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swiss business hubasean

Market Report

Food Processing and Packaging EquipmentMarket in ASEAN – an Industry Overview.

Author:Converging Knowledge Pte Ltd79A Duxton RoadSingapore 089538Phone +65 6225 8781, Fax +65 6323 0132www.convergingknowledge.com

In cooperation with:Swiss Business Hub ASEANc/o Embassy of Switzerland1 Swiss Club Link, Singapore 288162Phone +65 6468 5799, Fax +65 6466 8245www.sbh-asean.org

Food Processing and Packaging Equipment

Market in ASEAN- An Industry Overview

Written by: Converging Knowledge Pte Ltd

79A Duxton Road Singapore 089538

Phone: (65) 6225 8781 Fax: (65) 6323 0132

www.convergingknowledge.com

In order of: Swiss Business Hub ASEAN c/o Embassy of Switzerland

1 Swiss Club Link Singapore 288162 Tel. +65 64685799

Fax: +65 64668245 www.sbh-asean.org

August 2006

Swiss Business Hub ASEAN Food Processing and Packaging Equipment Market in ASEAN

Page 2

Contents

Executive Summary ........................... 3 An overview of ASEAN ...................... 4 Overview of Food Processing and Packaging Equipment Industry in ASEAN ............................................... 14 Competitive Landscape ................... 39 Market Entry Strategies ................... 48 Appendices ....................................... 50

Research Scope

To provide a brief overview of the Food Processing and Packaging Equipment Market in ASEAN. The ASEAN countries of focus are:

Indonesia Malaysia Philippines Singapore Thailand Vietnam

Research Approach

This report is based on a combination of primary and desktop (published resources) research. Primary research involves discrete interviews tapping on the knowledge, experience and opinions of relevant companies, industry associations, and government bodies. Desktop research includes, but not limited to, a review of the following:

• Local and international newspapers and news wires/agencies

• Leading industry and trade publications

• Websites of companies


Page 3

Executive Summary In ASEAN, the demand for machinery and equipment for the food and beverage

industry is significant and the domestic machinery industry has yet to reach the

level of meeting the needs of internal demand. As a result, most large and

medium sized food processing and packaging companies have been relying on

imported equipments mainly from Europe and the Far East to meet their demand.

Small size firms in the region on the other hand, rely on locally made food

processing and packaging (“FPP”) equipments. This is because these companies’

production output is tailored for domestic consumption and the standards

required are not as high as those headed for international market. Cost is a key

consideration as well for the small size firms.

Although local industry directories publish anything between 50 to over 200

listings of “Food Processing and/ Packaging Equipments”, interviewees we spoke

to affirms that most are agents, distributor or branch offices of foreign

manufacturers.

The top FPP equipment importing country to ASEAN is Germany. The other top

importing countries are Italy, Japan, United States and Taiwan. Switzerland’s

share in the FPP equipment is not significant. For the year 2005, the overall

imports for Swiss FPP equipments were valued at US$17.6 million.

The most common type of distribution channel in ASEAN is via traders,

distributors/agents and direct sales through branch offices. In countries like

Philippines and Vietnam, end users may also use contractors (Engineering

Company/Installation Company) to procure their FPP equipments.

Key opportunities are:

Small volume equipments targeting the large SME population; particularly

those producing high quality products in small volume.

Packaging equipment to produce plastic/ foil pouches.

Seafood processing equipment for Thailand and Vietnam.

Equipment suitable for soft drink production.


Page 4

An overview of ASEAN The Association of Southeast Asian Nations (“ASEAN”) is a political and economic

organization of countries located in Southeast Asia. The member countries of

ASEAN are of diverse mix with different levels of development. ASEAN comprises

of ten members. They are Indonesia, Malaysia, Philippines, Singapore, Thailand,

Brunei Darussalam, Vietnam, Laos, Myanmar and Cambodia.

ASEAN has a population of more than 500 million, of which 60% is less than 30

years old1. With a combined gross domestic product (“GDP”) of US$ 737 billion

and a total trade of US$ 720 billion2, ASEAN represents a market of tremendous

trade and investment opportunities.

ASEAN’s combined GDP is the third largest in Asia. Countries such as Singapore

rank among the most competitive economies in the world. In hope to fulfill its

potential, ASEAN Free Trade Area (“AFTA”) was established in January 2002. The

aim is to increase the region’s competitive advantage through the creation of a

single market and production unit by 2020.

This initiative is an important factor for importers of food processing and

packaging equipments. Intra-ASEAN trade will increase as the result of lower

trade barriers which in term will benefit the processed food industry. With the full

implementation of AFTA, the removal of trade barriers will allow processed food

to trade over borders more competitively. It is expected that companies will

undertake capital expenditure on newer or more advanced food processing and

packaging equipments in order to meet export standards.

For the purpose of this report, ASEAN countries will be referred to the cumulative of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam only. Below is a brief overview of the respective countries.

1Speech- “Leadership and Strategic Vision for the Development of East Asia” by by H.E. Ong Keng

Yong, April 25, 2006 2 Malaysia Economic News, “Make M'sia Entry Point Into ASEAN, Indian Businessmen Told”, June 9,

2006


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Indonesia

Population 245.45 million

Capital Jakarta

Area 1.9 million sq km

Major languages Bahasa Indonesia (official) , English, Dutch, Javanese and

local dialects

Major religion Islam

Monetary unit Rupiah (Rp) (US$ 1=Rp 9,000 / €1=Rp 11,318.44)*

GDP/ GDP per capita

US$ 270 billion /$3,600 (2005 est.)

GDP growth rate 5.6% (2005 est.)

Major Industries Petroleum and natural gas, textiles, apparel, footwear,

mining, cement, chemicals, fertilizers, plywood, rubber, food,

tourism

* Exchange rate as of 28 June 2006

Source: CIA Factbook

The Republic of Indonesia is spread across an archipelago of more than one

thousand islands between Asia and Australia. It is also the fourth most populous

country in the world and the world’s largest Muslim country. The total population

comprises of 45% Javanese, 14% Sundanese, 7.5% Madurese, 7.5% coastal

Malays and 26% others. The Indonesian population comprises of 350 diverse

ethnic groups. The total urban population is estimated to be 34% of the total

population and it is rising annually by 4 to 5 %. Over two-thirds of the population

in the country is under the age of 30.

With its large population, Indonesia offers a large market with huge potential for

companies worldwide. The estimated growth rate for 2005 real GDP rate was

5.6% as compared to 5.1% in 2004. The GDP growth rate in Indonesia has been

seeing an upward growth trend for the last 8 years. Indonesia is the world’s

leading exporter of liquefied gas and second largest producer of rubber. Other

major industries include textiles, footwear, cork, wood (timber) and tourism.


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Malaysia

Population 24.3 million ( July 2006 est)

Capital Kuala Lumpur

Area 329,750 sq km

Major languages

Bahasa Melayu (official), English, Chinese (Mandarin, Cantonese

and other dialects), Tamil and other Indian dialects

Major religion Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism

Monetary unit Ringgit (MYR) (US$ 1= MYR 3.689/ € 1= MYR 4.639)*

GDP/ GDP per capita

US$ 122 billion /$12,100 (2005 est.)

GDP growth rate

5.3% (2005 est.)

Major Industries

Rubber and palm oil, processing and manufacturing, light

manufacturing industry, electronics, tin mining, timber

processing

* Exchange Rate as of June 28, 2006


Consisting of two regions separated by 640 miles of the South China Sea,

Malaysia is a federation of 13 states and three federal territories- Kuala Lumpur,

Putrajaya and Labuan. The total population constitutes 50.4% Ethnic Malays,

23.7% Chinese, 11% indigenous tribes, 7.1 % Indians, and 7.8% others. Over

62% of the population in the country is between 15 and 64 years of age.

Malaysia is one of the fastest growing economies in the region. Malaysia has been

able to transform itself from 1971 through the late 1990s from a producer of raw

materials into an emerging multi-sector economy. Growth has been exclusively

driven by exports, in particular, exports of the electronics. Malaysia is also one of

the world’s largest producer of palm oil, rubber and timber3.

3 http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm


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Philippines


Capital Manila

Area 300,000 sq km

Major languages Filipino (Tagalog- Official), English and other local dialects.

Major religion Christianity, Islam

Monetary unit Peso (PHP) (US$ 1 =PHP 53.12 / €1= PHP 66.7965)*

GDP/ GDP per capita

US$ 91.36 billion/US $5,100 (2005 est.)

GDP growth rate 5.1% (2005 est.)

Major Industries Electronics assembly, garments, footwear, pharmaceuticals,

chemicals, wood products, food processing, petroleum

refining, fishing.



Philippines is made up of more than 7,000 islands but the bulk of the population

lives on just 11 of them. About 14% of the total population lives in Manila. Of the

total population, 28.1% are Tagalog, 13.1% Cebuano, 9% Ilocano, 7.6%

Bisaya/Binisaya, 7.5% Hiligaynon Ilonggo, 6% Bikol, 3.4% Waray and 25.3%

others. 61% of the populations live in the urban areas4 and more than 60% of the

population is between 15 to 64 years of age. The country has the highest birth

rate in Asia, and forecasters say the population could double within three

decades5.

Over the years, Philippines has recorded a strong GDP growth rate. In 2005, GDP

grew an estimated 5.1%.

In recent years, government has stepped up efforts to improve the country’s

infrastructure in power, transport, water construction, oil and gas and

environmental technology. Other efforts include enhancing the viability of

4 2003 Estimate, UN Human Development Report 2005 5 http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1262783.stm


Page 8

financial systems and increasing trade integration with the region so as to match

the development pace of Philippines with those in the region.


Page 9

Singapore


Capital Singapore

Area 692.7 sq km

Major

languages

English (official), Bahasa Melayu (official), Chinese (Mandarin-

official), Tamil (official) and other ethnic dialects

Major religion Buddhism, Islam, Taoism, Hinduism and Christianity

Monetary unit Singapore Dollar (SGD) (US$ 1=S$ 1.595 / €1= S$2.007)*

GDP/GDP per

capita

US$ 110.6 billion /$28,100 (2005 est.)

GDP growth

rate

6.4 % (2005 est.)

Major

Industries

Electronics, chemicals, financial services, oil and gas,

processed food and beverages, ship repair, construction, life

sciences, entrepot trade.



Singapore has a multi-racial population, which includes foreigners. The population

of Singapore comprises of 77% Chinese, 14% Malays and 7% Indians. Of the

total population, 76.1% fall between 15 to 64 years. English is the lingua fanca,

followed by Mandarin and other Chinese dialects, Malay, Tamil and other Indian

languages. The country is a city-state.

Often referred to as one of Asia's economic Tigers, Singapore’s GDP per capita

level is similar to many OECD countries. Singapore has a highly industrialised

economy. It operates one of the world’s busiest ports and provides an excellent

market entry point for conducting business in the region. Singapore has a highly

pro-business environment and negligible barriers of entry. It has probably the

most extensive portfolio of Free Trade Agreements, Avoidance of Double Taxation

Agreements and Investment Guarantee Agreements amongst the ASEAN

countries. It also has an excellent air, sea and IT network within and beyond its

shores.


Page 10

Thailand


Capital Bangkok

Area 514,000 sq km

Major languages

Thai (official), English and other local dialects

Major religion Buddhism, Islam, Christianity

Monetary unit Baht (Bt) (US$1= Bt 38.4256 / €1= Bt 48.327) *

GDP/ GDP per capita

US$ 183.9 billion/US $8,300 (2005 est.)

GDP growth rate

4.5% (2005 est.)

Major Industries

Tourism, textiles and garments, agricultural processing,

beverages, tobacco, cement, light manufacturing such as jewelry

and electric appliances, computer and parts, furniture, plastics,

automobiles and automotive parts.

* Exchange Rate as of 28 June 2006

Source : CIA Factbook

Thailand’s total population comprises of 80% Thai, 12% Chinese, 4% Malay, 3%

Khmer. Of the total population, 70% fall in between 15 to 64 years. Overall, 32%

of the total population resides in urban area6. English is used as a business

language although fluency may not be very high.

Thailand is the world’s fifth largest agricultural producer. In the last 25 years,

from an agricultural economy, Thailand has transformed itself into one of the

most diverse markets in the South East Asia. It has a well-developed

infrastructure, a free-enterprise economy, and pro-investment policies. Thailand

is also adaptive to new technology.

6 2003 estimate, UN Human Development Report 2005


Page 11

Vietnam


Capital Hanoi

Area 329,560 sq km

Major languages

Vietnamese (official), English, French, Cantonese, Khmer and

other local dialects.

Major religion Buddhism, Christianity, Islam

Monetary unit Vietnamese dong (VND) (US$ 1=VND 15,995 / €1= VND

20,114.42)*

GDP/ GDP per capita

US$ 43.73 billion/US $ 590.- (IMF)

GDP growth rate

8.4% (2005 est.)

Major Industries Food processing, garments, shoes, cotton, tea, pepper,

soybeans, cashews, sugarcane, peanuts, bananas, poultry, fish

and seafood.

* Exchange Rate as of 28 June 2006


Vietnam is a densely populated developing country. The total population

comprises of 86.2% Kinh, 1.9% Tay, 1.9% Thai, 1.5% Muong, 1. 4% Khome,

1.1% Hoa, 1.1% Nun, 1% Hmong and 4.1% others7. 67.1% of the total

population is aged between 15 to 64 years. 25.9 % of the population resides in

the urban areas8. English is used as a business language in additional to the

official Vietnamese although fluency of the foreign tongue may not be very high.

As a former colony of France, French is also widely spoken as a second language.

Vietnam now has one of the fastest growing and most vibrant economies in Asia

with a consistent GDP growth rate of above 7% in recent years. The GDP growth

rate for 2004 was registered at 7.69% 9and the estimated GDP growth rate for

2005 was 8.5%. The government is currently stepping up efforts to development 7 1999 Vietnam Census 8 2003 estimate, UN Human Development Report 2005 9 UNDP Vietnam


Page 12

the industrial sector in Vietnam. The country is also looking into joining the World

Trade Organization (“WTO”).


Page 13

Figure 1 GDP composition of ASEAN

Services54.6%

Industry 30.6%

Agriculture14.7%

Malaysia

Services59.5%

Industry 33.3%

Agriculture 7.2 %

Philippines

Services53.5% Industry

31.7%

Agriculture 14.8%

Singapore

Agriculture0%

Industry 33.6%

Services66.4%

Thailand

Services37%

Industry 14%

Agriculture 9.3%

Vietnam

Industry 41%

Agriculture 20.9%

Services38.1%


Page 14

Overview of FPP equipment in ASEAN

In ASEAN, the demand for machinery and equipment for the food and beverage

industry is significant and the domestic machinery industry has yet to reach the

level of meeting the needs of internal demand. As a result, most large and

medium sized food processing and packaging companies have been relying on

imported equipments mainly from Europe and the Far East to meet their demand.

Small size firms in the region on the other hand, rely on locally made food

processing and packaging (“FPP”) equipments. This is because these companies’

production output is tailored for domestic consumption and the standards

required are not as high as those headed for international market. Cost is a key

consideration as well for the small size firms.

According to industry sources there exists a used FPP equipment market in

countries like Thailand, Philippines, Indonesia and Vietnam. In Vietnam we note

that the government has a policy of discouraging imports of used FPP equipment.

Industry sources from across all countries have indicated that ASEAN rely heavily

on imports of FPP equipment. Import accounts for between 70-95% of the total

market size in the respective countries. Between 2003 and 2005, value of imports

of FPP equipments into ASEAN have increased by some 50%. We note this is

based on available trade statistics and does not take into consideration the

currency fluctuation between importing and exporting countries during this

period.


Page 15

Figure 2 Total imports of FPP equipments into ASEAN 2002-2005

684.55782.10

1028.53

0

200

400

600

800

1000

1200

2003 2004 2005

US$

mill

ion

Total import

Note: The above exclude Vietnam for all three years and Philippines for 2004.

Data was unavailable

Source: World Trade Atlas and UN Comtrade

For the year 2005, FPP equipment imports from Switzerland were valued at

US$17.6 million. During the year, key Swiss imports to ASEAN (by value) are

cooking range machinery (US$2.72 million) , beverage aerators & labeling

machineries (US$ 2.345 million) , packing and wrapping machines (US$ 2.42

million), machinery for making confectionary (US$ 2.2 million) and parts for

machinery for the industrial preparation (US$ 1.7 million). In addition,

Switzerland has more than one quarter share (26.24%) in dairy products

machinery equipment imported into the region. For further breakdown by product

type, please refer to the Appendix 1.

Region wide, based on trade statistics for 2005, Germany is the largest importer

of FPP equipments into ASEAN countries. The total import value was in excess of

US$ 328.3 million. Other top importing countries are Japan, Italy, United States

and China.

In addition, customization and fabrication is undertaken by a significant number

of companies that deals in FPP equipments.


Page 16

Government Initiatives

The governments are taking initiatives to develop and improve the Food and

Beverage Manufacturing (“F&B manufacturing”) sector in ASEAN. In countries like

Vietnam, Philippines and Thailand, the respective governments have spelt out

plans to further develop the F&B manufacturing sectors to boost export. In

Vietnam’s case, the government in planning on improving its dairy, fruits and

vegetables, coffee and tea sectors by 2015. Philippines government has identified

its F&B manufacturing as one of the ‘export winners’ due to its high growth

potential.

Tariff rates

According to industry sources, there are no import charges for FPP equipment to

ASEAN countries.

The implementation of AFTA means existing import tariff has been eliminated if

not reduced substantially. To qualify for the Common Effective Preferential Tariff

(“CEPT”) a scheme aimed at intra ASEAN trade, local content requirement is at no

less than 40%. Local content can be single or cumulative from the member

states. For consolidated CEPT package by country based on HS code, please refer

to ASEAN Secretariat website or http://www.aseansec.org/17689.htm.

Increasing income level and growing urban population

Increase in income level has changed the food consumption pattern in the region.

In Malaysia there are changes in food consumption patterns and increasing

preferences for Western-style foods. In the Philippines, due to increasing

urbanization and expanding middle class, there has been a growing demand for

consumer-ready food products. For Thailand, there has been a growing demand

for a wider variety of processed food due to increase in demand for TV Dinners

and other ready to eat foods.

In the section below, we will provide a brief landscape on the FPP equipment

markets in the respective ASEAN countries.


Page 17

Indonesia Indonesia has a good prospect for Food Processing and Packaging (“FPP”)

equipments. F&B manufacturing is expected to grow at an average of 8% over

the next few years10. Equipment needs for F&B manufacturing is largely met by

imported FPP equipments as local manufacturer is unable to meet the

sophisticated demand of median and larger F&B manufacturing enterprises.

Characteristics and market size

Industry observers and desktop sources estimate the number food and beverage

processors in Indonesia are between over 600 to about 30,000. These companies

range from home based cottage enterprise to SME as well as large multinational

firms. On industry player estimate there are approximately 100 beverage

companies and in excess of 100 large size food processing enterprise.

Demand for FPP equipments in Indonesia is largely met by imports. We are

unable to obtain an estimate of what the percentage is except it was the in

excess of 70%. In 2005, the value of FPP imports rose by 16%. This increment

was due to increased imports of confectionery machines, wrapping machines,

dairy machines, and beverage preparation machines. Please refer to Appendix 2

for further breakdown of the equipments by year.

Figure 3 Values of FPP Imports in Indonesia, 2003-2005

Year Value of Imports in US$

millions

% change

y-o-y

2003 131 -

2004 260 98%

2005 302 16%

Source: World Trade Atlas

10 AgeExporter, “Indonesia’s blossoming Food Processing Industry”, March 2004


Page 18

Interview with industry players and sources from Ministry of Industry indicate

there is presence of domestic machinery makers. Although the number of players

are unavailable, end users and industry insiders feels the domestic machinery

industry has not been able to satisfy the demand for high volume production.

Domestically made machineries have been limited to meet the needs for small

volume lower quality production only.

In terms of country of origin, the top five importing countries for FPP equipments

are Germany, Italy, China, Japan and Taiwan. These countries accounted for

approximately 70% of total import for the year.

Import from Switzerland to Indonesia for 2005 was valued at US$ 3.4 million.

Among the total imports from Switzerland, the highest value of Swiss imports are

in confectionary machines (US$ 1.564 million), wrapping machines (US$ 0.486

million) and paper cutting machines (US$ 0.383 million)11 .

Figure 4 Top five FPP equipment importing countries for Indonesia 2005

2005 Total: US$302 mil

3.44

11.82

17.11

32.77

58.39

92.50

0.00 20.00 40.00 60.00 80.00 100.00

Switzerland

Taiwan

Japan

China

Italy

Germany

Impo

rt c

ount

ry

Import Values/ US$ mil

Source Indonesian Trade Statistics, World Trade Atlas

Food processing and packaging industry

According to industry sources, the FPP sector in Indonesia manufacture products

like instant noodles, bakery products (including biscuits), cereals, dairy, ice

11 Indonesian Statistics, World Trade Atlas


Page 19

cream, sauce concentrates, tomato ketchup and sauces, snack foods (such as

potato chips and crackers), canned food, confectionery, chocolate and sweets.

The food and beverages sector manufacturing is the largest market for the

packaging equipment, followed by the healthcare and pharmaceutical sectors.

Industry sources are unable to provide an estimate on the percentage. The

various types of packaging materials that are used in Indonesia are glass,

plastics, paper and cardboard, cork, crowns, laminates and aluminum cans.

Carbon box packaging equipments from Germany, Italy and Taiwan have gained

significant mindshare in Indonesia according industry player.

Market Trends & Issues Trends

There has been growth of modern retail outlets, consumer sophistication and

growing health consciousness among Indonesians.

Ready to eat meals, meal replacement drinks and snack bars are slowly coming

up in Indonesia. Health drinks like green teas, ice lemon teas are becoming

popular and are in demand.

There is a growing trend for laminates, sachets and plastic packaging for food

products in the country.

The Indonesian market has remained attractive for Swiss packaging companies

such as BOBST which managed to capture a good share in serving the cigarettes

manufacturing sector. Prospects of the Indonesian tobacco industry look

favourable as foreign investment is increasing through acquisition of local firms

(H.M.Sampoerna). Smoking is still widely common among both rural and urban

population due to weak enforcement of non-smoking policy for public areas.

In food processing and packaging high growth levels should be sustained over the

long term supported by demographic developments and new habits of

consumption and the use of varied quantities (e.g. small packages to

accommodate lower income consumers). Actually, purchasing power or rate


Page 20

below poverty line are not the issues. Success of consumer products such as food

and beverages will depend greatly on the right mix of marketing incl. distribution.

Issues

According to industry sources, a majority of the consumers prefer locally

produced fresh and affordable items, so overall consumption of processed food is

still low. Also 20% of the population in Indonesia lives below poverty line.

According to industry sources, many of the home industries mostly produce

unbranded and unpackaged food products. Although these businesses are small in

size, this segment still forms a key segment of the Indonesian food processing

sector12.

Malaysia

In Malaysia, the food processing sector accounts for 10% of the total

manufacturing output13. Malaysia is one of the fastest growing economies in the

region. The country’s relatively good economic prospect as compared to other

regional players is likely to improve the prospects for Food Processing and

Packaging (“FPP”) equipment needs.

Characteristics and Market Size According to industry sources the total market size of FPP equipment is more than

MYR500 million (est. US$ 136 million). There are a small number of domestic

manufacturers while the remaining demand is met by imports.

In 2003 the FPP equipment imports were valued at US$ 154 million. For 2004 it

was valued at US$ 157 million. In 2005, the imports saw an increase to US$ 179

12 AgeExporter, “Indonesia’s blossoming Food Processing Industry”, March 2004

13 http://www.mida.gov.my/beta/view.php?cat=5&scat=9&pg=104


Page 21

million which is a 14% increase as compared to 200414. This increment was

largely due to increase in imports of confectionery machines, labeling machines,

packing and wrapping machines, paperboard or cutting machines. For more

details on the import statistics, please see Appendix 3.

Figure 5 Malaysia FPP Equipment Imports, 2003-2005

Year Value of Imports in US$

millions

% change

y-o-y

2003 154 -

2004 157 1.9%

2005 179 14%



are Germany, United States, China, Japan and Italy. These countries accounted

for approximately 55% of total import for the year.

Import from Switzerland to Malaysia for 2005 was valued at US$ 2.5 million.

Among the total imports from Switzerland, the highest value of Swiss imports are

in confectionary making machines (US$ 0.730 million), paper cutting machines

(US$ 0.54 million) and sealing and labeling machines (US$0.480 million)15 .

There are about 10 local FPP equipment manufacturers in Malaysia according to

relevant government agencies and industry players. A handful of these companies

export their equipments to Europe and have obtained CE certifications*. Many of

the locally based companies are involved with assembly and fabrication of

equipments. Trade sources have indicated Malaysia’s capability in simple

fabrication of machinery for confectionery, biscuits, bakery, and snack food

segments.

14 Malaysian Statistics, World Trade Atlas 15 Malaysian Statistics, World Trade Atlas

*CE (Conformité Européne) certification is a visible declaration by the manufacturer (or his

representative, importer, etc.) that the equipment which is certified complies with all the requirements

of all the applicable directives. This certification allows manufacturers and exporters to circulate

products freely within the 15 European Union (EU) members.


Page 22

Main players according to industry insider are Tetrapak, Stork and APV.

Figure 6 Top 5 importing countries for Malaysia 2005

2005 Total: US$179 mil

2.52

13.59

16.33

16.58

22.13

30.58

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Switzerland

Italy

Japan

China

United States

Germany

Impo

rtin

g co

untri

es

Import Values/ US$ millions

Source: Malaysian Statistics, World Trade Atlas

Food Processing & Packaging Industry

The food processing industry in Malaysia is populated by small and medium sized

firms. 38% of F&B manufacturing companies are small size enterprise, 48%

medium size and only 14% of the total numbers are large scale firms16.

Malaysia exports processed foods to 80 countries, with an annual export value of

around US$ 1.3 billion17. For the first nine months of 2005, the processed food

exports were recorded at US$ 1.268 billion while the imports were recorded at

US$1.260billion18.

Some key feautres of Malaysia’s food processing sector:

Fisheries: An exported oriented sector. Export exceeds US$ 0.4 billion per annum

of which frozen prawns constitute more than US$ 158 million.

16 Bernama Industry Reports 2006 17 http://www.mida.gov.my/beta/view.php?cat=5&scat=9&pg=104 18 Bernama Industry Reports 2006


Page 23

Pepper and pepper products: Malaysia is the world’s 5th largest producer of pepper,

exporting US$32 million.

Chocolate and sugar confectionaries: Malaysia is the 6th largest cocoa grinding

center in the world and the largest cocoa grinder in Asia.

Live stock and dairy: Poultry processing accounts for 60% of the meat processing

industry. CAB Cakaran Corp Bhd is one of the largest integrated poultry farmer

and trader. Except for the production of pasteurised milk, the dairy product

industry is dependent on imports.

Fruits and vegetables: The major activity in the downstream processing of fruits is

the canning of pineapple and pineapple juice. The processing of vegetables is

confined to the production of sauces and pickles.

According to industry sources, 50% to 60% of the packaging materials are

utilized for the Food & beverage (“F&B”) packaging industry. The main types

packaging used are plastic, aluminum cans, cartons and pouches. For the last,

industry insiders believe the demand is still weak due to the cost factor.

Market Trend & Issues Trends

Malaysia’s health trend is evident in the confectionary sector. Due to consumer’s

desire to consume lower calorie intake for chocolates and other products, the

market has seen a rise of ‘the mini trend’ i.e. smaller version of regular products.

Processed food diet in Malaysia has changed drastically in the last two decades.

Meat has increasingly become more important source of nutrition. So the amount

of meat processing has increased and has become an important part of a daily

diet in Malaysia.

Industry sources believe that as consumer markets become more affluent, there

is a likely trend for higher consumption of glass and laminates in the F&B

packaging industry. In Malaysia’s case, the trend for laminates and plastic

particularly in the form of pouches seems to be increasing.


Page 24

TV dinners, instant and microwavable meals are becoming more and more

popular. Trends for frozen foods and quick convenient foods are growing for any

types of food products. Apart from Western meals, there is a growing trend and

availability of instant Indian, Malay and Chinese meals.

There is an increasing demand for halal food products around the world since the

global market in 2005 was estimated to reach US$456.6 billion19. As a result of

which there is a huge potential in the halal food industry in Malaysia. Export

destination includes India, Pakistan, China and Europe. Tax incentives are

extended to halal food production in the form of Investment Tax Allowance

(“ITA”). Companies producing halal food will be given ITA of 100% of qualifying

capital expenditure incurred within a period of 5 years20. Similar incentives are

extended to other segments of food processing as well.

Issues

Some of the problems experienced by the industry players have to do with the

pricing of the FPP equipments. Many family run business and small scale

companies are unable to afford imported FPP equipment lines which are larger

volume and higher priced. Although European made machineries are highly

regarded for its technological advancement and reliability, the capital expenditure

required is prohibitive for most. In the absence of widely accepted locally made

machineries, imports from China have gained significant market share.

One of our interviewees commented on the distribution system for chilled

processed food in Malaysia. The tropical weather of the country means a reliable

cold chain is crucial in the handling of chilled products. The distribution process

from factory to shelf is often not well executed. The changes in temperature in

handling led to spoiling of the product. It is not uncommon for end users

(retailers) to cast the blame on the equipment manufacturers instead.

19 Bernama Industry Reports 2006 20 http://www.mida.gov.my/beta/view.php?cat=40&scat=589


Page 25

Philippines

Philippines’ Food Processing and Packaging (“FPP”) sector is fairly

underdeveloped. Philippines has a population of 89 million. Output from the food

and beverage manufacturing is mainly for domestic consumption. Agriculture

accounts for 14% of Philippines’ GDP and has an abundance of natural resources

and raw materials. F&B manufacturing has been identified as ‘export winners’ by

the government of Philippines due to its high growth potential21. It is being

promoted and developed.

Characteristics and Market Size

In the Philippines, nearly all FPP equipments are imported. Industry sources

believe 90 to 95% of the total equipment needs are fulfilled by imports. There is

however a market of second hand and refurbished equipments. There is a

presence of few local companies that manufacture small and unsophisticated FPP

equipments for the local FPP firms.

In 2003 the FPP equipment imports were valued at US$ 88 million. For 2005, it

was valued at US$ 55 million22. In comparison to 2003, labeling, capsuling,

sealing machines, paper cutting machines and beverage preparation machines

saw a huge fall in its imports. We were unable to obtain trade statistics for the

year 2004.

21 http://www.philexport.ph/food.html 22 Philippines trade statistics 2003/2005, UN Comtrade, United Nations Statistics Division


Page 26


are Germany, Japan, United States, Italy and Sweden. These countries accounted

for approximately 55% of total import for the year.

Import from Switzerland to Philippines for 2005 was valued at US$ 1.98 million.

Among the total imports from Switzerland, the highest value are in parts for

machinery for preparation of food & drinks (US$ 1.13 million), sealing and

labeling machines (US$0.593 million) and parts of milking and dairy machinery

(US$ 0.130 million). Philippines import the highest value of machinery parts for

preparation of food & drinks from Switzerland amongst ASEAN countries.

Figure 7: Top 5 FPP equipment import to Philippines

2005 Total: US$55.58 mil

1.98

2.75

4.88

6.92

7.09

9.16

0.00 2.00 4.00 6.00 8.00 10.00

Switzerland

Sweden

Italy

United States

Japan

Germany

Impo

rt co

untr

y

Import Value/ US$ mil

Source: Philippines trade statistics 2003/2005, UN Comtrade, United Nations Statistics Division

Major users of glass packaging and metal packaging (cans) are usually

manufacture by affiliate companies of food processors or produced in-house.


According to government agencies and industry sources, there are between 254-

6,000 F&B manufacturing companies in Philippines. Within that, food processing

alone accounts for more than 40% of all manufacturing enterprises (not output)

in the countries.


Page 27

95% of the F&B manufacturers are cottage or small size companies. As most of

these companies are not registered with the relevant government agencies,

tracking of the industry’s overall performance is limited. However, industry expert

believe the top 20 establishment accounts for the majority of the country’s sales.

These companies include local manufacturing facility of Nestle and output from

local conglomerate San Miguel Corporation and Del Monte.

Major processed food in Philippines include fruits and vegetables, fish and

seafood, meat and poultry, bakery, beverage, confectionery, dairy, food

supplements, condiments and seasonings, bottled water, snack goods, fats and

oils23.

The food industry in Philippines produces mainly for local consumption. Only 10%

of the total food production is exported24. Philippines’ main export commodities

for food industry comprises of fresh fruits, canned pineapple, processed nuts/

coconut, seasonings and tuna (fresh, chilled, frozen or canned).

Industry sources say that F&B accounts for 10-20% of the total packaging needs

in the Philippines. All major packaging materials are imported. These include

paperboard, tinplate, plastic resins, plastic films as well as printing ink and

colorants. In terms of materials used, glass is very popular in the beverage

sector.

Market Trend & Issues Trends

Philippine government is currently focusing on the development and promotion of

the FPP sector. Export oriented food processing has been included in the

Investment Priority Plan (“IPP”). Food processing and Packaging technology has

been identified as areas for development25.

23 Food and Agriculture Organization report, United Nations 24 www.philexport.ph/food.html 25 http://www.philexport.ph/food.html


Page 28

There is a growing demand for health-focused and on-the-go drinks in Philippines.

Such that green teas, ice teas and other health drinks and refreshments are

gaining popularity. As a result, Plastic (PET) bottles are becoming more popular.

Also, industry sources reveal that there is a growing demand for 350 ml and 500

ml plastic bottles, for one to one consumption. Italy’s SIPA Plastic Packaging

System is one company that has made significant entrance into the country26.

Issues

Electricity is expensive in the country. Energy efficiency is a major consideration

for F&B manufactures or FPP equipment importers. This sometimes could mean

preferring machineries which consumed less electricity such as part steam or

boiler instead of fully electricity reliant. Indian made FPP equipments are being

considered now as the Indian energy situation is similar to those in Philippines27.

26 Philippines Daily Inquirer, “JG summit earmarks p585m for bottle, packaging plants”, 1 June 2005 27 Based on interview with Philippines Food Processors & Exporters Association


Page 29

Singapore

Singapore has a stagnant Food Processing and Packaging (“FPP”) equipment

sector. Singapore is a highly industrialised nation with negligible agriculture

production. F&B manufacturing produces for local consumption and global

exports. Currently, Singapore exports 30% of the total food production. Market

trend indicated the proportion of export has been increasing in recent months.


Singapore’s FPP equipment market is import oriented. Industry sources have

revealed that 90-95% of the FPP equipments are imported. According to the

Industrial Green Book Directory there are about 100 FPP equipment companies.

Industry player believe only 15-20 of these companies are active. Singapore’s FPP

equipment market is made up of distributors, traders and sales offices of foreign

manufacturers. Singapore is also a re-exporting center for equipments to other

countries in the region.

In 2003 the FPP equipment imports was valued at US$ 87.9 million. For 2004 and

2005, it was valued at US$ 104.29 million and US$ 104.69 million. In 2004,

there was a large increase (18%) in the overall imports for FPP equipments as

compared to 2003. For the case of 2005, the year on year increase was only

0.3%. There was increase for import of cooking and heating equipment (US$

14.61 million), sealing, capsuling, labeling machinery (US $14.98 million),

However, there was a decrease in equipments like beverage preparing machinery

( US$ 5.509million), machines for making paper bags, sacks (US$ 0.601 million).

The top five importing countries for FPP equipments in Singapore are Germany,

Japan, United States, Italy and China. Together they account for 61% of total

import for the year.

Swiss imports to Singapore for 2005 were valued at US$ 16.86 million. Among

the imports from Switzerland, the highest value of were for cooking and heating

equipment (US $ 1.093 million), beverage preparing machines (US $ 1.009

million) and milking and dairy machinery (US$ 1.006 million). Singapore is the


Page 30

largest importer of Swiss-made cooking and heating machines, dairy machinery

and beverage preparing machines in the whole ASEAN.

Figure 8: Top 5 FPP equipment importing countries for Singapore 2005

2005 Total: US$104.17 mil

4.43

6.88

9.83

10.89

17.38

18.85

0.00 5.00 10.00 15.00 20.00

Switzerland

China

Italy

United States

Japan

Germany

Impo

rt Co

untry

Import Value/ US$ millions

Source Singapore Trade Statistics, World Trade Atlas

Food processing and packaging industry

Interview with government agencies and industry sources revealed that FPP

sector in Singapore comprises of small (20%), medium (40%) and large scale

firms.

Food processing in Singapore is a small segment of the overall economy in

Singapore, contributing less than 2.3% to 2005’s total manufacturing output. The

local population of 4.4 million means small domestic market. Hence, being

exported oriented is key for growth. At present 30% of the total production is

exported globally. F&B manufacturers participate in trade shows held in Europe

and UAE frequently to expand their market reach.

Singapore imports its raw material for food processing almost entirely. The F&B

industry comprises of fruits, vegetables, meat, dairy, fish and seafood and

beverages.


Page 31

The different types of packaging that are currently available in the market are

glass, cardboard and paper, tin, plastics and laminates. According to industry

source, FPP accounts for about 30% of the total packaging demand.

Singapore’s FPP equipment market has a potential to grow 5-10% in the short

term.

Market Trends and Issues Trends

In Singapore, most families are double income families that lead hectic lives. So

there has been a growing demand for convenience food and quick ready to eat

meals.

In developed countries like Singapore, there is an increasing consumer

consciousness of food safety, health and hygiene. With increasing export to

Europe and other developed region, there is a trend to ensure the product quality

and the process meets the requirements of the export destination.

A greater level of pre-packaging is nowadays evident in the market. There is an

increase in the number of single-serving portion packaging.

Singapore based companies tend to obtain distribution rights for the region and

use Singapore as a re-export base.

Issues

In Singapore manufacturing costs is very high in comparison to other countries

like Malaysia, Thailand and China. Hence many food processors may benefit from

relocating their manufacturing plants instead of expanding their business here in

Singapore. As a result, the growth of food processing industry may effect the

growth of equipment industry.


Page 32

Thailand

Thailand has a promising market for Food Processing and Packaging (“FPP”)

equipments. Thailand is the world’s fifth largest agricultural producer and its FPP

sector has high capacity to grow. Its processed food sector is the most developed

in ASEAN. Many of the world’s multinationals corporations like Kellogg, Nestle

and Frito Lays have relocated their manufacturing bases or expanded their local

production in Thailand. Multinationals see Thailand as the production center for

distributing food products to other Asian nations. At the same time, the Thai

government is determined on transforming Thailand into ‘the kitchen of the world’

and increasing its food export market.


Thailand relies heavily on imported Food Processing and Packaging (“FPP”)

equipments. Industry insiders believe 70-90% of the country’s FPP equipment

needs is met by import depending on the type of machinery. For packaging

equipment, there is a lower dependency rate. Overall, dependency on import has

been on the decline since 1998’s 80%. Local production of FPP equipments have

been improving. There are few local equipment manufacturers that make low

and medium speed, automatic or semi-automatic equipments. The country has

yet to have the capability to manufacture high speed equipment.

One local manufacture interviewed indicates that as high as 35% of their

production was headed for export. According to trade statistics, for 2004 export

values for Thai-made equipment were US$40.49 million. Industry observer

expects to grow on average 15-20% particularly for seafood processing

equipment.

In 2003, the FPP equipment imports were valued at US$ 222.292 million. Imports

for 2004 were valued at US$ 260.383 million. In 2005, the imports saw an

increase to US $ 387.146 million. This increase in import for 2005 is a 48.6%

year on year increase from the previous year. This large percentage increase in

import was driven mainly by import of bottling, labeling and capsuling machines

(US $104.657 million) and brewery machines (US $ 102.47 million). The two


Page 33

equipment categories saw an increase of 2,412 % and 59.3 % respectively as

compared to 2004. For more details on the import statistics, please see Appendix

4.

The top five importing countries for FPP equipments in Thailand are Germany,

Japan, United States, Italy, Taiwan and United States. Together they account for

73% of total import for the year.

Swiss imports to Thailand for 2005 were valued at US$ 4.497 million. Among the

total imports from Switzerland, the highest value was for sealing, capsuling,

labeling machines (US $ 1.237 million), packing and wrapping machines (US$

0.855 million) and paper cutting machines (US $ 0.678 million).

Figure 9 Top importers for FPP equipments in Thailand

2005 Total: US $ 387 mil

4.50

12.77

17.87

37.03

37.74

177.22

0.00 50.00 100.00 150.00 200.00

Switzerland

United States

Taiwan

Italy

Japan

Germany

Impo

rt c

ount

ry

Import values/ US$ millions

Source Thailand Statistics, World Trade Atlas

Food Processing & Packaging industry

There are more than 10,000 food manufacturing companies in Thailand28. The

food processing industry in Thailand is populated mainly by small and medium

scale enterprise, with few big players.

Processed food include fruits and vegetables, shrimps and seafood, poultry and

poultry meat products, rice grain and cereal products, sugar and confectioneries, 28 http://www.foodmarketexchange.com/datacenter/industry/article/idf_013_01.htm


Page 34

and juice and beverages. In the F&B manufacturing sector, Thailand is strong in

seafood and beer manufacturing. Seafood is Thailand’s 2nd largest food exports.

Within this category, canned tuna and the shrimp industry are the pillars of

growth.

The F&B packaging sector in Thailand uses glass, metal, plastic, cardboard and

paper, and other type of packaging. Of the above, paper and plastic are the most

popular materials available in the country. The country has a dedicated agency,

Thai Packaging Centre, to promote, develop and advance indigenous know-how

on packaging technology. One such initiative is the development of bio-plastic

technologies with the goal of producing biodegradable plastic bags suitable for

food packaging29. Major local manufacturers for F&B packaging are Delmax,

Microfill, Autopack, Varin Food Machinery and PC Pack.


Industry sources have commented that the government of Thailand is attempting

to improve the export climate for the food industry. The government has been

very strict about licensing local factories and ensures that they are adhering to

Good Manufacturing Practice (“GMP”) standards. Those targeting US, Japan and

Europe as export destinations, obtaining ISO and HACCP certifications are

essential. As a result, there has been a growing demand for equipments which

are of international standard.

According to an industry report Thailand’s dependence on imported packaging

equipment has been on the decline since 1997. However, demand continue to

persists for high speed, high accuracy equipment with capacity of over 250 pack

per minute. The buyers are mainly large food processors.

29 Thai Press Report, “Thailand government works to develop bio-based plastics industry”, 17 May

2006


Page 35

In Thailand, there is a growing demand for convenience food and quick ready to

eat meals. TV dinners and quick meals are becoming more popular as people

have less time to sit down and cook due to their busy schedule.

A greater level of pre-packaging is nowadays evident in the market. There is an

increase in the number of single-serving portion packaging. Apart from Western

meals, there is a growing trend and availability of instant Thai, Indian, Malay and

Chinese meals. Hence, industry player believe plastic or foil pouches will be a new

growth trend.

Issues

Thai F&B manufacturers are still very price conscious. However, with the need to

adhere with international standard, a used or refurbished market persists in the

country. For local manufacturers, the ratio of new versus refurbished equipment

can be as high as 1:1.


Page 36

Vietnam The Food Processing and Packaging (“FPP”) sector in Vietnam is in its infancy.

Vietnam has a population of 84 million and a consistent annual GDP growth rate

of 7-8%30. Vietnam is viewed as an attractive and a potential growth market for

F&B manufacturing companies. Vietnam is rich in natural resources. Its

agriculture sector constitutes 20.9% of the total GDP. The government of

Vietnam is taking initiatives to develop the F&B manufacturing sector in Vietnam.

Characteristics and Market Size More than 95% of FPP equipments used in Vietnam are imported. FPP

equipments are mainly imported from countries like Sweden, France, Germany,

Italy and China31. According to a report in 2005, as much as 41.5% of the

country’s FPP equipment needs were imported from Germany32. There are a small

number of locally made FFP equipments. But in general, manufacturing activities

relating to FFP equipments in the country are restricted to customized assembly

and fabrication only.

Government authority and industry sources believe Vietnam’s packaging

production technology to be 30 years behind the global average. Despite this,

Vietnam Packaging Association reckons the packaging sector is growing at least

15- 20% per year. It is also one of the most rapidly growing industries in

Vietnam. Main players include Tetra Pak, SIG and Crown.

There are no trade statistics available on FPP equipments for Vietnam.


As a centrally planned economy, government agencies such as Ministry of

Fishery, Ministry of Agriculture and Rural Development and state-owned

enterprises are leading players in addition to private enterprises.

30 Thai Press Reports, “Deputy PM to bring Danish know-how to Vietnam”, 30 January 2006 31 Based on interview with industry players 32 Vietnam Investment Review, “German firms set to arrive in Hanoi; News; international trade; Brief

Article”, 28 March 2005


Page 37

Vietnam's food processing industry is developing evenly nationwide. Export food

processing received government support through preferential credit, export

rewards and quarantine fee exemption33.

The F&B industry produces meat, fish, dairy, processed fruits and vegetables

products and beverages for domestic consumption and export. Vietnam has a

large seafood processing industry.

Table 1: Processing capacity for major Vietnamese agro products as of

2003

Number of factories Capacity/productivity

44 sugar refineries 1 million tons/year

50 coffee processing factories 200 tons/hour

400 tea processing establishments 70 tons/day

60 vegetable and

fruit processing factories

200,000 tons/year

72 cashew processing factories 200,000 tons/year

23 meat processing factories 50,000 tons

of meat products/year

Source: Ministry of Agriculture and Rural Development

The market for packaging products can be broken down into plastic packaging,

cardboard/paper, metal containers, glass and other types of packaging. Of the

total packaging needs in Vietnam, F&B sector accounts for more than 18%34. For

the beverage industry, most used materials are glass and metal, accounting for

37 and 26% share respectively. Plastic and paper packaging accounts for 22%

and 15 % of the packaging used in the beverage industry.


33 Saigon Times Magazine, “A chance for food processors”, 2 November 2003 34 Packaging Equipment for the beverage industry in Vietnam, US Commercial Service


Page 38

The country’s middle class population is expanding signaling rising income level.

This is expanding the demand for processed food products within the country.

The government of Vietnam is currently taking a number of initiatives to develop

the FPP sector in Vietnam. This includes encouraging foreign direct investment

into this sector. Sectors like beverages, fruit and vegetables, tea and dairy have

been marked for focused attention for development.

Seafood processing is regarded by players in the ASEAN as a major advantage

which Vietnam commands. Seeing this, European countries such as Denmark are

aggressively pursuing Vietnam to export their technologies and know-how in

seafood processing into the country35.

Issues

Source of financing for capital expenditures is limited. Government or state-

owned enterprises may rely on budget allocation for equipment upgrades. Certain

amount of overseas development assistance (“ODA”) has been channeled into

this sector. However for private enterprises, accesses to bank financing are

difficult and often rely on internal financing to import equipments.

Similar to other countries in this region, the existing cold chain is ineffective. This

indirectly affects FPP equipment manufacturers particularly those targeting at

chilled products. Transportation, handling and distribution system of food

products is still unpredictable in Vietnam. Due to poor handling, there is high

spoilage rate and end users tend to blame the FPP equipment suppliers for the

problem.

35 Thai Press Reports, “Deputy PM to bring Danish know-how to Vietnam”, 30 January 2006


Page 39

Competitive Landscape

Population and Segmentation Of all the countries surveyed for this report, only Thailand has a population of

domestic FPP equipment manufacturers. Although local industry directories

publish anything between 50 to over 200 listings of “Food Processing and/

Packaging Equipments”, interviewees we spoke to affirms that most are agents,

distributor or branch offices of foreign manufacturers. In the case of Thailand, the

type of FPP manufactures is mainly packaging equipment for slow to medium

speed machineries which are either automatic or semi-automatic.

Below is the main type of FPP equipments being used in the ASEAN countries. The

list is based on interviews with industry sources and trade statistics.

Processing Equipments

Dairy machinery

Presses, crushers and similar

machinery

Bakery machinery

Confectionary machinery

Cooking and heating

machinery

Machines for preparation of

meat/poultry

Brewery Machinery

Instrumentation machine for

monitoring sugar production.

Boilers

Heat exchangers

Flour equipments

Syrup processing machine


Page 40

Packaging Equipments

Seaming Machine

Palletizing Machine

Casing Machine

Wrap around packer machine

Packing and wrapping machinery

Machines for filling, closing

sealing, capsuling and labeling

wrapping machines

Paper or Paperboard or other

cutting machines

Machines for making paper

cartons boxes / Molding machines

Machines for molding articles in

paper pulp paper or paperboard

Fillers/ washers

Flour wrapping machine

Importing Countries The top FPP equipment importing country to ASEAN is Germany. For the year

2005, the cumulative total import from Germany was in excess of US$ 328.3

million36. The other top importing countries are Italy, Japan, United States and

Taiwan. The figure below illustrates the top importing countries for ASEAN. Note

that the figure does not include trade statistics from Vietnam.

Figure 10: Top importing countries for ASEAN, 2005

16.87

46.74

55.92

95.65

123.73

328.32

0 50 100 150 200 250 300 350

Switzerland

Taiwan

United States

Japan

Italy

Germany

Impo

rt C

ount

ry

Import Value/US $ million

Source World Trade Atlas and UN Comtrade Statistics 2005


Page 41

Equipments are also imported from countries like China, Hong Kong, India, and

other European countries like Denmark, Spain, France, Sweden, Eastern

European countries, Australia and South America.

Switzerland’s share in the FPP equipment is not significant. For the year 2005, the

overall imports for Swiss FPP equipments were valued at US$17.6 million36.

Competition

Domestic Production

In most countries surveyed, the presence of domestic production is low.

Countries like Indonesia, Malaysia and Thailand has some presence of domestic

production of full FPP equipments. With the exception of Thailand, most

manufacturing activities in the region are fabrication, customization and assembly

work. In Thailand, In the case of Thailand, there is a budding packaging

equipment manufacturing sector which is of export quality. However, these

equipments are limited to slow to medium speed machineries which are either

automatic or semi-automatic.

In other segments, most domestic production is geared towards local companies.

They normally manufacture smaller volume equipments. Countries like Singapore,

Vietnam and Philippines rely almost entirely on imports.

In addition, we note there is active used and refurbished equipment market in the

less developed economies such as Vietnam, Indonesia and Philippines.

Other Asian Countries

According to government officials and industry sources countries such as Japan,

China, Taiwan and India as gaining market share in the FPP equipment market.

With the exception of Japanese products, imports from the remaining three

countries have gain market share through price. Japanese products are known for

its quality and durability. Taiwanese machineries are very popular, even more

36 World Trade Atlas and UN Comtrade 2005


Page 42

popular than Chinese machines. However, overall Taiwanese and Chinese

equipments are chosen mainly for affordability. Their quality is considered less

than their European and North American counterparts.

An emerging import country is India. In the case of Philippines, Indian-made

equipments have been selected as it has been engineered to adapt with the

electricity deficient environment of Philippines.

European

European-made FPP equipments are well regarded in the region. This is

supported by trade statistics obtained. Germany has an overwhelming market

share amongst all European brands. Equipments imported from the region are

known for their quality, durability and applications. Some of the popular

companies are Alfa Laval, Sidel, Simonazzi, Tetra Pak, Intergratifica Print & Pack,

Steineker, Klockner Hansel, Sig and SIPA. However, they are also deemed

expensive.

Many of the European companies produce large volume equipments. There is an

untapped market of small-medium volume equipment which European makers

have yet to make a presence in. End users we spoke with believe there is room

for small volume models from Europe to enter provided they are priced

competitive.

Swiss

According to Industry sources, Swiss equipments are better known as in the

pharmaceutical manufacturing sector rather than food and beverage. This is

because Swiss equipments are known for their precision and application. Swiss

FPP equipment is are highly regarded for their quality and durability. However,

most industry users found the cost prohibitive. An example of Swiss company

having a known presence is Miteco AG.

United States

US-made equipments are available in the market. They are known for their

quality and technology. However, they are not as popular as their European

counterparts. US equipment makers cater to large scale firms requiring large


Page 43

volume equipments. American equipments are priced in the same range as the

Europeans. Some examples of US FPP equipment are Chester Jensen Co. Inc,

Lantech, Hobart Corp and Crown.


Page 44

Distribution Channels According to industry sources, the most common type distribution channel in

ASEAN is via traders, distributors/agents and direct sales through branch offices.

In countries like Philippines and Vietnam, end users may also use contractors

(Engineering Company/Installation Company) to procure their FPP equipments.

Figure 11: Distribution Channels

Source: Based on interviews with industry sources

According to our industry sources, the best method for foreign players to enter

the market is by appointing distributors and/ or agents. The distributor should be

player who has a track record of local market knowledge and has technical

knowledge of the FPP industry. It is essential for foreign made importers to

provide local technical support and warranty coverage. Hence, the technical

know-how of the local representative is important.

In some cases, the manufacturer may choose to appoint a regional distributor

who can provide after sales service from one central location and allow the

distributor to assign sales agents in the respective countries.

Fore

ign m

anufa

cture

r

Via Locally based

traders/ agents/

Direct sales through

Local branch office

Via turnkey contractors

(Philippines/ Vietnam)

Indonesia


Page 45

End Users

The table below lists end users requiring medium to large volume food processing

and packaging equipment. This list is neither extensive nor exhaustive.

Country Companies Food Sector/Industry

Segments

Bahtera Adimina Samudra Tbk, PT Fish products

Cahaya Kalbar Tbk, PT Confectionery and

seafood

Indofood Sukses Makmur Tbk, PT Instant noodles and

snacks

Mayora Indah Tbk, PT Confectionery and

health food

Prasidha Aneka Niaga Tbk, PT Fruit products

Sierad Produce Tbk, PT Poultry

Suba Indah Tbk, PT Condiments and edible

oil

Unilever Indonesia TBK Range of food products

Ultrajaya Milk Industry & Trading Dairy products

Indonesia

Tunas Baru Lampung Tbk, PT Edible oil

Ajinomoto (Malaysia) Berhad Condiments

Apollo Food Holdings Berhad Confectionery and

drinks

Dutch Lady Milk Industries Berhad Dairy products

Hup Seng Industries Berhad Biscuits

KFC Holdings (Malaysia) Bhd Poultry

Mamee-Double Decker (M) Berhad Food and dairy products

Nestlé (Malaysia) Berhad Manufacturer of food

and beverage

Yeo Hiap Seng (Malaysia) Bhd Soft drinks

Malayan Flour Mills Berhad Flour processing

Malaysia

NPC Resources Berhad Oil and fruits


Page 46


Segments

San Miguel Pure Foods Company,

Inc.

Canned food products

Bogo-Medellin Milling Company Sugar processing

CADP Group Corporation Sugar processing

Del Monte Philippines Inc. Canned Fruit

Alaska Milk Corporation Dairy products

Dole Philippines Canned Fruit and drinks

Bogo-Medellin Milling Company Sugar processing

RFM Corporation Fruit juice and drinks

Universal Robina Corporation Confectionery and snack

food

Philippines

Swift Foods, Inc. Processed and canned

food

Nestlé Singapore Pte Ltd Manufacturer of food

and beverage

Gardenia Foods (S) Pte Ltd Bakery

Kraft Foods (S) Pte Ltd Dairy products

F&N Foods Pte Ltd Juice and drink

manufacturer

Unilever Singapore Pte Ltd Food products

China Dairy Group Ltd Dairy products

King's Creameries (S) Private

Limited

Dairy products

Myojo Foods Company (Singapore)

Private Limited

Instant noodles/snacks

Network Foods International Limited Confectionery and cocoa

products

Singapore

Ocean International Holdings

Limited

Seafood processing

Thailand Bangkok Ranch PCL Duck meat processing


Page 47


Segments

Kiang Huat Sea Gull Trading Frozen food

Frozen Food PCL Frozen food

Lam Soon (Thailand) PCL Oil processing

Malee Sampran Public Company

Limited

Canned food and drinks

Pakfood Public Company Limited Frozen food

Siam Food Products PCL Canned food and drinks

Tipco Foods (Thailand) PCL Fruit processing

Trang Seafood Products PCL Seafood processing

Thai President Foods PCL Frozen & canned food

Vinamilk Dairy manufacturers

Vietnam Food Industry Company

(VINFON)

Instant noodle/snack

Delta Juice Vietnam Fruit juice plants

Foremost Vietnam Dairy manufacturer

Tribeco Dairy manufacturer

Vissan Import Export Corporation Canned food factory

Thien Huong Food Shareholding Co. Instant noodle/snack

manufacturer

Ha long Canned Food Co (Canfoco) Instant noodle/snack

manufacturer

Miliket Food and Foodstuff Instant noodle/snack

manufacturer

Vietnam

Vinacafe coffee


Page 48

Market Entry Strategies

Opportunities Small volume equipments targeting the large SME population; particularly

those producing high quality products in small volume.

Packaging equipment to produce plastic/ foil pouches.

Seafood processing equipment for Thailand and Vietnam.

Equipment suitable for soft drink production

Entry Strategy Equipment manufacturers can use the help of local distributors, agents or traders

to supply their equipments to the end users in ASEAN region. Another method is

to set up sales office in each of the ASEAN countries. According to industry

sources, best option is to appoint a reliable distributor, who has been around long

enough to know the industry and at the same time provide local expertise and

warranty coverage. These distributors are should be in the position to provide

after sales services such that the equipments are covered during and after

installation of the equipment. In the case of Vietnam, with the government

playing a key role in the F&B manufacturing sector, appointing a distributor with

friendly government connection will be of clear advantage.

The candidate could award with sole distribution rights for the Asia Pacific region.

The distributor then can establish own network of agents within the region. They

may also able to provide consultation, design, installation, and repair and

maintenance services. For the last, maintaining a service center with spare parts

will gain a competitive edge.


Page 49

Industry sources have stressed that the manufacturer should be advised to

provide training, good training manual and installation manual guide to the

distributors so that the distributors knows the products well.

It is important to understand local business and procurement practices. Word of

mouth is crucial. Some useful strategies include:

Working with national trade association to organize product introduction

seminar;

Participating in regional/ local trade shows

Sending representatives to business meetings with prospective national/

regional partners

Trade restrictions There are no regulatory restrictions on the of FPP equipments to ASEAN.

However in countries like Thailand and Philippines, the government imposes

Value Added Tax (“VAT”) on imported products. VAT is computed based on total

landed costs (cost of importation + freight cost + insurance cost + other

charges). VAT is an indirect tax that becomes part of the goods sold; a seller may

thus recover this cost by passing it on to the end-users.


Page 50

Appendices Appendix 1: 2005 FPP equipment import to ASEAN (Global vs

Switzerland)

HS-Code Description Total import from

(in US$ million)

% of

Global

Global Switzerland

84 19 81 Cooking ranges for making hot

drinks cooking or heating food

38.947 1.933 4.96%

84 22 20 Machinery for cleaning drying

bottles & the like

9.8683 0.124 1.25%

84 22 30 Machines for filling closing sealing

capsuling labeling bottles cans

boxes bags etc beverages aerators

199.86 2.347 1.17%

84 22 40 Other packing or wrapping

machines

287.19 2.428 0.85%

84 34 20 Dairy machinery 11.782 0.000 0.00%

84 34 90 Parts of milking & dairy machinery 4.3573 1.143 26.24%

84 35 10 Presses crushers etc electrically-

operated for making wine cider fruit

juices or similar beverages

10.4 0.000 0.00%

84 35 90 Parts of presses crushers etc

electrically-operated for making

wine cider fruit juices & similar

beverages

2.8865 0.003 0.09%

84 38 10 Bakery machines 53.634 1.544 2.88%

84 38 20 Machines for making confectionery 54.992 2.209 4.02%


Page 51

HS-Code Description Total import from

(in US$ million)

% of

Global

Global Switzerland

84 38 30 Machines for sugar making 3.8479 0.000 0.00%

84 38 40 Brewery machines 103.03 0.012 0.01%

84 38 50 Machines for preparation of meat/

poultry

25.741 0.227 0.88%

84 38 60 Machines electrically-operated for

preparing fruits nuts or vegetables

5.4634 0.068 1.24%

84 38 80 Coffee pulpers and other machinery

for preparation of beverages

74.369 1.569 2.11%

84 38 90 Parts for machinery for the

industrial preparations/

manufacture of food & drinks

40.919 1.737 4.25%

84 41 10 Paper or paperboard or other

cutting machines

72.507 1.063 1.47%

84 41 20 Machines for making paper bags

sacks or envelopes

10.364 0.000 0.00%

84 41 30 Machines for making paper cartons

boxes cases tubes drums etc excl

molding machines

13.55 0.265 1.96%

84 41 40 Machines for molding articles in

paper pulp, paper or paperboard

4.8257 0.196 4.06%

TOTAL 1028.5 16.867

Source: World Trade Atlas and UN ComTrade 2005


Page 52

Appendix 2: Indonesia FPP equipment import (HS Code) 2003-2005

2003 2004 2005

HS-Code (Millions of US$) Description

84 19 81 0.365 0.965 2.603 Cooking ranges for making hot


84 22 20 0.793 2.475 1.859 Machinery for cleaning drying bottles

& the like

84 22 30 13.248 26.19 36.09 Machines for filling closing sealing

capsuling labelling bottles cans boxes

bags etc beverages aerators

84 22 40 59.761 118.204 135.124 Other packing or wrapping machines

84 34 20 0.678 2.817 6.158 Dairy machinery

84 34 90 1.768 1.767 1.435 Parts of milking & dairy machinery

84 35 10 0.644 0.97 5.345 Presses crushers etc electrically-



84 35 90 0.168 0.192 0.598 Parts of presses crushers etc

electrically-operated for making wine

cider fruit juices & similar beverages

84 38 10 13.934 29.618 29.356 Bakery machines

84 38 20 7.369 11.543 24.359 Machines for making confectionery

84 38 30 0.46 12.958 1.507 Machines for sugar making

84 38 40 0 0.007 0.013 Brewery machines

84 38 50 1.032 3.13 2.109 Machines for preparation of meat/

poultry

84 38 60 0.277 0.758 1.216 Machines electrically-operated for

preparing fruits nuts or vegetables


Page 53

2003 2004 2005

HS-Code (Millions of US$) Description

84 38 80 3.987 9.995 12.706 COFFEE PULPERS and other

machinery for preparation of

beverages

84 38 90 3.919 4.68 17.052 Parts for machinery for the industrial

preparations/ manufacture of food &

drinks

84 41 10 18.863 24.459 18.608 PAPER OR PAPERBOARD or other

CUTTING MACHINES

84 41 20 0.763 2.391 2.765 Machines for making paper bags

sacks or envelopes

84 41 30 1.8 4.62 2.227 Machines for making paper cartons


molding machines

84 41 40 1.475 2.345 1.329 Machines for molding articles in

paper pulp paper or paperboard

Total 131.304 260.084 302.459


Appendix 3: Malaysia FPP equipment import (HS Code) 2003-2005

2003 2004 2005

HS-Code Millions of US$ Description

84 19 81 7.099 8.432 9.303 Cooking ranges for making hot drinks

cooking or heating food

84 22 20 1.959 3.601 1.532 Machinery for cleaning drying bottles &

the like

84 22 30 23.797 20.668 31.965 Machines for filling closing sealing

capsuling labelling bottles cans boxes

bags etc beverages aerators


Page 54

2003 2004 2005


84 22 40 34.702 33.226 42.787 Other packing or wrapping machines

84 34 20 1.141 1.479 1.000 Dairy machinery

84 34 90 0.542 0.266 0.154 Parts of milking & dairy machinery





electrically-operated for making wine

cider fruit juices & similar beverages

84 38 10 15.930 20.085 8.667 Bakery machines

84 38 20 13.714 8.647 20.968 Machines for making confectionery


84 38 40 0.492 0.066 0.010 Brewery machines

84 38 50 5.026 5.584 5.437 Machines for preparation of meat/

poultry

84 38 60 0.655 1.670 0.960 Machines electrically-operated for

preparing fruits nutsor vegetables

84 38 80 18.800 26.262 19.315 COFFEE PULPERS and other machinery

for preparation of beverages

84 38 90 2.946 4.014 3.489 Parts for machinery for the industrial

preparations/ manufacture of food &

drinks


CUTTING MACHINES


Page 55

2003 2004 2005


84 41 20 9.057 3.370 4.218 Machines for making paper bags sacks

or envelopes

84 41 30 3.456 5.761 2.872 Machines for making paper cartons


molding machines

84 41 40 3.592 5.158 2.275 Machines for molding articles in paper

pulp paper or paperboard

Total 154.678 157.345 179.174


Appendix 4: Thailand FPP equipment import (HS Code) 2003-2005

Thailand 2003 2004 2005


84 19 81 6.924 11.147 7.708 Cooking ranges for making hot


84 22 20 1.287 8.467 4.823 Machinery for cleaning drying

bottles & the like

84 22 30 73.753 64.418 104.657 Machines for filling closing

sealing capsuling labelling

bottles cans boxes bags etc

beverages aerators

84 22 40 36.408 60.044 65.087 Other packing or wrapping

machines

84 34 20 0.727 2.563 2.332 Dairy machinery

84 34 90 0.689 0.577 0.101 Parts of milking & dairy

machinery


Page 56

Thailand 2003 2004 2005



operated for making wine cider

fruit juices or similar beverages


electrically-operated for making

wine cider fruit juices & similar

beverages

84 38 10 8.34 13.127 9.456 Bakery machines

84 38 20 0.715 2.794 2.303 Machines for making

confectionery


84 38 40 14.974 4.079 102.47 Brewery machines

84 38 50 20.059 21.633 13.13 Machines for preparation of

meat/ poultry

84 38 60 0.446 1.203 1.782 Machines electrically-operated

for preparing fruits nutsor

vegetables

84 38 80 24.623 28.815 34.356 COFFEE PULPERS and other

machinery for preparation of

beverages

84 38 90 6.119 11.891 4.478 Parts for machinery for the

industrial preparations/

manufacture of food & drinks


CUTTING MACHINES

84 41 20 1.246 0.961 2.351 Machines for making paper bags

sacks or envelopes


Page 57

Thailand 2003 2004 2005


84 41 30 4.75 7.457 6.274 Machines for making paper

cartons boxes cases tubes

drums etc excl molding

machines

84 41 40 1.686 1.086 1.017 Machines for moulding articles

in paper pulp paper or

paperboard

Total 222.292 260.383 387.146



Page 58

Appendix 5: Key contact list (government and association)

Country Agency Role Address

Indonesia Ministry Of

Industry Of The

Republic Of

Indonesia

Government

Agency for

industry growth

Jalan Gatot Subroto Kav.

52-53, Jakarta12950,

INDONESIA

Tel: +62 21 5252194

Fax: +62 21 5261086

Indonesia Indonesian

Packaging

Federation

Association for

the packaging

industry

Jl. Kamboja 62, Tomang

Raya

Jakarta 11420, INDONESIA

Tel.: 21-568 0722

Fax: 21-74707324

Indonesia Indonesian Food

& Beverage

Association

Association for

the promotion

of F&B sector

Dutamas Fatmawati Block

D1, Jl. RS. Fatmawati No. 30

Jakarta , DKI Jakarta

Tel: 62 (021) 7230091/

7230391

Fax: 62 (021) 7230090/

7230391

Malaysia Malaysian

Industry

Development

Authority (MIDA)

Government

Agency for

industry growth

Plaza Sentral,

Jalan Stesen Sentral 5,

50470 Kuala Lumpur.

Tel: 603-2267 3633

Fax: 603-2274 7970

Malaysia Packaging

Council of

Malaysia

(PACMA)

Association

under the

Federation of

Malaysian

Manufacturers

C/o Federation of Malaysian

Manufacturers

Wisma FMM, No. 3 Persiaran

Dagang,

PJU 9 Bandar Sri

Damansara,

52200 Kuala Lumpur,

MALAYSIA

Tel.: 603-6361211


Page 59


Fax: 603-6376714

Philippines Philippine Food

Processors &

Exporters

Association Inc

Agency for the

promotion of

F&B sector.

Unit 1205 Jollibee Plaza,

Emerald Avenue

Ortigas Business Center,

1605 Pasig City

Tel: (632) 634-3304/2171;

/3466

Fax: (632) 637-7434/ 2171

Philippines Packaging

Institute Of The

Philippines

Promotion of

Packaging

industry

Room 216, 2nd. Fl.,

Comfoods Bidg., Sen. Gil J.

Puyat Ave.,

Makati, Metro Manila,

PHILIPPINES

Tel.: 2-817 2936

Fax: 2-817 2936

Philippines Philippine

Chamber Of Food

Manufacturers

Inc.

Association for

the food

manufacturers

in Philippines

Rm. 1216 Cityland 10 Tower

2

H.V. dela Costa St., Makati

City

Tel: (632) 892 4163

Fax: (632) 893 3893

Singapore Singapore Food

Manufacturer's

Association

Association for

the food

manufacturers

in Singapore

The Secretariat, 7, Teo Hong

Road Singapore 088324

Tel: (+65) 6221 2438

Fax: (+65) 6223 7235

Singapore Packaging

Council of

Singapore

Promotion of

Packaging

industry

Packaging Council of

Singapore

20 Orchard Road, SMA

House,

SINGAPORE 238830

Tel.: 338 8787

Fax: 336 5385

Thailand Thai Food Agency for the 170/21-22 9th Floor Ocean


Page 60


Processors

Association

promotion Tower 1 Bldg., New

Ratchadapisek Rd.,

Klongtoey, Bangkok

10110Thailand.

Tel : (662)261-2684-6

Fax : (662)261-2996-7

Thailand Thai Packaging

Association

Promotion of

Packaging

industry

Industrial Service Institute

Bldg.,

Soi Trimit, Kluaynamthai,

Rama 4 Rd., Bangkok

10110, THAILAND

Tel.: 2-712 1995

Fax: 2-392 9584

Vietnam Ministry of

Industry

Government

Agency for the

promotion of

industry

54 Hai Ba Trung, Hoan

Kiem, Ha Noi, Viet Nam

Tel: (+84) 04 825.8311

Fax: (+84) 04 826.5303

Vietnam Vietnam

Packaging

Association

Promotion of

Packaging

industry

701 Kinh Duong Vuong st.

Dist. 6, Ho- Chiminh city,

Vietnam Tel: 848

751257512562

Fax: 848 7512561

Vietnam Ministry of

Agriculture and

Rural

Development

Governmental

agency for

promotion of

agriculture,

forestry and

rural

development

2 Ngoc Ha Str.

Hanoi, Vietnam

Tel: 84 4 846 8160 Fax: 84 4 845 4319 Email : [email protected] Website:

www.agroviet.gov.vn

www.isgmard.org.vn

Vietnam Ministry of

Fishery

Governmental

agency for

promotion of

fishing,

10 Nguyen Cong Hoan Str.

Hanoi, Vietnam

Tel: 84 4 771 9607

Fax: 84 4 771 6702


Page 61


aquaculture and

sea food

processing

Email: [email protected]

Website:

www.mofi.gov.vn

www.fistenet.gov.vn

Vietnam Vietnam Seafood

Exporters and

Processors VASEP

Member

companies in

fishing,

aquaculture and

seafood

processing

sector,

Legal

documents,

Trade fairs and

exhibitions.

10-12 Nguyen Cong Hoan,

Ba Dinh District

Ha Noi-Vietnam

Tel: 84 4 771 5055

Fax: 84 4 771 5084

E-mail: [email protected];

or [email protected]

Website:

www.vasep.com.vn

Vietnam Food and

Foodstuff

Association of Ho

Chi Minh City

Member

companies in

food processing

sector

Legal

documents

Trade fairs and

exhibitions

Floor 10, Room 4 275B Pham Ngu Lao Str., District 1 Ho Chi Minh City - Vietnam Tel: 84 8 920 6352 Fax: 84 8 920 6351 E-mail: [email protected] Website:

http://www.ffa.com.vn

Vietnam Vietnam Coffee

and Cocoa

Association

Member

companies in

coffee and

cocoa growing,

processing and

exporting.

5 Ong Ich Khiem Str.

Ba Dinh district

Hanoi, Vietnam

Tel: 84 4 733 6520

Fax: 84 4 733 7498

Website: www.vicofa.org.vn


Page 62

Events & Exhibition

Listed below are some of the forthcoming conferences and exhibition in ASEAN

for year 2006-2008. Parties interested in conducting business in the region can

use this opportunity to network with key industry players.

Cebu Food Expo 2006 (Philippines)

Date: July 07 - 09, 2006

Venue: Waterfront Cebu City Hotel

Website:http://www.globallinkph.com/CebuFood_2006/CebuFoodExpo_index.htm

Remarks: Exhibition on Food & Beverages, Packaging & Processing Technology,

Handling & Catering Equipment, Supplies and Services

Mindanao Bakery (Philippines)

Date: July 19-22, 2006

Venue: Bangko Sentral Plenary Hall, Davao City

Remarks: Mindanao Bakery is a show where bakery suppliers from all over the

world gather & exhibit their finest products to elite professional baking operators

Food & Hotel Malaysia 2007 (Malaysia)

Date: August 22 - 25, 2007

Venue: Kuala Lumpur Convention Centre (KLCC)

Website: http://www.foodandhotel.com/

Remarks: Malaysian International Exhibition of Food, Drinks, Hotel, Restaurant &

Food Service Equipment, Supplies, Services & Related Technology

Food & Hotel Vietnam 2006 (Vietnam)

Date: September 26-29, 2006

Venue: Ho Chi Minh City International Exhibition & Convention Center

Website: http://www.foodnhotelvietnam.com/

Remarks: Vietnam’s international exhibition for Vietnam's food and hospitality

sector.

Inter Pak 2006 (Indonesia)

Date: September 6-9, 2006

Venue: Jakarta International Fair Ground Kemayoran


Page 63

Website: www.kristamedia.com

Remarks: The 7th Indonesian trade show on food processing and packaging

equipment.

Propak Indonesia 2006 (Indonesia)

Date: December 6-9, 2006

Venue: Jakarta International Fair Ground Kemayoran

Website: http://www.pamerindo.com/

Remarks: The 19th International Series of Exhibitions for the processing and

packaging industries.

Propak Vietnam 2007 (Vietnam)

Date: March 7-10, 2007

Venue: HIECC, Ho Chi Minh City

Website: http://www.propakvietnam.com/

Remarks: The 3rd International Handling, Processing and Packaging Exhibition

and Conference for Vietnam

Food Hotel Indonesia 2007 (Indonesia)

Date: March 28-31, 2007

Venue: Jakarta International Expo

Website: http://www.allworldexhibitions.com/

Remarks: 9th International Hotel, Catering, Equipment, Food and Drink

Exhibition. The exhibition will be held in conjunction with Retail Indonesia 2007.

Indonesia International Packaging Industry Exhibition 2007 (Indonesia)

Date: May 2007

Venue: NA

Website: NA

Remarks: Indonesia International Packaging Industry Exhibition

Asiapack / Asiaprint 2007 (Thailand)

Date: June 2007

Venue: Bangkok International Trade & Exhibition Centre (BITEC)

Website: http://www.asiapackasiaprint.com/


Page 64

Remarks: International Presentation of Machinery, Equipment, Materials and

Services for Packaging and Printing Industries

BEVTECH / BREWTECH 2006 ( Thailand)

Date: June 2007

Venue: Bangkok International Trade & Exhibition Centre (BITEC)

Website: NA

Remarks: International Exhibition of Beverage and Brewery Processing &

Packaging Technology

Food, Hotel & Tourism Bali 2008 (Indonesia)

Date: February 7 -9, 2008

Venue: NA

Website: http://www.pamerindo.com/2006/fht06exh.htm

Remarks: The 6th International Exhibition for Equipment, Food, Beverages and

Services to Support Indonesia's Tourism and Hospitality Industries.

Food & Hotel Asia 2008 (Singapore)

Date: April 22 – 25, 2008

Venue: Singapore Expo

Website: http://www.foodnhotelasia.com/

Remarks: The 16th Asian International Exhibition of Food and Drink, Hotel,

Restaurant, Bakery and Foodservices

Useful Websites

ASEAN

Website: http://www.aseansec.org/

Malaysian Industry Development Authority

Website: http://www.mida.gov.my/

Ministry of International Trade and Industry, Malaysia

Website: http://www.miti.gov.my/ekpweb/index.html


Page 65

Ministry of Industry, Vietnam

Website: http://www.moi.gov.vn/EN/Main.asp

Official Philippines government website

Website: http://www.gov.ph/default.asp?mytab=3

Economic Development Board -Singapore

Website: http://www.edb.gov.sg

Ministry of Trade and Industry, Free Trade Agreement -Singapore

Website: http://app.fta.gov.sg/asp/index.asp

EnterpriseONE - Singapore

Website: http://www.business.gov.sg/

World Bank- Doing Business

Website: www.doingbusiness.org

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