Can Tho – The Key Driver and Powerhouse of the Mekong Delta Region_Ho Chi Minh City_Vietnam_9-5-2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 9/5/2017
GAIN Report Number: VM7042
Vietnam
Post: Ho
Chi Minh City
Can Tho – The Key Driver and Powerhouse of the Mekong
Delta Region
Report Categories:
Market Development Reports
Approved By:
Gerald Smith
Prepared By:
Kiet VoThanh
Report Highlights:
In an effort to identify growth centers other than Ha Noi and Ho Chi Minh City as opportunities for U.S.
consumer-oriented products, FAS Ho Chi Minh City is conducting market assessment trips to
burgeoning new commerce centers across Vietnam. This report provides an overview of Can Tho, the
largest city in the Mekong Delta Region. The city presents first-class business opportunities for U.S.
exporters of consumer-oriented products because it is the growth engine of the Mekong Delta Region.
Can Tho is the only city in the Mekong Delta selected to host one of the 17 Asia-Pacific Economic
Cooperation (APEC) meetings in Vietnam in 2017.
Page 1 of 7
A glance at Can Tho City – the West Capital of Vietnam offering economic vitality to the Mekong
River Delta
Since 2009, Can Tho has been classified as a “first-class” city under the direct management of the
central government. Currently, Vietnam has 5 central-level cities managed by the national government
including – Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and Can Tho. With a population of 1.25
million1, Can Tho is the largest city in the Mekong Delta and the city plays a critical role in the socioeconomic development of the region. The city has shifted its economic focus from traditional agriculture
to industry, trade, services, tourism and agro-businesses over the last 10 years. As a result, contribution
to the city’s Gross Regional Domestic Products (GRDP) from trade-services and industry-construction
has become more significant than the contribution from the agriculture-fishery sector. The city’s GRDP
in 2016 was reported at approximately $2.8 billion, up 7.55 percent2 over 2015, of which trade &
services accounted for 58.2 percent, followed by industry-construction at 32.5 percent while agriculturefishery contributed 9.3 percent. Consequently, new investment and infrastructural developments have
boosted the city’s modern retail sector.
1
Vietnam Statistical Office
2.
Can Tho’s Department of Planning and Investment
Geography
Located in the heart of the Mekong Delta and
benefiting from the Hau River (or the Bassac River),
which is the largest tributary of the Mekong River that
routinely provides large amount of alluvia to rice
fields, Can Tho has an absolute advantage of being a
cultural and economic hub of Mekong Delta Region.
Tho shares borders with 6 provinces including An
Giang, Dong Thap, Vinh Long, Soc Trang, Bac Lieu
Kien Giang. Travelers can reach the city by roadways,
waterways or air routes.
Can
and
Transportation and its contribution to Can Tho’s socio-economic development
Improved roads and bridges have increased access to the city. Two important bridges, My Thuan and
Can Tho, have helped road transport to the Mekong Delta in general and Can Tho in particular. Prior to
the opening of these two bridges, travelers bound for the Mekong Delta Region had to use ferries across
two large rivers - Tien River and Hau River. Ferries took an hour to cross the river, while with the My
Thuan and Can Tho bridges operating since 2000 and 2010, drivers need 15 minutes to cross over the
river.
Page 2 of 7
My Thuan Bridge
Can Tho Bridge
Crosses: Tien River (Northern arm of the Mekong
River)
Carries:
Motor vehicles
Total length: 1,535 m
Width:
23.66m
Longest span: 350m
Clearance above: 37.5m
Opened: May 21, 2000
Crosses: Hau River (Southern arm of the Mekong
River)
Carries:
Motor vehicles
Total length: 2,750 m
Width:
23.1m
Longest span: 550m
Clearance above: 39m
Opened: April 24, 2010
Like the other provinces in the region, Can Tho has a complex
waterway system comprising of Hau River, Can Tho River,
Thot Not and O Mon canals. These waterways are critical
elements to the city’s economic development - bulk
commodities like rice, fresh produce and fish are mainly
transported by boats. Countless commercial activities
associated with the rivers are found in this area, including
floating markets which have become irresistible attractions to
tourists. Phung Hiep and Cai Rang floating markets, two out
of the three most renowned floating markets in the Mekong
Delta, are located in Can Tho City.
The city is accessible by air transportation. Can Tho
International Airport, formerly Tra Noc Airport, which was
built by the U.S. Air Force in 1965, has been upgraded for
international flights across the region including domestic
flights connecting Can Tho with several cities and provinces
across the country. The airport is a commercial gateway that
is encouraging economic development synergy across the
Mekong Delta Region. Currently, the airport welcomes up to
3 million passengers a year.
Page 3 of 7
Improvements in transportation services have helped Can Tho’s tourism grow significantly in recent
years. In 2016, Can Tho City welcomed approximately 5.3 million tourists, up 14% over 2015. Tourists
who stayed over nights in Can Tho City reached 1.7 million, of which 250,000 were foreigners. Total
revenue generated from tourism in 2016 reached approx. $ 83 million, up 5% over 2015. There are about
40 tourist companies and 244 hotels in Can Tho, including 27 3-5 star hotels. American food producers
and their respective brands that hope to have strong market share a few years down the road need to
establish themselves now.
Can Tho University (CTU) is another factor helping to transform the city. The university is an important
national higher education institution in the Mekong Delta. The university also represents the cultural,
scientific and technical center of the Delta Region. Since its founding in 1966, CTU has transformed
itself into the largest university in the region. It has an enrollment of about 54,000 undergraduate
students; 3,000 students have been following Master programs; and around 300 students are Ph.D.
candidates. Every year CTU receives exchange students on internship programs from the U.S, Belgium,
Japan and other countries. CTU has concluded several student exchange and faculty exchange
agreements with universities across the globe. The university is at the core of the city’s long-term
strategy, workforce development, economic transformation initiatives and of course agricultural
priorities. Additionally, the influx of a young and well-educated population into the city is important to
the development of the burgeoning modern retail sector.
Modern retails
Can Tho city has emerged as an important retail center in the region. According to the Can Tho
Department of Industry and Trade, total revenue generated by the retail sector in 2016 reached $4.3
billion, way above other provinces in the Mekong Delta Region and even higher than Da Nang and Hai
Phong. This great achievement pushed Can Tho to become the 3rd largest retail market in the country,
just behind Ho Chi Minh City and Ha Noi. Can Tho’s retail revenue is projected to increase 9.87% in
2017, reaching $4.77 billion.
No.
City
Retail revenue in 2016 ($ billion)
1
Ho Chi Minh City
31.03
2
Ha Noi
22.95
3
Can Tho
4.35
4
Hai Phong
4.14
5
Da Nang
3.50
Modern retail in the city accounts for approximately 18 percent of the total retail sector. There are
opportunities for modern food retailers to scale up rapidly. The city currently has 16 department stores
and supermarkets including key players in the modern food retails like Co.opmart (2), Big C (1),
LotteMart (1), MM MegaMart (1), Vingroup (2). Almost all U.S. food and beverage brands available
Page 4 of 7
across Vietnam are on shelves of these supermarkets. There is also a wide variety smaller store chains
such as Mini Mart and Satrafoods.
Co.opmart, the leading local modern food retail chain, started to expand its network into the Mekong
River Region in 2003 by opening a supermarket in Can Tho City. Co.opmart Can Tho has steadily
grown over the years. The store has expanded from a mini-supermarket of 450m2 in 2003 to a modern
supermarket of 4,000m2 currently located in Sense City, Can Tho. Furthermore, a second Co.opmart in
Thot Not District, Can Tho City, was up and running last December 2016. This new store raises the
number of Co.opmart to 85 stores across the country.
Photo with Ms. Oanh, Sales Manager of Co.opmart Can Tho
MM Mega Mart (former Metro Cash and Carry) opened its wholesale center in Hung Loi Ward, Ninh
Kieu District in 2004. The new center covers 30,000 m2 and provides a variety of products including
diverse U.S. products to food services and retailers over the Mekong Delta region.
Photo with Mr. Nguyen Thanh Trung, Director of MM
Mega Mart Hung Loi, Can Tho
Page 5 of 7
Big C opened a hypermarket covering 32,000m2 in Can Tho in July 2012. This is Big C’s 19th store in
the chain of 34 stores across the country.
Lotte Mart Can Tho with a total dimension of 15,700 m2 was inaugurated in October 2015.
Vingroup, one of Vietnams largest conglomerate companies is active in the modern food retail in Can
Tho with two department stores - Vincom Plaza Xuan Khanh and Vincom Plaza Hung Vuong.
Vincom Plaza Xuan Khanh
Vincom Plaza Hung Vuong
The growing modern food retail sector in Can Tho offers great opportunity for diverse consumer –
oriented food products. There are good opportunities for sales of high value U.S. food products that are
not yet available in Can Tho market – these products include cheese, ice cream, fresh potatoes, popcorn,
Page 6 of 7
live and frozen seafood (geoduck, lobster, and king crab), frozen shellfish, frozen wild salmon, wine and
whiskey.
For further information about Can Tho and other markets, please contact the following USDA office in
Ho Chi Minh City.
United States Consulate General
Office of U.S. Agricultural Affairs
Diamond Plaza Building, 8th floor
34 Le Duan Street, District 1
Ho Chi Minh City, Vietnam
Contact:
Gerald Smith, Senior Agricultural Attaché
Tel: 84.28 – 3520-3631
Email: [email protected]
Kiet Vo, Senior Agricultural Specialist
Tel: 84.28-3520-4633
Email: [email protected]
Quan Tran, Senior Agricultural Specialist
Tel: 84.28-3520-4635
Email: [email protected]
Thanh Vo, Agricultural Marketing Specialist
Tel: 84.28-3520-4632
Email: [email protected]
Page 7 of 7
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 9/5/2017
GAIN Report Number: VM7042
Vietnam
Post: Ho
Chi Minh City
Can Tho – The Key Driver and Powerhouse of the Mekong
Delta Region
Report Categories:
Market Development Reports
Approved By:
Gerald Smith
Prepared By:
Kiet VoThanh
Report Highlights:
In an effort to identify growth centers other than Ha Noi and Ho Chi Minh City as opportunities for U.S.
consumer-oriented products, FAS Ho Chi Minh City is conducting market assessment trips to
burgeoning new commerce centers across Vietnam. This report provides an overview of Can Tho, the
largest city in the Mekong Delta Region. The city presents first-class business opportunities for U.S.
exporters of consumer-oriented products because it is the growth engine of the Mekong Delta Region.
Can Tho is the only city in the Mekong Delta selected to host one of the 17 Asia-Pacific Economic
Cooperation (APEC) meetings in Vietnam in 2017.
Page 1 of 7
A glance at Can Tho City – the West Capital of Vietnam offering economic vitality to the Mekong
River Delta
Since 2009, Can Tho has been classified as a “first-class” city under the direct management of the
central government. Currently, Vietnam has 5 central-level cities managed by the national government
including – Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and Can Tho. With a population of 1.25
million1, Can Tho is the largest city in the Mekong Delta and the city plays a critical role in the socioeconomic development of the region. The city has shifted its economic focus from traditional agriculture
to industry, trade, services, tourism and agro-businesses over the last 10 years. As a result, contribution
to the city’s Gross Regional Domestic Products (GRDP) from trade-services and industry-construction
has become more significant than the contribution from the agriculture-fishery sector. The city’s GRDP
in 2016 was reported at approximately $2.8 billion, up 7.55 percent2 over 2015, of which trade &
services accounted for 58.2 percent, followed by industry-construction at 32.5 percent while agriculturefishery contributed 9.3 percent. Consequently, new investment and infrastructural developments have
boosted the city’s modern retail sector.
1
Vietnam Statistical Office
2.
Can Tho’s Department of Planning and Investment
Geography
Located in the heart of the Mekong Delta and
benefiting from the Hau River (or the Bassac River),
which is the largest tributary of the Mekong River that
routinely provides large amount of alluvia to rice
fields, Can Tho has an absolute advantage of being a
cultural and economic hub of Mekong Delta Region.
Tho shares borders with 6 provinces including An
Giang, Dong Thap, Vinh Long, Soc Trang, Bac Lieu
Kien Giang. Travelers can reach the city by roadways,
waterways or air routes.
Can
and
Transportation and its contribution to Can Tho’s socio-economic development
Improved roads and bridges have increased access to the city. Two important bridges, My Thuan and
Can Tho, have helped road transport to the Mekong Delta in general and Can Tho in particular. Prior to
the opening of these two bridges, travelers bound for the Mekong Delta Region had to use ferries across
two large rivers - Tien River and Hau River. Ferries took an hour to cross the river, while with the My
Thuan and Can Tho bridges operating since 2000 and 2010, drivers need 15 minutes to cross over the
river.
Page 2 of 7
My Thuan Bridge
Can Tho Bridge
Crosses: Tien River (Northern arm of the Mekong
River)
Carries:
Motor vehicles
Total length: 1,535 m
Width:
23.66m
Longest span: 350m
Clearance above: 37.5m
Opened: May 21, 2000
Crosses: Hau River (Southern arm of the Mekong
River)
Carries:
Motor vehicles
Total length: 2,750 m
Width:
23.1m
Longest span: 550m
Clearance above: 39m
Opened: April 24, 2010
Like the other provinces in the region, Can Tho has a complex
waterway system comprising of Hau River, Can Tho River,
Thot Not and O Mon canals. These waterways are critical
elements to the city’s economic development - bulk
commodities like rice, fresh produce and fish are mainly
transported by boats. Countless commercial activities
associated with the rivers are found in this area, including
floating markets which have become irresistible attractions to
tourists. Phung Hiep and Cai Rang floating markets, two out
of the three most renowned floating markets in the Mekong
Delta, are located in Can Tho City.
The city is accessible by air transportation. Can Tho
International Airport, formerly Tra Noc Airport, which was
built by the U.S. Air Force in 1965, has been upgraded for
international flights across the region including domestic
flights connecting Can Tho with several cities and provinces
across the country. The airport is a commercial gateway that
is encouraging economic development synergy across the
Mekong Delta Region. Currently, the airport welcomes up to
3 million passengers a year.
Page 3 of 7
Improvements in transportation services have helped Can Tho’s tourism grow significantly in recent
years. In 2016, Can Tho City welcomed approximately 5.3 million tourists, up 14% over 2015. Tourists
who stayed over nights in Can Tho City reached 1.7 million, of which 250,000 were foreigners. Total
revenue generated from tourism in 2016 reached approx. $ 83 million, up 5% over 2015. There are about
40 tourist companies and 244 hotels in Can Tho, including 27 3-5 star hotels. American food producers
and their respective brands that hope to have strong market share a few years down the road need to
establish themselves now.
Can Tho University (CTU) is another factor helping to transform the city. The university is an important
national higher education institution in the Mekong Delta. The university also represents the cultural,
scientific and technical center of the Delta Region. Since its founding in 1966, CTU has transformed
itself into the largest university in the region. It has an enrollment of about 54,000 undergraduate
students; 3,000 students have been following Master programs; and around 300 students are Ph.D.
candidates. Every year CTU receives exchange students on internship programs from the U.S, Belgium,
Japan and other countries. CTU has concluded several student exchange and faculty exchange
agreements with universities across the globe. The university is at the core of the city’s long-term
strategy, workforce development, economic transformation initiatives and of course agricultural
priorities. Additionally, the influx of a young and well-educated population into the city is important to
the development of the burgeoning modern retail sector.
Modern retails
Can Tho city has emerged as an important retail center in the region. According to the Can Tho
Department of Industry and Trade, total revenue generated by the retail sector in 2016 reached $4.3
billion, way above other provinces in the Mekong Delta Region and even higher than Da Nang and Hai
Phong. This great achievement pushed Can Tho to become the 3rd largest retail market in the country,
just behind Ho Chi Minh City and Ha Noi. Can Tho’s retail revenue is projected to increase 9.87% in
2017, reaching $4.77 billion.
No.
City
Retail revenue in 2016 ($ billion)
1
Ho Chi Minh City
31.03
2
Ha Noi
22.95
3
Can Tho
4.35
4
Hai Phong
4.14
5
Da Nang
3.50
Modern retail in the city accounts for approximately 18 percent of the total retail sector. There are
opportunities for modern food retailers to scale up rapidly. The city currently has 16 department stores
and supermarkets including key players in the modern food retails like Co.opmart (2), Big C (1),
LotteMart (1), MM MegaMart (1), Vingroup (2). Almost all U.S. food and beverage brands available
Page 4 of 7
across Vietnam are on shelves of these supermarkets. There is also a wide variety smaller store chains
such as Mini Mart and Satrafoods.
Co.opmart, the leading local modern food retail chain, started to expand its network into the Mekong
River Region in 2003 by opening a supermarket in Can Tho City. Co.opmart Can Tho has steadily
grown over the years. The store has expanded from a mini-supermarket of 450m2 in 2003 to a modern
supermarket of 4,000m2 currently located in Sense City, Can Tho. Furthermore, a second Co.opmart in
Thot Not District, Can Tho City, was up and running last December 2016. This new store raises the
number of Co.opmart to 85 stores across the country.
Photo with Ms. Oanh, Sales Manager of Co.opmart Can Tho
MM Mega Mart (former Metro Cash and Carry) opened its wholesale center in Hung Loi Ward, Ninh
Kieu District in 2004. The new center covers 30,000 m2 and provides a variety of products including
diverse U.S. products to food services and retailers over the Mekong Delta region.
Photo with Mr. Nguyen Thanh Trung, Director of MM
Mega Mart Hung Loi, Can Tho
Page 5 of 7
Big C opened a hypermarket covering 32,000m2 in Can Tho in July 2012. This is Big C’s 19th store in
the chain of 34 stores across the country.
Lotte Mart Can Tho with a total dimension of 15,700 m2 was inaugurated in October 2015.
Vingroup, one of Vietnams largest conglomerate companies is active in the modern food retail in Can
Tho with two department stores - Vincom Plaza Xuan Khanh and Vincom Plaza Hung Vuong.
Vincom Plaza Xuan Khanh
Vincom Plaza Hung Vuong
The growing modern food retail sector in Can Tho offers great opportunity for diverse consumer –
oriented food products. There are good opportunities for sales of high value U.S. food products that are
not yet available in Can Tho market – these products include cheese, ice cream, fresh potatoes, popcorn,
Page 6 of 7
live and frozen seafood (geoduck, lobster, and king crab), frozen shellfish, frozen wild salmon, wine and
whiskey.
For further information about Can Tho and other markets, please contact the following USDA office in
Ho Chi Minh City.
United States Consulate General
Office of U.S. Agricultural Affairs
Diamond Plaza Building, 8th floor
34 Le Duan Street, District 1
Ho Chi Minh City, Vietnam
Contact:
Gerald Smith, Senior Agricultural Attaché
Tel: 84.28 – 3520-3631
Email: [email protected]
Kiet Vo, Senior Agricultural Specialist
Tel: 84.28-3520-4633
Email: [email protected]
Quan Tran, Senior Agricultural Specialist
Tel: 84.28-3520-4635
Email: [email protected]
Thanh Vo, Agricultural Marketing Specialist
Tel: 84.28-3520-4632
Email: [email protected]
Page 7 of 7