Market Outlook

 

Since 1986, after 30 years of opening the economy to attract foreign investors, Vietnam has become one of the world's major agricultural exporters from a poor agricultural country and is now considered one of the most potential economies in Asia.

The economy with fast grow rate, young and well-educated workforce which accounts for a large share of the total population, and strong boom in middle-class are driven factors to make Vietnam retail consumption market become the most potential one in the region.

Facts:

76% of land in Vietnam is statistically used for agriculture and labor in the agricultural sector accounts for 42% of the total labor force, but agriculture contributes only 16% to GDP. Most of enterprises in this sector are small with low level of mechanization and technology application as well as limited management experience and poor organizational structure, leading to the paradox that Vietnam still has to import a lot food. Consequently, preservation and development of value chain in agricultural and food sectors is in line with Vietnam’s current situation and development trends.
Meanwhile, consumption of food and related products is predicted to increase by 10% per year over the next five years, almost equal to growth rate of 11% of Vietnamese annual income.

 



To utilize this tremendous potential, The PAN Group, formerly known as PAN Pacific, has made fundamental changes in the strategy: focusing investment in agriculture and food through Mergers and Acquisitions (M&A) along with promoting investment in promising projects in these two sectors. With a chain of subsidiaries, affiliates in seed and cultivation, which process high-tech agricultural products; Confectionery and FMCG packaged food products; Cashew nut processing for export; Aquatic products; traditional fish sauce processing, etc., The PAN Group aims to become a leading corporation in agriculture and food based on solid business foundation, healthy financial capacity, and management experience following international standards. This will realize the aspiration to build up and develop the strong agriculture and food sector in Vietnam, bringing the brand name of Vietnam products to the region and the world.

Since its restructure and stepping into agriculture and food industry in 2013, the Group’s products have been widely used and become part of the daily lives of Vietnamese such as Ban Mai rice, Huro gummy, Bon Ami biscuit from PAN Food, RVT rice from NSC, Pangasius from ABT, shrimp form FMC, 584 Nha Trang fish sauce, Taki cantaloupe from PAN Farm, Bibica cake and candy, Lafooco’s cashew nut, PAN-SALADBOWL’s flower. PAN's current goal is not only to provide products in the domestic market, but also to expand to the region and the world, becoming a leading agriculture and food group which has market capitalization of 1 billion in the next five years. Currently, PAN is operating firmly based on FARM - FOOD – FAMILY basis, in which retail segment (Family) is going to be boosted to complete self-contained value chain "from farm to table".

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