Market Outlook

Vietnam is our primary focus. With a population of nearly 90 million - Continental Southeast Asia's largest – a real GDP CAGR of 7% predicted over the next ten years, a dramatically young demographic and a rapidly expanding middle class, country fundamentals support strong business to business and consumption growth through the next decade and beyond.

Upon opening its economy in 1986, Vietnam attracted investment and pursued growth based on low wage rates in a poor country and productivity gains in a relatively inefficient one. Its 15-year record of reducing poverty since that time is one of the finest in world history.

Vietnam is now experiencing the inflection point of becoming a consumer growth market. We believe that food and food-related consumption will grow in nominal terms at 10% per annum during the next 5 years, with certain segments experiencing significantly higher growth, nearly in line with overall personal disposable income growth of 11% pa.


65% of the population is under 40 years old. 25% is 15 years old or younger. The population is expected to surpass the 100 million mark in the very early 2030s. By then the median age is projected to be 36.7 years old.

Vietnam's emerging middle class is a primary driving force in its economy, presaging an increasingly affluent lifestyle and attendant high discretionary spending. In 2012 there were 8 million people responsible for USD 46 billion of consumption spending, accounting for 51% of total private consumption.


  • Agriculture and aquaculture

    The agriculture industry (including forestry and aquaculture) contributes approximately 22% of Vietnam's GDP and employs nearly 50% of its workforce. Vietnam is among the world's top exporters in rice, coffee, cashews, black pepper and pangasius. Its fast-growing population and increasing middle class also provide a large market for food products, spurring further agriculture growth. Recent changes in monetary and land policies are likely to also benefit production and export prospects.

  • Packaged foods

    The majority of Vietnam's disposable income is spent on food and non-alcoholic beverages. In 2012 Vietnam experienced an 11% nominal value growth in food consumption alone, driven by middle class spending, with a forecasted CAGR of 10% for the period 2011-2016.


Although the sector is substantial and strategic to Vietnam, agriculture and food production, despite strong growth potential and a sizable market, is highly fragmented and inefficient.We are set to do the "heavy lifting" necessary to build the leading regional agribusiness and food company, with MNC-quality finance, operations and marketing/sales expertise.

Source: Euromonitor, GSO, BMI, McKinsey

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