Vietnam's food, beverage and mass grocery retail (MGR) sectors continue to attract both domestic and multinational investment, as discussed in BMI's recently published Vietnam Food & Drink Report for Q310. Given the relative state of immaturity of these sectors coupled with the country's large population, it is not surprising that companies are keen to invest, despite some of the challenges associated with operating in the country.
One area that has received a lot of investment this quarter is the country's alcoholic drinks industry. In late January 2010, Vietnam's second largest brewer, Hanoi Beer Alcohol and Beverage Corporation (Habeco) started constructing a VND168bn (US$9.3mn) beer plant in Phu Tho province with the aim of increasing annual production capacity by 25mn litres. Following this, in April market leader Saigon Beer Alcohol and Beverage Corporation (Sabeco) announced plans to build a VND680bn (US$36mn) beer factory in the south-central province of Ninh Thuan. It is expected the factory will produce 50mn litres of beer annually. In making these investments both brewers are seeking to raise their competitiveness in preparation for the forecast increase in beer sales, which are expected to rise 32.8% to reach 2.6bn litres in 2014.
Meanwhile, the country's MGR sector continues to attract considerable attention and with one of the highest growth forecasts in the Asia Pacific region this is unsurprising. Keen to expand outside of its stagnant domestic market, Japanese convenience retailer FamilyMart announced in February 2010 that over the course of the year it will open five more stores in Ho Chi Minh City. The retailer currently only has one store in Vietnam yet has ambitious plans to have a network of 300 outlets in five years. Vietnam's convenience retail sector will appeal to FamilyMart, as value sales are expected to increase 65.2% to 2014 compared to a growth rate of just 2.2% over the same period in its home market. Vietnam's leading retailer Saigon Co-op also confirmed expansion plans this quarter, announcing that it would increase its supermarket network to 52 by the end of the year and increase the number of food stores from the current eight to 20. The retailer is also keen to pursue expansion outside of Vietnam announcing that it plans to build its first overseas supermarket in Cambodia.
However, the news is not all positive and Q210 saw Vietnamese seafood company Nam Viet Corporation announce a loss of VND176.3bn for FY09, signifying that some companies are still suffering the effects of the economic slowdown.
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Partial Table of Contents:
Executive Summary
SWOT Analysis
- Vietnam Food Industry SWOT
- Vietnam Drink Industry SWOT
- Vietnam Mass Grocery Retail Industry SWOT
Business Environment
- BMI's Core Global Industry Views
- Table: BMI's Core Views For The Food & Drink Industry
- Asia Pacific Business Environment Ratings
- Table: Asia Pacific Food & Drink Business Environment Ratings, Q310
- Vietnam Food & Drink Business Environment Rating
Macroeconomic Outlook
- Table: Vietnam - Economic Activity
Food
- Industry Forecast Scenario
- Food Consumption
- Table: Food Consumption Indicators - Historical Data & Forecasts
- Canned Food
- Confectionery
- Table: Canned Food And Confectionery Sales Indicators - Historical Data & Forecasts
- Trade
- Vietnam Food & Drink Trade Indicators - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Agriculture
- Food Processing
- Food Consumption
Drink
- Industry Forecast Scenario
- Alcoholic Drinks
- Table: Alcoholic Drinks Indicators - Historical Data & Forecasts
- Coffee
- Table: Hot Drinks Sales - Historical Data & Forecasts
- Soft Drinks
- Table: Soft Drinks Indicators - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Soft Drinks
- Alcoholic Drinks
Mass Grocery Retail
- Industry Forecast Scenario
- Table: Vietnam MGR Indicators - Value Sales by Format - Historical Data & Forecasts
- Grocery Retail Sales by Format - Historical Data & Forecasts (%)
- Industry Developments
- Market Overview
- Table: Structure of Vietnam's Mass Grocery Retail Market by Estimated Number of Outlets
- Table: Structure of Vietnam's Mass Grocery Retail Market - Sales Value by Format (US$mn)
- Table: Structure of Vietnam's Mass Grocery Retail Market - Sales Value by Format (VNDbn)
- Table: Average Sales per Outlet by Format - 2008
Competitive Landscape
- Table: Key Players in Vietnam's Food & Drink Sector - 2009
- Table: Key Players in Vietnam's Mass Grocery Retail Sector - 2009
Company Analysis
- Food
- Masan Food
- Vietnam Dairy Products Joint Stock Company (Vinamilk)
- San Miguel Purefoods Vietnam Co Ltd
- Drink
- Saigon Beer Alcohol and Beverage Corporation (Sabeco)
- Carlsberg
- Mass Grocery Retail
- Metro Cash & Carry
- Saigon Co-op
Appendix
- Country Snapshot: Vietnam Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education and Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market and Spending Power
- Table: Employment Indicators, 1999-2004
- Table: Consumer Expenditure, 2000-2012 (US$)
BMI Food & Drink Methodology
- Food & Drink Business Environment Ratings
- Ratings Methodology
- Ratings Overview
- Ratings System
- Indicators
- Table: Limits Of Potential Returns
- Table: Risks To Realisation Of Potential Returns
- Weighting
- Table: Weighting
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