Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home>>Daily News>>Vietnam>>Food&Beverage >>Foreign investors pour more money into food processing and drinks industry
NEWS UPDATES Asean Affairs   January 29, 2019  





Foreign investors pour more money into food processing and drinks industry

The food processing and drinks industry has seen growth of 7 per cent in recent years, with more and more foreign investors deciding to pour money into the sector.

“The food and drinks sector is now taking the largest proportion of monthly spending for the Vietnamese, around 35 per cent,” Pham Thanh Kien, director of HCM City Industry and Trade Department, was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

In HCM City, food and drinks represented 17 per cent of total retail revenue last year.

Export turnover for food processing and agricultural products totalled more than US$40 billion last year.

Vietnamese products have successfully reached many technical standards and quality barriers and are present in 200 countries, including the US, Japan, South Korea and the EU.

For foreign investors, the abundance of agricultural products and foodstuff in the country is an advantage. Viet Nam is considered one of the top five food baskets in the world and one of the top 15 largest countries by agriculture exports.

The young population and the rising popularity of processed food are two other factors influencing investors’decisions.

For the last five years, many international food-processing companies have and expanded their production in Viet Nam.

In the coming time, the Government plans to  withdraw its shares in major food processing and drink companies like Vinamilk or Habeco and create more opportunities for foreign investors.

Foreign investors have also invested in and expanded their trade centres, supermarkets and convenience stores, which have all helped to increase consumption of processed foods.

Multinational retailers like Circle K, 7-Eleven, B’s mart, Family Mart, MiniStop, Big C, Aeon and Lotte now have a total of 3,000 convenience stores, 300 trade centres and supermarkets in Vi?t Nam.

“This also means more competitive pressure for the domestic food processing and drink manufacturers,” L? Kim Chi, chairwoman of the HCM City Food and Foodstuff Association, said.

Currently, 98 per cent of domestic manufacturers are small and medium size with limited financial resources and poor competitiveness.

“Foreign distributors and manufacturers have a strategy to dominate the Vietnamese market. Distributors have reduced expenditures to the producers, while the latter have dropped selling prices or increased promotions,” she said.

“Foreign distributors have also established barriers like quality and packaging standards and many others so they can refuse domestic products,” she added.

“To compete on the home ground, domestic enterprises must increase their production capability, quality and packaging to meet international standards,” Hu?nh Thanh ?i?n from HCM City’s University of Economics, said.

“For long-term development, domestic enterprises should join international supply chains. Authorities should also apply the same incentive policies for foreign and domestic companies,” he added.

Many foreign companies receive preferential treatment on land rent, taxes and technology imports.

“Authorities should also prevent unhealthy competition when foreign enterprises work together to try to eliminate local ones and engage in dumping practices,” he said.

Viet Nam has 5,500 food and drink manufacturing enterprises, with 2,000 of them located in HCM City.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



  Today's  Stories                     January 29, 2019
• Govt told to relax property ownership for foreigners to boost growth
• Pernia says PHL on track to achieve upper middle income status in 2019 Subcribe: Asean Affairs Global Magazine
• Industry associations welcome eased export policy Subsribe Now !
• Foreign investors pour more money into food processing and drinks industry
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Philippine shares trade flat on lack of catalysts
Asean Stock Watch  November 1,  2018

• Asean Stock Watch-November 1, 2018
Asean Analysis                June 15,  2018
• Asean Analysis June  11, 2018
Inflation may yet peak —Diokno
Advertise Your Brand

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com