Vietnam Egg Business confidence before intergration

From 15/5, the commercial poultry eggs without embryos, imports from the ASEAN countries to Vietnam will be the Elimination of tariff quotas. Before this information many comments business (DN) for the poultry egg industry that can still be competitive confidence.

Circular No. 04/2018/TT-BCT on of 2/4/2018, from 17/5/2018, the commercial poultry eggs, no embryos, originating from ASEAN countries to be imported into Vietnam market will no longer apply quotas import tariffs. This is the commitment made under the ASEAN goods trade agreement that Vietnam must comply. Many comments that egg products from ASEAN countries are reducing taxes when the Vietnam market will create competitive pressure for domestic enterprises, forcing them to have appropriate strategies to increase competitiveness.

According to the General Statistics Office, by the end of 2017, total poultry in the country reached 385.5 million. Up to the end of the first quarter of 2018, the country’s total poultry production increased by 6.6%. In terms of egg production, if the country produces 6.3 billion eggs in 2010, then by 2017 it has increased to 10.6 billion eggs of all kinds. With domestic poultry production in the domestic market, the average per capita consumption is 110.8 eggs/person/year, before that the rate is less than 100 eggs/person/year.

This data shows that Vietnam’s poultry industry in recent years has developed faster than before, but as reflected by many units in the industry, the price of eggs in recent years is not much profits for the business.

Doan Viet Cuong, general director of Vung Tau Youth Joint Stock Company, said that the price of ordinary industrial eggs for retail customers depends on the size of the eggs, ranging from 2,200 to 3,000 eggs. Chicken eggs from 3,500 to 4,000 VND/egg; duck eggs from 3,000 to 3,500 VND / fruit; Quail eggs are 5,000 VND/tens. At this price, both the farmer and the retailer can not say much.

Therefore, in order to adapt to integration, large scale livestock units are mainly supplied to purchasing units, small scale households and households, which are consumed directly through the sub-channels. retailers in markets, and local shops; larger companies look for joint ventures.

Mr. Pham Thanh Hung, Deputy General Director of Ba Huan Joint Stock Company Ho Chi Minh, said that in order to have quality products and safety for consumers, Ba Huan has closed the production process from farm to table with total investment of more than 1,000 billion: including farm chicken raising for eggs, chicken farms for meat, feed mills and poultry processing plants, food processing. This investment not only helps the company control the production process in the direction of modern but also helps the price of the product more competitive.

More than happyly, at the end of February, Ba Huan received $ 32.5 million from the VinaCapital Vietnam Opportunity Fund (VOF), the largest fund managed by VinaCapital. With this investment, Ba Huan will double the capacity of existing poultry farms and invest in building a new chicken farm in Long An. Accordingly, livestock and ancillary facilities such as breeding farms, breeding hatcheries, poultry slaughterhouses, food processing plants and egg processing plants will be increased. The aim is to provide enough seed for the increase of input capacity, while effectively processing the output volume several times larger than the present one.

According to the Association of Poultry in Southeast Vietnam, egg prices in Vietnam are still lower than other countries in the region and at the world average, so if the countries export to Vietnam will be difficult to compete.

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