and are the two complementary economies. Australia has the demand to import Vietnamese goods that has strengths such as garment, footwear, furniture, cashew nuts, aquatic products ... also needs to import items such as wheat , cotton balls, milk, wood materials, equipment, spare parts, LPG... These are favorable factors to promote economic and trade relations between the two countries.
According to the Business Monitor International (BMI), the turnover growth of ’s food sector in 2014 and 2015 is 14.7% and 14.3%, the Compounded Annual Growth Rate (CAGR) in the period from 2016 to 2019 is expected to reach 16.1%. By 2020, is considered as the third highest growth country for food and beverage consumption among the Asian countries surveyed. Products of the food and beverage production and processing industry are distributed at the rate of 70% for domestic consumption and 30% for export. In general, exports of food and beverage to the world included seafood, rice and coffee recently. In addition, cashew nuts, pepper, coconut fruit ... are also potential products bringing a large amount of foreign currency for exports.
According to the General Department of Customs, the main export markets for ’s food and beverage are , the , and several countries from the European Union. The period of 2011-2016, it recorded the continuous growth in export value of ’s food and beverage. In which, the value of Vietnam exports to the world increased USD 512.242 thousand in 2016, the export growth increased by 3.3% compared to 2015.
For the Australian market, over the past 20 years, due to differences in economic development, the structure of commodity exchanges between and is distinct and highly complementary. is one of the world’s leading nations in food security, offering its own food items such as meats, milk and cereals. The domestic production provides 90% of domestic demand, while the remaining 10% is provided by imported food. The key food exports to include fresh seafood and fresh vegetables. In 2016, exports of food and beverage to increased by USD 34.234 thousand compared to 2015; the proportion of exports to in total exports of in 2016 increased by 0.12% compared to 2015. Of which, seafood is the key export item with the export turnover in 2016 reached USD 186.4 million. The second item was cashew nut of USD 120.8 million. The third was coffee with turnover of USD 31.7 million. In general, in 2016, ’s commodities exported to market are diversified, abundant and strongly growing.
Although is a major producer of agricultural products as well as processed foods in the world, but the import of food in this country still accounts for a significant proportion and increasingly growing. The Australian food market is one of the most competitive and dynamic markets in the world, requiring the high standards of technical specifications, origin of goods, all imported food items must comply with the regulations on food safety and hygiene. In addition, ’s trade and tax policies are transparent and rigorous on the standards of non-tariff barriers.
Therefore, in order to export food in this market for a long-term, it requires Vietnamese enterprises must ensure food safety and hygiene as well as improve the quality and design of products. Diversifying and improving the quality of exported food will help to improve the competitiveness of Vietnamese goods in the Australian market. Enterprises also need to invest in technology innovation and actively implement the quality management system based on international standards in order to meet the requirements of health and environmental protection. To hold the position in the Australian market, Vietnamese enterprises must towards a cleaner production where the product quality is considered as a top priority. Thus, the foundation of the chain is essential to be able to compete in this potential market.
The best solution is to provide products with high added value, having origin. This will help improving the brand of food in , building trust for consumers. At the same time, Vietnamese exporters also need to promote and disseminate information on the production and export of Vietnamese foodstuffs, contributing to changing perceptions, habits and beliefs among Australian consumers.The enterprises need to choose product strategies and market penetration strategies in line with the demands, the actual situation of the market and their ability. In addition, Vietnamese exporters also need to thoroughly understand the distribution channels in Australia to conveniently bring the goods into the market. Seasonality and adaptability of products should also be taken into consideration to ensure quality food with time and climate change.
