Cocoa firms of Vietnam, Belgium to export Vietnamese chocolate to Europe

Vinacacao JSC and Libeert, two major cocoa firms from Vietnam and Belgium, have signed a mutual trade agreement to support cocoa growers in the Southeast Asian country and export Vietnamese cocoa and chocolate to Europe.

Per the deal signed on Thursday, the two sides will buy and sell goods directly and help each other enter each others' markets, bringing goods to final consumers. The cooperation is immune to changes in exchange rates and will open up new markets for each firm, instead of pushing up competition.

Initially, the two firms will deliver chocolate in the shapes of Santa Claus, penguins, and reindeer to serve children in Vietnam, before adding shapes more familiar to Vietnamese people. The Vietnamese market, with a population of 100 million, including 16 million children, offers massive potential to chocolate businesses, said Tran Van Lieng, chairman and founder of Vinacacao.

Vietnam’s chocolate market is valued at $250 million, or only 10% of its potential given the country's demographics and middle class, Lieng said. By fulfilling its potential and approaching the global market, Vietnam can earn $1.36 billion from the chocolate market, the executive noted.

Chocolate consumption in Vietnam is about 5,000 tons a year, according to the Vietnam Coffee-Cocoa Association (VICOFA). Famous Vietnamese chocolate brands, featuring Vietnamese cocoa as the main ingredient, include Marou, Stone Hill, and Vinacacao.