Dominance of FDI Corporations in the Booming Vietnam Beverage Market: Ken Research

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Dominance of FDI Corporations in the Booming
Vietnam Beverage Market Ken Research
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Ken Research announced its latest publication on,
Vietnam Beverage Report 2015, offering insights
on Beverage Market in Vietnam. The publication
provides a detailed analysis of the overall
beverage market size in Vietnam including market
share, advantages and disadvantages, internal
competition etc., supply-demand situation,
distribution channels and competitive scenario in
the Vietnam Beverage Market. The report further
reveal market drivers, opportunities, restraints,
and challenges to be faced in the Vietnam market.
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Overview of the Beverages Market in
Vietnam Looking at the History, we can see that
Vietnam was once an agriculture oriented economy.
However, since the initiation of DoiMoi
socialist- economic reforms in 1986, the economy
has now become a market oriented one. Also, as a
result of DoiMoi reforms and joining the World
Trade organization, Vietnam has become one of the
fastest growing economy in the ASEAN region.
The food and beverages sector is one of the
most crucial sector in the Vietnamese economy as
rising living standards of the Vietnamese
population forms the basis of this sector. A
large number of factors are expected to drive the
growth of this sector which includes consistently
rising disposable income, urbanized consumer
lifestyles, consumers preference for
convenience, safety and health. Besides these,
there also has been a significant rise in the
rural Vietnams demand for the FMCG products,
driven by higher levels of disposable income
which in turn will drive market growth.
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The Vietnamese beverage market has bright
prospects with the market value expected to
increase in the future. Consumers increasing
demand for beverage products will also lead to an
increase in the profits of this sector. Talking
about the composition of the beverages market in
Vietnam, soft drinks holds the majority of the
share while hot drinks segment is the smallest.
But with the rising proportion of wealthier
population, the demand for hot beverages such as
tea and coffee is also expected to rise
significantly. The Vietnamese alcohol market
shows no signs of development whereas the beer
market is now showing signs of saturation. The
Domestic wine market has huge potential for
development while the domestic spirits market is
highly underdeveloped and continues to be
dominated by imports from Spain and America.
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• Key Driving Factors in Vietnams Beverages Market
• Some of the factors expected to drive growth of
  the Vietnamese beverages market are
• Rising Disposable incomes
• Changing and modernizing lifestyles
• Consumers preferences for health, convenience
  and safety
• Expanding retail and tourism industry
• Apart from the above demand driving factors, low
  labor cost, abundance of natural resources to be
  used as raw materials by processing industry,
  export processing zone projects of foreign and
  domestic large corporations are helpingto expand
  domestic production capacity and hence boost the
  supply.

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Future of the Beverages Market in
Vietnam Despite the fact that the overall future
of the beverages market in Vietnam is bright, it
is worth a mention that the future of the local
players in this sector is gloomy. Amongst the 5
largest soft drinks brands in Vietnam, Tan Hiep
Phat is the only domestic firm appearing in the
list with the market share of 17.4 which asserts
the fact that the future position of the local
players in the Vietnamese beverages market is
very ambiguous. The reasons for the dominance
of the FDI corporations in this sector are the
day by day increasing foreign investment, FDI
Corporations better position in terms of
technology and capital as well as the
distribution channels. All these factors are
contributing to further weaken the position of
the domestic players and intensify the
competition in the Vietnamese beverages market.
In the near future, the pressure for Tan Hiep
Phat and other domestic firms will be very
significant, as they will have to strategize
their actions to increase their market share and
compete with foreign soft drink corporations.
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Companies Covered Saigon Beer-Alcohol-Beverage
JSC. Hanoi Beer Alcohol and Beverage JSC. Vietnam
Brewery Limited Company Thanh Hoa Beer JSC. Aroma
Beverage JSC. AvinaA JSC. Vietnam Halico
JSC. LamDong Foodstuffs JSC. Thang Long Wine
JSC. URC Vietnam Company Limited Tan Hiep Phat
Beverage Group Chuong Duong Beverages JSC. Coca
Cola Beverages Vietnam Ltd. Dona Newtower Natural
Drink And Food JSC. International Foods JSC.
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• To know more on coverage, click on the link
  below
• https//www.kenresearch.com/food-beverage-and-toba
  cco/alcoholic-beverages/vietnam-beverage-report/31
  965-11.html
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• Contact
• Ken Research
• Ankur Gupta, Head Marketing Communications
• query_at_kenresearch.com
• 91-124-4230204

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