Mê Thú Cưng - Pet Magazine for Vietnam TET 2017 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 countries of the TPP , including USA / Canada , Australia and Japan that have large , mature pet markets .
Mê Thú Cưng / Volume 01 2017 / methucung . vn 15