For Italian companies wishing to export to Vietnam In the food and beverage sector, opportunities are growing. In 2023, food, beverage and tobacco exports reached a volume of 94 million.
The figure reflects the positive state of the F&B sector in Vietnam, which recorded robust growth in the’11.47% in 2023, with revenues exceeding $23.6 billion last year.
This comes despite the difficulties that companies in various sectors in the country, including the food processing industry, have faced in recent months due to a credit crunch and limited resources.
Indeed, the latter sector is the one particularly ripe for investment by foreign companies.
In fact, industry experts predict an increase in mergers and acquisitions (M&A) in the next two years. This is a unique opportunity for Italian companies interested in entering the market through partnerships with local food companies or direct acquisition of assets.
The value of the F&B market in Vietnam is expected to increase by 10.92% in 2024 compared to 2023, surpassing the $26.1 billion.
The industry will continue to develop with a compound annual growth rate (CAGR) of 10.25% between 2023 and 2027, reaching an estimated value of $34.9 billion in 2027.
Currently, food and beverage-related expenditures account for the most significant portion of consumers' monthly budget, accounting for 35%. About 17 million middle-income households in Vietnam are expected to emerge by 2030, further increasing demand in the food and beverage sector.
From the data shown, it is clear that Vietnam stands out as a dynamic and propitious market for the food and beverage sector. This opportunity is supported by changes in consumer behavior, increased mobility, growing wealth, and the country's rapid urbanization. Vietnam is ranking among the top Asian nations in food and beverage sector development.
The Vietnam has become a magnet for capital from countries such as South Korea, Germany and Italy. In addition, digital transformation is revolutionizing culinary experiences, emphasizing safety and security. As a result, demand for high-quality food and beverage products is increasing. By embracing the trends of sustainability and innovation, investors can unlock the enormous potential of the Vietnamese food and beverage market.
EU companies are in a particularly advantageous position to enter the market due to Vietnam's close trade ties with the European Union, as well as the favorable image of European products among Vietnamese consumers.
EU companies enjoy a relatively advantageous position compared to many other developed nations, thanks to the’EU-Vietnam Free Trade Agreement (EVFTA). This agreement will eliminate almost all customs duties between Vietnam and the EU over the next 10 years.
The EVFTA significantly improves prospects for bilateral agribusiness trade by increasing the availability of both Vietnamese specialty products in the EU and European products in Vietnam.
A notable aspect of the agreement is the inclusion of geographical indications (GIs) for certain food products. GI is a form of intellectual property that protects a product originating from a specific geographical location. The EVFTA automatically recognizes the GI status of 39 Vietnamese and 169 European food products. This will help consumers in both markets recognize the authenticity of products and provide a competitive advantage to companies that want to export to Vietnam.
Food processing is one of the most important sectors in Vietnam. In 2022, the sector grew by the’8,8% compared to the previous year, according to a survey by the U.S. Department of Agriculture (USDA), with more than 8,500 farms registered.
Growing domestic demand is also supporting the domestic food production and processing industry. As income levels rise, domestic consumption is also growing proportionally, reflected in the increasing demand for high-quality food and beverage.
This trend will encourage further investment aimed at growing food processing infrastructure.
Vietnam is home to hundreds of industrial parks, many of which offer incentives and support to companies wishing to establish. In addition, the relatively low cost of labor makes Vietnam a competitive choice for locating or relocating manufacturing and processing facilities.
In this context, companies wishing to export to Vietnam can take advantage of the growing preference for high-end, high-quality and organic products. In the food service sector, Vietnamese consumers are eager to explore new cuisines and ingredients, and the Made in Italy brand Is synonymous with uniqueness and excellence.
Italian products can benefit from a reputation for being safe and healthy and, in specific market segments, for representing high quality with a premium price. As a result, they are well positioned to be considered desirable commodities in Vietnam.
The current combination of government plans to grow the food processing industry, growing domestic demand for processed food, and an industry struggling to access credit has created an ideal environment for Italian companies eager to invest in Vietnam.
Octagona's team, with more than two decades of experience in the internationalization strategies of Italian enterprises, is available to learn more about these opportunities.
Contact us for more information.
Are you interested in our service?
Fill out the form or contact us at
+39 059 9770184
Copyright © Octagona. All rights reserved. P.I. 02646871208
