VN’s food and beverage market attractive to foreign firms

VN’s food and beverage market attractive to foreign firms

In particular, Viet Nam has agricultural products and sources of raw materials to serve the food & beverage production and processing activities.

According to a report by market research group Euromonitor, the Vietnamese market ranks third in terms of food & beverage trading in ASEAN.

Amid the positive developments concerning the economy as a whole and consumers’ living standards in particular, Viet Nam’s food & beverage industry is entering a potential stage, as well as gradually becoming a large food & beverage consumption market in Southeast Asia.

In addition, Viet Nam’s food & beverage market is getting increasingly attractive to foreign businesses, reflected through a series of transfer and M&A deals between foreign companies and domestic units.

Some outstanding deals include CJ Group (Republic of Korea) purchasing 65% of the shares of the Minh Dat Foods Company Limited and 47.33% of the shares of the Cau Tre Export Goods Processing Joint Stock Company; Earth Chemical (Japan) acquiring 100% of the shares of the A My Gia Joint Stock Company; Daesang Corp (Republic of Korea) buying 100% of the shares of the Duc Viet Food Joint Stock Company; Fraser & Neave Ltd. (Singapore) acquiring a 5.4% stake in the Viet Nam Dairy Products Joint Stock Company – Vinamilk; KKR (US) purchasing 7.5% of the shares of the Masan Group; and ACA Investments (Japan) purchasing 20% of the shares of Bibo Mart.

Explaining the attractiveness of the domestic food market to foreign enterprises, experts said Viet Nam has abundant agricultural products and raw materials, which makes it convenient for the supply of raw materials for food & beverage producing and processing activities.

According to estimates by the Ministry of Industry and Trade, Viet Nam’s annual consumption of food & drink products always accounts for about 15% of GDP, and this rate is tending to increase in the near future.

Besides, with a population of more than 96 million, half of whom are under 30 years old, Viet Nam has great potential to become one of the most promising markets for food & beverage consumption in the region.

Given these factors, Viet Nam is considered to seize huge potential to develop the food & beverage industry, especially in cities and towns where the living standard has increasingly improved.

Besides, they show that Viet Nam has been becoming an attractive market to producers and distributors of food materials, both at home and abroad.

                                                                                                                    By Vien Nhu