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UNLOCKING
THE OPPORTUNITIES
FOR CROP SCIENCE
PRODUCTS IN
CLMV
CONTENTS
Introducton
Agriculture overview
Macro-level trends and farming practces
Conclusion and recommendatons
Go-To-Market
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Unlocking the Opportunites for Crop Science Products in CLMV
INTRODUCTION
Urbanisaton is rapidly taking place around the world. The global urban
populaton grew from 3.3 billion in 2008 to more than 4.0 billion in 2016, an
increase of about 21%. The pace of urban growth is forecast to accelerate
further.
Asia and Africa, where the urban populaton is set to double from 2000 to 2030,
will lead the trend. Cambodia, Lao PDR, Myanmar and Vietnam, also known as
the CLMV countries, accounted for 32% the Associaton of Southeast Asian
Natons’ (ASEAN) geographical area and 26% of its populaton in 2015.
Despite the slowdown in ASEAN’s overall economy, CLMV stll has strong potental
as a leading crop-producing region. CLMV faces a number of supply-side
challenges in keeping up with signicant changes in global and regional
consumpton trends, despite the impressive growth of its agribusiness sector in
recent years.
Rapid urbanisaton across ASEAN and CLMV countries will be the major driver
of growth in fertlisers and crop protecton products due to growing demand for
higher crop productvity. Progressive implementaton of the ASEAN Economic
Community (AEC) will increase opportunites for various agribusinesses to
manufacture in any ASEAN country and easily export to other markets. Key
stakeholders — policymakers, agribusinesses, retailers and farmers — will need
to develop a robust, collaboratve strategy to leverage such opportunites.
In this paper, Ipsos Business Consultng reveals the market
potental for crop science products in CLMV countries by
examining the agriculture sector and macro-level trends of each
individual market.
Strategic levers for successful market entry are presented to
advise crop science companies on their next go-to-market
challenges.MyanmarVietnam
Laos PDR
Cambodia
Thailand
Unlocking the Opportunites for Crop Science Products in CLMV
Myanmar
Myanmar’s agricultural sector accounts for 29% of the
economy and more than 60% of workforce in 2015.
From the start of the country’s politcal and economic
reforms in 2012, agriculture became an area of key focus
especially with growing concerns over natonal food
security and the government’s desire for the country to
regain its long lost positon as the world’s leading rice
exporter.
The public and private sectors have cooperated to
improve productvity and quality for rice farmers by
increasing access to agricultural machinery rental and
building rice mills across the country.
The sector remains underdeveloped despite its abundant
agricultural resources mainly due to long-term
underinvestment and inecient farming practces.
Many policies, such as foreign ownership of land, land
security improvement and development of infrastructure,
have been adjusted to atract more foreign direct investment
in the sector.
Other reforms, such as nancing systems and value chain
structure, are needed to enhance Myanmar’s potental
as an exporter.
Combined, it is hoped these initatves shif traditonal
farming practces towards market-based producton with
higher use of agricultural machinery and inputs to help
build the agricultural sector into a sustainable mainstay
of Myanmar’s economy.
Vietnam
Vietnam has become one of the region’s most atractve
markets for foreign investors, a trend which is expected
to persist in the coming years.
Strong annual economic growth, which averaged 10.8%
from 2010–15, is forecast to contnue untl 2020 when
the overall economy is expected to reach US$300 billion.
Cambodia
Cambodia is emerging as one of ASEAN’s growth in rising
economic stars, achieving average annual gross domestc
product of 9.9% for the ve years following the 2008
global nancial crisis.
The expanding industrial and service sectors were the
two highest contributors to the naton’s economic
growth, while the 2014–16 El Nio hindered agricultural
productvity.
Despite unfavourable weather conditons, agriculture
remains the main income source for most Cambodians,
accountng for 59% of the naton’s workforce in 2015.
Most Cambodian farmers are smallholders with less than
two hectares per household.
Cambodia’s government in 2014 announced the
Rectangular Strategy Phase III and Natonal Strategic
Development Plan 2014–18 for the agricultural sector,
which aims to sustain annual growth of the agricultural
sector at 4%.
The vision is to modernise agriculture by applying new
technologies, expanding mechanisaton and increasing
funding for agricultural research to increase crop yields
and quality.
The government also plans to promote the commercialisaton
of agricultural products and enhance partnerships
between farmers and traders, as well as between
large-scale agro-industries and smallholders.
As a result, Lao agricultural producton remains overly
reliant on natural resources which results in lower yields.
Insucient irrigaton coverage substantally aects local
farming practce.
As farmers are unable to cultvate rice during dry season
they shif to crops that require less water. This limits Lao
PDR’s potental to become a major rice exporter.
Lao PDR
Agriculture is a key component of the Lao economy,
accountng for 24% of gross domestc product and 66%
of its workforce in 2015.
Farming remains a subsistence actvity for most people in
this landlocked country, where mountains and forests
account for 70% of its territory.
The government has launched several initatves to
commercialise agricultural producton in recent years.
However, these medium-term plans were hampered by
the government’s budget decit.
Current policy is focused on atractng foreign investment
to support developments in educaton, health and
infrastructure, such as roads and hydropower plants, all
of which will create rmer foundatons for the industrial
and service sectors with the agricultural sector likely to
develop at a slower pace.
Agricultural infrastructure — including irrigaton, reservoirs
and water pumping statons, which are being gradually
developed — is stll insucient to support longer-term
development and agricultural productvity.
AGRICULTURE OVERVIEWUnlocking the Opportunites for Crop Science Products in CLMV
Crops%
Rice48%
Rubber17%
Sugarcane8%
Cassava7%
Maize5%
Palm3%
Others12%
Base year: 2015
Crops%
Rice66%
Cassava12%
Rubber8%
Maize4%
Pulses3%
Vegetables1%
Others6%
Base year: 2015
Crops%
Rice62%
Maize14%
Vegetables and Pulses12%
Coee5%
Cassva4%
Sugarcane1%
Others2%
Base year: 2013
Crops%
Rice41%
Pulses24%
Oilseedcrops14%
Rubber4%
Fruits3%
Vegetables3%
Others11%
Base year: 2014
Cr