Food industry posting handy growth

Vietnam’s food industry has been considered a bright spot in the economy as it gradually recovers from the Covid-19 pandemic.

The industry has posted 2022 revenue of an estimated $21.6 billion, a year-on-year increase of 55 per cent.

International food chains have seen rapid growth over recent years as a result of the influence of Western countries and increasing urbanization. Consumption of Western food accounted for around 35 per cent of total revenue.

The Ministry of Industry and Trade has so far granted 183 franchise licenses to foreign food brands in Vietnam, most of which come from the US, South Korea, and the European Union.

The increasing use of online ordering and payment services and food delivery apps has also created opportunities for the development of the local food industry.

Vietnam is considered a market with strong demand for the consumption of food and beverages. Estimates suggest that consumers use 35 per cent of their monthly spend on food and beverage consumption.

The food and beverage industry is forecast to grow at a compound annual growth rate (CAGR) of 8.65 per cent during the 2021-2026 period.

The government has chosen the food industry as one of key industries in need of development priority during the 2025-2035 period.

Vietnam has also paid greater attention to promoting international cooperation to further develop the food industry.

The recent Food & Hotel Vietnam 2022 expo in Ho Chi Minh City attracted the participation of more than 300 domestic and foreign businesses showcasing products and services. It opened up more opportunities for enterprises to approach market trends and new operational strategies and to promote business connectivity.