Food processing industries in Vietnam accounts for 15% of the total GDP

Food Processing is one of the major industries in Vietnam which is seen as having great potential.

This industry is largely export-oriented, dominated primarily by seafood and agriculture food products.

Historically this industry has contributed to increase in export revenue, nurture business interface and enhance diplomatic relationships between Vietnam and other countries.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Other Key Market Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
Further Reading
Appendix

Definition / Scope

Food processing can be defined as the conversion of agricultural commodities as part of their preparation for human consumption.

This description encompasses relatively simple activities such as cleaning, grading, and storage as well as more involved transformations such as milling, canning, and freezing. Food Processing is the major industries in Vietnam which has a great potential to increase the economic condition of Vietnam.

This industry is mostly export-oriented, dominated largely by seafood and agriculture food products. Historically this industry has contributed to increase in export revenue, nurture business interface and enhance political relationships between Vietnam and other countries.

The growing consumer preference towards branded food products, rising disposable income, increasing awareness about food safety and increasing inclination towards western food are likely to drive the demand for processed food products in Vietnam for the coming years.

Major food industry in Vietnam are rice, coffee, seafood, and fruits and, vegetables

Market Overview

Presently, food processing is one of the priority industries in the country’s development plan, with initiatives to increase yield and the export value of agricultural and processed food products.

The Vietnamese food processing industry has been growing steadily at about 7 per cent in the last five years. Annual food consumption value in the country was estimated to make up 15 per cent of the GDP and the quantity also increases by approximately 10 per cent per year, while beverage consumption grows at 6.66 per cent per annum.

Vietnam has abundant raw materials and is able to meet the demand of large-scale food processing enterprises. Vietnam is one of the leading exporters of rice, coffee, pepper, and cashew nuts, among others

At the end of October 2017, as many as 128 nations and territories were investing in Vietnam with a total registered capital of $312.91 billion, including $184.4 billion in the processing and manufacturing industry, an equivalent to 59 per cent of the total investment capital in Vietnam.

Particularly, there were 295 food processing projects with over $4 billion of registered capital in the first ten months of 2017. According to the Ministry of Industry and Trade, Vietnam is among the world’s largest exporters of rice, coffee, pepper

Market Risks

Food safety is the major concern of the consumers. There are many safety related issues found in the food processing industries.

For example, it was recently reported that nine tonnes of salbutamol were legally imported for medical purposes in 2015, but only 10 kg were actually needed yearly for human use – the rest was likely used for livestock growth promotion.

Although, Vietnam has a modern food safety regulatory framework with foundations in place for further improving food safety performance and outcomes. However, much more could be done to make it result-focused and risk-based.

Increased sanitary and phytosanitary (SPS) barriers on animal and plant origin products persist. Sanitary and phytosanitary (SPS) measures are the laws, rules, standards, and procedures that governments employ to protect humans, animals, and plants from diseases, pests, toxins, and other contaminants.

Examples include meat and poultry processing standards to reduce pathogens, residue limits for pesticides in foods, and regulation of agricultural biotechnology

Furthermore, Vietnam’s WTO membership may result in smaller companies unable to cope with the increased competition being forced out of business.

Additionally, elevated agricultural commodity costs will remain a risk for the profitability of processed food manufacturers; farmers themselves also claim this as a threat, with the primary level reportedly seeing little in the way of these higher prices

Top Market Opportunities

An abundant source of raw materials, the country’s stable and high economic growth, favorable investment environment, abundant human resources, and good infrastructure at industrial parks are also factors that help attract investors in the sector.

In addition, free trade agreements have opened up opportunities for domestic food firms to enhance exports and attract more foreign investors in the sector.Total foreign investment into Vietnam food processing industry has currently it the US $ 11.2 billion mark, spread across the 717 projects and excluding mergers and acquisitions.

Over the past two decades, Vietnam has actively sought economic integration into the international trading system and has negotiated a number of bilateral, regional, and international agreements, either as a member of ASEAN or individually.

Currently, Vietnam has FTAs with China, Korea, India, Australia and New Zealand, Japan, Chile, and the Eurasian Economic Union. An FTA negotiated with the EU is expected to go into effect in 2018. These FTAs help boost Vietnam’s economic growth, and lower import tariffs for food and food ingredients. In turn, this creates more opportunities for business in the food and beverage sectors.

Market Trends

Demand for high-value consumer-oriented and seafood products has steadily increased over the past five years. Strong GDP growth, higher per capital income, rapid urbanization, and concerns about food safety continue to drive the growth of the modern food service, food retail, and food processing sector in Vietnam.

Furthermore, the growing consumer preference towards branded food products, inclination towards western food and growing interest of foreign investors in food processing industry are likely to boost the demand for processed food products in Vietnam for the coming years.

Additionally, growth of internet and smart phone penetration, e-commerce in Vietnam has had robust growth over the last five years, especially in the business-to-customer (B2C) segment.

According to the Vietnam e-Commerce and IT Agency (VECITA), online purchasing per person per year was about $170, and revenue from B2C e-commerce in Vietnam in 2016 reached $5.0 billion, up from $4.07 billion in 2015.

This accounts for 3 percent of the country’s gross retail sales of goods. Internet penetration has grown to over 40 percent, driven by increased usage of smart phones. E-commerce has attracted substantial domestic and foreign investments, and is expected to continue to grow in the coming years.

Old Production technologies: Some small companies still using outdated and traditional technologies to process the food which is restraining the market to grow.

For example, livestock processing in Vietnam has not been practiced in an advanced way with technology or comprehensive equipment. For the livestock sector, the term “processing” is understood as “slaughtering” because slaughtering is the main activity done after livestock is taken from the farms and before it is sold at the wet market

Lack of good manufacturing practices: Good manufacturing practice ensure that ingredients, products and packaging materials are handled safely and that food products are processed in a suitable environment but many Vietnam food processing companies do not follow the manufacturing practice which cause the threat to general public.

For instance, during the week of 20th May 2016, 80 pigs from Dong Nai Province were found to have been contaminated with salbutamol.

Insufficient close linkages with multinational food processing groups in Vietnam to participate in the global food supply chain: Many big companies have invested in food industry in Vietnam which may bring the good opportunities for domestic companies to explore in the global arena but lack up strong linkage with multinational food processing group, domestic companies still find it hard to participate in the global values chain.

Lack of Raw Materials: Lack of raw material(in some sectors) for the domestic product is challenge for the Vietnam. For example, raw milk just meets about 40% of the demand for production and consumption in the country, the rest have to import.

Import turnover of milk and dairy products annually is about $US 1 billion. In raw materials for brewing, except small quantities of rice in the domestic production, the remaining beverages and hops are completely imported.

Other factors: The present retail sector, although growing quickly in urban areas, has not grown as fast in rural areas.Also,Processed foods still are seen as inferior to fresh foods by many consumers in Vietnam, especially in rural areas

Industry Challenges

High competition: Food processing industry is very competitive and increasingly aggressive. At present, even though food and beverage enterprises in the country have established a position in the domestic market but well known food and drink producers in the world are present in Vietnam, bringing pressures on the competitiveness

Food safety issue: Food safety is a major concern for the public, with high levels of anxiety each time there is a high-profile food safety incident.Vietnam’s reputation among its trading partners as a major exporter of food products is vulnerable to trade statistics showing levels of contamination.

Food-borne illness is notoriously difficult to assess in any country but the level of contamination found in Vietnamese food for domestic consumption justifies public and trade concerns.

Waste management: Waste management has been the major challenge that has to be addressed to reduce the environment pollution in Vietnam.

The use of less advanced technology, the strong emphasis on end-of-pipe treatment, poor environmental awareness, absence of environmental management systems, etc cause the environmental problem in Vietnam.

Packaging and Labeling: Although, Packaging and labelling standard has been improved over the years in Vietnam by the clear and specific rules by the government but still issue related to packaging and labelling has been arisen occasionally.

For instance, On the heels of inspections carried out in June, Coca Cola Beverages Vietnam Ltd. has been issued a US$19,300 fine and forced to temporarily suspend select sales for violating food safety licensing and labeling requirements

Infrastructure: Vietnam’s infrastructure is still weak. Roads, railways and ports are inadequate to cope with the country’s economic growth and links with the outside world

Technology Trends

Food processing industry in Vietnam have been using various machinery and technology tools to processing and packaging of the foods. Most common equipment are Thermal Equipment,Mixers Blenders & Homogenizers Cutting & Peeling Equipment Extraction Equipment etc.

Processing equipment for seafood: frost coating machine, peeling &grading equipment, air blast freezer, contact freezer, pre-processing & pastry making equipment, glazing machine
Fruits & vegetables: grinding, small-sized fruit pressing and mixing machinery, slicing, juice extracting, juice concentration, centrifugation and super heated steam drying.
Coffee, tea: coffee processing, instant coffee making & packaging lines, rubbing and dehydrating machines.
Meat processing: freezing, tumbling, grinding, cutting, pasteurising, mixing, stuffing machine and equipment used in making canned and frozen foodstuffs
Other: Various Machinery for the preparation of vegetable oil, vegetables, cotton and dairy and Rice and wheat flour .

Furthermore, robotics and automated software are using by major food processing industries. Cobot (a robot designed to collaborate with human workers) demand is rising in Vietnam as businesses are recognising the importance of employing advanced technology and robotics to maintain a competitive advantage.

ABB robots are becoming widely used in many applications in the high risk processing areas of food production.

Remarkable Growth and efficiency has been seen the food processing industry by the use of latest technologies and machines.

For instance, Owing to the application of scientific advances in sugarcane cultivation, in 2015-2016 the total cultivation area of the Thanh Thanh Cong Sugar JSC (TTCS) increased from 12,000 ha to 13,800 ha and productivity by 20 per cent, reaching 80 tons per ha. Total sugarcane output is 1.09 million tons, up 110,000 tons from 2014-2015.

Pricing Trends

Cost of Labor: In 2018, minimum wages were increased by 6.5 percent and ranged from VND 2.76 million (US$118) to VND 3.98 million (US$171).Vietnam’s Labour Productivity improved by 10.30 % YoY in Dec 2017, compared with a growth of 6.42 % in the previous year

Cost of Raw Materials: Lack of raw materials for domestic production and the imports of raw materials accounting for a large proportion. This leads to the inability of enterprises to have the quantity, quality and price of raw materials affecting production and business activities.

Food processors in Vietnam use both locally produced raw materials and imported food ingredients in their operations. Large processors tend to directly import specific ingredients, such as wheat flour, milk powder, and malt. Processors usually purchase minor ingredients, additives, flavors, or preservatives through importers or distributors.

Cost of Production: Cost of production is low compare to other developed countries because of low labor cost, availability of raw materials(Barring some) and government support(Free trade zones).

Regulatory Trends

Food products, depending on the product category, are regulated and managed by three different ministries: the Ministry of Health (MOH), the Ministry of Industry and Trade (MOIT), and the Ministry of Agriculture and Rural Development (MARD). The MOH has the prevailing general management power

foreign processed foods must be registered with the Vietnam Food Administration (VFA)—an agency of the MOH—to obtain a Certificate of Conformity Declaration (CCD) before being imported into and/or circulated in the Vietnam market.

Processed foods include two main groups: general food products, and nutraceuticals/functional food products. Depending of the group, food products may have to meet different requirements before getting the CCD.

For example, a functional food must have a Free Sale Certificate or Health Certificate or an equivalent certificate granted by competent authorities in the country of origin, along with information and scientific documents supporting the effects of each ingredient contributing to the declared functions of the product.

General food products are exempt from these requirements, but must provide testing results from within the past 12 months, including key quality criteria and food safety criteria.

It is strictly required that product labels comply with the country’s labeling requirements, such as compulsory contents in the Vietnamese language.

Other Key Market Trends

Demand for packaged food products is increasing in response to modern and busier lifestyles, increased exposure to Western culture and foods, as well as the perception of packaged food being safer.

Sales of packaged food in modern channels such as convenience stores, supermarkets, and hypermarkets are increasing.

Sales of packaged food to food service channels has also been rising in recent years due to the growing number of fast food chains, restaurants, cafes, bars, and pubs.

Consumption of ready meals including shelf stable ready meals, chilled lunch kits, chilled pizza, chilled ready meals, dinner mixes, dried ready meals, frozen pizza, frozen ready meals, prepared salads, and other ready meals, has been increasing in recent years, especially in large cities such as Ho Chi Minh City and Hanoi.

The frozen processed meat and seafood sector continues to raise. Shelf stable processed meat and seafood covers a wide product range for retailers and distributors in both traditional and modern outlets.

Growth of chilled processed meat and seafood is boosted by the growing influence of Western cuisine, as more consumers were willing to spend on imported sausage, ham, and smoked meat.

Retail value of sauces, dressings, and condiments, including traditionally familiar products such as soy sauce, chili sauce, and fish sauce, and Western-originated sauces such as salad dressings, mustard, mayonnaise, and ketchup is increasing.

Sweet biscuits, snack bars, and fruit snacks continue to rise in sales value due to increasing consumer demand for these products as gifts. Demand for healthier dried fruit products is increasing. However, demand for sugar-free and diet biscuits remain insignificant.

Consumption of rice noodles, pasta, and other noodles is slowly increasing. Consumption of instant noodles is falling, while rice noodles are continuing to increase. Many consumers have switched from unpackaged to packaged rice noodles.

Consumers increasingly require traceability and production information.

Vietnam remains a price-sensitive market, but more consumers are willing to pay higher for quality products, especially imported products.

Government supports for organic products, but demand for organic products remains limited.

Market Size and Forecast

Market share of Food processing industries in Vietnam is around 15% of the Total GDP of Vietnam and will continue to grow. Business Monitor International (BMI) projected earlier this year that Vietnam’s food industry would grow by 10.9 per cent each year between 2015 and 2020

Market Outlook

In the past five years, Vietnam’s annual consumption of processed food and beverages has grown at an average of 9.68 percent and 6.66 percent respectively, says data compiled by the Ministry of Industry and Trade.

In 2013-2017, the industrial production index grew by an average 6.8 percent per year for processed food and 9.7 percent for drinks

The country’s annual food consumption value is estimated to make up 15 percent of its gross domestic product

In the first nine months of 2018, the consumption index grew by 8 percent and 10.2 percent against the same period last year for processed food and drinks, respectively, according to the Vietnam Report Joint Stock Company, a Hanoi-based market research and business assessment firm.

The Business Monitor International (BMI) projected earlier this year that Vietnam’s food industry will grow by 10.9 percent each year between 2015 and 2020.

Tran Kim Oanh, director of the Investment Promotion Center for Industry under the Vietnam Trade Promotion Agency, said that in the 2010-2016 periods, the number of companies operating in the sector made up two percent of the total, but their total revenue accounted for 7.3 percent, or $54 billion. With more than half of a population of 95 million of working age, Vietnam’s food processing industry has a lot of room to grow

Food and beverages currently account for the highest proportion of monthly consumer spending in Vietnam, accounting for about 35 percent of the total.Food production and processing, especially milk, beverages, confectionery, and cooking oil, are seen as the most lucrative market segments.

According to data from the Ministry of Industry and Trade, fresh milk consumption is forecast to reach 27-28 liters per person per year in 2020 and beverage consumption will hit 6.8 billion liters in 2020 and 9.1 billion liters in 2025.

According to the Vietnam Sea Culture Association, exports of marine aquaculture produce are predicted to reach US$12-13 billion (VND 276-299 trillion) by 2020 and US$30-35 billion (VND 690-805 trillion) by 2030.

Vietnam’s livestock consumption has risen significantly over the last decade from 3.5 million tonnes in 2013 to 3.6 million tonnes in 2014, and is foretasted to reach 4.5 million tonnes in 2019.

Vietnamese dairy market to be doubled by 2020 since the Vietnamese population and GDP are forecast to increase by five million and 15%, respectively.

Also,the consumers’ buying behavior can be shifted towards the preferences from traditional drinking milk to yogurt and cheese. Especially, the yogurt sector is project to have the fastest growth pace of 24 % over the next five years

Technology Roadmap

With an aim to industrialist and modernize the economy by 2020, Vietnam is actively pursuing science and technology innovation as well as the attraction of foreign investment into relevant industries, especially robotics

Smart Factories: A smart factory in the 4.0 era embodies a range of manufacturing technologies that fuse the physical and digital worlds, with breakthroughs in Artificial Intelligence (AI), robotics, the Internet of Things (IoT), metro-logy, and 3D printing seen as the main drivers.

Smart factories represent a tremendous evolution from a traditional automated production system into a system which can continuously connect and process data. Vietnam is aiming to convert majority of traditional factories into smart factories in the near future.

Automation: Vietnam has been working on “2011-2020” Strategy for Science and Technology Development to enhance economic competitiveness and speed up industrialization, prioritizing the importance of industrial robots and hi-tech automation.

Distribution Chain Analysis

There are several ways to distribute the processed foods. Model Numbers 1, 3, and 6 are the most common in Vietnam. Most food importers are also distributors.

Vietnam’s limited distribution infrastructure and facilities for perishable food ingredients is also a significant constraint to importing certain food ingredients.

Competitive Landscape

Currently around 7000 registered companies are involved in food processing market in Vietnam. If we include mergers and acquisition then number can go even higher.

Food processing industry is highly fragmented and competitive.Domestic and international competition has been raised due to entry of well known International companies in the market.

Threat of New Entrants: There are many national and international companies are planning to enter in food processing business because of various favorable factors in Vietnam.

New companies have to fulfil various law and industrial compliance before entering in the Vietnam market still many well known and small companies are eyeing to enter in the market so threat of new entrants in Vietnam food processing industry is high.

Bargaining power of buyers: Buyers have the influence power for an industry to force down prices and offer higher quality as consumer’s purchase represents a sizable proportion of organization’s overall sales.

Bargaining power of buyers is very high in Vietnam because of the intense competition among the suppliers.Vietnam food processing industry is hugely influenced by the consumer’s consuming behavior.

Bargaining power of supplier: Suppliers have the power of bear or apply in an industry by raising price or reducing the quality of products. The increase of supplier power is the mirror image of increase buyer power.

There are large number of suppliers in the market both domestic and international.The bargaining power of buyers is low because of the intense competition and availability of choices.

Threat of substitute products or services: By having a products or services that meet similar needs will make customers switch to substitutes in response to a price increase on product.

In Vietnam, there are multiple options for the same types of product. For instance,Vietnamese can eat domestic noodles with domestic taste or they have multiple choices for noodles imported from foreign country with different taste and size. So, threat of substitute product is moderate to high in Vietnam.

Intensity of rivalry among firms in an industry: When an organization exhibit a high level of rivalry, it will cause the industry’s profits to reduce because of aggressive competition on price as when rivalry cut down on price, the other organizations will cut down price to sustain in their market positions.

There are currently 7,000 food processing companies in the market directly providing foods and beverage, if we count indirect companies numbers will go even higher.International companies also investing huge money in Vietnam.Because of all these rivalry among the competitors is very high.

Competitive Factors

Consolidation: Many, mainly already big, food processing companies are strengthening their position by acquiring other, smaller, companies, while the small companies themselves are seeking both domestic and foreign partners. This give a good opportunity for growth to both small and big companies in Vietnam.

Innovation: Product innovation, packaging , labeling innovation, process innovation, and technology innovations are key to compete with other in the food processing market in Vietnam.

Technology and Automation: Many Companies automated the production lines with robots and automated racking systems and implement SAP manufacturing intelligence and integration (SAP MII) and Manufacturing Execution Systems to link its factory equipment with backend systems

FSMA compliance: SGS has been accredited for two FDA programs under the Food Safety Modernization Act (FSMA): Voluntary Qualified Importer Program (VQIP) and Foreign Supplier Verification Program (FSVP). These two programs allow expedited entry through Customs into the USA for Vietnamese food facilities/exporters certified under these programs.

Key Market Players

The food processing market is very competitive.There are more than 7000 registered company currently operating in Vietnam. Some major companies are:

VISSAN Limited Company (VISSAN)

Products: Fresh meat (pork, beef)
Processed products: Dry foods: sterilized sausage, canned foods, other sausages
Frozen foods and cold cuts: cold cuts, spring rolls, roll, lean pork paste.
Product Brands: VISSAN, Hola, 3 Bong Mai, Family
Total sales in 2017: Approximately VND 5,630 billion

Ha Long Canned Food Joint Stock Corporation (JSC) (Halong Canfoco)

Products: Canned food: pate, luncheon meat, corn beef, stewed pork, stewed beef; Canned fish: tuna in oil, mackerel & sardine in tomato sauce; Canned fruit: lychee in light syrup; Frozen products: spring roll, seafood; Retort sausage; Chilled sausage, hotdog.
Product Brands: Halo, Bee Bee, Everyday, Chip bon, Ha Long
Total sales in 2016: VND 432 billion

Duc Viet Foods Company

Products: Smoked sausage, grilled sausage, beer garden sausage, country sausage, smoked pork knuckle, smoked pork loin. Traditional products include Vietnamese sausage, pate, clean meat, seasonings, and mustard.
Product Brands: Duc Viet
Total sales in 2016: VND 360 billion

Vinh Hoan Corporation

Products: Frozen Pangasius products;value-added products from pangasius.
By-products: fish oil, fishmeal,Fish collagen and gelatin
Product Brand:Mekong Master, Mekong Blue Pride, Mekong Origin, Vinh Foods
Total sales in 2017(Jan-Jun): VND 3,978 billion

Sao Ta Foods Joint Stock Company (FIMEX VN)

products: seafood-processed products, other agro-processed products such as sweet potatoes, okra, bell peppers.
Product Brand:Fimex VN
Total sales in 2017(Jan-Sept):VND 2,221 billion

Vietnam Dairy Products JSC (Vinamilk)

Products: Liquid milk including UHT and pasteurized milk, powder milk, nutrition powder, infant cereal, condensed milk, cheese, plain yoghurt, fruited yoghurt, UHT drinking yoghurt, probiotic drinking yoghurt.
Product Brands: Vinamilk, Dielac, Ridielac, Sua Ong Tho (Longevity), Ngoi Sao Phuong Nam (Southern Star), Probiotic Yogurt, Flex, Susu, Vinamilk Ozela, Probi, ProBeauty, Aloe Vera (Nha Dam), Kefir, Sure Prevent, CanxiPro, Diecema
Total sales in 2016: VND 46.8 trillion

Friesland Campina Vietnam Co. Ltd.

Products: Dairy and baby food products including drinking milk products, powdered milk, whole milk, sweetened condensed milk, milk products such as drinking yoghurt, plain yoghurt.
Product Brands:Dutch Lady, Dutch Lady Gold, Friso, Dutch Lady Complete, Yomost, Fristi, Hoan Hao, Friso, Frisolac, and Frisomum, Dutch Lady Cao Khoe.
Total sales in 2016: VND 7,391 billion

Masan Consumer Holdings Company Limited (MCH)

Products: soya sauce, fish sauce, chili sauce.
Product Brands: Chin-su, Nam Ngu, Tam Thai Tu.
Total sales in 2017(Jan-Sept):VND 8,791 billion

Cai Lan Oils & Fats Industries Co Ltd.

Products: Cooking oil products, Shortening, Baking fat, Creaming fat, Ice cream fat, Butter oil substitute, Margarine, Olein, Soybean oil.
Product Brands: Neptune, Simply,olivoilà, Meizan, Cai Lan, Kiddy, Orchid, Satellite.

Tan Tan Food & Foodstuff Co.

Products: Snack food (peas, peanuts and cashew nuts, lotus seeds)
Product brands: Tan Tan, Amero, Chocoplus, FunMix, Tans, Snacko, Tan Tan Roasted Peanuts, Dau Phong da ca, Dau phong ca phe, Dau phong Bi cay, Tan Tan Wasabi, Salted Green Peas; nice sweet, kazoo, smile, Vinacashew, Vina Lotus

Long An Food processing Export Joint Stock Company (Lafooco)

Products: Natural cashew nuts, processed cashew nuts, processed peanuts.
Product brands: Lafooco;
Total sales in 2016:VND 876 billion

Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco)

Products: Alcoholic and non-alcoholic drinks including beer, liquor, soft drinks, mineral water.
Product Brands: 333’ export, 333’ premium export, Saigon Special, Saigon Export and Saigon Lager, Chu Hi, Dakai, Saigon Gold, Ruou Binh Tay, Soft drink Sarsaparilla, oft drink with Orange flavor, Soft drink with Strawberry
Total sales in 2017(Jan-Jun): VND15,727 billion

Strategic Conclusion

Food Processing is one of the major industries in Vietnam which is seen as having great potential. This industry is largely export-oriented, dominated primarily by seafood and agriculture food products.

Historically this industry has contributed to increase in export revenue, nurture business interface and enhance diplomatic relationships between Vietnam and other countries.

The increasing consumer preference towards branded food products, rising disposable income, increasing awareness about food safety and growing inclination towards western food are expected to drive the demand for processed food products in Vietnam for the coming years.

Appendix

GDP-Gross Domestic Product
VND-Vietnamese dong
MoH-Ministry of Health
VFA-Vietnam Food Administration
CCD-Certificate of Conformity Declaration
AI-Artificial Intelligence
IoT-Internet of Thing