The statistics² in Table 1 provide overview of the cattle and beef industry in Vietnam. The country had 5.16 million cattle head (including draught and dairy cattle) in 2013. The turnoff number³ was 1.77 million (annual growth of 8.8% on average). This has resulted in a sharp increase in beef production with an annual growth of 8% on average. The growth rate of the turnoff number is higher than that of beef production, which may suggest average carcass weights have declined. However, as the turnoff numbers could be higher than actual slaughter numbers, there may not be enough confidence in the slaughter numbers to draw this conclusion. Nevertheless, the high turnoff levels are an indication of increased specialisation and exchange of animals. The increase in beef supply per capita (6.9%) over the period reflects the increase in the turnoff/slaughter number. The cattle prices increased at the rate of 4.6% annually on average.

² Data is provided by the Centre for Informatics and Statistics/MARD based on the official data drawn from the annual livestock reporting system by the General Statistics Office in collaboration with MARD. Data on buffaloes and buffalo meat is not included.
³ It is important to note that the exchange of animals can happen several times before an animal is slaughtered. Thus, the turnoff figures could be higher than actual slaughter numbers.

The cattle industry in Myanmar is still at initial stage. However, there are a number of drivers that influence the industry development. Vietnam’s population reached 90.5 million in 2014, and is forecasted to grow to around 120 million by 2050 (UNFPA, 2014). In addition, the average annual GDP growth rate between 1995 and 2013 was 7.5%, and GDP per capita in 2013 (current USD) was $1,911 (World Bank, 2014). The purchasing power parity (PPP, current USD) was $5,294. As a superior product with positive income elasticities, beef demand is expected to increase rapidly in the next decades. Vietnam is also urbanising rapidly (currently 30% with 3.4% urban population growth per year) (UNFPA, 2014). This increases demand for high quality beef, but, on the other hand, provides opportunities for rural farmers to work off-farm or in more lucrative agricultural activities. Increasing opportunity costs of labour mean that small scale cattle production becomes less attractive economic activity for smallholders.

Figure 1 indicates a sharp increase of the cattle number in the period 2002-2007. This was in great part due to government support policies including subsidies for crossbreeding cattle and fodder plantation, credit provision, and breeding selection program. Another reason is that in many upland areas, farmers switched from raising buffalos to raising cattle because of their higher reproduction rate (Stur & Gray, 2014). In addition, during this period, demand for beef rose, the price for cattle meat increased, and farmers were able to make profit from raising cattle. Smallholders started raising more cattle using extensive grazing systems.

However, the number of cattle dropped from 6.7 million head in 2007 to 5.2 million head in 2013. Some obvious reasons are (i) an increase in the turnoff/slaughter number due to strong demand from China and domestic markets, and (ii) increased mechanisation reduced the need for draught cattle.

Beef production has risen significantly. However, in 2013 domestic beef production declined slightly compared to 2012 (Figure 1).

Figure 1: cattle production in Vietnam