This report is commissioned to develop a business expansion plan to Vietnam for Australian Agriculture Company Limited (AACo), the largest integrated cattle and beef producer in Australia. The paper also provides an analysis and assessment of the current and prospective opportunities as well as challenges in Vietnam regarding AACo’s business. The recent years have seen Vietnam growing in its importance in Australian foreign trade as its economy develops. Besides, Vietnam has also witnessed emergence of an affluent middle class citizens with rising disposable income who are more open toward western cuisine. This, coupled with a rapid development of the country’s modern trade concepts, has ...view middle of the document...
This study, demonstrating the significance of Vietnamese market for AACo’s success in South East Asia, set out to examine the opportunities and challenges for the company’s products in this market. Through the application of appropriate theories and research, analysis on the companies’ strength and current issues will be conducted. In addition, following an in-depth analysis on economic, political environments and current trends in the consumer sector of Vietnam, recommendations for AACo regarding possible modes of entry and specific strategies, together with possible implementation will also be presented.
According to the Food and Agriculture Organization of the United Nations, the global food demand will increase by 70% by 2050 (FAO, 2006). This trend has mainly being driven by higher world population, rising incomes and rapid urbanization, which are largely occurring in developing countries. It is also projected that increase in per capita incomes would shift human preferences toward higher protein diets and red meat demand in fast developing economies in Eastern Europe, South America and Asia. Furthermore, the majority of projected increase in the real value of world’s food imports is for meat (see Appendix 1). The projections by FAO also indicate that Asia is taking the lead in the agricultural food demand, accounting for 71% of the estimated increase by 2050 (FAO, 2009). Therefore, together with the increasing food production in the world, international trade will need to be boosted to meet this region’s demand.
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