As per statistics, there is an increase in food consumption annually in Vietnam, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa at a conference in HCMC on food processing industry held in Ho Chi Minh City on November 16.
Annual domestic food consumption is estimated to account for 15 percent of the whole country’s gross domestic product (GDP) and is likely to increase to 18 percent meanwhile food production just soares by 8.5 percent.
Currently, foreign-invested companies in the food processing industry accounts for 1 percent. As per forecast, within next 20 years with the rate of economic growth at 5-6 percent, consumption demand, appearance of urbanized residential blocks and retail market will increase leading to higher demand of more quality processed food.
On other hand, there is a high potential of food export to foreign countries. Vietnam is one of the biggest exporter of rice, coffee, cashew in the world. It is scheduled that in 2017, Vietnam will reach US$31 billion from agriculture, forestry and fishery export.
Speaking about food processing industry in Vietnam, a representative from Vietnam’s Association of Foreign Invested Enterprises said that thanks to investment incentives, foreign investors eye Vietnam most. Fore instance, 49 percent of Korean businesses have planned to set up processed food companies in Vietnam.
Yet, Claudio Dordi, EU-MUTRAP Project team leader, said that to improve agricultural produce quality for export Vietnam needs to invest in brand names. In reality, many countries consume Vietnamese agricultural produce but they did not realize.