Chairwoman of the association Ly Kim Chi explained that most Vietnamese beverage companies have faced many difficulties as they have to import input materials from foreign countries with import tariffs of several flavorings and materials up to 10-15 percent. Therefore, cost prices of domestically-made products were not able to compete with those made by foreign-invested companies, right on home ground.
This situation is not expected to improve in the near future as flavoring and additive producers in Vietnam are still operating in small scale. They also face cutthroat competition from foreign producers themselves about product diversification, quantity supplied, and food safety. Weakness and shortcoming of local flavoring and material producers have created competitive edge for foreign beverage companies.
Currently, there are around 229 beverage companies across the country.