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