Vietnamese F&B enterprises change direction in a challenging environment

Providing fast processed food while maintaining quality and health is a new goal for many businesses in the food and beverage industry.

Towards convenient, healthy products

Many businesses are interested in food processing and dealing in food and drinks (F&B) in Vietnam. Previously, most businesses concentrated on low costs, but now many firms are aiming for new criteria such as serving age needs, convenient and rapid products, and items that meet consumer demands for health and environmental protection.

Le Bao Hung, director of Juicy V Juice Import Export Co., Ltd., told The Investor that since the emergence of the pandemic, consumers have reduced their spending, but prioritized health-oriented products. Understanding this demand, Juicy V has used innovative technology to target 4-5 star restaurants and hotels with 100% pure juice product lines.

"Our company sells 100% pure fruit juice with no sugar or impurities. The product has a shelf life of 3-6 months and is produced and processed using German technology. We select regions with optimum soil conditions to cultivate fruit, such as pineapples in Hau Giang, dragon fruit in Phan Thiet, pomelos in Vinh Long, and guavas in Tay Ninh."

Notably, by exporting goods to the EU, Juicy V has been able to target high-end market sectors in these regions thanks to its sophisticated processing and preservation technology. Hung said buyers strongly value Vietnamese agricultural products for their quality and taste.

High-end eateries in the EU and Vietnamese entrepreneurs operating in these markets import our juices to manufacture ice cream, yogurt, and fruit-flavored desserts. Comparing Vietnamese fruits to similar products from other nations and regions such as South America, most German customers prefer the flavor of Vietnamese fruit, he added.

As one of the few enterprises in Vietnam currently capable of manufacturing and supplying dried foods and soluble powder products, NFC Food Co., Ltd. not only provides clean and quality products, but also designs its products to be convenient given that users have little time for food processing.

Tran Kieu Huong, director of NFC Sales, Research, and Product Development, told The Investor on the sidelines of the Vietfood & Beverage - Propack Vietnam 2023 on August 10-12 that besides serving healthy food, providing convenient and fast products is the new direction NFC is taking.

"NFC has launched a variety of soup tablets under the I-soup brand that are convenient for the office block. They are useful for customers who require products that take less time to prepare. The soups contain nutrition from meat, fish, fruits and vegetables, and you only need to add boiling water before consuming immediately, the NFC spokesperson explained.

Commenting on the market in the first half of 2023, Huong said that NFC's order volume had decreased by 30% compared to the same period last year. In addition to the general difficulties in the global economic situation, sudden changes in the weather have also affected the quality of agricultural products and input costs.

In this difficult period, NFC is still trying to expand its market, diversify products, and raise quality standards. "Currently, NFC exports to Japan, South Korea, and Southeast Asian countries. Besides, businesses are expanding their market size by approaching more fastidious markets such as the U.S. and the EU," Huong said.

The NFC representative said that the Asian market is not too difficult in terms of import criteria. However, the U.S. and EU markets want food, especially agricultural products, that is free from pesticide and antibiotic residues.

Problems to be solved

Consumers are becoming more conscious of their environment and are making decisions based on the values they seek for their own health. This trend encourages Vietnamese F&B businesses to focus on more sustainable ideals while also offering new opportunities for industry participants. As a result, F&B firms must be more cautious in the branding process, from purchasing input materials to product packaging.

"We are currently having difficulty selecting input materials. Farmers are still disconnected, particularly in the field of gardening," said Hung of Juicy V.

To solve this difficult problem for businesses as well as Vietnamese products, Hung suggested that there should be large-scale planting zones that are supervised by the state in order to position the brand of Vietnamese agricultural products, especially fruits.

Similarly, the NFC representative said that the production of agricultural products in Vietnam is still quite fragmented, so the price is less competitive. Currently, many customers who want to order NFC products, besides comparing the quality, also compare prices with Thailand and China.

In order to solve existing problems, NFC is planning to invest in planting areas and agricultural farms to self-supply for processing in order to control product quality.