2,792 (2013, IMF)
• Positive economic outlook, with a forecasted growth rate of
6.5% in 2014
• Overseas Filipino workers (10% of the population) driving
increased domestic consumption
• Food consumption in 2013 valued at US$39.7 billion,
forecasted to grow to US$54 billion in 2017

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Market Updates & Insights – Retail Sector
• Concentrated markets in Manila and Cebu, but expanding to other
provinces too
• Annual average growth in the grocery retail sector is at 7% , with
ongoing mall and supermarket expansion
• Expanding range of imported goods an objective of supermarkets;
• Some supermarket chains interested in direct importation
• New players in the convenience store
segment Opportunities
 Beef and
• Smaller is better - sachet packs and smaller packs lamb
preferred by lower to middle income consumers  Dairy
 Fresh
produce
 Health food
 Convenienc
e foods
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Market Updates & Insights –
Foodservice & Food Processing Sectors
• Food service outlets at 80,000 and expected to grow 2%
annually
• Eating out accounts for about 12% of an average
household’s food budget
• Domestic food service growth to be spurred by expected
increase in tourism growth.
• Many new locally grown franchises. Opportunities
• A fast food culture with a growing  Beef for
manufacturing
population of wine and coffee drinkers  Chicken MDM
• Domestic processors  Grains and
dominate the wheat
manufacturing sector  Craft beers
 Beef and lamb

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Market Access Issues

• AANZFTA in force since 1 January 2010,but still

some issues related to the implementation of the
AANZFTA.

• Long and tedious process for registering imported

products with the Food and Drug Administration
(6 months to a year)

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Tips to Succeed in this Market

• On the surface, it all seems very Western but…

• Only work with one exclusive distributor as the market is still
not big enough to have more than one distributor
• Patience is key, especially with the registration process of the
Food and Drug Administration (FDA)
• More US and European brands better known in the market.
Need to develop awareness for Australian F & B brands
• Distributors expect to have marketing support from suppliers
• It is a very price sensitive market – some suppliers say that
they have an export price for the Philippines alone

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Useful Reference Sites – Government/
Regulatory Bodies
• For processed food:
Food and Drug Administration (www.fda.gov.ph)
• For meat and products that contain animal products:
Bureau of Animal Industry (www.bai.da.gov.ph)
National Meat Inspection Service (http://nmis.da.gov.ph)
• For fruits and vegetables:
Bureau of Plant Industry (www.bpi.gov.ph)
• For Minimum Access Volume (for pork, potatoes, chicken):
Department of Agriculture (www.da.gov.ph)

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 Viet Nam- Overview

• Population: around 88.78 million in 2013 (Source: World Bank)

GDP per capita in 2011-2013: USD1,517, USD1,749 and
USD1,890 (Source: Vietnam‟s General Statistic Office)
• GDP growth averaging 5.2% per annum from 2009-2013
(Source: World Bank)
• According to the BMI, food consumption in Vietnam is
forecast to experience strong
growth (per capita in 2013 - 2015
(forecast): US$249, US$273
and US$300 respectively)

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Market Updates & Insights – Retail Sector
• Modern retailers are expanding to meet the growing
consumer demand in urban areas
• Sales in retail food are expected to grow
75% by 2017 to $66 million (Source: Global Insight)
• Direct imports of this sector is still small
Opportunities
but growing  Milk products
 Fresh fruits
 Chilled and
frozen beef
 Confectionery
 Biscuits and
cookies
 Snack foods
 Ready meals
 Baby food
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Market Updates & Insights – Foodservice
& Food Processing Sectors
• Vietnamese urban consumers have busier lives, are
dining out more than before and have greater demand for
home food delivery services
• Consumers pay more attention and concerns to foods
hygiene and safety when dining out.
• The growth rate of the Food Processing Opportunities
 Beef, pork &
Industry was 5.8% in 2013 (Source: the chicken
Vietnam‟s Ministry of Commerce & Industry)  Wine & beer
 Concentrated
juices
 Dairy products
 Dried fruits &
nuts
 Condiments &
flavourings
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Market Access Issues

• AANZFTA: tariff reduction e.g.

https://www.dfat.gov.au/fta/aanzfta/annexes/aanzfta_annex1_vietna
m_tariffschedule.pdf
o milk & cream from 7% to 0% by 2019 or from 5% to 0% in 2016;
o cheese from 5% to 0% in 2017;
o beef from 7% to 0% in 2018
• Licensing: Imported food must obtain a Food Quality
Registration Certificate issued by Vietnam Food
Administration (VFA) under the Ministry of Health
• Labeling: product name, name & address of manufacturer,
ingredients, quality standards, date of manufacture & expiry date,
preservation, instructions for use, and origin

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Tips to Succeed in this Market

• Business decisions are not usually made during an initial

meeting. The most important quality in negotiations is
patience.
• Established contacts and networks is easier if the first
meeting is through introduction from a known contact or
through an official channel such as Austrade
• Eating and drinking are a major part of doing business in
Vietnam. Dinners with local agents and customers help
to develop networks and give the local agent “face”
• A follow-email/ call after a meeting is recommended

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Useful Reference Sites – Government/
Regulatory Bodies

• Austrade Vietnam: www.austrade.gov.au/vietnam

• Ministry of Health: www.moh.gov.vn
• Ministry of Agriculture & Rural Development: www.mard.gov.vn
• The National Agro Forestry Fisheries Quality Assurance:
www.nafiqad.gov.vn
• The Animal Health Department of Vietnam:
www.cucthuy.gov.vn/index.php?lang=en
• Vietnam Food Administration: www.vfa.gov.vn
• Vietnamese Customs Agency: www.customs.gov.vn

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Myanmar – Overview

• Formally known as Burma, the market is emerging from

years of stagnation
• Population of approx. 64 million
• Economy (2012)
– GDP – US$ 54bn; GDP per capita – US $849; GDP growth –
6.2%
– Inflation – 5.8%
• Strong economic potential – natural resources;
agriculture; tourism and manufacturing
• Lots of business visitors

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Market Updates & Insights – Retail Sector

• City Mart – premium supermarket chain, primarily located in Yangon

• Growing number of western styled retail food outlets – KFC and

McDonalds looking to enter the market; bakery shops opening

• Challenge for chilled and frozen products due to unstable power

throughout the country
Opportunities
• Low awareness of Australian products  Premium
packaged
food for
supermarkets
 horticulture -
(grapes,
apples,
cherries &
citrus)
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Market Updates & Insights – Foodservice
& Food Processing Sectors

• Perceived as the „next tourist market‟

(2 million visitors in 2013 from 300,000 in 2010)
• Myanmar has more than 5,000 restaurants
(Myanmar Restaurant Association -MRA)

• Accor will open six new hotels in Yangon Opportunities

over the next 3 years (Sebastien Bazin, Accor Chairman  Specialty
and CEO – Jan 2014) ingredients to
• International investment in food food
processing
manufacturing is expected to grow in  Food
Myanmar (access to large amounts of arable land) manufacturing
for local &
regional
markets

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Market Access Issues

• The Ministry of Commerce issues food import licenses and the

Department of Food & Drug Administration (FDA) is responsible for
inspecting and clearing imported food at the border

• Currently there is an import ban on liquor products, which

incentivizes alcohol imports via informal non tax paid channels.

• The AANZFTA will start to deliver results for Australian exporters to

Myanmar from 2015 with some tariffs coming down across a number
of exports. Beef – 2015 (10%); 2017 (5%); 2020 (0%)

• No product-specific quarantine requirements for plant or animal

products, MICoR has been updated for all horticulture to Myanmar

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Tips to Succeed in this Market

• Myanmar is relatively unknown and companies need to

spend time to investigate the market
• Companies need to:
– take a long term view;
– be agile and adaptable (regulations may change); and
– find the right partner.
• Securing payment and establishing the credit worthiness
of a buyer in Myanmar is challenging.
• Australian businesses should ensure that the buyer is
able to open a Letter of Credit (possibly through
arrangements outside of Myanmar)

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Useful Reference Sites – Government/
Regulatory Bodies
• Union of Myanmar Federation of Chambers of
Commerce and Industry – www.umfcci.com.mm/

• Austrade ASEAN Tariff Finder –

http://aseantariffs.austrade.gov.au/

• Further assistance
– Ms Thanda Khine, Agrifood BDM

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Contact Austrade

• Call 13 28 78 and speak to one of our advisers

• Email info@austrade.gov.au

• Visit www.austrade.gov.au

• Visit www.exportawards.gov.au

• Visit www.australiaunlimited.gov.au

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