The food consumption value is estimated at 15 percent of GDP

The annual food consumption value in Vietnam is estimated at 15 percent of GDP. The processed food volume has been increasing by 9.68 percent per annum in the last five years, while the figure is 6.66 percent per annum for beverage consumption. 

BMI Research predicted that Vietnam’s compounded annual growth rate (CAGR) would be 10.9 percent in the 2015-2020 period.

Vietnam is an agricultural country with a variety of high-value nutritious specialties. However, it is still weak in processing food to make branded products with high commercial value. 

Foreign experts believe that Vietnamese enterprises can supply high-quality materials, and foreign firms capital and high technology, which will pave the way for the development of the food processing industry.

John G.Keogh, an expert in supply chain management, said Thailand is also an agricultural country and it has successfully positioned itself as the kitchen of the world. 

Vietnam has great advantages and high capability to develop the processed food industry. It needs to draw up long-term plans to cooperate with enterprises from other countries to turn plans into reality.

Vietnamese enterprises are capable of processing food to export products. It has always been one of the biggest exporters of rice, coffee and cashew nuts in the world. 

In H1, Vietnam exported $13.45 billion worth of farm and seafood products, an increase of 9.5 percent over the same period last year.

Many products saw high export growth rates, including vegetable & fruits (20.9 percent, $2.01 billion), seafood (11 percent, $3.96 billion). Vietnam’s farm produce is exported to over 100 countries all over the world.

Food processing is one of the major industries that Vietnam prioritizes to develop in its strategy by 2025.

PM Nguyen Xuan Phuc, at a conference on encouraging businesses to invest in agriculture, said that Vietnam strives to be listed among the world’s top 10 in agricultural production.

During his business trip to Tay Ninh province, Phuc visited Tanifood, one of the vegetable & fruit processing plants in Southeast Asia when it becomes operational, slated for November 2018. 

Its major products include vegetables & fruits, fresh, frozen, dried, condensed and canned. Processed products will meet international standards to be exported to the choosy markets of the US, Europe, South Korea and Japan.

Chair of Vinamit Nguyen Lam Vien said his company plans to launch fresh coffee and sugarcane juice made with freeze-drying technology.

RELATED NEWS

Foreign investors covet food market

Vietnamese enterprises dominating processed food market