Vietnam Food Processing Ingredients 2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/29/2017 GAIN Report Number: VM7072 Vietnam Food Processing Ingredients 2017 Post: Hanoi Approved By: Robert Hanson Prepared By: Nguyen Huong, Benjamin Petlock, Megan Francic Report Highlights: The Vietnamese food and beverage processing sectors continue to expand - registering strong growth over the past 5 years. Vietnam’s food manufacturing sector grew at 9.0 percent in 2016 while growth in the beverage sector was at 10.5 percent. This expansion is driven by economic growth and macroeconomic stability, Vietnam’s deepening international economic integration, and a rapidly urbanizing, modern, and youthful population, which is shifting its diet to include more processed and packaged food products. As many local and foreign-invested food processors continue to establish 1 themselves in the Vietnamese market, the prospects for U.S. food ingredient exporters will continue to improve. However, the overall market will remain very competitive, with preference continuing for regional ingredient exporters, such as Thailand, Malaysia, South Korea, and Japan. The Food Ingredients (FI) Vietnam show will be organized on May 16-18, 2018 in Ho Chi Minh City. Please visit the website https://www.figlobal.com/vietnam/ for further information. SECTION I – MARKET SUMMARY Both Vietnam’s food and beverage processing sectors have experienced strong growth over the past 5 years. According to Vietnam’s General Statistics Office (GSO), Vietnam’s food manufacturing sector grew at 9.0 percent in 2016 and 7.8 percent in 2015, up from 4.8 percent growth in 2014 (see Table 1).
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