The allure of the Vietnamese food, beverage market

09:55 | 25/09/2018 Economy

(VEN) - The Vietnamese food and beverage market has recorded significant growth in recent years, attracting the attention of domestic and foreign businesses.

the allure of the vietnamese food beverage market

According to the Dcorp R-Keeper Vietnam (provider of POS solution and technology ecosystem for food and beverage businesses), the country currently has about 540,000 outlets, including over 430,000 street stalls/kiosks; 7,000 fast-food restaurants; 80,000 full-service restaurants; and 22,000 cafeterias/bars.

With a young population and an eating-out trend for food and beverage, Vietnam has been drawing the attention of domestic and foreign investors.

According to London-based researcher Euromonitor International, the Vietnamese milk tea market grows at 20 percent annually and is valued at US$282 million. 2017 recorded rapid growth of the Vietnamese milk tea market, with the presence of a series of international brands. Ding Tea is the largest milk tea chain with 100 shops, followed by Tocotoco with more than 60 shops in Hanoi. In addition, Gong Cha owns 20 franchises, while The Coffee House has about 100 shops.

Food shops have also created a breakthrough, with the presence of many brands, such as Golden Gate, Mon Hue, Redsun, The KAfe and QSR Vietnam.

Targeting a dominant market share, Golden Gate plans to open 88 new restaurants in 2018, an increase of 39 percent compared to the end of 2017. The three main brands that Golden Gate features are Kichi Kichi, Hutong and Gogi House. Redsun, with 12 brands and more than 140 restaurants throughout the country, targets 450 restaurants, including 200 franchises, locally and in overseas markets by 2021.

Patricia Marques, general director of Starbucks Vietnam, said that five years after entering the Vietnamese market, the chain has 34 stores in Ho Chi Minh City, Hanoi and Hai Phong. Starbucks plans to open additional 10-15 stores in Vietnam in 2018.

Lam Hong Nguyen, general director of Jollibee Vietnam, said that Jollibee plans to invest in a new factory with a capacity of 300,000 tonnes per year to supply instant noodles and chicken products with the highest quality assurance for its existing chain.

According to London-based researcher Euromonitor International, the Vietnamese food and beverage market will post

an annual average growth rate of 18 percent during the 2014-2019 period.

Duong Thao