Capturing Opportunities to Invest in Vietnam’s F&B Sector, Trent Davies Interviews with CNA
On November 28, 2019, Trent Davies, Manager of the International Business Advisory team at Dezan Shira & Associates Vietnam, was invited by CNA (Channel News Asia) to provide insights on the Vietnam investment environment for foreign investors looking to set up a business in Vietnam’s F&B sector.
According to Trent Davies, the local food and beverage scene has been one of the fastest-growing areas in the country. Statistics from the Ministry of Industry and Trade show that the F&B sector accounts for 15 percent of Vietnam’s GDP and is growing at an average of 7 percent annually. In addition, Vietnamese spend more than a third of their income on food and beverages.
Trent indicated that in the last decade, Japanese and Korean businesses have been the leading investors in Vietnam recognizing the favorable investment environment of the nation.
Vietnam has increasingly incentivized foreign investment since the investment reform in 1996. It is now possible to set up 100 percent foreign-owned businesses in the F&B space. However, the process to establish a company may take time and involve a number of different steps.
The Vietnamese F&B market may still throw up challenges for an investor. Businesses need to balance competitive pricing strategies while maintaining food safety and hygiene standards – these being primary concerns for consumers. A recent CNA study indicates that 89 percent of Vietnamese are willing to pay more for food that promotes health while 88 percent read packaging labels carefully for nutrient content.
For further insights on the topic, watch the full interview here:
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Dezan Shira & Associates is an award-winning pan-Asia, multi-disciplinary professional services firm with over 26 years of experience providing international corporate investors with market entry, site selection, legal, tax, accounting, HR and payroll services throughout the region. Operational throughout China, ASEAN, and India, the firm’s mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations. Dezan Shira & Associates is your partner for growth in Asia.
Vietnam Briefing is a premium source for insight on doing business in Vietnam. It publishes business news concerning foreign direct investment into Vietnam, including the most important tax, legal and accounting issues.
CNA (Channel News Asia) is a prestigious Singapore-based news channel that broadcasts a variety of breaking news and stories in business, technology, sports, and more. The news outlet is known for its unique Asian approach that helps its readers keep pace with the latest happenings in Asia and better understand the region.