Vietnam consumed a record amount of beef in 2013 according to the U.S. Meat Export Federation and estimates are that consumption will continue to grow in 2014. Domestic production of beef and buffalo meat slipped last year but because of economic growth, changes in Vietnam’s food service and restaurant industries, and tourism, imports from eligible supplying countries of the U.S., Australia, and India have been on the rise. Australian exports increased more than 50% in 2013 to more than 3,000 tons. Restaurants and the food sector industries have modernized their operating systems and have clear growth strategies to cater to the growing number of middle class, urban consumers. U.S. and Australian beef is competing at the higher end of retail through hotels, western restaurants, and Asian themed chain restaurants. Live cattle imports are also increasing. In 2013 Vietnam imported 56,000 head of live cattle from Australia – more than 1,500% over 2012. Vietnam’s gross domestic product (GDP) grew at 6% in the fourth quarter of 2013 and foreign direct investment exceeded initial estimates for the year. A stable exchange rate through 2014 and a decrease in interest rates will prove beneficial for beef importers in the country. Once the Trans Pacific Partnership (TPP) is ratified and tariffs and trade barriers are eliminated, the country will see increasing foreign competition for its market.
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