Market Entry - Genetically Modified Food Market in Vietnam: Analysis of Growth, Trends and Progress (2016 - 2021)

About the Market

High nutritional content in food, greater production quantity and low requirement of pesticides drive the genetically modified food market. However, damage to beneficial insects, soil fertility coupled with genetic pollution, the absence of any centralized government regulation and lack of awareness about the benefits of GMO are restraining market growth. Rising demand for healthy food products, year round and easy availability of genetically modified food are the main trends in the global market. In 2014, the first world countries were the largest market for genetically modified food and are likely to remain so in terms of revenue, over the forecast period. China and India are expected to emerge as major markets for genetically modified food. Major players operating in this category are Monsanto US, DuPont US, Syngenta Switzerland, Bayer Crop Science Germany, Sakata Japan, BASF GmBH, and Group Limagrain France. These global giants are actively involved in collaboration with the Advanced Research Institutes (ARIs) in industrial countries such as Brazil, Argentina, China, India, Malaysia and the Philippines for significant R&D program in biotechnology and transgenic crops. Companies are also increasing their R&D in some of the African countries such as South Africa, Kenya, Zimbabwe, Mali, Nigeria, Egypt, and Uganda in order to cater to the growing demand for genetically modified food in Africa. The developers of the genetically modified food products are intensely involved in certifying their safety. For instance, FDA depends on consultative processes with developers, who voluntarily present their plans to the agency before marketing their products.

About the Geography

Vietnam is a communist state located in the South China Sea bordered by China, Myanmar, and Thailand. It is the largest recipient of FDI in Asia after China and India. Earlier it used to rely on traditional industries only, but in the past few years, the government has done very well to attract huge foreign investments into the country.

The country is rapidly developing into a manufacturing hub due to its stable economy, young and cheap workforce, and socio-political stability. The government is committed to liberalizing the economy and introduce reforms to create an atmosphere of the free market. Samsung and LG have partnered with the government to manufacture everything starting from smartphones to ships. Vietnam’s FDI inflows are now being directed towards real estate, tourism, and heavy industry. Major investors are South Korea, Malaysia, and the UK. The government has set up new SEZ and FTZ and introduced tax benefits to attract foreign investments. Vietnam must work on its financial reforms and curb corruption to reach its potential to beat its Asian counterparts in attracting foreign investment. Also, Vietnam is a member of ASEAN and WTO and is committed to fair trade.

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