VietNamNet Bridge - Consumers are spending more money on food and drinks, especially prepared foods, including dairy products, instant noodles and sausages.

According to Vietnam Report, the consumption index of food processing and beverage sectors in the first nine months of 2018 increased by 8.1 percent and 10.2 percent, respectively, compared with the same period last year.

The spending on food & beverage (F&B) accounts for the highest proportion in Vietnamese families’ expenses, about 35 percent.

Meanwhile, BMI predicted that the F&B sector’s growth rate will be higher in 2016-2019. Vietnam may end up in the third position in Asia.

In HCMC, food processing in the first 10 months of 2018 grew by 8.7 percent, while it increased by 5.7 percent in the same period last year. Beverage production increased by 4.6 percent against 2.6 percent. 

The growth rates were high enough to encourage enterprises to scale up production.

According to the HCMC Industry and Trade Department, there are 2,279 convenience stores in the city, an increase of 507 stores against the end of 2017, and 4,127 points of sale run under the city’s price stabilization program. 

The rapid expansion of the retail networks has helped F&B manufacturers improve their sales.

The deputy director of a large food company in HCMC said the company’s sausage supply has increased by 15-20 percent since June. 

“The rapid increase in sausage consumption is an example showing the high demand for fast food products,” he said.

The products are suitable to youth who buy goods at B’s mart, Circle K and Family Mart. Manufacturers tend to market small, portable products for individual use.

The success of Saigon Food’s fresh porridge has paved the way for a series of packaged food products, including bun bo Hue (Hue beef noodle soup) and hu tieu Nam Vang (Nam Vang noodle with seasoned and sauté beef). 

The products attract users because of convenience. Consumers can enjoy traditional specialties after only 5-7 minutes of preparation.

Ly Kim Chi, chair of the HCMC Food & Foodstuff Association, noted that consumers now are willing to spend more money to buy products good for their health, made of natural materials and friendly to the environment. 

Nguyen Ngoc An, general director of Vissan, the biggest meat supplier in Vietnam, said the company began marketing 13 new products in four categories after realizing the  market demand.

A survey by Nielsen found that consumers now pay more attention to the origin of products and names of producers. At least 76 percent of those surveyed said they want to know all the elements contained in their food, and 89 percent are willing to spend more money on food good for their health.

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