Vietnam’s food processing industry plays a vital role in the national economy, driven by abundant agricultural resources, a growing domestic market, and increasing demand for processed food products. The sector processes key commodities such as seafood, rice, fruits, vegetables, and coffee, benefiting from Vietnam’s position as a major exporter of agricultural goods.
The industry is experiencing rising domestic and international demand for packaged, convenient, and value-added food products. Urbanisation, changing consumer preferences, and a growing middle class have fuelled demand for processed food, including dairy, snacks, and ready-to-eat meals. Additionally, Vietnam’s numerous free trade agreements have opened new markets, making the country a competitive supplier of processed food to global markets.
However, the sector faces challenges, including outdated technology in smaller enterprises, food safety concerns, and fluctuating input costs. Continued investment in modernisation, quality control, and supply chain efficiency is essential to overcoming these obstacles. With ongoing improvements and strong demand, Vietnam’s food processing industry is well-positioned for sustained growth.
Vietnam’s food processing industry in numbers
Vietnam’s food processing industry has experienced significant growth, becoming a vital component of the nation’s economy.
Vietnam food processing industry size
Vietnam’s food processing industry, comprising around 11,000 companies, reached a value of US$73.8 billion in 2023. Growth in the sector was recorded at 6.1 percent, a slowdown compared to the robust 8.8 percent growth observed in 2021 and 2022. Meanwhile, the food retail sector, valued at US$68.5 billion, grew by 11.4 percent, and food service and accommodation sales surged by 14.7 percent to US$27.3 billion, boosted by a rebound in tourism, according to a US Foreign Agricultural Service report released in April 2024.
Vietnam processed food production
The Industrial Production Index (IPI) for Vietnam’s food processing and manufacturing industry increased by 3.09 percent in November compared to October, highlighting steady month-on-month growth, according to Vietnam’s General Statistics Office. This growth reflects a healthy demand for processed food products domestically and internationally.
Year-on-year, the sector achieved notable growth of 10.91 percent in November 2024 compared to the same period in 2023. Over the first 11 months of 2024, the IPI for food processing and manufacturing rose by 7.65 percent compared to the same period last year, underscoring its significant contribution to Vietnam’s industrial output.
Domestic food processing firms in Vietnam
Notable domestic food processing companies operate in Vietnam include:
Vinamilk (Vietnam Dairy Products Joint Stock Company)
Established in 1976, Vinamilk is Vietnam’s largest dairy company, commanding approximately 75 percent of the domestic market share. The company offers a diverse range of products, including liquid milk, powdered milk, yogurt, and cheese. Vinamilk has a robust distribution network across all 64 provinces and cities in Vietnam and exports to countries such as the United States, France, Canada, and Germany.
Vissan Joint Stock Company
Founded in 1970, Vissan is a leading enterprise in Vietnam’s food industry, specialising in the production and trading of fresh and processed meat products. The company offers over 200 product lines, including canned foods and sausages, supplying approximately 20,000 tons of products annually to the domestic market.
Kinh Do Corporation (Mondelez Kinh Do)
Established in 1993, Kinh Do Corporation, now part of Mondelez International, is renowned for its confectionery products, including biscuits, fresh bread, sponge cakes, mooncakes, and chocolates. The company operates in multiple locations across Vietnam, employing over 3,000 people, and has a significant presence in the domestic market.
DOVECO (Dong Giao Foodstuff Export Joint Stock Company)
Founded in 1955, DOVECO is a leading agricultural product processing enterprise in Vietnam. With a cultivation area exceeding 5,500 hectares, the company produces a variety of processed canned vegetables and fresh fruit products. In 2020, DOVECO achieved a revenue growth of 230 percent and led Vietnam in fruit and vegetable export turnover to the EU market.
Masan Consumer Holdings
A subsidiary of Masan Group, Masan Consumer Holdings is a major player in Vietnam’s food and beverage sector. The company produces a wide range of products, including instant noodles, sauces, and beverages, catering to the diverse tastes of Vietnamese consumers.
These domestic firms have significantly contributed to the growth and development of Vietnam’s food processing industry, enhancing the country’s economic development and expanding its presence in international markets.
Foreign food processing firms in Vietnam
Vietnam’s food processing industry has attracted significant foreign investment, with international firms playing a crucial role in its development. Notable foreign food processing companies operating in Vietnam include:
Mondelez International
In 2015, Mondelez International, a leading global snack company, acquired Kinh Do Corporation’s confectionery business, establishing Mondelez Kinh Do Vietnam. This acquisition enabled Mondelez to expand its presence in the Vietnamese market, offering a range of products including biscuits, fresh bread, sponge cakes, mooncakes, and chocolates.
FrieslandCampina
FrieslandCampina, a Dutch dairy company, has been active in Vietnam for over 25 years, operating under the brand name Dutch Lady. The company provides a variety of dairy products, including milk, yogurt, and infant formula, contributing to the development of the local dairy industry.
CJ Group
South Korea’s CJ Group has made significant investments in Vietnam’s food processing sector. The conglomerate acquired a 65% stake in Minh Dat Food Company Limited, a Vietnamese firm specializing in processed meat products. This investment reflects CJ Group’s strategy to expand its footprint in Southeast Asia’s burgeoning food industry.
Olam Agri Vietnam
Olam Agri, a leading global agribusiness, has a substantial presence in Vietnam, focusing on transforming food, feed, and fiber. The company operates across various segments, including sourcing, processing, and exporting agricultural products, thereby playing a pivotal role in Vietnam’s agro-processing industry.
These foreign investments have not only enhanced the capacity and quality of Vietnam’s food processing industry but have also facilitated the transfer of technology and expertise, contributing to the sector’s overall growth and integration into global value chains.
Key Vietnam processed food products
Vietnam’s processed food industry produces a wide range of products to meet both domestic consumption and export demands. Key processed food products include:
Seafood Products
Vietnam is one of the world’s largest seafood exporters, with processed shrimp, pangasius fish, and squid being major products. These are often frozen, canned, or value-added for international markets.
Dairy Products
Processed dairy products, such as liquid milk, yogurt, condensed milk, and powdered milk, dominate the domestic market. Companies like Vinamilk and FrieslandCampina are leading suppliers in this segment.
Processed Meat
Processed meat products, including sausages, canned meat, and frozen cuts, are widely consumed domestically. Brands like Vissan lead in supplying fresh and processed pork, beef, and poultry products.
Confectionery and Snacks
Vietnam’s food processing industry produces a variety of snacks, biscuits, cakes, and candies, with demand driven by the growing middle class. Popular products include mooncakes, rice crackers, and packaged sweet and savoury snacks.
Instant Noodles and Packaged Foods
Instant noodles, ready-to-eat meals, and sauces are staples in Vietnam’s processed food market. Companies like Masan Consumer and Acecook dominate this segment, catering to both local and export markets.
Fruit and Vegetable Products
Processed fruits and vegetables, including canned, dried, and frozen varieties, are key exports. Products such as dried mango, lychee, and frozen vegetables are popular in international markets.
Coffee and Tea Products
Vietnam, one of the largest coffee producers globally, processes coffee into instant coffee, roasted beans, and ready-to-drink formats. Tea products, including green and herbal varieties, are also widely processed and exported.
These key processed food products reflect Vietnam’s strengths in agriculture and manufacturing, enabling the sector to meet rising domestic demand and remain competitive in global markets.
Key food processing regulations in Vietnam
Law on Food Safety
The Law on Food Safety governs the production, processing, and distribution of food products in Vietnam. It sets strict requirements for hygiene, safety standards, labelling, and quality control to ensure consumer protection. Food processing businesses must comply with licensing requirements and periodic inspections.
Labelling and certification
Processed food products must adhere to vietnam’s labelling regulations, which require clear information on ingredients, expiration dates, nutritional content, and origins. Certifications like haccp (hazard analysis and critical control points) and iso 22000 are often required for domestic and export markets.
Import and export regulations
Vietnam regulates processed food imports and exports through stringent safety checks and compliance with international standards. Exporters must meet destination market requirements, while imports undergo inspections to ensure compliance with food safety laws.
Environmental regulations
Food processing firms must comply with environmental laws that address waste management, water treatment, and emissions. Companies are required to implement measures to mitigate pollution, particularly in operations involving agricultural and seafood processing.
Foreign investment policies
Foreign investors in Vietnam’s food processing sector must adhere to laws governing business operations, land use, and licensing. The government offers incentives, such as tax breaks and reduced tariffs, for projects that contribute to technology transfer and sustainable development.
Quality control and testing
Processed food products must undergo quality testing to ensure compliance with vietnam’s national technical standards. Regulatory authorities, such as the ministry of health and the ministry of agriculture and rural development, oversee food quality and safety enforcement.
These regulations aim to ensure food safety, protect consumers, and align Vietnam’s food processing sector with international trade standards, supporting the industry’s growth and competitiveness.
What’s next?
Vietnam’s food processing industry operates under a robust regulatory framework to ensure safety, quality, and compliance with international standards. The Law on Food Safety sets strict requirements for hygiene, labelling, and quality control, mandating periodic inspections for all food businesses
Furthermore, environmental regulations require firms to adopt waste management and pollution control measures, particularly in agriculture and seafood processing. Additionally, national technical standards (QCVN) govern product testing and quality assurance, overseen by key regulatory bodies like the Ministry of Health and the Ministry of Agriculture. This regulatory structure not only protects consumer health but also enhances the competitiveness of Vietnam’s food processing sector in global markets.
The food processing industry in Vietnam, however, can be dynamic and change quickly. With this in mind, foreign firms operating in the food processing space should make sure to keep up to date with the latest developments by subscribing to the-shiv.