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Food consumption accounts for about 15% of Vietnam’s annual GDP, and it increased by 18% in 2015. Meanwhile, food processing and beverage production respectively grew by 8.5% and 7.4% the same year.
Vietnam is a world-leading exporter of agricultural products, which means the food industry has great prospects for development, not only in the domestic market but also foreign markets, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said.
Bui Huy Son, Director of the ministry’s Trade Promotion Agency, said Vietnam’s signing of economic partnership agreements with other countries opened up a vast market for domestic and foreign-invested companies in this industry.
Claudio Dordi, an expert at the European Trade Policy and Investment Support Project (EU-MUTRAP), was of the opinion that there remain many shortcomings in the local food processing industry, such as small-scale production, slow restructuring in agriculture and the rampant use of chemicals and pesticides. However, Vietnam can make use of an abundant workforce and fresh materials to promote the growth of this industry.
Dang Xuan Quang, Deputy Director of the Foreign Investment Agency, admitted that local food processing hasn’t been attractive to foreign investors. There were 521 FDI projects worth US$7.6 billion in this industry as of the end of October this year.
To promote foreign investment in food processing, experts advised that local authorities develop zones supplying agricultural materials to serve investors, bolster technology transfers and try to sign more mutual recognition agreements on the examination of the quality of processed food.
