Vietnam’s food companies attract more foreign investors

The attractiveness of the processed food industry in Vietnam, a market with 90 million consumers, can be seen in the high number of merger & acquisition (M&A) deals made in the last three years.

VinaCapital said it will continue seeking opportunities to invest in consumer goods companies, especially food and drink manufacturers.

The sale of Cau Tre Food to CJ Group last year brought US$12.4 million to the investment fund with the IRR (internal return rate) of 17% and the ROIC (return of invested capital) of 2.8x.

Foreign investors struggled to obtain Vissan’s stakes, which shows the hotness of the Vietnamese food market. 

When Vissan announced the IPO plan in March 2016, the number of stakes that investors registered to buy was 5.6 times higher than the amount of stakes offered. The IPO price was 4.7 times higher than the starting price level.

Two subsidiaries of Masan Group – Anco and Proconco – and CJ CheilJedang, a subsidiary of CJ Group from the Republic of Korea, all then struggled to become Vissan’s strategic shareholder. 

Finally, Anco won the competition thanks to the higher price offered. It had to pay VND2.13 trillion to acquire 24.9% of Vissan’s stakes, believing that Vietnam’s meat market, worth US$18 billion, had a lot of potential.

Analysts all commented that the Vietnamese food market has stable growth rate of 10-15% per annum. 

A report by Business Monitor International (BMI) showed that in 2011-2016, the consumption level was US$29.5 billion. Meanwhile, a domestic market analysis firm said the value of the market increased from US$18.8 billion in 2011 to US$32.1 billion in 2015, and the consumption level per capita was VND5.8 million in 2016.

However, this does mean that all investments were attractive.

An analyst commented that in most M&A deals, the buyers only target the leading companies in the industry which hold a large market share in their field and make products similar to the buyers’ products. 

In some cases, buyers are attracted by the large distribution networks and large export markets owned by sellers. In the case of Cau Tre JSC, the exports always bring more than 60% of its revenue.

A report by StoxPlus on processed food showed that buyers in most of the M&A deals in 2015-2016 came from Asian countries, including Japan, Thailand and the Republic of Korea.

The processed food market can be classified into four market segments – meat processing, seafood processing, milk and fruit processing. While Japanese were the buyers of dairy companies, the Republic of Koreans favor the other three fields.

Hai Viet Corp. had export turnover of US$77 million in 2016. Thien Huong Food and Antesco, which processes vegetables and fruits, also is attractive in foreign eyes.

Vietnamnet

Other News

Vietnam accelerates innovation to boost growth, competitiveness

Vietnam accelerates innovation to boost growth, competitiveness

By 2030, Vietnam aims to rank among the world’s top 40 in the GII; raise total social investment in R&D to at least 2% of GDP, with non-State funding accounting for over 60%; increase international scientific publications by an average of 10% annually; and raise the number of patent applications and granted patents by an average of 16-18% annually.

Vietnam sees high growth prospects

Vietnam sees high growth prospects

Experts from the Institute of Vietnam and World Economy under the Vietnam Academy of Social Sciences noted the quality of recent growth as the high growth rate has been recorded against an increasingly higher comparative base.

Vietnam seeks bigger share of global Halal market

Vietnam seeks bigger share of global Halal market

Vietnam's Halal exports remain modest at around 900 million USD a year, accounting for less than 1% of the global market. Most exports are still raw agricultural and seafood products. Only around 1,000–1,300 Vietnamese businesses obtained or maintained Halal certification during 2024–2026.

Hanoi sets up inter-agency mechanism to operate carbon market

Hanoi sets up inter-agency mechanism to operate carbon market

Under a decision of the municipal People’s Committee on establishing an inter-agency working group, departments and agencies are responsible for identifying facilities subject to greenhouse gas inventories, developing emissions-reduction plans and studying projects capable of generating carbon credits.

Shrimp exports reach 3.3 billion USD in eight months

Shrimp exports reach 3.3 billion USD in eight months

According to data from the Vietnam Customs cited by the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports reached 478.5 million USD in August, up 4.2% from the same month last year. The eight-month total stood at 3.3 billion USD, representing a year-on-year increase of 12%.

Russian investors explore opportunities in Vietnam's real estate market

Russian investors explore opportunities in Vietnam's real estate market

Vietnam is seen as a potential market, with considerable room for growth in real estate, particularly commercial property, compared with some regional markets. Strong Vietnam-Russia ties and opportunities to establish foreign-invested enterprises are also considered favourable for Russian investors.

Phu Quoc airport planning adjusted to serve APEC 2027

Phu Quoc airport planning adjusted to serve APEC 2027

For 2021-2030, the Civil Aviation Authority of Vietnam proposed bringing forward the investment in a parallel taxiway system and a connecting taxiway north of Runway No. 2 at Phu Quoc International Airport, in order to connect with the aircraft maintenance and repair facility (hangar) planned for the northern area of ​​the airport.

Policy, infrastructure emerge as new advantages in FDI attraction

Policy, infrastructure emerge as new advantages in FDI attraction

From policy and infrastructure to industrial real estate, Vietnam’s FDI advantages are broadening towards a more integrated production ecosystem, offering investors a stronger combination of conditions for high-value, technology-intensive and long-term projects.

Logistics upgrade vital to 1-trillion-USD trade target: experts

Logistics upgrade vital to 1-trillion-USD trade target: experts

As trade expands, systemic bottlenecks across transport networks, warehousing, ports, border gates, and industrial zones are becoming more apparent. Experts emphasise the need to shift from a fragmented, project-by-project approach toward strategic management structured around trade corridors and integrated supply chains.

Ample room for Vietnam, US to deepen cooperation

Ample room for Vietnam, US to deepen cooperation

Do Ngoc Hung, Trade Counsellor and head of the Vietnam Trade Office in the US, said what stands out is not only the growth in trade volume but also the increasingly deep economic ties between the two countries.

Flexible fiscal policy helps drive economic growth

Flexible fiscal policy helps drive economic growth

According to the Ministry of Finance, State budget revenue in the first eight months of 2026 was estimated at 2.02 quadrillion VND (77.7 billion USD), equivalent to 80% of the annual estimate and up 16% year-on-year. Domestic revenue reached 1.75 quadrillion VND, accounting for 86.6% of total revenue and rising 16.6%.

Electronic components are produced at a factory in Hanoi. (Photo: VNA)

Hanoi's imports surge 41% in first eight months of 2026

Hanoi aims to achieve average annual export growth of at least 12% during 2026-30, with the city seeking to diversify export markets, boost high-tech and value-added products and reduce reliance on traditional markets.