Business consultants recommend executives study the potential of Vietnam's F&B market in recent report.
To grow dynamically, business leaders need to assess the potential of emerging markets such as China, Brazil, India and Vietnam, according to the Grant Thornton’s “Expanding Horizons: Food and Beverage Looks for Growth” report released on May 20.
“Vietnam is considered to have huge potential for increased demand for convenience food and beverage (F&B),” the report stated. It predicted that its growing middle and affluent class would increase from 12 million to 33 million between 2014 and 2020. Moreover, around 65 per cent of the total population are within the 15 to 55 year age range.
The purchasing power of customers is also growing rapidly, so it will be an attractive market for enterprises who intend to expand their business in the country. Global cuisine such as Mexican, Italian, Thai and Japanese are already gaining in popularity.
Grant Thornton also pointed out that many F&B firms, from small South Korean family concerns to major players such as Coca-Cola, KFC, Maru Kame - Udon, Pizza Hut, Burger King, and McDonald’s have customized their menu to meet Vietnamese tastes and acquire as large a market share as possible.
However, Grant Thornton also advised F&B investors to find credible partners when starting out in Vietnam. “With a high level of bureaucracy and a low-cost but inadequately-educated labor force, as well as a low level of enforcement of intellectual property protection, Vietnam seems to lose some of the comparative advantage over other countries within ASEAN,” the report concluded.
- Grant Thornton