World Grain - November 2018 - 22

COUNTRY FOCUS

Focus on Vietnam
Rice is still king, but wheat
consumption is growing
by Chris Lyddon

CHINA

Vietnam is one of the world's leading producers and exporters
of rice, but wheat consumption is growing. Imported grains
and oilseeds play an important part in supplying the country's
big livestock sector.
There is no wheat produced in Vietnam. The International
Grains Council (IGC) estimates its 2018-19 corn crop at 4.7
million tonnes, down from 4.9 million the year before.
The IGC puts Vietnam's total grains imports in 2018-19 at
14.7 million tonnes, up from 13.7 million the year before. The
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from 4.6 million the year before, and 10.2 million tonnes of
corn, up from 9 million a year ago.
The IGC puts Vietnam's 2018-19 rice production at 28.6
million tonnes, up from 27.9 million the year before. The IGC
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the following year.
Vietnam's rice exports in calendar 2019 are forecast at 6.7
million tonnes, compared with 6.5 million the year before,
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In oilseeds, Vietnam produces soybeans,
with the IGC putting the 2018-19 crop at 1.6
million tonnes, up from 1.5 million the year
before. It is forecast to import 4.8 million
tonnes of soymeal, compared with 4.7 million
in 2017-18.
"Wheat is the second staple food, after rice,
in Vietnam," the USDA attaché in Hanoi explained in an annual report on the grains sector. "In large cities, people consume many
wheat-based foods, and in recent years the
demand for bread/baguette and other baked
goods and wheat-based foods has risen.
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tion and increasing familiarity of consumers with convenience foods. The growing presence of fast-food chains
in Vietnam, such as McDonald's, Dunkin' Donuts, and Burger
King; western-style cafes; and, the presence of foreign convenience stores, such as Circle K, Aeon, 7-Eleven, and GS 25,
are also key factors in boosting the use of wheat-based foods."
CHINA

LAOS

THAILAND

KAMPUCHEA

VIETNAM

Key Facts
Capital: Hanoi
Population: 96,160,163 (July 2017 est.)
Religions: Buddhist 7.9%, Catholic 6.6%, Hoa Hao 1.7%,
Cao Dai 0.9%, Protestant 0.9%, Muslim 0.1%, none 81.8%
(2009 est.).
Location: Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China,
Laos, and Cambodia.
Government: Communist state. Chief of state: Acting President Dang Thi Ngoc Thinh (since Sept. 21, 2018); head of
government: Prime Minister Nguyen Xuan Phuc (since April
7, 2016).
Economy: Vietnam is a densely populated developing country that has been transitioning since 1986 from the rigidities
of a centrally planned, highly agrarian economy to a more
industrial and market-based economy, and it has raised
incomes substantially. Vietnam exceeded its 2017 GDP
growth target of 6.7% with growth of 6.8%, primarily due
to unexpected increases in domestic demand, and strong
manufacturing exports. Vietnam has a young population,
stable political system, commitment to sustainable growth,
relatively low inflation, stable currency, strong FDI inflows,
and strong manufacturing sector. In 2017, Vietnam successfully chaired the Asia-Pacific Economic Cooperation (APEC)
Conference with its key priorities, including inclusive growth,
innovation, strengthening small and medium enterprises,
food security, and climate change. Seeking to diversify its
opportunities, Vietnam also signed the Comprehensive and
Progressive Agreement for the Transpacific Partnership in
2018 and continued to pursue the Regional Comprehensive
Economic Partnership. To continue its trajectory of strong
economic growth, the government acknowledges the need
to spark a "second wave" of reforms, including reforming
state-owned-enterprises, reducing red tape, increasing business sector transparency and increasing financial sector
transparency. Vietnam's public debt to GDP ratio is nearing
the government mandated ceiling of 65%. In 2016, Vietnam
canceled its civilian nuclear energy development program,
citing public concerns about safety and the high cost of the
program. It faces growing pressure on energy infrastructure.
Vietnam has demonstrated a commitment to sustainable
growth over the last several years, but despite the recent
speed-up in economic growth the government remains cautious about the risk of external shocks.
GDP per capita: $6,900 (2017 est.); inflation: 3.5% (2017
est.); unemployment: 2.2% (2017 est.).
Currency: Dong (VND): 23,343 dong equal 1 U.S. dollar (Oct.
22, 2018).
Exports: $214 billion (2017 est.): clothes, shoes, electronics, seafood, crude oil, rice, coffee, wooden products, machinery.
Imports: $211.1 billion (2017 est.): machinery and equipment, petroleum products, steel products, raw materials for
the clothing and shoe industries, electronics, plastics, automobiles.
Agriculture: 15.3% of GDP and 40.3% of the labor force.
Internet: Code: .vn; 49.741 million users.
Source: CIA World Factbook

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