The average import price of poultry meat and by-products in the first seven months of the year stood at only about VND 26,500 per kilo, even as import volumes surged. Imported frozen chicken holds a price advantage across multiple distribution channels, piling additional pressure on domestic farmers amidst widespread domestic oversupply.

Data from the Customs authorities show that in the first seven months of the year, Vietnam imported 595,700 tons of meat and meat products valued at over USD 1.7 billion, up 11.4% in volume and 32.4% in value year-on-year. Poultry meat and by-products accounted for 36.5% of total import volume, equivalent to nearly 217,400 tons, with a turnover of USD 221.1 million, representing 13% of the total value of meat imports across the sector. Chicken accounted for over 90% of imported poultry, primarily cut frozen items, with chicken thighs alone making up roughly 71.5%.

The paradox of imported chicken cheaper than green vegetables

Significantly, the average import price per kilo of poultry meat and by-products was only about USD 1.02, equivalent to VND 26,500. This price dropped by nearly 29% compared to the same period last year, even though import volumes rose by over 40%.

This ultra-low pricing structure quickly established an overwhelming competitive edge upon market distribution. Surveys in Hanoi showed that retail imported frozen chicken thighs sold for just VND 45,000–55,000/kg—equal to or lower than many types of vegetables, which ranged from VND 45,000 to VND 80,000/kg. Imported frozen giblets and gizzards cost only VND 30,000–35,000/kg.

Conversely, domestic industrial chicken cuts such as wings, thighs, and breasts fetched VND 70,000–100,000/kg, exceeding imported chicken thighs by VND 15,000–55,000/kg, representing a price gap of 21–55%.

Thanks to their cheap price advantage, foreign chicken quickly captured cost-sensitive distribution channels. In Hanoi, imported frozen chicken thighs, wings, and feet are widely consumed in collective kitchens, industrial catering facilities, and eateries, while whole old laying hens serve the roasting and grilling segments.

Ms. Phuong, a poultry vendor at Tay Mo market (Hanoi), shared that foreign frozen chicken is 40–50% cheaper than domestic chicken, meaning she almost exclusively sells it to commercial processing facilities rather than retail buyers. Even in the livestock capital of Dong Nai, many industrial canteens have switched to imported chicken to cut raw material costs.

Explaining the reasons behind the astonishingly low prices of foreign chicken, Nguyen Quy Khiem, Vice Chairman and General Secretary of the Vietnam Poultry Association (VPA), stated that shipments arriving in Vietnam primarily consist of thighs, necks, wings, and edible by-products.

In many exporting countries across Europe or the Americas, consumer preferences favor chicken breasts, prompting processors to retain this portion for domestic sale at roughly four times the price of the remaining cuts. Consequently, producers have largely recouped their production costs, allowing parts like thighs, necks, and wings to be exported to countries like Vietnam at very low prices. As for by-products like giblets and gizzards, these items find little favor in domestic markets; thus, selling them to receptive overseas markets generates revenue while helping producers save on waste disposal costs.

On the other hand, countries like Brazil and the US possess cheap domestic feed supplies and large-scale, high-tech livestock farming, driving production costs down to just VND 16,000–20,000 per kilo—far below Vietnam's levels.

Domestic farmers face mounting pressure

This influx of imported goods arrived precisely when domestic poultry herds surged from late 2025 into early 2026, resulting in widespread oversupply. The segment hit hardest is short-cycle white-feathered industrial chickens.

Dr. Nguyen Xuan Duong, Chairman of the Vietnam Livestock Association, observed that the poultry market in the second half of 2026 is facing pronounced oversupply pressures. Abundant domestic supply combined with imported frozen chicken thighs and wings—priced 30% to 40% lower than fresh domestic chicken—has created a survival-level competitive squeeze for white-feathered industrial chicken farms.

Sharing this view, a representative of the Southeast Livestock Association noted that industrial chicken farmers in Dong Nai are currently racking up losses of at least VND 30,000 per marketed bird. Aside from pressure from low selling prices, farmers are seeing their profit margins eroded by skyrocketing input costs.

Since the beginning of the year, animal feed prices have undergone at least four upward adjustments, accumulating a hike of about VND 1,500 per kilo, alongside escalating electricity, fuel, and labor costs. This situation has left many farm owners hesitant to restock flocks due to excessive financial risks.

According to a report from the Ministry of Agriculture and Environment, August witnessed a pronounced divergence in prices across regions. For white-feathered industrial chickens, prices in the North rose by VND 2,000 to VND 37,000/kg, but dropped by VND 7,000 to VND 25,000/kg in the Central region, and fell by VND 8,000 to VND 25,000/kg in the South.

Previously, the Vietnam Poultry Association also recorded southern white chicken prices bottoming out at VND 22,000–24,000/kg at times, falling below production costs and plunging farmers into prolonged losses.

For colored-feather meat chickens, prices in the North surged by VND 17,000 to VND 64,000/kg. Conversely, prices dropped by VND 3,000 to VND 44,000/kg in the Central region and fell by VND 2,300 to VND 46,000/kg in the South.

Amidst the crushing pressure weighing down on farmers, the Ministry of Agriculture and Environment expects the market to recover in the fourth quarter of 2026, driven by rising poultry consumption for late-year parties, weddings, and preparations for the Lunar New Year holiday.

Source: Vnbusiness