Vietnam, a Southeast Asian gem, has emerged as a vibrant hub for global businesses in the food, restaurant, and hotel industries. With a burgeoning population of nearly 100 million consumers, Vietnam offers a vast and ever-evolving market, making it an attractive destination for international enterprises. HUFR’s article delves into the immense potential that Vietnam's food and beverage market holds, its remarkable growth, and the platforms fostering international collaborations, as unveiled at the "2nd International Exhibition on Food, Beverages, Bakery Equipment, Restaurants, Hotels, and Services in Vietnam 2023" (Food & Hotel Hanoi 2023).
Vietnam's culinary landscape has witnessed significant growth in recent years. The country has made considerable strides in its food and beverage (F&B) sector, largely attributed to the country's economic stability, increasing tourism, and the appetite of local consumers for diverse culinary experiences. As a result, the revenue from the F&B industry in Vietnam soared, reaching nearly VND 610 trillion. With a projected 18% growth rate in 2023, the sector is set to achieve a value of almost VND 1 quadrillion by 2026. This growth is indicative of the tremendous opportunities awaiting businesses operating in the F&B sector within Vietnam.
Vietnam's active participation in 16 Free Trade Agreements has substantially affected bilateral relations between member nations, particularly in trade, import and export, and investments in the food and restaurant industries. These agreements have unlocked channels for growth and cooperation in the F&B sector.
Mr. BT Tee, General Director of Informa Markets Vietnam, recognizes Vietnam as a culinary destination known for its rich and diverse food culture. Alongside the profound appreciation of Vietnamese cuisine, international gastronomy continues to gain popularity among the country's nearly 100 million consumers. The demand for international food experiences is contributing to the substantial development of F&B businesses within the country.
Statista's projections for the Vietnamese food market in 2023 indicate an expected valuation of $96.47 billion, reflecting a 9% growth compared to 2022. The annual growth rate for the period between 2023 and 2027 is estimated at approximately 8.22%. Comparatively within Southeast Asia, Vietnam's F&B industry revenue for 2023 is forecasted to rank third, following only Indonesia and the Philippines. Notably, the confectionery and snack segment constitutes the largest market share, accounting for 14.6% and with an estimated market value of around $14.13 billion in 2023.
In the beverage sector, Vietnam is poised for an exceptional journey. As of March 2023, the projected revenue for the beverage market in Vietnam in 2023 is set at $27.121 billion. The non-alcoholic beverage segment, contributing 37.7% of the total share, is the fastest-growing niche within this sector. The non-alcoholic beverage segment is expected to achieve $10.22 billion in revenue for 2023, an impressive 10.4% growth from 2022, and an average annual growth rate of 6.28% for the period between 2023 and 2028.
The hospitality, travel, and culinary industries share a profound connection. After a challenging period caused by the global pandemic, Vietnam's tourism market is showing remarkable signs of recovery. According to the General Statistics Office of Vietnam, the total revenue from tourism for the first four months of 2023 is estimated to reach VND 9.1 trillion nationwide. This figure represents a nearly twofold increase compared to the same period in the previous year. The resurgence of tourism activities has notably propelled the hotel market in Hanoi and across Vietnam, reflecting substantial growth.
Savills Vietnam's report illustrates the impressive growth in the hotel and accommodation sector. In the first quarter of 2023, the number of overnight stays increased by 220% year-on-year, totaling 1.1 million guests. This figure comprises 339,000 domestic guests, reflecting a 21% year-on-year growth, and 712,000 international guests, showcasing a staggering 1,400% year-on-year growth.
The Food & Hotel Hanoi 2023 exhibition is expected to act as a catalyst, promoting new opportunities for business cooperation. It will bridge the gap between international producers, exporters, and local importers, distributors, and retailers. Informa Markets aims to provide support for product promotion, facilitating broader access for Vietnamese businesses and consumers.
Mr. BT Tee, General Director of Informa Markets Vietnam, underlines the commitment to intertwining global culinary trends with Vietnamese culture. The event doesn't just introduce an exciting experience and the latest culinary trends, restaurant businesses, and hotels, but also offers a platform for numerous F&B companies to share their experiences, exchange knowledge, and create opportunities for cooperation and development.
Mr. Ralph Bean, Agricultural Attaché at the U.S. Embassy in Hanoi, shares that U.S. businesses will bring a variety of high-quality food products to the exhibition. Vietnam, as a dynamic and growing market, presents extensive opportunities for international cooperation and trade. The participation of U.S. sectors in the exhibition aims to strengthen cooperation between entities and partners operating in the agricultural sector. The exhibition serves as a platform for knowledge exchange, understanding market needs, and building bridges to promote trade.
Food & Hotel Hanoi 2023 is scheduled to take place at the International Centre for Exhibition (I.C.E Hanoi) in Hoan Kiem District from November 21 to 23, 2023. The event will host 113 exhibitors from over 13 countries and territories, including the United States, Switzerland, Italy, Germany, Spain, Canada, Australia, Japan, South Korea, China, Singapore, Taiwan (China), Thailand, and several renowned Vietnamese brands. Anticipated to attract over 6,500 specialized visitors, the exhibition promises to be a captivating experience for all.
Within the framework of the exhibition, several captivating events will occur, further enhancing the allure of the exhibition:
These events aim to empower young talents, nurturing them to become the future creators of modern cuisine and further elevate the culinary and hospitality industry in Vietnam.
In conclusion, Vietnam's thriving F&B market, backed by substantial market growth and international collaborations, is set to reach new heights. Food & Hotel Hanoi 2023, as an exemplar of such collaborations, promises a vibrant showcase of the diverse culinary world and an exciting opportunity for global enterprises to tap into Vietnam's dynamic market. As Vietnam continues to evolve as a food and beverage haven, businesses both local and international have much to gain by engaging with this thriving market.
Editor: Thien Xuan (Yun)