Listed among leading Asian consumers of alcoholic drinks, Vietnam remains potential for foreign investors.
Foreign beverage companies are looking to make inroads into Vietnam which is standing out as one of the most promising markets thanks to its sustained growth.
Consumption of beverages, including alcoholic and non-alcoholic drinks, in Vietnam is on the rise with an annual increase of 6%-8%, reaching 81.6 billion liters in 2016, and is projected to hit roughly 109 billion liters by 2020.
Beverage consumption in Vietnam posts annual growth rate of 6%-8%. Source: EVBN
Beverage consumption in Vietnam posts annual growth rate of 6%-8%. Source: EVBN
The industry is characterized by a growing population and a rising number of middle income individuals, according to the EU-Vietnam Business Network (EVBN), a project co-funded by the European Union and established in 2014.
Consequently, various foreign beverage companies have been expanding their footing to this lucrative market, creating a competitive market environment.
While local manufacturers diversify their product portfolios in response to more demanding consumers, the high-end segment, which often brings higher margin, is dominated by foreign players, especially in the alcoholic drinks sector.
The involvement of foreign players has posed certain difficulties for local beverage manufacturers due to the limited capital budget and expertise in establishing influential brand names, according to a report by the EVBN, which strengthens the EU business sector in facilitating market access in Vietnam by advocating and engaging primarily with the Government of Vietnam, the Vietnamese business sector and other stakeholders.
The master plan of development for beverage industry by 2025 by the Ministry of Industry and Trade has defined that:
Beverage capacity in Vietnam in 2015-2020. Source: EVBN. Chart: Linh Pham
Beverage capacity in Vietnam in 2015-2020. Data: EVBN. Chart: Linh Pham
(1) Beverage capacity in the northern mountainous region is targeted to account for 8% of the
country’s total by 2025, the Red River Delta 22%, the north-central region 19.5%, the Central Highlands 2.5%, the southern region 31%, and the Mekong Delta 17%.
Other News
- IT training urged to focus on semiconductors
- Hanoi Great Souvenir Fair 2024 to take place next week
- As orders rise, Vietnamese textile firms see better prospects in 2024
- C.bank to auction nearly 17,000 gold taels on April 22
- Trade ministry proposes purchasing renewable electricity mechanisms without EVN’s involvement
- Australia and Vietnam develop competitive electricity markets
- Vietnam, Thailand advance realization of “Three Connections” strategy
- Vietnamese Gov’t to expand list of electricity buyers under direct power agreement scheme
- Viettel opens largest data center in Vietnam to support AI development
- Vietnam’s economy expected to grow at solid pace in 2024-2025: ADB
Trending
-
Collective efforts are key to fight against plastic waste
-
Vietnam news in brief - April 25
-
Vietnamese contemporary ballet celebrates Europe Day
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area