Customers shop for confectionery at a supermarket in Hanoi. The Vietnamese confectionery industry is expected to earn revenues of 1.8 billion USD in 2018. (Photo: dantri.com.vn) Hanoi (VNA) - Market observers see a positive outlookin the long term for Vietnamese confectionery exports.
Their optimism is based on a steady double-digit growth in export value forseveral years and an upward tick in investment and production expansion bylocal firms.
According to the Business Monitor International (BMI), the nation’sconfectionery sector has experienced a relatively high and stable growth rateand it is forecast to earn revenues of 40 trillion VND (1.8 billion USD) in2018.
China, the United States and Cambodia were the top three importers ofVietnamese confectionery last year, followed by Japan and the Republic of Korea.China is set to maintain its leading position this year, with import growthestimated at over 40 percent.
Confectionery exports went up 15 percent year-on-year in 2016 with an exportvalue of 532 million USD, the Ministry of Industry and Trade (MoIT) estimates.The export value in 2015 was 463 million USD.
The growth in exports and better prospects have spurred investment in theindustry, the MoIT has said.
To promote cooperation between Vietnamese enterprises and experiencedinternational confectioners, the German Bakers’ Confederation and theorganising committee of the international trade fair for bakery, confectioneryand snacks (IBA 2018) are treating Vietnamese enterprises as significant partners,according to the Dau Tu (Investment) newspaper.
The IBA has been a rendezvous for experts in the bakery, pastries, and snackindustries since 1949. It is a platform for innovation and provides a completeoverview of all novelties in the market. IBA 2018 will take place fromSeptember 15-20 in Munich, Germany.
Nguyen Trung Chinh, representative of the GHM Company in Vietnam, an affiliateof Munich-based GHM Gesellschaft für Handwerksmessen mbH, said Vietnameseconfectionery products are capturing the attention of foreign investors.
"In early April, GHM General Director Diether Dohr will come to Vietnam tomeet with local confectionery companies, and introduce them to Germanmanufacturers and importers,” Chinh said.
With improved quality, modern packaging and a more diverse range of products,the Vietnamese confectionery industry is developing strongly, especially in thepremium segment.
Statistics compiled by the MoIT show that imported confectionery now accountsfor 30 percent of the market share. In 2016, Vietnam’s confectionery importsreached over 250 million USD, up 20 percent year-on-year.
A representative of the Phu Hung Securities Corporation told Dau Tu thatthe confectionery industry is not just looking at huge export potential, butalso a surge in import earnings.
"With a large and young population, Vietnam’s average confectioneryconsumption is currently about 2 kilogrammes per person per year (lower thanthe world average of 3 kilogrammes per person per year). Confectionery consumptionamong the 65 percent of the population that live in rural areas, which meansthat that there are plenty of market opportunities for both confectionerymakers and traders, " he said.
Confectioners like Bibica Corporation, which has popular brands like Hura,Choco Bella, Orienko, Zoo, are trying to maintain and strengthen their marketposition.
The Dau Tu report notes that besides building a new plant in Hung Yenprovince, Bibica is preparing to operate its 12 million USD cupcake productionline.
The company has also implemented a 3.3 million USD project to produce the Hifatsoft candy and has another project worth over 670,000 USD to produce roundcakes.
The Hai Ha Confectionery Joint Stock Company, another well-known firm, isbuilding a new factory with a daily capacity of about 62 tonnes a day in BacNinh province.
Vu Quoc Tuan, deputy manager of external relations and internal communicationsdepartment with confectioner Mondelez Kinh Do Vietnam, said that imported candyhas triggered fierce competition in the country’s confectionery market.
He said: "This is the necessary motivation for local manufacturers toinvest more in new production technology, improve product variety and enhanceproduct quality, serving the diverse demands of demand of domestic andinternational consumers."-VNA
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