Mission Statement
Food Processing and Packaging Equipment Trade Mission
Hanoi, and Ho Chi Minh City, Vietnam, and Bangkok, Thailand
Optional Spin-off to Manila, Philippines
August 11-15, 2003

Mission Description:

The United States Department of Commerce, International Trade Administration, U.S. Commercial Service, Office of Export Promotion Services is organizing a Food Processing and Packaging Equipment Trade Mission to Ha Noi and Ho Chi Minh City, Vietnam, and Bangkok, Thailand with an optional spin-off to Manila, Philippines, August 11-15, 2003. The Trade Mission will target the U.S. Food Processing and Packaging Equipment industry. The focus of the delegation will be to match U.S. companies with qualified agents, distributors, representatives, licensees, and joint venture partners in these markets.

Commercial Setting:

Vietnam

Nearly 80 percent of the Vietnamese population is involved in agriculture, which accounts for 30 percent of the GDP and 40 percent of the nation's exports. With a new emphasis on exporting products like rice, coffee, tea, cashews, pepper and seafood, there is a high demand for food processing and packaging equipment that can handle the high volumes of product. The domestic market has been unable to produce quality machinery, and the packaging technology is said to be 30 years behind the global average. In order to be competitive in the market, Vietnam needs to upgrade its technology in this industry. Vietnam provides the perfect opportunity for U.S. companies to enter a growing market, whether it be by way of supplying equipment or investing.

Thailand

Thailand is highly competitive in the food processing and packaging sector, and in order to maintain that advantage, is willing to purchase and upgrade equipment to meet high demand. The food processing equipment market has improved dramatically since the beginning of 1999. The market expanded 20% in 1999 and is expected to continue growth at an average of 20% in the next few years due mainly to the favorable food export market. In 1998 it was estimated that 80% of major Thai factories used imported machinery, with U.S. food processing equipment having a significant portion of that total. U.S. products enjoy a good reputation in Thailand, and are looked upon as high quality, durable, operable and easy to maintain. Price is the most important aspect in purchasing equipment, followed by quality and service. Thailand's economy is based on an open market and free enterprise, without any restrictions or technical standards imposed by the Thai government.

Philippines

Food processing and packaging equipment remains one of the leading sectors for U.S. exports and investments. A rapidly expanding urban population and a growing middle class with needs for more consumer-ready food products will continue to drive demand in this sector. The food processing and packaging industry is diverse in terms of business size and activity. The food processing sectors that require imported equipment are meat, fish, fruit, dairy, beverage, snack foods, and bakery. The U.S. supplied 15 percent of the food processing and packaging equipment market. Best sales opportunities for U.S. suppliers include the following sub sectors: dryers for food and beverages; industrial microwave ovens for cooking and heating food; machines for aerating beverages; bakery machinery and machinery for manufacturing macaroni, spaghetti, etc., and snack food processing equipment. In the packaging area, best prospects include can sealing machines; packing and wrapping machinery such as shrink wrappers, carton erectors, and wrap-around case packers; machinery for filling, closing, sealing, and labeling.

Mission Goals:

The Trade Mission's goal is to gain first-hand market information and provide access to key government officials and potential business partners for new-to-market, and/or new-to-export U.S. food processing firms desiring to enter these Southeast Asian markets.

Mission Scenario:

Participants will spend two days in Vietnam, two days in Thailand and will offer an option of continuing to Philippines. At each stop, the Commercial Service will provide an extensive market briefing, schedule one-on-one appointments with potential business partners for each participant, and arrange a reception to introduce the participants to key business and government officials in the food processing sector.

Timetable:

Sunday August 10	Arrive in Hanoi
Monday August 11	Market Briefing One-on-one Meetings Evening Reception
Tuesday August 12	One-on-one Meetings Afternoon travel to Ho Chi Minh City Evening Market Briefing
Wednesday August 13	One-on-one Meetings Evening Reception
Thursday August 14	Morning Travel to Bangkok One-on-one Meetings
Friday August 15	One-on-one Meetings Trade Mission Conclusion
Saturday August 16	(optional) Travel to Manila
Sunday August 17	Free Day
Monday August 18	Market Briefing One-on-one Meetings
Tuesday August 19	One-on-one Meetings

Criteria for Participation:

• Relevance of the company's business line to mission goals
  
• Potential for business in the selected markets
  
• Timeliness of the company's completed application, participation agreement, and payment of the mission participation fees
  
• Provision of adequate information on the company's products and/or services and communication of the company's primary objectives to facilitate appropriate matching with potential business partners
  
• Certification that the company's products and/or services are manufactured or produced in the United States or if manufactured/produced outside of the United States, the product/service must be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

The Trade Mission will be promoted through the following venues: the Export Assistance Centers and International Trade Administration Industry Sector Teams; the Federal Register; relevant trade publications; relevant trade associations; past Matchmaker and Commerce trade mission participants; various in-house and purchased industry lists, and on the Commerce Department trade missions calendar - www.ita.doc.gov/doctm/tmcal.html - and other Internet Web sites.

Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.

The Trade Mission will target 10 companies. The fee to participate will be approximately $2,500 for Vietnam and Thailand and $400 per day for the Philippines. The fee does not include travel and lodging costs. Recruitment will begin immediately and will close June 27, 2003, seven weeks prior to the start of the mission. Applications received after that date will be considered only if space and scheduling constraints permit.

Contact Information:

Monica McFarlane, Project Manager
Export Promotion Services
U.S. Department of Commerce, Room 2012
Washington, D.C. 20230
Tel: (202) 482-3364/Fax: (202) 482-0115
Email: Monica.mcfarlane@mail.doc.gov
Web site: http://www.usatrade.gov