VietNamNet Bridge - The chocolate industry had 52,000 new consuming households in Vietnam in 2014 and the demand is expected to increase until 2020, according to a report.

In the past, there were only several familiar names in the industry, such as Kinh Do, Bibica and Huu Nghi, who were better known as confectionary manufacturers. But a lot of new names have appeared on the market, while there are hundreds of products available.

At Big C Supermarket in Phu Nhuan District of HCM City, chocolate products from 30 companies are displayed on the two shelves which are 25 meters in length. The companies import and distribute cocoa-made products bearing famous brands.

The attractive profits from the chocolate market have prompted Vietnamese producers to jump on the bandwagon. Bovina is considered the Vietnamese pioneer in the field with products made of materials from Belgium and other countries with long histories in chocolate material production.

Vinacacao is the first Vietnamese private enterprise to make products from cocoa nuts for domestic consumption and export to Thailand and South Korea.

Dai Hien Tam Company, the owner of Mark and Milk, makes a wide range of products from chocolate bars to chocolate boxes and chocolate for children. 

Meanwhile, Lai Phu JSC, which spends big money to develop its distribution network, has products available at many large supermarket chains throughout the country.

The heavy investments made by Vietnamese enterprises have changed the face of the chocolate industry in Vietnam. 

After eight years of operation, La Phong Trading Company, which holds the right to distribute chocolate products for Australian Graphics and Belgium Callebaut, has seen growth rate increasing from zero percent to 200 percent.

Meanwhile, the products of Callebaut distributed by United Version are now available at many restaurants and hotels in HCM City.

La Vi Luong, managing director of United Vision and La Phong, said Graphics plans to continue conquering Hanoi and other provincial markets. It is expected that three more shops would open from now to the end of the year.

According to Kantar Worldpanel, the Vietnamese chocolate market in 2014 witnessed   a double growth rate compared with 2013. 

However, Luong noted that Vietnamese consumers still do not know much about chocolate products, Though the market has great potential, a sharp growth rate has not been seen.

Meanwhile, Tran Van Lieng, general director of Vincacao, noted that Vietnamese companies have been relying on familiar products.

“So to conquer the home market, they need to diversify their products and create differences,” he noted.

“Chocolate products are not simply made of pure cocoa. There should be the combination of cocoa and other materials such as grains or fruits,” he noted.

DNSG