JBC vietnam wine market study

“Comprehensive Study of the Vietnamese Wine Market” Conducted by JBC International In Collaboration with: Wine Institute WineAmerica The California Association of Winegrape Growers The Winegrape Growers of America Contact: James Gore Vice President JBC International 1776 I St NW, Suite 916 Washington, D.C 20006 jgore@moinc.com www.jbcinternational.com This project was funded in part by the Emerging Markets Program (EMP) of the United States Department of Agriculture (USDA) Foreign Agricultural Service (FAS) The EMP program is a market access program that provides funding for technical assistance activities intended to promote exports of U.S agricultural commodities and products to emerging markets in all geographic regions, consistent with U.S foreign policy EMP Project E08MXVTM011, “Comprehensive Study of the Vietnamese Wine Market,” was funded by the Commodity Credit Corporation (CCC), an agency and instrumentality of the United States within the USDA Date: April 2010 EMP Project Report # E08MXVTM01 Vietnam – Wine “Comprehensive Study of the Vietnamese Wine Market” Report Highlights: Present day Vietnam is a country that has seen dramatic increases in the standard of living of its people and the country’s integration with the world market With this globalization the Vietnamese wine market has exploded, with hotels, restaurants, and retailers offering a wide variety of wines from around the world Along with this overall progress and increase in economic activity, the wine market in Vietnam is on the rise Consumption, product availability, disposable income, and education are all up However, despite the strength of these indicators, those looking to introduce their product to Vietnam must so with a firm understanding of the market dynamics, and the potential risk, of entering this emerging market In the large cities of Hanoi and Ho Chi Minh City (formerly Saigon) U.S wine marketers will find a true excitement about U.S wines and a vested interest in matching them with the local cuisine In the tourist areas, wine has a definite place as an alcohol beverage and food accompaniment of choice Additionally, the large Ex-Patriot community and upper class Vietnamese enjoy quality wines with their meals, and the general population has a growing interest in value-based wines Vietnam offers an exciting opportunity; however, as with any emerging market, that opportunity comes with risk In a country where the government controls a large part of organized retail, market access is never assured Therefore, potential gains should be measured and evaluated through long-term strategic planning Note: Specific information on sales, consumption, production, and imports for wine in Vietnam varies widely depending on the data source Wineries, importers, distributors and retail shops in Vietnam not readily hand out detailed information on their company workings It is therefore difficult to pinpoint specific levels of production and consumption because of improper acknowledgment of market specific data Due to this variation in reporting, the authors of this study spent significant time conducting primary research in both the U.S and Vietnam before developing the wine market statistics and estimates contained in this report Table of Contents Page # I Project Background II Strategy for Market Entry Research the Market Find an Importer/Distributor Arrange Market Strategy and Fulfill Compliance Needs Continue Marketing Promotion 2 2 III Vietnam Wine Market Analysis Statistical Highlights Political and Economic Outlook Alcohol in Vietnamese Culture Population, Demographics, and Consumer Segmentation 4.1 Potential Market 4.1.1 Population Segmentation 4.1.2 Tourism 4.2 Geographical Concentration 4.3 Other Demographics 4.3.1 Literacy 4.3.2 Ethnic Groups 4.4 Tastes, Preferences, and Presentation Geography 5.1 Climate and Topography 5.2 Vietnam Grape and Wine Production 5.3 Local Producers Availability and Price Structure of Wine 6.1 Currency and Measurement Conversions 6.2 Price Structure 6.3 Organized Retail 6.4 Hotels, Restaurants, and Specialty Shops Marketing and Advertising 7.1 On-Site Importers and Distributors 8.1 Distribution Rights 8.2 Local Wine Distributors 8.3 Cold Chain 8.4 Convenience Stores and Minimarts 8.5 Modern Retail Trade: Supermarkets and Hypermarkets 8.6 Traditional Trade: Wet Markets and Small Shops Infrastructure Capacity 9.1 Ports 9.2 Railways 3 3 4 4 5 5 5 8 9 9 10 10 10 11 11 11 11 11 11 11 IV Vietnam Trade Report Tax and Duty Structure 1.1 Federal Taxes and Duties 1.1.1 Import Tariff 1.1.2 Additional Tax 1.1.3 Value Added Tax (VAT) 1.2 Duty Free Regulatory Structure 2.1 Import Procedures 2.1.1 Nature of Import Procedures and Timeline 2.1.2 Import Documents 2.2 Customs 2.2.1 Customs Valuation 2.2.2 Customs Clearance 2.2.3 Customs Dispute Resolution Mechanism 2.3 Import Policy and Regulation 2.3.1 Certificate of Origin 2.3.2 Storage Regulations 2.3.3 SPS Standards 2.3.4 Maximum Residue Levels 2.3.5 Wholesale and Distribution Licensing 2.3.6 Brand and Label Registration 2.3.7 Labeling Requirements 2.4 Intellectual Property Rights Analysis Trade Policy 3.1 WTO 3.2 Bilateral Trade Agreements 3.2.1 U.S.–Vietnam 3.2.2 Vietnam–EU 3.2.3 ASEAN Trade Agreements Rules of Origin 12 12 12 12 12 12 12 12 12 12 12 13 13 13 14 14 14 14 14 15 15 15 16 16 16 16 16 16 16 16 17 V Local Importers 18 VI Relevant Contacts 22 VII Reference Endnotes 23 Comprehensive Study of the Vietnamese Wine Market I Project Background This project is the result of a collaborative effort taken between JBC International and the Wine Institute, Wine America, The California Association of Winegrape Growers (CAWG), and The Winegrape Growers of America (WGA) The project is supported by the U.S Department of Agriculture Emerging Markets Program (USDA EMP) and is titled, Vietnam: A Comprehensive Study of U.S Wine Market Potential (E08MXVTM01) It follows successful EMP projects conducted by JBC International on India and Guatemala and will be followed by further studies focusing on Russia and Brazil These studies address a need voiced by many Californian wineries and wine grape growers, and as a series they will provide stakeholders in the U.S wine industry with the practical information needed to identify strategies to expand exports into these emerging markets The prime objective and focus of this study has been the creation of a “blueprint” for market entry, one which exposes the risks, while outlining the potential rewards for U.S wine exports to Vietnam This report serves as a critical educational resource for U.S companies by: Providing detailed information concerning the regulatory environment for wines in Vietnam; illuminating on existing trade barriers against wine imports from the United States; identifying the challenges and strategies for entering the market and selling wines there; Forecasting developments in Vietnam’s wine market, supply chain, distribution network, and trade activities; and Reporting on where the market opportunities exist for imported wine by specific market, supply chain, importer and distributor throughout the country In addition to U.S.-based research, JBC International staff traveled to Vietnam to conduct a practical, on-the-ground research study During this visit, staff traveled throughout the Country and investigated markets in Hanoi, Ho Chi Minh City, and Da Lat They conducted meetings with government officials, distributors, importers, vineyard owners and wine producers They also spent significant time visiting retail markets, restaurants, and hotels where wine is predominantly sold Comprehensive Study of the Vietnamese Wine Market II Strategy for Market Entry Research the Market Using this report and relevant contacts (U.S and Vietnam based) as initial resources, prospective exporters can make informed decisions about export opportunities to Vietnam Find an Importer/Distributor The choice of which importer and distributor to work with in Vietnam is a crucial decision for U.S wineries and exporters These entities will ultimately be the ones representing your product line and facilitate everything from navigating the regulatory and distribution chains to marketing the product and ensuring its quality integrity once it reaches Vietnam In making these decisions, some foreign wine companies have formed partnerships and/or joint ventures with established Vietnamese beverage alcohol companies to leverage their incountry expertise to assist in representing and distributing their brands U.S companies with an interest in investigating this option can contact the authors of this study for further information While in Vietnam, JBC International Staff met with top officials from Vietnam’s largest wine and alcohol producers and retailers, including Vang Da Lat, Halico, Thang Long, and Hapro The possibility of forming a partnership with one of these large companies offers a divergent strategy for market access (rather than the traditional method of working with an importer); however, the benefit of such a partnership must be weighed against the structure of the agreement and resultant business activities Arrange Market Strategy and Fulfill Compliance Needs U.S wineries that are successful in exports usually take one to two trips to the target country before making sales The first visit is used to determine if the target markets, whether regional (Hanoi, Ho Chi Minh City, Da Lat) or sector-based (hotels, restaurants or retail) The same visit can be used to meet with importers to evaluate their personalities and operations before making a decision on whom to approach with the intent of forming a business agreement If necessary, the exporter will travel back a second time to finalize the arrangements with the selected importer/distributor and ensure that both they and the importer are ready to business together This step is oftentimes needed to ensure that all regulatory approval issues and import processes are in order before orders can be solicited and subsequently fulfilled Continue Market Promotion and Research The growing market opportunities in Vietnam for U.S wine exporters are in a variety of areas While meeting with representatives from International Trading Development Investment (a Vietnamese wine importer) JBC staff members found that this importer saw opportunity at both ends of the price spectrum The company foresaw great opportunities for selling low priced U.S boxed wine to local Vietnamese consumers at high volumes, and a similar opportunity to sell high value U.S wines at lower volumes to Hotels and Restaurants For wineries that are members of the Wine Institute International Program (based in San Francisco, CA), they can coordinate trade visits and market promotion with a group of participants Additionally, the USDA – Foreign Agricultural Service (FAS) representatives at the U.S Embassy and Consulate in Hanoi and Ho Chi Minh City can find assistance with understanding the market and identifying future business opportunities The FAS representatives can help U.S wine exporters by supplying them with up-to-date market information, importer lists, and distributor data, as well as by endorsing U.S Pavilions at trade shows and organizing various marketing events The U.S Alcohol and Tobacco Tax and Trade Bureau (TTB) has an International Trade Division and website (www.ttb.gov) that can similarly assist U.S wineries and exporters with market information and regulatory compliance issues Comprehensive Study of the Vietnamese Wine Market III Vietnam Wine Market Analysis Statistical Highlights • The Vietnamese wine market is estimated at approximately 25 million liters While this volume appears large, in reality 19 million liters of this consumption comes from non-grape produced local wine Of the remaining million liters of grape-based wine consumed, we estimate that some 73 percent (4.4 million liters) is imported • Of this 4.4 million liters in imports, approximately 50 percent come from France, 14 percent from Australia, six percent from the United States, five percent from Chile, four percent from Italy, and two percent from Spain • Locally produced wines account for about 27 percent of the total wine market Imported wine, which accounts for the rest, is perceived as a luxury product in Vietnam and demand for it largely comes from expatriates and tourists.1 • On-Trade sales (i.e restaurants and bars) represent 70 percent of total sales, with Off-Trade sales (i.e retail outlets) representing the remaining 30 percent • Cabernet is the premier red variety of grape-based wine consumed, with 1.2 million liters consumed in 2009, a 33 percent increase from 2006 Chardonnay is the leading variety among the white wines, with consumption rising from 0.7 million liters in 2006 to 0.9 million liters in 2009—a 29 percent increase • According to a market sample conducted by Euromonitor in May 2009, the majority of still red and white wines are priced at Level (US $6.50-13.10) • Demand for wine is seasonal The highest demand occurs around the year-end festive season; during the Tet festival (Lunar New Year) around February every year, Christmas holiday, and New Year celebration Some retailers state that between 60 and 70 percent of the wine sales occur during this period Demand is generally low during other periods of the year.2 *Note: for the remainder of this study, when we refer to “wine,” we are referring to grapebased wine, not wine made from fruit, rice, or other agriculture inputs Political and Economic Outlook Vietnam’s Communist Party maintains control over discussions of political and economic reform and is often accused of endemic corruption Due to the global recession, Vietnam’s export-driven economy has reported a modest real GDP growth of 5.3 percent and 6.9 percent inflation in 2009.3 Alcohol in Vietnamese Culture For most Vietnamese, drinking alcohol is primarily a male activity that can involve competition and inebriation Most prefer liquors, beers, or various wines, including medicinal wines, which may be infused with herbs or parts of, or whole reptiles or other animals Many current-day Vietnamese have had the opportunity to travel, and their exposure to wine has increased Within Vietnam however, wine remains too expensive for most consumers and national preference for wine has been slow to fully develop Due to both cheaper prices and taste preferences, Vietnamese continue to show preference towards rice wines, whiskey, vodka, or homemade liquors As a result of consumer taste and product awareness, a market for wine in Vietnam will take time to fully develop Local producers, such as Vang Dalat Wines, have a strong understanding of the local market and produce wines suited to regional preferences This focus on domestic production bodes well for the import market As domestic wineries familiarize the population with wine, those emerging consumers are more likely to develop into moderate wine consumers, thus opening opportunities for U.S wine exporters Comprehensive Study of the Vietnamese Wine Market 4 Population, Demographics, and Consumer Segmentation 4.1 Potential Market The average income per-capita in Vietnam is around $790 per year, which is lower than its neighboring countries, such as Thailand and the Philippines Alcoholic beverages represent one of the fastest growing sectors in Vietnam’s food market Wine, seen as a luxury good, is benefiting from this growth although at a much slower rate than beer, which is available from cheaper local producers.4 Approximately half of Vietnam’s population consists of consumers under the age of 30 This group is experiencing a substantial rise in living standards accompanied by an increase in disposable income, rising demand for foreign goods, and a willingness to experiment with new products Because wine has not been a traditional aspect of the Vietnamese culture, this market segment (ages 20-35), which accounts for 25 million people will likely form the core consumer group for new products and brands as the market continues to grow Wine Coolers and light fruit wines have proven popular among Vietnamese female consumers 4.1.1 Population Segmentation5 Age Total 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+ Median Age Total Population 89,571,130 7,722,994 7,603,821 7,606,965 8,765,454 8,962,536 8,586,695 7,349,340 6,659,580 5,965,278 5,614,401 4,563,928 3,156,814 2,044,465 1,489,064 1,352,029 1,050,601 669,186 299,520 89,599 17,062 1,798 27.4 Male Population 44,644,262 4,062,891 3,977,465 3,954,336 4,532,820 4,607,997 4,370,997 3,733,573 3,346,486 2,952,999 2,720,981 2,130,316 1,446,405 903,492 622,182 546,083 398,242 231,879 82,724 19,601 2,601 192 26.4 Female Population 44,926,868 3,660,103 3,626,356 3,652,629 4,232,634 4,354,539 4,215,698 3,615,767 3,313,094 3,012,279 2,893,420 2,433,612 1,710,409 1,140,973 866,882 805,946 652,359 437,307 216,796 69,998 14,461 1,606 28.5 Percent Total 100.0 8.6 8.5 8.5 9.8 10.0 9.6 8.2 7.4 6.7 6.3 5.1 3.5 2.3 1.7 1.5 1.2 0.7 0.3 0.1 0.0 0.0 Percent Male 100.0 9.1 8.9 8.9 10.2 10.3 9.8 8.4 7.5 6.6 6.1 4.8 3.2 2.0 1.4 1.2 0.9 0.5 0.2 0.0 0.0 0.0 Percent Female 100.0 8.1 8.1 8.1 9.4 9.7 9.4 8.0 7.4 6.7 6.4 5.4 3.8 2.5 1.9 1.8 1.5 1.0 0.5 0.2 0.0 0.0 Sex Ratio 99.4 111.0 109.7 108.3 107.1 105.8 103.7 103.3 101.0 98.0 94.0 87.5 84.6 79.2 71.8 67.8 61.0 53.0 38.2 28.0 18.0 12.0 4.1.2 Tourism As a new destination for tourists and foreign investment, Vietnam receives over 4.5 million visitors per year creating USD 3.5 billion in value This demand has led to an increase in the number of high end hotels and resorts across the country, but particularly in the coastal areas of Baria Vung Tao, Mui Ne, Nha Trang, and Danang The tourism industry has Comprehensive Study of the Vietnamese Wine Market experienced growth rates above 10 percent, pressing demand for high quality imported products such as California Wine 4.2 Geographical Concentration The five key urban areas are Hanoi, Ho Chi Minh City (HCMC), Hai Phong, Danang, and Catho These cities account for 30 percent of national GDP, and are expected to experience increased rural to urban migration.7 Only 28 percent of the population lives in urban areas where demand for and availability of foodservices and high value products is higher.8 As many seasoned exporters are fully aware, exporting to an emerging market often translates to exporting to its cities and tourist areas There is a large divide between rich and poor, and urban and rural 4.3 Other Demographics 4.3.1 Literacy Defined as over the Age of 15 and able to read and write: Total: 90.3 percent Male: 93.9 percent Female: 86.9 percent 4.3.2 Ethnic Groupings Kinh (Viet) 86.2 percent, Tay 1.9 percent, Thai 1.7 percent, Muong 1.5 percent, Khome 1.4 percent, Hoa 1.1 percent, Nun 1.1 percent, Hmong percent, others 4.1 percent.9 4.4 Tastes, Preferences, and Presentation The Vietnamese retail and tourism sectors are rife with imported wine French and Italian wines dominate the market; however, wines from new world producers such as the U.S., Australia, Chile, South Africa, and Argentina are prevalent California wines of all price ranges are already in the market and available through various outlets Vietnamese food matches well with red, white, and rose wines, and therefore market demand exist for all categories With regards to presentation, the upper class expects traditional packaging and labeling; however, the lower and middle classes have no such preconceived notions This openness has led to increased sales of value-based wines packaged for convenient transportation and consumption, such as boxed wines and tetra paks Geography 5.1 Climate and Topography Vietnam’s climate ranges from tropical in the South, to monsoonal in the North, with hot, rainy and warm, dry seasons The country’s terrain ranges from a flat delta in the North and South to central highlands, and to hilly relief in North/Northwest Vietnam’s climate and topography create several microclimates where wine grape growing may thrive The combination of rainfall and temperature experienced by Vietnam allow for grapes to be harvested up to three times per year Vineyards are found in the Ba Vi mountain range near Hanoi, the Central Highland region along the Annamite Range, the region of Phan Rang, and the Southern Coastal plain of Nihn Thuan Comprehensive Study of the Vietnamese Wine Market 5.2 Vietnam Grape and Wine Production “According to the Vietnam Beverages Association, there are approximately 15 wine producers operating in Vietnam with a total annual capacity of approximately 1.5 to two million liters However, their market share is quite limited in comparison to their foreign rivals who have built up brand awareness and have a good reputation for quality and consistency Vietnamese wineries such as Da Lat Winery, which makes some of the best locally made wines, can only penetrate the lower market segment with prices ranging from U.S $2 to U.S $5 In addition, the shortage of raw materials is another problem that most local producers are facing So far, the wine producers in Vietnam are mostly confined to a few regions like Lam Dong and Phan Rang provinces, and the grapes not seem to be of a quality for making premium wines, according to some experts Recently Da Lat Winery had to import grapes and wine inputs from France to produce better quality wine.”10 During the in-country investigation portion of this project, the authors of this study travelled to the agriculture valley located in between the Da Lat and the South China Sea They had the unique opportunity to walk through a winegrape vineyard where Syrah and Sauvignon Blanc varietals were being grown Vietnam’s climate offers tropical winegrape growing; therefore, the vines not go dormant This reality means that if a grape grower wants to produce one high-quality crop, he/she must prune the vines at least twice to force vine dormancy In wine producing areas in India, this form of production is often followed In Vietnam; however, most vineyards are not forced into dormancy, and therefore produce two to three crops per year While conversing with the vineyard owners in Vietnam, it was discovered that this specific vineyard produced close to 30 Tons per acre each year That is 10 Tons per acre with three crops per year This sort of excessive production does not yield a qualitative product, and is said to drastically reduce the life cycle of the vine With three crops per year, the vines are said to only produce for approximately seven to eight years In California and other wine producing countries, without taking into consideration disease and pest variation, it is common for vines to produce for 40 to 60 years, with some vines still in production that reach 60 years plus From the buyer’s side of the equation, the authors of this study learned that there is no current incentive to produce winegrapes for quality The winegrape buyers purchase with quantity in mind The farmers related that they have a difficult time getting their crop to reach even 16 degrees brix (a measure of the sugar, and subsequent ripeness of the grape) They asked one of the authors how they could improve on that number The response from the author with viticulture experience was, “You have to thin out your crop levels and allow a more moderate crop to ripen.” The dilemma is that these farmers were paid for the quantity, not the quality and/or ripeness of their grapes; therefore, it didn’t make any economical sense to produce a quality product Overall, the authors of this study discovered that winegrapes can be grown in Vietnam, but the technical know-how and market structure are underdeveloped In addition to the vineyards referenced above, Cardinal and Chambourcin grapes are other domestically harvested grape varieties in Vietnam There is also a high level of fruit wine production from Vietnam’s local fruits Currently, joint ventures with British and Australian wine producers are attempting to establish more varieties of internationally accepted winegrape production in Vietnam U.S wineries should definitely consider jointventure/partnership opportunities in Vietnam The agriculture sector and the alcohol companies desire to produce winegrapes and wine; however, they need assistance Such assistance could be offered while receiving similar support from the Vietnamese partners in accessing local markets and efficient supply/distribution chains Comprehensive Study of the Vietnamese Wine Market 6.3 Organized Retail “Modern retail stores (supermarkets, hypermarkets, cash and carry wholesale stores, convenience stores and minimarts, and department stores) account for only 10 percent of total food and beverage sales, however these types of stores are experiencing an average expansion rate of 18 percent per year and will play an increasingly important role in future markets Hanoi currently has more than 24 large shops and supermarkets and HCMC has over 56 modern shops French owned Big C supermarkets operate the largest supermarkets in Vietnam Other Supermarkets include Metro Cash and Carry, Pakson’s, and Superbowl Shopping Center Key domestic owned supermarket chains are Saigon Coopmart, Maximark, Citimart, Vinatex, FiviMart, and Intimex “Open-Air and Enclosed traditional/local markets, commonly referred to as wet-markets, play a critical role in Vietnam, accounting for over 60 percent of total consumer sales of food and beverages Exporters should pursue local partners capable of accessing both wet market and supermarket distribution Wine purchases from supermarkets are expected to drive increased sales as consumers look to entertain guests and enjoy the product at home.” 6.4 Hotels, Restaurants, and Specialty Shops “Vietnam has over 60 resorts nationwide and hopes to build an additional 20 Five Star Hotels to meet rising demand from tourists and business visitors “Family owned restaurants dominate the restaurant sector as most prefer Vietnamese food when dining out Among the middle and upper classes, some fast food chains and international cuisine restaurants are becoming popular Cafeteria Outlets, particularly in Hanoi and HCMC are also becoming increasingly popular.”15 Marketing and Advertising Vietnamese have a high value perception of American made products and deem them as premium quality products However, the level of brand awareness in Vietnam is relatively low, and as such, importers will need to establish a strong consumer base and brand image early on.16 Alcoholic drinks that contain less than 10 percent alcohol are permitted to be advertised in Vietnamese newspapers, on radio and television and via the Internet Alcoholic drinks that contain over 15 percent alcohol are permitted to be advertised only within the premises of retail shops, bars and restaurants For alcoholic drinks containing over 30 percent alcohol, a license for advertising must first be obtained from the Ministry of Trade Advertising expenditure is limited to a maximum of 10 percent of the total expenditure of the enterprise 7.1 On-Site There are no official statistics available on the number of on-trade establishments in Vietnam, and since there is no real concerted government effort to enforce any control over the activities of these establishments, it could be some time before such statistics become available.17 Good quality wines can be found in mid-upper range restaurants and there are many small wine bars and shops in cities such as Ho Chi Minh City and Hanoi As a vibrant youth culture and disposable income increase, the popularity of On-Site consumption in clubs and bars is likely to increase Comprehensive Study of the Vietnamese Wine Market 10 Importers and Distributors 8.1 Distribution Rights While regulations pertaining to distribution rights are changing, the Ministry of Trade currently restricts rights of distribution to Vietnamese companies Therefore, foreign companies must obtain local import and distribution partners.18 8.2 Local Wine Distributors Ho Chi Minh City Name: Nhan Phu Co., Ltd Address: 128 Nguyen Van Cu, Nguyen Cu Trinh Ward, Dist., Tel: 08.9202389 Fax: 08.9203248 Email: repfoodsco@hcm.vnn.vn Hanoi Name: Thanh Hung Co., Ltd Address: 104 Nguyen Van Cu, Long Bien, Hanoi Tel: 04.8731414 Fax: 04.8274038 Da Nang Name: Tam Nhan Co., Ltd Address: 341 Hai Phong, Da Nang City Tel: 0511.6529444 Vinh Long Name: Agency in Vinh long Address: 172A Tan Hoi, Vinh Long commune, Vinh Long Tel: 070.815049 Fax: 070.815049 Nha Trang Name: Agency in Nha Trang Address: To Vinh Dien, Nha Trang Tel: 058.822085 Vung Tau Name: Nguyen Hien Co., Ltd Address: 71 Bacu, Vung Tau Tel: 064.811016 Plei Ku Gia Lai Name: Thai Lan Hung Co., Ltd Address: 56B Dinh Tien Hoang, Plei Ku, Gia Lai Tel: 059.827941 Nghe An Name: Viet Lao Co., Address: 01 Phan Boi Chau, Vinh, Nghe An Tel: 038.531513 Comprehensive Study of the Vietnamese Wine Market 11 8.3 Cold Chain The Cold Chain system in Vietnam is cited as poor by the USDA, particularly on the import side Most domestic cold chain suppliers not adequately supervise the temperature and humidity of their chillers and the cold chain is subject to frequent power outages Additionally, most consumers have not purchased in home refrigerators These conditions may result in shortened product life and/or reduced product quality 19 8.4 Convenience Stores and Minimarts Lead by Saigon Corp, Vissan, and Trung Nguyen Coffee Corporation, this distribution segment is expected to experience a substantial growth due to increased urban concentration, higher traffic, and busier workweeks in Vietnam’s major cities These stores are mostly air-conditioned and modern in terms of product display and offer a range of imported packaged food and drink products.20 8.5 Modern Retail Trade: Supermarkets and Hypermarkets Modern Retail trade is expected to expand at a rate of over 20 percent over the next three years Between 18 and 20 percent of imported high value food and drink items are sold through these modern outlets Most Supermarkets, hypermarkets, and wholesale stores purchase products from importers or distributer agents, though some choose to import directly from the manufacturer.21 8.6 Traditional Trade: Wet Markets and Small Shops There are over 8,000 traditional wet markets and hundreds of thousands of small private shops throughout Vietnam These shops are still the most popular among Vietnamese, however, most have a very limited product selection, a lack of refrigeration, and a limited floor space Away from major cities, the food industries rely heavily on these stores with an estimated 80 percent of imported foods distributed in this manner.22 Infrastructure Capacity Road: 222,179 km Waterway: 17,702 km Ports: 8, main ports: Ho Chi Minh City and Haiphong (major ports) Airports: 44 Railways: 2,347 km 9.1 Ports Vietnam has 3,200km-long (5,000 km navigable by vessels-CIA) coastline with a total of 266 seaports, 14 of which are relatively large and named as the ‘keys to economic development’ These ports handle 80 percent of all imports.23 In comparison to neighboring countries ports’, Vietnam’s port capacity is small in regards to maximum vessel size and overall storage capacity These limitations result in much of Vietnam’s trade operating as transshipments through its neighbors and higher overall shipping costs Backups are estimated to cost companies between USD 0.80 and 2.40 per day in storage fees in addition to losses due to late delivery Several projects are underway to increase domestic port capacity and efficiency Only nine ports could be upgraded to handle 50,000 DWT cargo ships or 3,000 TEU container ships Logistics costs have accounted for 15 percent to 20 percent of Vietnam’s gross domestic product (almost twice compared with developed countries).24 9.2 Railways The Singapore-Kunming Rail Link (SKRL), stretching across 3,000 miles between Kunming, China and Singapore, via Vietnam, Cambodia, and Thailand was proposed in 1995 Due to high costs and unavailability of funds, the building of roadway in certain parts has been Comprehensive Study of the Vietnamese Wine Market 12 hindered However, the investors and the ASEAN business council are very optimistic about completing the stretch by 2015 Once completed, the extensive rail connection will provide interconnected infrastructure to ASEAN members IV Vietnam Trade Report Tax and Duty Structure 1.1 Federal Taxes and Duties 1.1.1 Import Tariff Wines and other wines produced within the U.S are subjected to an import tax of 65 percent This duty will be reduced to 55 percent in 2012 when the country comes to the final bound level of its World Trade Organization (WTO) accession agreement Lower tariffs might increase competition and drag down the final price of imported wines, which will help boost local demand 1.1.2 Additional Tax Special Consumption Tax of 20 percent (based on CIF price + import duty) 1.1.3 Value Added Tax (VAT) VAT is 10 percent (based on CIF price + import duty + special consumption tax).25 1.2 Duty Free While there are no official figures for sales of duty-free alcoholic drinks in Vietnam, sales are estimated by the trade to be above USD 14 million per annum, equivalent to only a small proportion of off-trade sales.26 Regulatory Structure 2.1 Import Procedures 2.1.1 Nature of Import Procedures and Timeline According to the World Bank report “Doing Business 2010,” the following is an average timeline for the procedures necessary to import a standardized cargo of goods into Vietnam: Documents preparation 12 days Customs clearance and technical control days Ports and terminal handling days Inland transportation and handling days Total 21 days 2.1.2 Import Documents The following is a list of documents that the World Bank report “Doing Business 2010” states are the documents necessary to import a standardized cargo of goods into Vietnam: • • • • Bill of lading Cargo release order Commercial invoice Customs import declaration Comprehensive Study of the Vietnamese Wine Market • • • • 13 Inspection report Packing list Technical standard/health certificate Terminal handling receipts 2.2 Customs 2.2.1 Customs Valuation As of 2006, Vietnam has implemented the WTO Customs Valuation Agreement through its 2006 Customs Law This law makes the use of transaction value applicable to all imports and provides a full application of the computed value and deductive methods Changes have drastically improved customs valuation in Vietnam 2.2.2 Customs Clearance These tables list the procedures necessary to import and export a standardized cargo of goods in Guatemala The documents required to import and export the goods are also shown Nature of Import Procedures Duration (days) Cost (USD) 12 70 Customs clearance and technical control 89 Ports and terminal handling 431 Inland transportation and handling 350 21 940 Documents preparation Total Nature of Export Procedures Duration (days) Documents preparation Cost (USD) 12 107 Customs clearance and technical control 100 Ports and terminal handling 369 Inland transportation and handling 180 22 756 Total Customs Clearance Procedures occur in Five Steps: Receipt of Application File, Primary Examination, Declaration Registration, Form Decision and Inspection Level Detail Inspection on Application File; pricing and taxation Actual Inspection of Goods Collection of Customs Fees, seal of ‘customs procedures completed’, declarations returned to importer Selection and Response of Application File and Certifications Comprehensive Study of the Vietnamese Wine Market 14 2.2.3 Customs Dispute Resolution Mechanism The Vietnamese legal system is highly complex and is driven by overlapping resolutions, ordinances, laws, orders, decrees, decisions, directives, and circulars With its ascension into the WTO, attempts are being made to coordinate regualations and procedures Importers and U.S companies seeking entry into Vietnam are advised by the USDA to contact a locally established law firm for legal assistance A list of these firms can be found at the U.S Mission’s Country Commercial Guide (CCG) from the Department of State and Department of Commerce 2.3 Import Policy and Regulation As Vietnam’s legal and regulatory environment is currently undergoing significant change, United States wine exporters are advised to stay in touch with their importers on these issues 2.3.1 Certificate of Origin The Certificate of Origin must be issued by a ‘relevant body’; a designated department of the government of the exporting country such as the Ministry of Trade, Ministry of Finance, Chamber of Commerce, or Ministry of Industry The C/O submitted to the Customs Office must be an original and must include: • • • • • • • • Issuance Number of C/O Name and Address of the exporter, the exporting country Name and Address of the importer, the importing country The Trademark and Label; quantity and type of packs; description of goods Weight Goods Origin Enterprise Requesting the CO Issuance and Date of Request C/O Issuing Organization including name, Date, and Stamp In Regards to the C/O Stamp, an official stamp in Vietnam is expected to be a circular stamp that produces a raised seal and is readable by the reviewing official Failure to meet these requirements may result in the rejection of the document.27 2.3.2 Storage Regulations There are no regulations on the size or weight of imported food containers or regulations on recycling requirements Packaging materials are imposed on ceramic, and glass, synthetic plastic, and alloy These regulations apply to impurities in these products and to their testing methods Details of these requirements are available in USDA Gain Report VM9019 2.3.3 SPS Standards Sanitary and Phyto-Sanitary inspection is done before Customs Clearance and is performed by the Ministry of Agriculture and Rural Development’s Plant Protection Department and the Department of Animal Health (DAH).28 Vietnam established the SPS National Authority in 2007 and is pushing to align its SPS standards with the World Trade Organization and international standards 2.3.4 Maximum Residue Levels The Ministry of Health defines food additives as substances which are not considered food or the main ingredients of food, and which have little nutritional value, and are added in food in limited amounts, and are harmless Food additives are used in order to maintain the quality, shape, odor, alkalinity or acidity of food, or, to meet the technological requirements for the production, processing, packaging, transportation and preservation of food Such contaminants as poisonous micro-fungus, heavy metals, herbal preserving agents, animal Comprehensive Study of the Vietnamese Wine Market 15 medicines, etc., are not considered food additives The list of food additives allowed in food is presented in Decree No No.3742/2001/QD-BTY State Control/Testing Agencies (SCA) associated with the Ministry of Health (MOH) and the Ministry of Science and Technology (MOST) who have been appointed to verify imported foods in compliance with food quality and safety regulations: Northern Region National Nutrition Institute (MOH) Technical Center Number (MOST) Central Region Nha Trang Pasteur Institute (MOH) Technical Center Number (MOST) Highlands Region Epidemiological and Hygiene Institute (MOH) Southern Region Public Health and Hygiene Institute (MOH) Technical Center Number (MOST) 2.3.5 Wholesale Distribution and Licensing Foreign Participation in commission agents’ services, wholesale services, retail services, and franchising is limited to joint ventures until January 2009 at which point the restriction will be lifted and 100 percent foreign owned entities will be allowed to operate in this sector Per the U.S.–Vietnam Bilateral Trade Agreement, 100 percent U.S owned Distribution Services Companies may be established effective December of 2008 Vietnam has not made any commitments on Cross Border Distribution Services which would allow a U.S company to provide distribution services from abroad.29 2.3.6 Brand and Label Registration The Committee of State for Co-operation and Investment (THIS) is the organization where status must be registered 2.3.7 Labeling Requirements30 Labels for alcoholic products must contain:31 • • • Quantity Alcohol content Instructions on preservation (for wine) The Ministry of Trade manages labeling requirements of imported goods The Ministry of Health requires that each food product have labeling that lists: 10 Name of the Food Name and Address of the premise where food is made Quantity/Volume Components Main Quality Measures Manufacture date, Expiry Date, and Shelf Life Instruction for Use and Preservation (especially for Wine) Origin of Food Alcohol Content Warning of Safety and Hygiene Comprehensive Study of the Vietnamese Wine Market 16 Bulk Containers must also list: Country of Origin Manufacturer’s name Name of the Packing and Bagging Center 2.4 Intellectual Property Rights Analysis Trademarks and trade names are recognized and protected under the Vietnam Intellectual Property Law that became effective on in July of 2006.32 Additionally, Vietnam has made commitments under TRIPS and is also participant in several multilateral IPR agreements such as the Madrid Agreement Concerning International Registration of Marks Jurisdiction of IPR Law falls under the Vietnam Customs Office For Registration for Copyright Protection at the Customs Office, applicants must submit an application for long term copyright protection Procedure details are available at http://www.customs.gov.vn/ Trade Policy 3.1 WTO Vietnam became the 150th member of the World Trade Organization in January of 2007 It has committed to reduce tariffs on many consumer-oriented products, beverages, and agricultural goods.33 3.2 Bilateral Trade Agreements 3.2.1 U.S.–Vietnam This agreement went into effect in 2001 The main objective of this agreement is to open Vietnamese markets, promote reform and trade, and to eliminate non-tariff barriers to U.S exports 3.2.2 Vietnam–EU The negotiations for the agreement began in March of 2010 3.2.3 ASEAN Trade Agreements Vietnam is a member of the Association of the Southeast Asian Nations (ASEAN), and is involved or in the process being a signatory in the following Free Trade Areas: • • • • • ASEAN–Australia New Zealand FTA signed in February 2009 ASEAN–China FTA currently the countries are in the sixth consultation, discussing the importance of promoting regional peace and success ASEAN–India FTA member countries met for the seventh consultation in August of 2009 and signed the ASEAN-India Trade in Goods (TIG) agreement The countries believe this TIG would sustain regional growth and create an open market ASEAN–Japan FTA signed an agreement on Comprehensive Economic Partnership in 2008 to help liberalize and facilitate trade ASEAN–Republic of Korea FTA signed in 2005 FTAs have been established with the EU (2004), Chile (2004), Argentina (2004), Brazil (2004), Singapore (2004), Uruguay (2005), Korea (2005), Japan (2005), Canada (2005), China (2005), Columbia (2005), South Korea (2005), and Iceland (2005) Comprehensive Study of the Vietnamese Wine Market 17 ASEAN members have made progress in lowering intra-regional tariffs through the Common Effective Preferential Tariff (CEPT) Scheme for AFTA, more than 99 percent of tariffs have been reduced to between zero and five percent More information on AFTA is available at http://www.aseansec.org/12021.htm Rules of Origin Vietnam Rules of Origin as defined by ASEAN must have a regional value content of not less than 40 percent; or a change to subheading 2204 from any other category.34 Wines produced within the Asian Free Trade Area have had import tax rates reduced to five percent as of 2006 Comprehensive Study of the Vietnamese Wine Market 18 V Local Wine Importers Company Contact Phone/Fax Allied Domecq Vietnam 621 Pham Van Chi St, Ward 7, District Ho Chi Minh City Ms Agnes Yeo (CEO) p.848.3854.4067 Ample & Associates, Ltd (BVI) 78 Truc Duong St, An Phu Ward, District Ho Chi Minh City Mr Youri Korsakoff p.848.3744.4597 yourikvn@yahoo.com f.848.3512.6401 yourikvn@ample-asia.com Annam Fine Foods 36/26 Duong D2, Phuong 25, Binh Thanh District Ho Chi Minh City Ms Nguyen Thi Phuong Ha (Managing Director) p.848 3512.6400 ha@annam-finefood.com f.848 3512.6401 Annam Group 36/26 Duong D2, Phuong 25, Binh Thanh District Ho Chi Minh City, Vietnam Mr Simon Briggs p.848.3512 6400 simon.briggs@annam(General f.848.3512.6401 group.com Manager) Au A Co 290/13E, Nam Ky Khoi Nghia St, District Ho Chi Minh City Ms Nguyen Thi Hoang Anh (Director) p.848.3848.0838 phuong.nguyen@aua.com.vn f.848.3848.1306 Brown Forman 20 lo O, Cu Xa Vinh Hoi, Ben Van Don, District Ho Chi Minh City Mr Nguyen Thanh Phong (Director) c.84.909.146.364 phongnguyen003@yahoo.com LES CELLIERS D'ASIE VIETNAM Mr Sylvain 18 Pho Yen The, Bournigault Ba Dinh, (Country Ha Noi Manager) p.844 747.4889 f.844.747.4886 Email shb@celliersvn.com bdm@celliersvn.com CMKT Company 238/2 Pasteur, District Ho Chi Minh City Mr Tran Duc Vuong (Sales) p.848.3290.7306 vuongbms@yahoo.com f.848.3290.7307 Dathaco 18 Ba Vi St, Ward 4, Tan Binh District Ho Chi Minh City Mr Nguyen The Tien (Director) p.848.3810.1941 dathaco@tlnet.com.vn f.848.3811.6244 Dong A Co 37 Do Quang Dau St, District Ho Chi Minh City Mr Phi Hong Tien p.848.3836.8810 (Director) Dong Do Joint-Stock Co 99 Pham Viet Chanh St, Ward 19, Binh Thanh District Ho Chi Minh City Mr Quan Xuan Hieu (Chairman) Fine Wines Joint Stock Company 38 Dang Thi Nhu, Dist.1, Ho Chi Minh City Mr Huynh Van p.848.3914.2215 huynhthien@hcm.vnn.vn Thien (Chairman, f.848.3914.2216 finewines@hcm.vnn.vn CEO) p.848.3903.7729 f.848.3899.0342 Comprehensive Study of the Vietnamese Wine Market Food & Beverage International Ms Nguyen Thi 37 Ngo 548/55 Nguyen Van Cu St, Lien (Director) Hanoi 19 p.844.3872.2054 fbintl@fpt.vn Hai Nam Seafood Company 55 Pham Ngoc Thach, District Ho Chi Minh City Mr Vu Van Hieu (Director) p.848.3822.2730 hainamsgco@hcm.vnn.vn f.848 3829.4440 Hoa Anh Company 78 Ba Trieu, Hoan Kiem District, Hanoi Ms Phan Minh Tu p.844.3943.7500 smartanh@yahoo.com (Deputy Director) f.844.3943.7667 Hoa Binh Co (Fine Wine) 223/5A Thich Quang Duc St, Ward 4, Phu Nhuan District Ho Chi Minh City Mr Tran Huu Binh (Director) Hung Thinh Trading&Servive Co., Ltd 27-29 Nguyen Van Giai St, District Ho Chi Minh City Mr Do Minh Triet p.848.3829.7054 htcosg@hcm.vnn.vn (Deputy Director) f 848.3820.7068 Huong Vang Co., Ltd 625 Kim Ma St, Ba Dinh District, Hanoi Ms Hoang Thu Giang (Vice Director) INTERNATIONAL TRADINGDEVELOPMENT INVESTMENT CO.,LTD 3-6/14 Doinhan st, Badinh Dist., Hanoi Mr Nguyen Tuan p.844 5143.5677 psd@itdwine.com p.844.5143.5670 lethang@itdwines.com Dung (General Manager) f.844.3856.2535 www.wine99.com.vn KHA VY Wine Merchant Vietnam 54 Le Thanh Ton, District 1, Ho Chi Minh City Mr Vuong Tieu p.848.3821.8464 vuongtieulan@yahoo.com Lan (Commercial f 848.3821.7463 Director) Lan Ngoc Company 75 Duong A4, P 12, Tan Binh District Ho Chi Minh City Mr Nguyen Xuan p.848.3216.8075 hung@itdwine.com Hung (Director) f.848.3811.6062 Lang Thu Enterprise 55A Phan Chau Trinh St, Hoan Kiem District, Hanoi Mr Hoang Manh Khai (Director) p.844.3933.3683 langthu@gmail.com f.844 3933.3684 Linh An Co/L'Hexagone 14 Le Anh Xuan St, District 1, Ho Chi Minh City Ms Nguyen Thi Luan (Director) p.848.3822.7978 hexagone_saigon@yahoo.com f.848.3827.4877 Mesa Company Lo 3/23 B, Duong 19/5 A, Khu CN Tan Binh, P 14, Tan Binh Ho Chi Minh City Mrs Luu Tuyet Mai (General Director) p.848.3816.3055 mesahanoi1@hn.vnn.vn f.848.3816.3212 p.848.3844.9035 f.848.3844.9035 p.844.3766.6468 giang@arowines.com f.844.3766.6469 Comprehensive Study of the Vietnamese Wine Market 20 Mesa Company/Hanoi Branch 20 Bui Thi Xuan St, Hanoi Ms Nguyen Kim Hoa (Sales Executive) Mesa Group 202 A Ly Chinh Thang, Dist.3, Ho Chi Minh City Mr Sean Ngo (Business Development Director) Metro Cash & Carry Head office, An Phu, An Khanh,, District Ho Chi Minh City Mr Nguyen Hoang (Wine Sales Manager) f 848-35190373 My A Compay 023, Pho My Hoang, Nguyen Van Linh Blvd, District Ho Chi Minh City Mr Nguyen Tan Huy (Director) p.848.3412.0118 thanhhaima@hcm.vnn.vn f.848.3421.0119 My Tin Co 18th floor, Bitexco 19-25 Nguyen Hue, District 1, Ho Chi Minh City Mr Nguyen Quoc p.848.3821.0880 quocdung.nguyen@maxximu Dung (Trade f.848.3821.0960 m.com Marketing Representative) Nam Thien Trading Co., Ltd 187/12A Dien Bien Phu St, District 1, Ho Chi Minh City Mr Nguyen Chi Vinh (Director) p.848.3824.4251 f.848.3825.0047 Phu & Em Co., Ltd 489 Xo Viet Nghe Tinh St, Binh Thanh District, Ho Chi Minh City Ms Bui Thi Ngoc Dinh (Director) p.848.3898.4890 wine@phuem.com f.848.3899.2962 Phu Ly Co., Ltd 36 Dang Thi Nhu St, District 1, Ho Chi Minh City Ms Ly T Phuong p.848.3821.4136 phulyfap@hcm.vnn.vn Tam (Director) f.848.3821.8908 Saigon Co-op Supermarket 199-205 Nguyen Thai Hoc St, District 1, Ho Chi Minh City Ms Bui Hanh Thu p.848.3837.1930 thu-bh@saigonco-op.com.vn (Deputy General f.848.3837.0560 Director) Saigon Food 80 Nguyen Hue St, District 1, Ho Chi Minh City Mr Bui Duy Chinh p.848.3829.7998 (Director) f.848.3829.2385 Song Hang Co 28 Mac Dinh Chi St, District 1, Ho Chi Minh City Mr Ngo Hong p.848.3829.0585 HOAVENER@HCM.VNN.VN Chuyen (Director) f.848.3822.6043 T.S.M Vietnam Ltd (Hong Linh Co) 215D Hoang Van Thu St, Ward 8, Phu Nhuan District, Ho Chi Minh City Ms Nguyen Thi Hong Linh; (Director) Tan Binh Minh Co Hat Giang St, Tan Binh District, Ho Chi Minh City p.844.3826.3418 mesaco@hn.vnn.vn f.844.3943.0187 sean.ngo@mld.mesa.vn hoang.nguyen@metro.com.vn p.848.3844.5520 honglinh@hcm.vnn.vn p.848.3844.9631 f.848.3842.3960 p.848.3848.7699 tanbinhminh@hcm.fpt.vn f.848.3848.9617 Comprehensive Study of the Vietnamese Wine Market 21 Tan Khoa Trading Co., Ltd 360B Ben Van Don, District 4, Ho Chi Minh City Mr Le Quang Huy p.848.3945.1023 lehuy.hcm@tankhoa.com (Director) f.848 3945.1051 Tay Au Trading Co., Ltd A2, Tran Trong Cung St, District 7, Ho Chi Minh City Mr Nguyen Van Duoc (Director) p.848.3873.0022 tayauvn2005@walla.com f.848.3873.0199 Thanh Tung Co., Ltd 125 Thai Ha St, Dong Da District, Hanoi Mr Nguyen Duc Hung (Director) p.844.3837.0635 f.844.3537.0445 Thien Minh Co Ltd 19 Tran Nhat Duat, District 1, Ho Chi Minh City Mr Ly Xuan Binh p.848.3823.8456 thienminhco39pkk@hcm.vnn (Director) f.848.3827.4132 vn; Vast Fund Vietnam 621 Pham Van Chi St, District 5, Ho Chi Minh City Mr Tran Hung p.848.3854.4067 Quoc (Area Sales Manager) Viet Nang Co., Ltd (Hanoi Office) Tran Hung Dao St, Hoan Kiem District, Hanoi Mr Le Minh Quoc p.844.3933.2479 Vnang@fpt.vn (Director) f.844.3933.2475 Viet Thai Trading Im-Ex Co., Ltd 72 Hung Vuong St, Hai Chau, Da Nang City Mr Bui Quoc Viet p.845.1182.1696 f.845.1183.7559 Vine Quality Hospitality Group Hanoi 31A Xuan Dieu St, Tay Ho District, Hanoi Thomas S O'Connor (General Director) p.844.3719.8321 thomas@vine-group.com Ext 400 f.844.3719.8001 Vine Group-HCMC Office 32 A Cao Ba Nha, Ho Chi Minh City Mr Michael Kloster (Manager) p.848.3836.4171 mkgowest@yahoo.com f.848.3836.4182 Vineyard Trading Service Co, Ltd 63 Ni Su Hoang Lien, Ward 10, Tan Binh District, Ho Chi Minh City Mr Nguyen Phuoc Thanh (Director) p.848.975.1119 f.848.975.1120 Vino 74/17 Hai Ba Trung, District 1, Ho Chi Minh City Mr Jim Cawood (Manager) Vive Group 13/1 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City Thuy Nguyen (Managing Director) Wine Link 80/15 Dang Van Ngu St, Phu Nhuan District, Ho Chi Minh City Mr Phil Lam (President) vuonnho@hcm.fpt.vn vineyard@hcm.fpt.vn jim@vinovietnam.com p.848.6290.9437 thuy@vive.vn p.848.6291.0357 f.848.6290.9438 phil.winelink@sbcglobal.net Comprehensive Study of the Vietnamese Wine Market VI Relevant Contacts 1.Authors of this Study James Gore, Katie Bryan JBC International 1776 I St NW Suite 916 Washington, DC 20006 Phone: 202-463-8493 Email: jgore@moinc.com Web: www.jbcinternational.com Wine Institute 425 Market Street Suite 1000 San Francisco, CA 94105 Phone: 415-512-0151 FAX: 415-442-0742 American Embassy in Vietnam (Hanoi) Office of Agricultural Affairs US Embassy Hanoi 3/F Rose Garden Tower 170 Ngoc Khanh Street, Hanoi, Vietnam Phone: (011-84-4) 3850-5000 Ext 6106 Email: aghanoi.group@fas.usda.gov Web: http://vietnam.usembassy.gov/index.html American Consulate General in Vietnam (Ho Chi Minh City) Office of Agricultural Affairs US Consulate General HCMC Le Duan Street District 1, HCMC, Vietnam Phone: (011-84-8) 3825-0502 Email: atohochiminh@fas.usda.gov For General Information on FAS/USDA Market Promotion Programs and Activities: Office of Trade Programs U.S Department of Agriculture Foreign Agricultural Service 1400 Independence Ave., S.W Washington, DC 20250 http://www.fas.usda.gov/OTP_contacts.asp Alcohol and Tobacco Tax and Trade Bureau Public Information Officer 1310 G Street, NW., Suite 300 Washington, D.C 20220 www.ttb.gov (Search for the International Trade Division) 22 Comprehensive Study of the Vietnamese Wine Market 23 VII Reference Endnotes New Zealand Trade and Enterprise Market Profile for Wine in Southeast Asia June 2009 http://asean.nzte.govt.nz/Common/Files/Southeast-Asia-Wine.pdf Ibid U.S Central Intelligence Agency (CIA) “Vietnam.” The World Factbook April 2010 https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service Gain Report Number VM7074 30 October 2007 U.S Census Bureau “Vietnam 2010.” International Data Base http://www.census.gov/ipc/www/idb/index.php Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service Thruong Minh Dao, Vietnam Retail Food Sector Report USDA Foreign Agriculture Service Gain Report Number VM7086 27 November 2007 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service U.S Central Intelligence Agency (CIA) “Vietnam.” 10 New Zealand Trade and Enterprise Market Profile for Wine in Southeast Asia 11 Euromonitor International Wine in Vietnam March 2008 12 Ibid 13 Ibid 14 Ibid 15 Ibid 16 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service 17 Euromonitor International Wine in Vietnam 18 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service 19 Ibid 20 Thruong Minh Dao, Vietnam Retail Food Sector Report USDA Foreign Agriculture Service 21 Ibid 22 Ibid 23 Vietpartners Infrastructure and Vietnam’s Competitive Advantage July 2008 http://vietpartners.wordpress.com/category/logistics-supply-chain/ 24 Ibid 25 New Zealand Trade and Enterprise Market Profile for Wine in Southeast Asia 26 Euromonitor International Wine in Vietnam 27 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service 28 Ibid 29 U.S.–Vietnam Trade Council Trading Rights and Distribution Services 12 August 2005 30 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service 31 Huong, Bui Thi Vietnam Food and Agricultural Import Regulations and Standards: New Good Labeling Regulations 2007 USDA Foreign Agriculture Service Gain Report Number VM7037 June 2007 32 Vietnam Product Specific Requirements Chapter 20 33 Huong, Bui Thi Vietnam Exporter Guide 2007 USDA Foreign Agriculture Service 34 ASEAN Product Specific Requirements Chapter 20 ... with market information and regulatory compliance issues Comprehensive Study of the Vietnamese Wine Market III Vietnam Wine Market Analysis Statistical Highlights • The Vietnamese wine market. .. Comprehensive Study of the Vietnamese Wine Market 5.2 Vietnam Grape and Wine Production “According to the Vietnam Beverages Association, there are approximately 15 wine producers operating in Vietnam. .. Comprehensive Study of the Vietnamese Wine Market I Project Background This project is the result of a collaborative effort taken between JBC International and the Wine Institute, Wine America,