Page 1 of 7 THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
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.
Kiet VoThanh Gerald Smith
Market Development Reports
Can Tho
–
The Key Driver and Powerhouse of the Mekong
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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 socio-economic development of the region. The city has shifted its socio-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 agriculture-fishery 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. Can
Tho shares borders with 6 provinces including An
Giang, Dong Thap, Vinh Long, Soc Trang, Bac Lieu and
Kien Giang. Travelers can reach the city by roadways, waterways or air routes.
Transportation and its contribution to Can Tho’s socio-economic development
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My Thuan Bridge
Crosses: Tien River (Northern arm of the Mekong River)
Crosses: Hau River (Southern arm of the Mekong River)
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.
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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)
Page 5 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.
Page 6 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
Page 7 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: Gerald.Smith@fas.usda.gov
Kiet Vo, Senior Agricultural Specialist
Tel: 84.28-3520-4633
Email: Kiet.Vo@fas.usda.gov
Quan Tran, Senior Agricultural Specialist
Tel: 84.28-3520-4635
Email: Quan.Tran@fas.usda.gov
Thanh Vo, Agricultural Marketing Specialist
Tel: 84.28-3520-4632
