Food consumption to grow 5.1% annually: MoIT

Monday, 2015-02-02 11:02:53
 Font Size:     |        Print
 Font Size:     |  

NDO/VNA - Vietnam's food consumption is expected to grow by 5.1% annually to an estimated US$29.5 billion by 2016, according to a forecast by the Ministry of Industry and Trade (MoIT).

The forecast also pegged food consumption per capital growing to US$5.8 million (about US$276) by 2016, reflecting an increase of 4.3%.

The expected growth is a result of consumers' increasing incomes and the development of the retail industry.

At present, Vietnamese consumers still focus on the daily essential demands of purchasing food and groceries.

However, the trend will change when the income of urban residents rises, which will allow them to spend more on high-quality food and beverage products.

"In order to meet demand from local consumers, the quality of local food products needs to be controlled more closely," said Bui Truong Thang, deputy head of the MoIT's Light Industry Department.

Thang told Enterprise Forum newspaper that most Vietnamese food processing enterprises have weak competitive capacity in the regional and global market.

There are numerous reasons for this, but a lack of capital, poor machinery and out-of-date technology, are some of the causes that have been identified.

In order to improve the situation, some local companies have invested in building a breeding farm and processing factory to form a closed manufacturing chain.

For example, the Massan Group began construction of the Masan food industry centre in the central province of Nghe An last November.

However, the investment in food processing with standard technology is still modest, according to the MoIT.