Friday, 16/08/2019 10:53 (GMT+7)
The food and beverage industry accounts for 15% of Vietnam’s GDP with an average growth rate of about 7% a year, according to the Ho Chi Minh city Food and Foodstuff Association.
Photo for illustration
This is one of the four main industries prioritized for development in the southern hub, with a high growth rate of 8.22% for foodstuff and 5% for beverage in 2018.
Mr. Ramesh Anand, Head of the Indian Business Chamber in Vietnam, said that with a population of more than 95 million, the consumption demand for foodstuff and beverage is increasing in the country, creating a big market.
In addition, the Vietnamese government has applied different policies to develop the industry by improving the business environment for producers, reforming public administration, and providing soft loans and demand stimulus programs. In fact, FDI capital from India to Vietnam has increased significantly for many years.
As of June 20th, 2019, Indian companies invested in 254 projects in Vietnam with a total capital of about USD928 million. In Ho Chi Minh city, India now has 118 licensed and effective projects, capitalized with more than USD73 million, with the focus on science-technology, automobile and motorbike industry; manufacturing and processing industry; and information and technology.
Notably, free trade agreements like CPTPP and EVFTA are expected to improve market access for processed food and beverage in Vietnam. This also the motivation for Indian businesses to seek business opportunities in the country./.
BTA