10:19 | 28/12/2018 Economy- Society
(VEN) - In the first nine months of this year, Vietnamese food and drink industries grew 8.1 and 10.2 percent in terms of sales value over the same period last year, according a recent report by the Vietnam Report. Food and drinks accounted for about 35 percent of consumers’ monthly spending, the report said.
Food and drink sectors currently account for about 15 percent of Vietnam’s gross domestic product (GDP), with the percentage expected to increase and to rank Vietnam third among Asian countries and territories in this field. The growth is attributed to demographics - some 50 percent of the population is under the age of 30, improved incomes, increasing demand for processed food and drinks, and Vietnam’s plentiful sources of farm produce as raw materials.
Mergers and acquisitions (M&A) have created big domestic names in the Vietnamese food and drink market, including Masan, Thanh Thanh Cong, Kido, and Pan Group, among others. Leading food and drink brands from Thailand and the Republic of Korea, with financial strength, experience and modern technology, have invested in Vietnam as well.
Nguyen Lam Vien, Chairman and CEO of Vinamit, said apart from looking for information about manufacturers and origin of products they buy, consumers are interested in traceability and such certifications as the Vietnamese Good Agricultural Practices (VietGAP), Global Good Agricultural Practices (GlobalGAP) and Hazard Analysis and Critical Control Points (HACCP). Businesses should ensure quality by using high technology and developing strong distribution systems, he said.
Vissan, for example, has become a leading brand in fresh and processed meat products thanks to distribution development and production innovation, including application of new industrial processes and standards.
With technical assistance from the EU Trade and Investment Policy project and the Netherlands’ Center for the Promotion of Imports from Developing Countries (CBI), the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (VIETRADE) is finalizing a 2014-2020 food-branding program. The program has almost completed its research and given suggestions on brand positioning and structure and design of a brand identification system for Vietnam’s food industry.
Vietnam’s food industry is rich in potential and the country is becoming an important source of agricultural and food
products for countries and territories worldwide.