상품 DB - KOTRA 해외시장뉴스 상품·산업

베트남 장난감 시장동향(2013.8)

상품DB

베트남

하노이무역관 오새봄

2015-12-21

출처 : KOTRA

Keyword #완구 #장난감

작성일자: 2013.8.27

작성자: 하노이 무역관 Ms. Do Minh Thu (dm.thu@kotra-hanoi.org.vn )

1. Overview of toys and games market in Vietnam

○ In general, the market of toys and games for children in Vietnam has been constantly developing in recent years. The overall sales performance of toys and games in 2012 witnessed a considerable growth despite the downturn of the economy. It is clear that the urbanization trend in Vietnam drove the demand for imported toys and games, aligned with the higher disposable incomes of Vietnamese parents who are more and more willing to purchase brand-name traditional toys and games for their children. Modern parents in big cities of Vietnam value toys and games as they believe they form the foundation of physical and mental development in childhood. The greater degree of brand-name selection in upscale toys and games also made a contribution to the hike in market value over the past few years.

○ As can be seen from the chart below, the sales value of toys and games stores in Vietnam has seen a stable upward trend during the period 2007~2012, with the average growth rate reaching 12% per year. At the end of 2012, the sales volume reached 1,676.4 VND billion, which equals to about US$ 79.8 million.

Source: Euromonitor International

○ The competitive landscape of traditional toys and games in Vietnam intensified in 2012, featuring many foreign brands imported by local players. International toys and games brands in particular benefit from being perceived as safe, durable and having advanced features. Increasing numbers of private label of high quality in chained retail toy stores, department stores and hypermarkets, alongside the flood of economy-tier traditional toys and games, were in evidence over the review period.

○ Premium and mid-range brands of traditional toys and games are typically found in upscale channels including department stores. In contrast, the economy-tier and some mid-range brands are available in hypermarkets, day and wholesale markets. Of these, counterfeit products from China offered at more affordable prices were increasingly seen in the marketplace over the review period. For video games, new releases of legitimate video games hardware and software were offered at high unit prices in video games stores and electronic appliance stores. Online games are provided on the platform of local online games operators in cooperation with licensees, such as internet cafés. Plastic cards and the electronic payments system are alternative payment channels for online games.

○ The urbanization trend will underpin growth of the overall traditional toys and games industry. The strong presence of online sales will bolster the cutting edge innovation in toys and games alongside the continuous expansion of distribution channels. However, manufacturers and distributors of traditional toys and games will have to face fierce competition due to the fast growing number of brands including private label imported by retailers. Higher penetration of smart phone and tablets alongside the improvement in Wi-Fi and 3G is expected to leverage on the growth of mobile games and PC and console games.

2. Vietnamese traditional toys market

□ Key trends

○ According to the latest survey result of NKID Corporation – Vietnam, there are about 20.8 million children aged from zero to 12 years old in Vietnam at the moment, showing the fact that this is a very potential market for local and foreign enterprises. In Vietnam, the average spending amount of each parent for their child is approximately US$40 per month. In particular, the expenditure for each child in big cities such as Hanoi and Ho Chi Minh City nearly doubles in comparison with the average amount of the whole country, reaching around US$85 per month, in which the spending for toys and games account for about 20%. Modern Vietnamese parents tend to budget more for branded traditional toys in the belief that these products can influence the physical and mental devolvement of their children.

○ Currently, there are some key factors that may affect Vietnamese parents’ choices in toys for children, such as origin, material, price, design and brand. Despite the fact that products originated from China still dominates the market for the past few years, accounting for almost 80 percent of the whole market; Vietnamese consumers are becoming more vigilant over these products due to the poor quality which may be harmful to their children. Plastic and wood still remain the two most favorite materials for traditional toys, accounting for about 85 percent of the entire market. In the last two years, toys made of wood are very popular among Vietnamese customers as they believe that these toys are safer for their children. Wooden toys constitute the largest percentage of the total market, especially the educational wooden toys which are believed to affect the intellectual development of children.

Source: KOTRA’s Survey

○ The spread of poor quality toy products for children in Vietnamese market is becoming serious in recent years and the Government has taken some certain actions aiming to control the market; however, the results are not positive. According to a survey carried out by 39 Quality measurement departments in different areas across the country in 2012, there are more than 10,000 products have violated the quality regulation among 26,600 samples tested. Besides, the survey result of testing plastic toys in 37 stores over the country also shows the high level of Phthalates chemical, which can cause infertility and cancer, almost 5~9 times higher than the current standard level. Obviously, Vietnamese market is in need of more high quality and safe products manufactured locally or imported from other countries rather than China.

□ Local production

○ The current toys market in Vietnam is largely dominated by products imported from China legally and illegally, accounting for almost 80%. Thus, the remaining market share for Vietnamese enterprises only stands at 20% and focuses on the medium and high market segment. However, even when Chinese products are constantly losing customers’ loyalty, there are only a few Vietnamese investors who are active in this potential market. The most successful local manufacturers of traditional toys in Vietnam market can be listed as Duc Thanh, Veesano, Lien Hiep Thanh, Hung Phat, Nguyen Bao Ngan, SD Wooden toys, etc.

○ According to Ms. Le Hai Lieu – general director of Duc Thanh Wood Processing Joint Stock Company which owns the well-known brand Win Win Toys, their sales value in 2009 reached US$3.5 million and doubled in 2011 despite the economic downturn. According to Mr. Luu Van Quang – CEO of Veesano company, the average annual growth rate of his company is about 20% per year and may go up to 25~30% per year if the product level is raised.

○ At the moment, the majority of toys for children made by local enterprises is made of wood. Mr. Nguyen Thanh Vu, Director of Nam Hoa Corporation, said that the trend for traditional wooden toys has returned in many countries and also reinforced in Vietnam in the last few years due to the reason that wooden toys have gained the perception of being safe, durable and able to stimulate the creativity of children. Furthermore, local enterprises tend to spend much more budget on R&D(Research & Development) activities as they believe that toys market is continuously changing in design, color and material. According to Mr. Nguyen Thanh Vu, investment in R&D accounted for 20% of total investment capital of Nam Hoa Corporation, while the representative of Veesano recognized that they will present a large number of new products next year although still manufacture and distribute more than 500 toy models.

□ Import Statistics

○ In accordance with Vietnam Customs Office’s data and KOTRA Hanoi KBC’s calculation, the annual dollar amount of products HS Code 950300 presenting different kinds of toys imported into Vietnam generally increases over time, even during the 2007~2010 period when the economic crisis is at its peak.

○ As can be seen from the statistics below, the value of imported toy products into Vietnam in recent years almost witnessed a stable upward trend, except for a slight decrease in 2012 from US$19.2 million to US$18.7 million. The growth rate of imported toys market in Vietnam notably peaked at 53.5% in 2008 and reached the average number of 18.1% per year.

Source: ITC calculations based on UN Comtrade statistics

○ Regarding traditional toys market, China and Republic of Korea present to be the largest players in the market, accounting for 46 and 17% of the entire market respectively. Thailand and Taiwan ranked the third and fourth with the share of 7 and 6%. When it comes to Korean toy products, there are a number of brands which have gained certain awareness among Vietnamese consumers, namely EDU Play(specialized in outdoor toys); Mimiworld(dolls and accessories); Hanliptoys(plastic and smart toys); Daesung(games and puzzles). Due to the high price, Korean products are mostly distributed in big cities and focuses on medium and high market segment.

Source: ITC calculations based on UN Comtrade statistics

□ Product & Pricing

Product Image	Brand	Retail Price (US$)
	Benho Toys – Hong Kong, China	20.7
	Benho Toys – Hong Kong, China	12.0
	ETIC - Vietnam	14.5
	Sluban - China	47.6
	Winwin Toys - Vietnam	5.1
	Veesano - Vietnam	5.8
	Winwin Toys - Vietnam	5.0
	Hongji - China	4.8

□ Import regulation & Tariff

○ When carrying out customs procedures for exporting and importing goods, the customs declarers must submit and present a customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiers and accurateness of declared contents on customs declaration form.

- Documents to be submitted and presented

· The import goods declaration forms: 02 originals

· The goods purchase and sale contract or papers of equivalent legal value: 01 duplicate

· The commercial invoice: 01 original

· The bill of lading: 01 duplicate

- Documents to be additionally submitted for the following cases

· The packing list of goods (for lots of goods of many categories): 01 original, 01 duplicate

· The import goods declaration forms (for cases applied according to GATT): 02 originals

· The import permit of the competent State body (for goods on the list of goods banned from import or subject to conditional import):

① Single importation: 01 original

② Multiple importation: 01 duplicate, submit the original

· The certificate of origin (C/O) (for cases requiring the submission as prescribed): 01 original

· The entrusted import contract (if undertaking the entrusted import): 01 duplicate

· The written registration for goods quality inspection or inspection exemption notice issued by the State quality inspection agency (for import goods included in the list of those subject to state quality inspection): 01 original

· The written quarantine registrations issued by quarantine agencies (for import goods subject to quarantine): 01 original

· When carrying out customs procedures for goods imported through seaports, the customs declarers must additionally submit the delivery order (D/O).

- Documents to be produced:

· The business registration certificate: 01 original

· The certificate of import/ export business code registration: 01 copy (duplicate or original).

○ According to the National technical regulation on safety of toys (QCVN 3:2009/BKHCN) which took effect from 15th April 2010, all kinds of domestic and imported toy products in Vietnamese market must register and have the quality certification mark (CR stamp). For imported products, the importers are the one who will be in charge of that activity and the foreign manufacturers need to present all the documents required.

Import Tariff

HS Code	Description	Unit	MFN	ACFTA	AKFTA	ATIGA	VAT (%)
9503	Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriage; dolls; other toys; reduced-size (“scale”) models and similar recreational models, working or not; puzzles of all kinds.
9503.00.10	- Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages	Unit	10	5	5	0	5
9503.00.21	- - Dolls, whether or not dressed	Unit	10	5	5	0	5
9503.00.22	- - - Garments and garment accessories; footwear and headgear	Unit	10	5	5	0	5
9503.00.29	- - - Other	Unit	10	5	5	0	5
9503.00.30	- Electric trains, including tracks, signals and other accessories therefor	Unit	10	5	5	0	5
9503.00.40	- Reduced size (“scale”) models and similar recreational models, working or not	Unit	10	5	5	0	5
9503.00.50	- Other construction sets and constructional toys, of materials other than plastics	Unit	20	5	7	0	5
9503.00.60	- Stuffed toys representing animals or non-human creature	Unit	20	5	7	0	5
9503.00.70	- Puzzles of all kinds	Unit	10	5	7	0	5
9503.00.91	- - Numerical, alphabetical or animal blocks or cut-outs; word builder sets; word making and talking sets; toy printing sets; toy counting frames (abaci); toy sewing typewriters	Unit	20	5	7	0	5
9503.00.92	- - Skipping ropes	Unit	20	5	7	0	5
9503.00.93	- - Marbles	Unit	20	5	7	0	5
9503.00.99	- - Other	Unit	20	5	7	0	5

Source: Export – Import Tariff and VAT on Imports Book 2013

3. Useful contacts

□ Local manufacturers

1	SD Pte. Enterprise
Business Field	Manufacturing and trading in wooden toys
Address	Road No.1, Trung An Industrial Area, My Tho City, Tien Giang Province, Vietnam
Tel	84-73 3854 480
Fax	84-73 3854 479
E mail	vp04@sdwoodentoy.com
Website	www.sdwoodentoy.com
Remarks	Founded in 1989 by a group of high school teachers, SD Pte. Enterprise aims to produce educational wooden toys for Vietnamese children. After more than 20 years of development, the company has been distributing high quality wooden toys for both domestic and foreign markets such as Japan, Thailand and Korea.

2	Nam Hoa Corporation
Business Field	Manufacturing and trading in toys for children
Address	No. 121, Xo Viet Nghe Tinh, Wd. 17, Binh Thanh Dist., HCMC, Vietnam
Tel	84-8-3899 2972
Fax	84-8-3899 5143
E mail	info@namhoatoys.com
Website	www.namhoatoys.com
Remarks	Established in 1993, Nam Hoa Corporation is one of the leading wooden toy and children’s furniture manufacturing companies in Vietnam. The majority of the output, which is manufactured on an OEM basis, is exported to Japan and Korea, while most of their orders for wooden toys and children’s furniture come from the EU and USA. The company is now running two fully equipped factories at the monthly capacity of 30,000 sets.

3	ETIC Manufacturing and Trading Joint Stock Company
Business Field	Manufacturing and trading in wooden toys and children’s furniture
Address	APT No. 02-TT4, D1, Bac Linh Dam New Urban Area, Hoang Mai Dist., Hanoi, Vietnam
Tel	84-4-2246 7500
Fax	84-4-3641 0935
E mail	sales@eticvietnam.com
Website	www.eticvietnam.com
Remarks	Founded in 2004 with only 13 employees, ETIC Vietnam has now had more than 120 skilled workers and technicians who specialize in manufacturing educational toys for children. The company has a factory on the area of 3000m² in Thanh Tri Dist., Hanoi with a range of modern machinery system imported from Taiwan, Germany.

4	VEESANO Joint Stock Company
Business Field	Manufacturing and trading in toys for children
Address	No. 33A, Tran Hung Dao St., Hoan Kiem Dist., Hanoi, Vietnam
Tel	84-4-3828 6050
Fax	84-4-3928 9376
E mail	info@veesano.com
Website	www.veesano.com
Remarks	VEESANO company was established in 2004 and focused on manufacturing and distributing various types of toys: wooden toys, educational toys, intelligent toys for children aged from 0 to 10 years old. In addition to the product line branded Veesano made in Vietnam, the company is also the exclusive distributor of BENHO wooden toys.