The Times Square tower in Ho Chi Minh City, Vietnam, on Sunday, February 25, 2024. Photographer: Maika Elan/Bloomberg
HO CHI MINH CITY: The food and beverage (F&B) sector of Vietnam has long been an attractive and potentially lucrative market for both foreign and domestic investors, despite facing numerous challenges, insiders affirmed at the Flavours Vietnam 2024 conference in Ho Chi Minh City last week.
Co-organised by Vietcetera and Mastercard, the annual Flavours Vietnam event this year focused on the theme “Building a Resilient and Thriving F&B Industry in Vietnam.”
The event brought together over 300 industry leaders, investors and key stakeholders to discuss and explore the latest trends, strategies and innovations shaping the future of Vietnam’s food and beverage sector.
Taku Tanaka, founder and CEO of Kamereo, noted during a discussion at the event that, “while short-term struggles may exist in specific locations, I still see significant long-term potential, particularly as consumer income continues to rise.”
Tanaka, who manages a comprehensive business-to-business supply chain for vegetables, observed discrepancies between Ho Chi Minh City and Hanoi.
“While the government’s macro data appears strong, many customers report that their businesses are struggling.
“In Ho Chi Minh City, spending was weaker, while in Hanoi, it’s more stable.”
Despite these challenges, Tanaka underscored his belief in the long-term potential of Vietnam’s F&B sector, pointing out the interest of many international brands, especially Japanese F&B companies, in expanding within Vietnam.
Tanaka mentioned that many Japanese firms are considering establishing numerous locations, reflecting their lasting confidence in the market’s potential.
Echoing Tanaka’s sentiments, Summer Lee, founder and executive chef of Nen Danang and Nen Light Restaurant, shared her optimistic outlook on the market’s future.
She highlighted Vietnamese cuisine’s strong reputation overseas, particularly in Japan, which has spurred interest from Japanese companies looking to expand into Vietnam.
A representative of Mastercard Vietnam said that the economy has posed many challenges for industries, especially the F&B sector.
Vietnamese F&B businesses need to carefully balance value offers and profitability while facing several key challenges, largely driven by evolving consumer behaviour and the growing digitalisation of the F&B sector, he said.
According to Mastercard, the F&B landscape in Vietnam is dynamic and fast-changing, characterised by evolving consumer demand for digital technology and personalised experiences. — Viet Nam News/ANN
