Sep 25, 2025
Part 1: Roots of tradition, seeds of opportunity
Ho Chi Minh City, home to 14 million people in Vietnam’s south, represents the country’s progressive, modern side – where citizens seek progressive, modern health and wellness products.
When New Zealand velvet players think about export markets, the two names that come up are China and South Korea. These two giants have built deep-rooted demand for deer velvet in traditional medicine and functional foods, becoming the lifeblood of our export value. And yet, just over the horizon, there’s a new name beginning to emerge — one that may not have the same scale yet, but which offers a unique blend of timing, openness, and growth potential: Vietnam.
Why Vietnam?
Vietnam is changing, and fast. With a population nearing 100 million, it’s among the fastest-growing economies in Southeast Asia, forecast to be a top 20 global economy by 2050. Income levels are rising, a sizeable middle class is emerging, and with it comes greater interest in health, wellness, and premium food and supplement products.
At the same time, Vietnam maintains deep cultural ties to traditional medicine, including the use of deer velvet and co-products. Velvet is already understood and consumed, but much of it is either locally produced (mainly in the north) or imported from China and Russia, with inconsistent quality and little traceability.
New Zealand velvet, by comparison, offers something quite different: quality assurance, full traceability through VelTrak, ethical harvesting standards, and a clean, green origin story that resonates with Vietnamese consumers — especially in urban centres.
Understanding the geography
Velvet farming in Vietnam is concentrated in the northern central region, particularly Ha Tinh Province, with smallholders raising sika deer in cages for velvet. The main consumption markets, however, lie in the south, particularly in Ho Chi Minh City, the country’s commercial capital. Here, velvet is blended into:
- Capsules and traditional formulations for vitality and anti-aging
- Functional beverages
- Seasonal wellness products tied to the Lunar New Year and other festivals
Vietnam: New Zealand velvet’s third leg?
While northern Vietnam has a traditional and conservative market for velvet, the south is progressive, brand-driven and open to premium innovation — particularly if it’s backed by quality and science. As with any emerging market, there is still important work to be done to realise the full value of Vietnam as a velvet and co-product destination. This includes identifying which product formats and sales channels yield the best returns per gram of velvet – for instance, should New Zealand velvet be sold fresh, sliced, powdered or in capsule form? How are functional food vs. traditional medicine vs. modern wellness channels performing? And what level of price premium or market reach is realistic for each format?
Equally, there is a need to explore how value chains can best align. What role should New Zealand exporters play: ingredient supplier, brand collaborator or equity partner? How can we support product development, in-market storytelling, and regulatory compliance in a way that helps Vietnamese entrepreneurs succeed?
“Ultimately, the goal is to foster long-term, equal partnerships between New Zealand velvet producers/exporters and Vietnamese brand owners who are building trust with their consumers,” says DINZ Trade and Strategy Manager Damon Paling.
“These entrepreneurs already know how to reach and excite their customers. With the right support and product, deer velvet and co-products can become the next breakthrough ingredients in their innovation pipeline – one that meets a real consumer need, adds new revenue, and delivers something fresh and aspirational to the Vietnamese wellness market.”
Cultural compatibility and ASEAN ties
Vietnam is also part of ASEAN, the Association of Southeast Asian Nations, which is a 10-member regional bloc that includes Thailand, Indonesia, Singapore and Malaysia. New Zealand has been a dialogue partner of ASEAN since 1975 and signed a Comprehensive Strategic Partnership in 2021. This gives Kiwi exporters, including those in the velvet sector, a political and trade platform to build from. Vietnam is already one of New Zealand’s fastest-growing trade partners in Southeast Asia, with two-way goods trade surpassing NZD $2 billion annually.
More importantly, there’s real people-to-people warmth between the two countries — from education and tourism to agriculture and technology — which paves the way for building long-term, trust-based commercial relationships.
A clear point of difference
Compared to velvet from China or Russia, New Zealand velvet is:
- Fully traceable
- Produced under audited animal welfare standards
- Free from antibiotics and residues
- Grown in free-range, grass-fed, cold-climate environments
For Vietnamese food manufacturers and supplement companies, this is gold. In a market where counterfeits are a concern and brand trust is paramount, being able to tell a story of clean, ethically sourced, traceable New Zealand velvet can become a unique selling point.
Not replacing China or Korea — but complementing them
It’s important to be clear: Vietnam is not going to replace our major velvet markets anytime soon. China and South Korea will remain our largest export destinations for the foreseeable future. But Vietnam gives us a third leg to stand on. It’s a growth play, and a timing play — because we have the opportunity to show up early and help shape the category as it develops.
If we move now, New Zealand can become the country of origin associated with premium, trustworthy velvet in the Vietnamese consumer’s mind. And that, long-term, is how value gets unlocked — not through volume alone but through positioning, perception and partnerships.
