Vietnamese food, beverage industry attracts Indian enterprises

According to the Food and Foodstuff Association (FFA) of Ho Chi Minh City, the  food and beverage accounts for 15 percent of Vietnam’s Gross domestic product (GDP) with an annual average growth of around seven percent. This is one of the four main industries that the city has encouraged to invest with a high growth of 8.22 percent and five percent of food and beverage respectively in 2018.

(Illustrative photo:SGGP)

(Illustrative photo:SGGP)

According to Mr. Ramesh Anand, Chairman of Indian Business Chamber in Vietnam (INCHAM), with a population of more than 95 million, the food and beverage consumption demand in Vietnam has been more and more surging, creating a huge market.

In addition, the Vietnamese Government has applied different policies to develop the food and beverage industry through improving business environment for producers, public administration reform, providing soft loans and stimulus programs.

In reality, foreign direct investment (FDI) capital of India flowing to Vietnam has been increased sharply during the recent years. In June 20, Indian firms had 254 investment projects in Vietnam with total capital of around US$ 928 million.

Ho Chi Minh City has licensed 118 investment projects from India with total value of more than US$ 73 million focusing on the fields of science and technology, automotive and motorcycle industry, manufacturing and processing industry, information and communications.

The recent FTA agreements as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union Vietnam Free Trade Agreement (EVFTA) will improve ability of the market access with food and beverage products of Vietnam that would be a motivation for Indian enterprises to seek business opportunities in the Southeast Asian country.

BY MINH HAI – Translated by Huyen Huong

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