Vietnam: Feed industry is on the growth track
Over the past several years, Vietnam’s feed industry experienced a surge in investments into new capacities, a recent report from the Ministry of Agriculture and Rural Development has revealed.
Feed industry growth in Vietnam
In 2019, 261 mills operated in the country with a combined capacity of 18.9 million tonnes. The number of factories jumped to 294 in 2023, and their combined capacity exceeded 20 million tonnes, the Ministry reported.
Reliance on feed imports
However, the country still remains largely reliant on feed imports. According to the Ministry, the actual demand on the market is now close to 33 million tonnes per year. It is estimated that the country spends around USD 3 billion to purchase feed and feedstuff abroad.
Import dependence to ease
The authorities expected the import dependence to ease in the coming years.
Feed production targets through 2030
Under the Programme for Animal Feed Processing Industry Development through 2030, industrial feed production was slated to reach 24 to 25 million tonnes in 2025 and 33 million tonnes in 2030.
Gap between production and demand
However, it is yet to be seen whether the gap between production and demand will narrow, as feed consumption also tends to grow. The Ministry forecasted that the level achieved by 2030 would be sufficient to meet only around 70% of the domestic demand.
Shift toward industrial feed
In addition, the Ministry indicated that the share of industrially manufactured feed climbed to 75%, marking a gradual industry transition, as the share of farms mixing feed in-house tends to decline.
Vietnam’s feed exports in 2024
In 2024, Vietnam also exported feed and feedstuff worth USD 1.06 billion, down by 13.2% compared with the previous year.
Major export destinations for Vietnam
China is the largest importer of animal feed and feed raw materials from Vietnam, accounting for 40.8% of sales to foreign customers. In 2024, Vietnam’s exports in this category totalled USD 423 million, down 26.7% compared to 2023. The second place in the list of the largest importers of Vietnam’s feed belongs to the US, which purchased various products worth USD 129 million last year – the figure was 43% higher than a year earlier. Cambodia ranked third with a value of 126 million USD in imports, a decrease of 24% compared to the previous year.
Tax reduction to support feed industry
From December 16, 2024, Vietnam’s feed industry got a new impetus for development, as the tax rate on soybean meal used as animal feed was halved to 1%.
Support for livestock industry
Vietnam’s Department for Animal Husbandry claimed that the step was called “to strengthen and support the livestock industry, specifically domestic animal feed production”.
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