VN’s processing and packaging industry: Many encouraging signals
VGP – Over recent years, the food processing and packaging industry in Viet Nam has been growing stably with an annual growth rate of 15-20%, and is expected to continue to expand in the near future.
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Viet Nam has been updating all the latest techniques and trends in the world to meet the market demands |
Many opportunities to spurt
According to the Association of Viet Nam Retailers (AVR), a population of over 90 million and a rapidly increasing number of tourists each year, along with the widespread development of the retail system, the food, beverage and pharmaceutical industry in Viet Nam is now a fertile land for investors, stimulating the development of the domestic printing and packaging industry.
Food and beverage currently occupy the highest proportion in the monthly expenditure structure of Vietnamese consumers, accounting for 35% of the spending.
The annual food consumption value of the Vietnamese people is estimated at 15% of GDP and is on an upward trend. Regarding 2018 alone, domestic food and beverage consumption grew strongly at 18%.
Notably, there still remain numerous opportunities for the development of the industry as Viet Nam is now a big attraction to world manufacturers to invest in factories thanks to its market advantages and competitive human resources.
In addition, Viet Nam is among the 17 countries with the highest pharmaceutical growth rate in the world, with a market size of about US$5.1 billion (as stated by IMS Health).
GlobalData, a market research company, also pointed out that Viet Nam will be one of the three countries to continue posting a good growth rate in the pharmaceutical industry in the near future, with an average of 10% per year.
The domestic cosmetics and functional food industry is growing strongly as well. All of these factors are geared towards requiring a modern, convenient and environmentally friendly packaging market.
Meeting the trend
The attractiveness of Viet Nam’s processing and packaging industry has been demonstrated by the fact that over recent years, many manufacturers around the world have chosen Viet Nam as a destination to supply machines, equipment and products and invest in building factories.
According to advisory experts, the current packaging trend is not only thin, light, environmentally friendly, and beautiful and impressive in design, but smart as well, with digital watermarks and invisible codes that can be scanned by using consumers’ smartphones.
Besides, for large brands, packaging is also an important solution to differentiate genuine goods from fake goods.
Viet Nam has participated in free trade agreements, with its packaging industry joining the global value chain as a supporting industry. Viet Nam has been updating all the latest techniques and trends in the world to meet the market demands.
By Vien Nhu
