Mê Thú Cưng - Pet Magazine for Vietnam Native Dogs in Vietnam Issue | Page 15

Pet Industry in Vietnam
Pet Industry in Vietnam
Why a prosperous Pet Industry in Vietnam is good for you and your pets!
What are the major drivers of
a successful pet industry in
Vietnam, or any country?
The key external drivers of a pet
industry are the Number of pets per
households, Per capita disposable
income and Competition (abundance
of companies providing products and
services). The pet industry is generally
recession proof and an industry
involved with the care of ‘live animals’
that have long life spans and where the
purchase of pet products and services
is required to take care of their daily
needs (the average medium sized dog
lives 10 years with the same of the
average indoor cat).
In the last five years, the quantity and
quality of pet ownership in Vietnam
has increased dramatically, driven by
a pet industry social phenomenon first
observed in developed countries called
‘pet humanization.’ To create mature
pet culture and markets in a country,
greater amounts of disposable income
from an emerging middle class is spent
on pets, therefore raising the status of
a pet from a pragmatic position within
the household into becoming a family
member.
Little by little in Vietnam, pet’s status is
reaching the privilege of being a family
member. The marketing ramifications
of this is that the more the pet is
considered family, the more disposable
money is spent on the pet, creating
premium pet product and service
markets, thereby creating a thriving pet
industry.
What progress to date have
you witnessed in the past
five years in the development
of pet ownership and the pet
industry of Vietnam? Are there
milestones?
One must put things into prospective in
regards to progress of the pet industry
in Vietnam. The very first commercial
small companion animal Vet clinic was
only opened in Hanoi in 2003 and the
first pet shop in 2006 in Saigon. Even
in 2009 there were few good retail pet
care services where most of theses
shops sold the same limited range
of products. In the last five years the
growth of pet retail openings has risen
exponentially, although the choice of
new pet products offerings has not
grown at the same pace. There lies
opportunity.
The breakout year in regard to
milestones in the pet industry was
2014. In this year the first annual
Vietnam Animal Welfare Conference
was held at the historic Continental
Hotel in downtown Saigon. The
International Dog Show endorsed by
Fédération Cynologique Internationale
(FCI) and produced by the Vietnam
Kennel Association (VKA) had the
largest attendance and number of
corporate sponsors. And this year also
produced the first pet magazine for
Vietnam, Me Thu Cung.
Is it only about dog and cat
ownership in Vietnam or are
there other categories of pets
popular in Vietnam?
Ownership of fish and birds as pets
have a longer, popular history in
Vietnam, more than dogs and cats. In
Vietnam there are dedicated retails
shops for both fish and pets. The
ornamental fish industry is growing
in Vietnam where public and private
displays of custom made aquariums
in one’s office or home has become
a social status symbol. In regards to
birds there are many ‘hobby groups’
and ‘bird shows’ drawing many people.
There is a very Zen like experience of
sitting in a ‘bird café’ and drinking tea
. Further, there is a thriving handicraft
service sector designing and building
(hand-made) bird cages and other
accessories of types of design and size
in bamboo and rattan. The handicraft
sector in Vietnam also produce
products for dogs and cats.
What kind of career
opportunities or new business
development can a vibrant Pet
Industry in Vietnam create for
young Vietnamese?
Demand is high for dog
groomers, trainers and sitters (pet
accommodations). Currently there
are no career training schools in
Vietnam able to develop these pet care
vocations. Most young Vietnamese
that have the fortitude and resources
find training outside the country
in Thailand and Singapore at great
expense. There is opportunities for
franchise investment in pet care
services centers that are found in
Singapore and Thailand. Globally, the
demand for pet care services is rising
demonstrated by the largest pet retail
company in the world, PetSmart USA,
generating more revenue from pet care
services than pet product sales in the
past few years.
What kind of investment
opportunities in the Pet Industry
of Vietnam are available for
international investors?
International Investors looking to enter
the pet industry of Vietnam should take
advantage of this country’s decided
advantage in low cost manufacturing
and consider the production of their
pet products in Vietnam. One sector
that should be considered is the
apparel, garment and textile industry
and in particular the ‘Cut and Sew’
manufacturing service industry. This
service sector can cater to a small
pet boutique requiring 500 pieces to
large multinational manufacturing
companies requiring 5,000 pieces
or more in one order. A long list of
pet apparel and accessories can be
cheaply manufactured, exported and
considerations should be taken in the
selling of the pet products in Vietnam.
Since Vietnam is a member of the
Trans Pacific Partnership Agreement
(TPP) this investment would be an
attractive option to companies that are
part of the member countri