Econ
Vietnam targets US$900 million from beverage exports by 2025
The country’s beverage industry is expected to earn US$900 million from exports by 2025, according to the Vietnam Beverage Association (VBA).
Under the plan, the industry will produce 5.5 billion liters of beer, 350 million liters of alcohol, half of which will be industrial alcohol, and 15.2 billion liters of soft drinks.
The industry has grown well recently in Vietnam, creating more than 50,000 jobs and contributing three percent of the State budget. The soft drink sector grew 6.6 percent in 2011 – 2016 on an annual basis, while the beer sector was said to have caught up with global trends.
Statistics of the Ministry of Industry and Trade show that Vietnam currently has more than 1,800 businesses operating in the beverage sector.
According to VBA, the domestic consumption for beverage products is also potential. Each Vietnamese person consumes an average of more than 23 million liters of beverage each year and the number will continue to increase in the coming years.
Ly Kim Chi, chairwoman of the Food and Foodstuff Association of Ho Chi Minh City, said the country’s food and beverages sector has enjoyed strong growth in recent years, adding that the market is expected to maintain its high growth rate in the coming years and rank third in Asia.
A report of Business Monitor International forecast that the growth speed of the food and beverage industry will maintain an annual dual growth of 10.9 per cent in 2017-2019 and consumption demand will focus on food and necessities, thanks to people’s increasing income and a trend of using high value products.
Experts also said that Vietnam’s beverage market has attractiveness with investors from the United States, France and Japan. In some Asian countries, foreign investors expect the growth rate of the beverage market is at about 2 percent, but the Vietnam’s growth in recent years has always maintained at 6-7 percent.
However, difficulties remained in the industry, including high inventory rate and shortcomings in business management policy.
VBA Chairman Nguyen Van Viet said to realize an average growth of 5.8 percent for 2016 – 2020, the beverage industry need long-term and stable policies which must be practical to avoid impacts on business operations.
Rungphech Chitanuwat, a sales director of Thai-based UBM Asia, said the global beverage has high demand for food safety, with environmentally friendly materials.
She said key measures to boost the sector growth include trade promotion, material development, and new production machinery.
Apart from the diversification of tastes, domestic beverage producers have also focused on adjusting and improving formulas in order to bring about healthy drinks to users’ health in recent years.
For example, Coca-Cola has diversified its products with bottled fruit and tea drink named Fuzetea + and canned coffee named Georgia since last year.
Pham Nha Uyen Coca-Cola’s Indochina marketing director said with the goal of becoming a beverage brand for everyone, apart from launching a new appetite, Coca-Cola cut down on sugar and calories on many products.
Kido Group recently announced that it will penetrate into beverage market with herbal tea, heat relieving tea, milk tea, corn milk, and bottled green bean milk. Tran Le Nguyen, CEO of Kido Group, said Kido is completing procedures to cooperate with a Thai partner for the plan. In the first stage, the Thai partner will produce products in Thailand while Kido distributes it in the Vietnamese market. In the second stage, Kido will build a factory in Vietnam.
The industry has grown well recently in Vietnam, creating more than 50,000 jobs and contributing three percent of the State budget. The soft drink sector grew 6.6 percent in 2011 – 2016 on an annual basis, while the beer sector was said to have caught up with global trends.
Domestic beverage firms plan to produce 15.2 billion liters of soft drinks by 2025
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According to VBA, the domestic consumption for beverage products is also potential. Each Vietnamese person consumes an average of more than 23 million liters of beverage each year and the number will continue to increase in the coming years.
Ly Kim Chi, chairwoman of the Food and Foodstuff Association of Ho Chi Minh City, said the country’s food and beverages sector has enjoyed strong growth in recent years, adding that the market is expected to maintain its high growth rate in the coming years and rank third in Asia.
A report of Business Monitor International forecast that the growth speed of the food and beverage industry will maintain an annual dual growth of 10.9 per cent in 2017-2019 and consumption demand will focus on food and necessities, thanks to people’s increasing income and a trend of using high value products.
Experts also said that Vietnam’s beverage market has attractiveness with investors from the United States, France and Japan. In some Asian countries, foreign investors expect the growth rate of the beverage market is at about 2 percent, but the Vietnam’s growth in recent years has always maintained at 6-7 percent.
However, difficulties remained in the industry, including high inventory rate and shortcomings in business management policy.
VBA Chairman Nguyen Van Viet said to realize an average growth of 5.8 percent for 2016 – 2020, the beverage industry need long-term and stable policies which must be practical to avoid impacts on business operations.
Rungphech Chitanuwat, a sales director of Thai-based UBM Asia, said the global beverage has high demand for food safety, with environmentally friendly materials.
She said key measures to boost the sector growth include trade promotion, material development, and new production machinery.
Apart from the diversification of tastes, domestic beverage producers have also focused on adjusting and improving formulas in order to bring about healthy drinks to users’ health in recent years.
For example, Coca-Cola has diversified its products with bottled fruit and tea drink named Fuzetea + and canned coffee named Georgia since last year.
Pham Nha Uyen Coca-Cola’s Indochina marketing director said with the goal of becoming a beverage brand for everyone, apart from launching a new appetite, Coca-Cola cut down on sugar and calories on many products.
Kido Group recently announced that it will penetrate into beverage market with herbal tea, heat relieving tea, milk tea, corn milk, and bottled green bean milk. Tran Le Nguyen, CEO of Kido Group, said Kido is completing procedures to cooperate with a Thai partner for the plan. In the first stage, the Thai partner will produce products in Thailand while Kido distributes it in the Vietnamese market. In the second stage, Kido will build a factory in Vietnam.
