GF Securities: Vietnam's large-scale pig breeding is booming, focusing on the layout of domestic enterprises
The Zhitong Finance App learned that GF Securities released a research report saying that as a country with a large population, Vietnam's pork consumption market continues to expand, driven by population growth and terminal consumer demand. Currently, there is plenty of room for improvement in the scale and degree of specialization of Vietnam's aquaculture industry. At the same time, repeated disturbances and policies have forced small and medium-sized farmers to withdraw further at an accelerated pace, and large Vietnamese farming enterprises have ushered in a dividend period for industrial development. Furthermore, Vietnam's policy side has long supported foreign investment, and domestic pig breeding enterprises have advantages in terms of epidemic prevention experience and breeding technology reserves. By laying out the Vietnamese pig breeding market, it is expected to open up new overseas growth space. It is recommended to focus on the overseas layout plans of domestic pig companies, focusing on Muyuan Co., Ltd. (002714.SZ).
The main views of GF Securities are as follows:
Vietnam's pork consumption continues to grow, and pig farming ranks among the highest
Vietnam's population exceeds 100 million, and the scale of protein consumption has increased in line with economic growth. Currently, Vietnam's pork consumption and production scale are among the highest in the world, and the per capita consumption level of pork is second only to China. According to USDA data, Vietnam's pork consumption in 2024 was 3.88 million tons, ranking fourth in the world; the per capita consumption of pork is far higher than the global average. According to USDA data, Vietnamese residents consumed 38.3 kg/year of pork per capita in 2024, second only to China. In terms of pork production, Vietnam ranks sixth in the world in terms of pig production. According to USDA data, Vietnam had 255.46 million pigs in 2023, making it the 6th largest pig breeding country in the world, second only to China in Asia.
The impact of non-plague has not yet been repaired, and large-scale farming has entered a period of acceleration
There is plenty of room for improvement in large-scale and intensive pig farming in Vietnam, and family farmers are still the main participants. At the same time, Vietnam is also relatively backward in the construction of a good breeding system, and overall farming efficiency and breeding costs are not clearly competitive internationally. The first case of African swine fever was discovered in Vietnam in 2019. Due to the relatively high share of inefficient production capacity and lack of epidemic prevention capacity, Vietnam has been repeatedly disturbed by non-plague epidemics. Currently, pig storage has not returned to pre-plague levels. According to Wind data, the number of pigs kept in Vietnam in 2024 is still 11.1% lower than in 2018 before the plague. Affected by the non-plague epidemic, small and medium-sized farmers in Vietnam have been rapidly withdrawing from the market since 2019. Furthermore, Vietnam's pig breeding related policies further promote the acceleration of large-scale growth, providing space for large-scale enterprises to expand. Judging from the stage of industrial development, Vietnam's pig industry is currently still in a development dividend period.
Multinational enterprises and local groups accelerate the integration of the pig industry chain
In the process of development and integration of Vietnam's pig industry, local group enterprises and multinational enterprises under policy support gradually extended from traditional feed business to pig breeding, and achieved rapid expansion with their own industrial chain supporting advantages and introduction advantages. In terms of policy, since innovation and opening up, the Vietnamese government has maintained long-term support for overseas capital investment, and foreign direct investment (FDI) forms an important driving force for economic growth. Vietnamese FDI companies continue to increase their pig business and focus on building industrial chain integration. According to data from Vietdata, a total of 81 foreign direct investment projects were launched in Vietnam's pig breeding sector in 2022, accounting for more than 12% of Vietnam's total foreign direct investment in that year. Currently, Vietnamese pig companies are still in the horse-racing stage. There is still plenty of room for improvement in the overall market share of leading breeding enterprises. Multinational enterprises and local pig companies are actively laying out the pig market. In recent years, they have accelerated the expansion of production capacity to seize market share.
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