Audio: Restaurant Growth Driving Stronger Beef Demand in Vietnam

In recent months the U.S. Meat Export Federation (USMEF) has seen increasing demand for imported beef in Vietnam, driven in large part by expansion in the family dining restaurant sector. Joel Haggard, USMEF senior vice president for the Asia Pacific, offers more details in the attached audio report.

Haggard also notes that U.S. beef faces significant duties and product restrictions in Vietnam, including a ban on beef offal and a 30-month cattle age limit on muscle cuts. These barriers can have a negative impact on demand, especially given the price-sensitive nature of the market. Vietnam is a participant in the Trans-Pacific Partnership (TPP) negotiations, which could serve as a path to improved access for U.S. beef.

TRANSCRIPT:

Joe Schuele: In this U.S. Meat Export Federation report, we focus on beef demand in Vietnam, where domestic cattle and beef production is slipping while the expansion of Vietnam’s food sector is a strong catalyst for imports. Joel Haggard, USMEF senior vice president for the Asia Pacific region, explains.

Joel Haggard: I would say that over the last two years, especially this year we are really noticing the take of in Vietnam’s foodservice sector which is driving demand for imported beef and U.S. Beef and it is just a very exciting take off stage where we are getting significant volumes of business. We are seeing an increase in domestic consumption right now it is in the two big cities of Hanoi and Ho Chi Minh City. This involves the construction and operation of chain restaurants. I would call them family-style restaurants, which are beef-centric.

Joe Schuele: U.S. beef continues to face barriers in Vietnam including high duties in muscle cuts and a ban on beef offal. Vietnam also restricts imports of us beef derived from cattle less than 30 months of age. While most of the attention on beef access issues on the Trans-Pacific Partnership negotiations has focused on Japan, haggard says the TPP could also relief from Vietnam’s significant tariff and nontariff trade barriers. Improving the level of access for U.S. beef is especially important in a market where the consumer demand for beef is still very price-sensitive and competition is on the rise.

Joel Haggard: It is a price sensitive market. It is a developing economy to the extent where if we could get the tariffs down that would help our competitiveness. There are other suppliers in the market, Australia is shipping live cattle and beef and India is shipping beef to Vietnam as well so yea it is competitive.

Joe Schuele: For more on this and other trade issues please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.