From now to the end of 2026, Vietnam's food, foodstuff, and beverage industry is forecast to grow by 8.56 percent.
Illustrative image. (Photo: SGGP)
Robust growth
Mr. Tran Phu Lu, Deputy Director of Ho Chi Minh City Investment and Trade Promotion Center, said that the food and foodstuff processing industry in Vietnam, in general, and HCMC, in particular, has gradually shifted to developing deeply. There have been many quality products and reputable brands dominating the domestic market, replacing imported goods and having been exported to many fastidious countries.
Sharing the same opinion, Ms. Ly Kim Chi, Chairman of HCMC Food Association, added that domestic consumption demand increased strongly again, bringing the total retail sales of consumer goods and services to recover and grow robustly, pulling retail sales of food and foodstuff products to go up. In fact, retail sales of food and foodstuff products climbed by 12 percent, and retail sales of food and foodstuff products in HCMC alone surged by 16.8 percent over the same period in 2021. Moreover, import and export activities continued to confirm its position as the pillar of the economy when it maintained a growth rate of 13 percent, reaching US$36.3 billion. Many products with a high export value focus on commodity groups, such as coffee, rubber, rice, pepper, milk and dairy products, meat and meat by-products, pangasius fish, and shrimp.
According to a report released in early August 2022 by the world's leading market research organization Mordor Intelligence Inc., the food, foodstuff, and beverage industry will achieve a compound annual growth rate of up to 8.65 percent. In fact, from the beginning of the year to now, the index of industrial production (IIP) of Vietnam's food processing industry has rallied by nearly 9 percent over the same period in 2021. In which, some commodity groups have posted good growth. Specifically, processed seafood increased by 20.7 percent, and milk powder inched up by 3.2 percent. In HCMC alone, the IIP of the food processing industry jumped drastically when it recorded a growth of 26.87 percent. In general, in the current context, it is an extremely positive result for the industry and Vietnam's economy.
However, in the opposite direction, under the heavy impact of the Covid-19 pandemic, the city's food processing industry has faced many difficulties and challenges, from the disruption of raw material supply and interrupted distribution system to seriously-affected logistics and human resources.
Trade opportunities for Vietnamese goods
Mr. Tran Phu Lu said that the ITPC would preside over and coordinate with the Food and Foodstuff Association of HCMC (FFA) to organize the HCMC International Exhibition of Food & Beverages (HCMC FOODEX 2022). The exhibition is expected to take place from October 19 to 22 at the Saigon Exhibition and Convention Center (SECC) with the theme "Connecting values for mutual development".
Up to now, more than 300 businesses from many countries and territories have registered to participate in the HCMC FOODEX 2022. “This is an opportunity for businesses and the city to promote the dynamic development of the HCMC food and foodstuff processing industry, high-quality products, and reputable brands in the food and foodstuff processing industry, promoting business cooperation opportunities and attracting effective investment resources. In addition, within the framework of the exhibition, enterprises will be supported to update the latest information on trends in production, consumption, and potential export market orientation, and assist businesses in finding partners and expanding distribution and consumption network," emphasized Mr. Tran Phu Lu.
Along with that, through activities to promote Vietnamese and international culinary culture, the organization committee expects to attract 18,000 visitors and residents to visit the exhibition.
Currently, Vietnam has exported agricultural and aquatic products and processed foods to more than 190 countries and territories and has become a major trading partner of the US, China, Japan, and South Korea. In the opposite direction, Vietnam is a country chosen by many FDI enterprises as an attractive investment destination because of its high growth potential. It shows the attractiveness of the industry to international businesses to invest in the Vietnamese market. To be able to participate deeply in the supply chain of foreign-invested enterprises and increase the opportunity to expand market share globally, Vietnamese enterprises need to innovate, upgrade technology, carry out digital transformation and product traceability, improve labor productivity, enhance product value, and bring indigenous culture into products to adapt to requirements from export markets. The organization of such exhibitions is essential for Vietnamese businesses.
Source : https://en.diendandoanhnghiep.vn/food-enterprises-connect-to-increase-vietnamese-goods-value-n35343.html
