How Vietnam’s functional food market evolves

With the presence of major domestic and international brands, along with strong government efforts to dismantle counterfeit product rings, Vietnam's functional food market is expected to continue its upward trajectory in the coming time.

Eye-opening numbers

One notable example involves the recent seizure of counterfeit functional food products worth VND999 million ($38.36 million) by Thanh Hoa province's police. Each box of fake products was sold on the market for between VND200,000 and VND750,000 ($28.8).

In another case, on May 16, Hanoi's police seized approximately 100 tons of fake functional food and medical equipment. This ring was run by a network of 17 companies, six for importing and 11 for distribution.

Many celebrities and online influencers involve the advertisement or even direct production and distribution of counterfeit functional foods and milk. Notable figures such as Quyen Linh, Doan Di Bang, DJ Ngan 98, and Ngan Collagen have been named in connection with recent scandals.

The food safety department under the Ministry of Health has issued public warnings against the use of several questionable products, including X1000, X3 weight loss pills (Super Detox X3), and X7 Plus. These were produced by Nano Tesla High-Tech Pharmaceutical Production Co., Ltd., based in Dan Phuong Industrial Park, Hanoi. The products are currently under inspection pending further verification.

Earlier, the department had sent requests to both the Ho Chi Minh City and Hanoi departments of food safety and hygiene to urgently inspect and test several diet products promoted by DJ Ngan 98, which have raised public concern.

A lucrative industry

These cases, while alarming, underscore just how profitable the dietary supplement industry has become in Vietnam. The sector's rapid growth and high returns have attracted both legitimate businesses and bad actors.

A report by Metric titled "Overview of the Vitamin and Dietary Supplement Industry on E-Commerce Platforms" reveals that sales of these products reached VND7.7 trillion ($295.76 million) in 2024 on the country’s four major e-commerce platforms. While this only represents just over 2% of all e-commerce revenue, it's a 36% increase from 2023.

Last year, online sales of dietary supplements reached 24 million units, up 37% from the previous year. Data also shows that foreign brands continue to dominate the market.

Vietnamese brands hold 26.09% of the market. The rest is split among the United States (13.95%), Japan (13.91%), South Korea (11.98%), Australia (8.33%), and other countries (25.74%).

Among the top five dietary supplement brands in Vietnam, two are domestic: Traphaco and DHG Pharma. The other three leading brands are American.

According to data from Euromonitor, cited by the Vietnam Association of Functional Foods (VAFF), Herbalife Nutrition holds the largest market share in Vietnam at 11.2%.

Traphaco ranks second with 7.9%, followed by Amway Vietnam (5.1%), Nu Skin Vietnam (4.9%), and DHG Pharma (3.6%). Korean Ginseng Corporation, the only non-Vietnamese Asian company in the top eight, holds a 3% share.