Backed by Vietnam’s rapid economic growth and a sizeable market with a population of over 96 million, the country’s food and beverage (F&B) sector is proving to be a magnet attracting foreign investors looking for business opportunities here.
Illustrative photo.
|
In 2018, India exported to Vietnam fisheries worth US$344 million, vegetables worth US$39 million and corn worth US$24.86 million, according to the General Statistics Office (GSO). Meanwhile, the former bought in Vietnam’s US$62.2 million worth of peppercorn, US$34.8 million worth of cashew nuts and coffee worth US$95.6 million.
Ramesh Anand, chairman of the India Business Chamber in Vietnam (INCHAM), said with growing disposable income and strong growth of the tourism sector, Vietnam’s market of over 96 million users would spur higher consumption in the F&B sector, indicating strong potential for the sector’s development.
Anand noted recent trade deals such as the Comprehensive and Progressive Trans – Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) are expected to pave the way for greater access to the Vietnam’s F&B market for foreign companies, which is one of the reasons pushing India companies to look for business opportunities in Vietnam.
Similarly, Polish enterprises are expanding cooperation with their Vietnamese partners in agricultural trade and food processing.
Head of Poland’s Trade and Investment Promotion Agency in Ho Chi Minh City Piotr Harasimowicz said both countries are key producers and exporters of agricultural products, a key pillar in bilateral trade relations.
As Vietnamese companies push for modernization of the agricultural sector, Polish companies could provide them with machinery and equipment, Harasimowicz added.
At a conference held on August 8, Vice President of the Association of Polish Butchers and Producers of Processed Meat Piotr Ziemann informed Polish companies considered Vietnam a major market, especially as Vietnam is currently its largest partner in ASEAN.
Chairwoman of the Food and Foodstuff Association of Ho Chi Minh City Ly Kim Chi attributed the high growth rate of the F&B sector, which reaches 7% per year and accounts for 15% of the country’s GDP, to huge interest from foreign investors.
Chi added the F&B sector is an important industrial sector in Vietnam, and one of four priority fields for development in Ho Chi Minh City with growth rate of 8.22% per year for food stuff and 5% for beverage in 2018.
