Prepared foods packaging packs strong growth potential in Vietnam: SIG exec

Vietnam is a rapidly growing market for the on-the-go food sector; therefore, packaging for such products carries significant growth potential, said Kha Vo, Vietnam country manager for Swiss firm SIG.

SIG, a leading provider of innovative and versatile packaging solutions, is headquartered in Switzerland and recently celebrated its 170th anniversary. The company has maintained a presence in Vietnam since 2005 and its nearest factory is located in Thailand.

Who are SIG’s customers?

SIG offers a variety of packaging designs tailored to different production lines. The company emphasizes environmental sustainability in its packaging solutions in keeping with its commitment to protecting the environment. SIG’s current customers include Vinamilk, Nutifood, International Dairy Products JSC (IDP), and others. We also serve many small and medium-sized enterprises.

What are SIG’s focus areas in Vietnam and is it planning to expand into other sectors?

Currently, SIG’s primary focus in Vietnam remains dairy and food packaging. SIG is prepared to support manufacturers in these sectors but we do not have plans to expand into other industries at this time.

Does SIG plan to invest in a factory in Vietnam?

While SIG is considering that as a long-term investment, its current facility in Thailand remains competitive with facilities of other companies in Vietnam. The company believes its team is well-positioned to serve customers in Vietnam effectively, making the location of the factory less of a competitive factor.

How has SIG been affected by the current economic downturn?

Economic challenges have impacted the supply chain, but consumer demand for products like milk for children remains strong. As a result, the packaging industry continues to perform well, maintaining its market position despite broader economic difficulties.

You’ve been with SIG for 10 years. How do you view the company’s growth in this period?

SIG initially concentrated on serving B2B customers, focusing more on service than communication. Over time, the company has expanded significantly and it places greater emphasis on small and medium-sized customers now.

The dairy industry, once dominated by a few large players, now features a broader range. SIG provides packaging in up to nine different volumes, reflecting its adaptability to market demands.

Vietnam’s dairy sector has experienced rapid growth, sometimes reaching double-digit increases, which drives SIG’s ongoing innovation and growth.

How does SIG assess the packaging market in Vietnam?

Vietnam’s packaging market is diverse, with SIG concentrating on food and beverage packaging. Despite economic challenges, this market is showing more positive trends than other Southeast Asian countries.

The demand for packaging continues to evolve, with carton packaging, responding to environmental concerns, emerging as a key area of development. SIG expects strong growth in this segment, driven by increasing demand in the food and beverage sectors.

Besides milk and beverages, what other opportunities does the packaging industry have?

The market for prepared food packaging is significant, with Vietnam’s large consumer base offering ample opportunities for growth. Additionally, there is potential for expansion into new formats for dietary supplements and functional foods.

Are there opportunities for Vietnamese businesses to join the production chain for cartons?

Creating packaging structures involves various components and specific technological requirements in place. Raw materials like glue and paper are often sourced internationally. Vietnamese businesses can participate in parts of the supply chain if they can meet the necessary standards and other requirements.