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Vietnamese food: 40 delicious dishes you’ll love

Vietnamese cuisine doesn’t win any points for complexity. Many of the most popular dishes can be made just as well on the side of the road as in a top-end restaurant.

But it’s precisely this simplicity, the subtle variations by region and the fresh ingredients, that keep us pulling up a plastic stool for more.

Here are 40 foods from Vietnam you can’t miss:

1. Pho
Cheap can be tasty too.
Cheap can be tasty too. Courtesy kaz k/creative commons/flickr
What list of Vietnamese cuisine would be complete without pho?

It’s almost impossible to walk a block in Vietnam’s major destinations without bumping into a crowd of hungry patrons slurping noodles at a makeshift pho stand. This simple staple consisting of a salty broth, fresh rice noodles, a sprinkling of herbs and chicken or beef, features predominately in the local diet – and understandably so. It’s cheap, tasty, and widely available at all hours.

Just look out for a mass of people on plastic stools – or try a tried and tested favorite: Pho Thin, 13 Lo Duc, Hai Ba Trung District, Hanoi

2. Cha ca
 A food so good they named a street after it.
A food so good they named a street after it. Courtesy Alpha/Creative Commons/Flickr
Hanoians consider cha ca to be so exceptional that there is a street in the capital dedicated to these fried morsels of fish. This namesake alley is home to Cha Ca La Vong, which serves sizzling chunks of fish seasoned with garlic, ginger, turmeric and dill on a hot pan tableside.

Cha Ca La Vong may be the busiest but the service is a bit gruff and the food overpriced. Instead make your way to Duong Than in Hanoi’s Hoan Kiem district, where you’ll find plenty of more affordable but just as tasty options.

3. Banh xeo
A crepe you won't forget.
A crepe you won't forget. Courtesy Alpha/Creative Commons/Flickr
A good banh xeo is a crispy crepe bulging with pork, shrimp, and bean sprouts, plus the garnish of fresh herbs that are characteristic of most authentic Vietnamese dishes. To enjoy one like a local, cut it into manageable slices, roll it up in rice paper or lettuce leaves and dunk it in whatever special sauce the chef has mixed up for you.

Banh Xeo 46A has mixed reviews but judging by the crowds that swarm there each night they must be doing something right. Banh Xeo, 46A Dinh Cong Trang, District 1, Ho Chi Minh City (HCMC)

4. Cao lau
Soft, crunchy, sweet, spicy -- a bowl of contrasts.
Soft, crunchy, sweet, spicy -- a bowl of contrasts. Karryn Miller/CNNGo
This pork noodle dish from Hoi An is a bit like the various cultures that visited the trading port at its prime. The thicker noodles are similar to Japanese udon, the crispy won-ton crackers and pork are a Chinese touch, while the broth and herbs are clearly Vietnamese. Authentic cau lao is made only with water drawn from the local Ba Le well.

Try Morning Glory, 106 Nguyen Thai Hoc, Hoi An

5. Rau muong
Some might call it river weed – with good reason – but that doesn’t stop the masses from scarfing down platefuls of morning glory, usually stir-fried and seasoned with slithers of potent garlic. Rau muong is common at Vietnamese restaurants and beer gardens.

Chung Den Bia Hoi, 18B Hang Cot, Hoan Kiem district, Hanoi

6. Nem ran/cha gio
Vietnam’s bite-sized crunchy spring rolls might not enjoy the same popularity as their healthier fresh equivalent, but they deserve a special mention. The crispy shell with a soft veggie and meat filling dunked in a tangy sauce gets the gastronomic juices flowing before a main course. In the north these parcels go by the name nem ran while southerners call them cha gio.

Bun Cha, 1 Hang Manh, Hoan Kiem district, Hanoi

7. Goi cuon
A healthier choice for spring roll fans.
A healthier choice for spring roll fans. Courtesy Ducson Nguyen
These light and healthy fresh spring rolls are a wholesome choice when you’ve been indulging in too much of the fried food in Vietnam. The translucent parcels are first packed with salad greens, a slither of meat or seafood and a layer of coriander, before being neatly rolled and dunked in Vietnam’s favorite condiment – fish sauce.

Quan An Ngon, 18 Phan Boi Chau, Hoan Kiem district, Hanoi

8. Bun bo Hue
Central Vietnam’s take on noodles caters to carnivores with its meaty broth and piles of beef and pork. The thick slippery rice noodles also make for a heartier meal than noodles found in the north and south.

You don’t have to go to Hue to enjoy this dish; if in Ho Chi Minh City try Tib Express, 162 NguyenDinh Chieu, District 3, HCMC

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9. Banh khot
Bite-size, delightful Vietnamese pancakes.
Bite-size, delightful Vietnamese pancakes. Courtesy kennejima/creative commons/flickr
This dainty variation of a Vietnamese pancake has all the same tasty ingredients but is a fraction of the size. Each banh knot can be scoffed in one ambitious but satisfying mouthful. The crunchy outside is made using coconut milk and the filling usually consists of shrimp, mung beans, and spring onions with a dusting of dried shrimp flakes on top.

Co Ba Vung Tau, 59B Cao Thang, District 3, HCMC

10. Ga tan
Got the sniffles? Opt for ga tan, a broth that’s Vietnam’s answer to the proverbial cup of chicken noodle soup. Sure it’s not quite how your mother used to make it, with its greenish tinge from the herbs and hunks of chicken parts, but it’s worth a try if you’re needing a Vietnamese tonic.

Try this at one of the street stalls on Hanoi’s Tong Duy Tan aka Pho Am Thuc, or “Food Street,” Hoan Kiem district, Hanoi

11. Nom hoa chuoi
Vietnam’s banana flower salad packs a much bigger punch than a typical plate of mixed greens. Banana flowers (thick purple lumps that will later turn into bunches of bananas) are peeled and thinly sliced then mixed with green papaya, carrots, and cilantro along with chicken and a heavy-handed pour of a salty fish sauce dressing and crunchy peanuts.

Highway 4 restaurant, 3 Hang Tre, Hoan Kiem district, Hanoi

12. Bun bo nam bo
One of Vietnam's most-loved noodle dishes.
One of Vietnam's most-loved noodle dishes. Courtesy Guilhem Vellut/Creative commons/Flickr
This bowl of noodles comes sans broth, keeping the ingredients from becoming sodden and the various textures intact. The tender slices of beef mingle with crunchy peanuts and bean sprouts, and are flavored with fresh herbs, crisp dried shallots, and a splash of fish sauce and fiery chili pepper.

67 Hang Dieu, Hoan Kiem district, Hanoi

13. Hoa qua dam
This chunky blend of fresh tropical fruit in a cup is the perfect local treat when the heat of Vietnamese summer starts to wear you down. It could be considered a healthy alternative to ice cream – if you stick to the shaved ice variation – but for the full experience it’s best had with diabetes-inducing condensed milk mixed in.

14. Pho cuon
Pho cuon packages the flavors of pho and goi cuon in one neat little parcel. This Hanoi take on fresh spring rolls uses sheets of uncut pho noodles to encase fried beef, herbs and lettuce or cucumber.

The best place to find them is on Ngu Xa island on the capital’s Truc Bach Lake – specifically at 26 Nguyen Khac Hieu, Ba Dinh district, Hanoi

15. Ga nuong
This beats KFC any day.
This beats KFC any day. Courtesy Ducson Nguyen/Creative Commons/Flickr
KFC may be everywhere in Vietnam these days, but skip the fast food for the local version. Honey marinated then grilled over large flaming barbecues, the chicken legs, wings and feet served are unusually tender, while the skin stays crispy but not dry.

Viet Ha on Ly Van Phuc, Dong Da district, Hanoi

16. Pho xao
Pho xao may just be a slightly healthier take on my xao – but the beauty is in the details. The flat, smoother pho noodle doesn’t crisp up like its pre-boiled instant cousin. When done well the outer edges acquire a browned crunchiness, whilst the center stays soft and glutinous. This dish tastes best with a fried egg and seasoned with chili or soy sauce.

26 Nguyen Khac Sieu, Hoan Kiem district, Hanoi

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17. Ca phe trung
Vietnamese “egg coffee” is technically a drink but we prefer to put it in the dessert category. The creamy soft, meringue-like egg white foam perched on the dense Vietnamese coffee will have even those who don’t normally crave a cup of joe licking their spoons with delight.

In Hanoi, follow the tiny alley between the kitschy souvenir shops at 11 Hang Gai into the clearing, and up several flights of increasingly dicey stairs to pair your ca phe trung with an unbeatable view of Hoan Kiem Lake.

18. Bo la lot
Vietnamese are masters of wrapping their food. Bo la lot is neither raw nor deep-fried, but flamed on an open grill to soften the exterior and infuse the betel leaf’s peppery aroma into the ground beef inside.

3T Quan Nuong, 29-31 Ton That Thiep, District 1, HCMC

19. Xoi
This savory sticky rice is a meal all on its own.
This savory sticky rice is a meal all on its own. Shen Lu/CNN
Savory sticky rice is less of an accompaniment to meals in Vietnam, more a meal itself. The glutinous staple comes with any number of mix-ins (from slithers of chicken, or pork to fried or preserved eggs), but almost always with a scattering of dried shallots on top.

Xoi Yen, Nguyen Huu Huan, Hoan Kiem district, Hanoi

20. Banh cuon
Delicious savory pancakes.
Delicious savory pancakes. Courtesy Reuben Strayer/Creative Commons/Flickr
These rolled up rice flour pancakes are best when served piping hot, still soft and delicate. Although seemingly slender and empty they have a savory filling of minced pork and mushrooms. Zest is also added by dunking the slippery parcels in a fishy dipping sauce.

21. Ca tim kho to
Eggplant alone tends not to get us excited. Although when it’s diced and sauteed in a clay pot along with tomatoes, soy sauce, sugar, and (depending on the recipe) minced meat, the once bland vegetable redeems itself.

Pineapple Restaurant, 35 Hang Buom, Hoan Kiem district, Hanoi

22. Bot chien
Bot Chien is Vietnamese street food at its best.
Bot Chien is Vietnamese street food at its best. PJjaruwan/iStockphoto/Getty Images
Saigon’s favorite streetside snack, bot chien, is popular with both the afterschool and the after-midnight crowd. Chunks of rice flour dough are fried in a large wok until crispy and then an egg is broken into the mix. Once cooked it’s served with slices of papaya, shallots and green onions, before more flavor is added with pickled chili sauce and rice vinegar.

Night-time food vendors sell this at the corners of Pham Ngu Lao and Cong Quynh, District 1, HCMC

23. Bun dau mam tom
This plain-looking tofu and noodle dish is served with mam tom sauce – the Vegemite of Vietnam. The pungent purple dipping sauce is used to flavor the slabs of deep-fried tofu that are at the core of the meal.

24. Banh goi
These pockets of deep-fried goodness are often described as the equivalent of a Cornish pasty or as a Vietnamese samosa, depending on the nationality of the person explaining. Inside the crispy exterior you’ll find that it’s similar to neither description, with its filling of finely minced pork, mushrooms and vermicelli noodles.

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25. Com suon nuong
This simple meal is the Saigonese equivalent of bun cha – with rice in place of noodles. A tender pork cutlet is barbecued over hot coals to give it a rich, smoky flavor, and laid over the fluffy white “com” or broken rice.

Com Tam Cali has a number of branches across HCMC. Try Tam Cali 1 at 32 Nguyen Trai, District 1, HCMC

26. Chao
With its thick and creamy texture Vietnam’s rice porridge is the best pick when your queasy stomach can’t handle much else. If you want to jazz it up you can always add slices of chicken, fish, beef, duck or pork ribs, along with a sprinkling of herbs and shallots.

Chao Ca specializes in fish chao, 213 Hang Bong, Hoan Kiem district, Hanoi

27. Bo luc lac
Cubes of beef are tossed around a steaming wok with garlic, pepper, and some vegetables to make shaking beef. There’s nothing special about the beef that makes it shaking. The name is just a literal translation that refers to the process of mixing the beef around while cooking.

Nha Hang Ngon, 160 Pasteur, District 1, HCMC

28. Hat de nong
The smell of chestnuts roasting on an open fire can bring back fond memories of Christmas carols – until a moped transporting a giant blow-up Santa whizzes by. Pick the street vendor with the most enticing smell.

29. Banh uot thit nuong
It’s all about the marinade when it comes to the grilled pork in fresh rice paper rolls that are popular in Central Vietnam. The typical mixture coats the meat in a blend of sugar, salt, chili, lemongrass and fish sauce. Cilantro, basil and mint are added when it’s served up to add some green to the appetizer.

Morning Glory, 106 Nguyen Thai Hoc, Hoi An

30. Bun cha
The perfect lunchtime treat.
The perfect lunchtime treat. Courtesy Greg Willis/Creative Commons/flickr
Pho might be Vietnam’s most famous dish but bun cha is the top choice when it comes to lunchtime in the capital. Just look for the clouds of meaty smoke after 11 a.m. when street-side restaurants start grilling up small patties of seasoned pork and slices of marinated pork belly over a charcoal fire. Once they’re charred and crispy the morsels are served with a large bowl of a fish sauce-heavy broth, a basket of herbs and a helping of rice noodles.

Hanoi’s most famous bun cha outlet is 1 Hang Manh, Hoan Kiem district, Hanoi

31. Banh mi
The world-famous banh mi sandwich.
The world-famous banh mi sandwich. SAUL LOEB/AFP/AFP/Getty Images
The French may have brought with them the baguette, but Vietnam takes it to a different level. How exactly depends on what end of the country you’re in.

In the north, chefs stick to the basic elements of carbohydrate, fat and protein – bread, margarine and pata – but head south and your banh mi may contain a more colorful combination of cheese, cold cuts, pickled vegetables, sausage, fried egg, fresh cilantro and chili sauce.

One of the better baguette vendors in Saigon sets up shop beside the Cherry mini-mart on DoQuang Dao, District 1, HCMC

32. Lau
Eating this hodgepodge hotpot dish is a communal affair with everyone digging in to the oversized boiling pot. We’ve found that just about anything can (and will) go into this soup from tofu to frogs. It’s best to stick to one main protein rather than opting for the mix of meat, poultry and seafood together.

On the northern edge of Hanoi’s Truc Bach lake you’ll find a number of restaurant staff crossing the street to deliver lau to lake-side diners

33. Banh bao
The Vietnamese take on steamed pork burns.
The Vietnamese take on steamed pork burns. Courtesy Edsel Little/Creative commons/Flickr
Steamed pork buns aren’t traditionally Vietnamese, but that doesn’t stop the spongy rolls from being sold by street vendors and in traditional Vietnamese restaurants. The best buns have a hard-boiled quail egg buried within the minced meat, while the cheaper ones come without any filling at all. Remember the lower the price the less stuffing, so you might not be getting the good deal you thought you were.

Often sold by wandering vendors patrolling Hanoi’s Old Quarter at all hours. In the south try Banh Bao Tho Phat, 78 Nguyen Tri Phuong, District 5, HCMC

34. Com rang
Fried rice may not be the most adventurous option, but sometimes you just want some familiar grub done right. Baby-sized chunks of meat and colorful vegetables are mixed with soy and fish sauce in a wok streetside to create a rice dish that is still moist but slightly smoky. Make it Vietnamese by supplementing with Bia Hanoi.

Try one of the vendors on Tong Duy Tan aka “Food Street,” Hoan Kiem district, Hanoi

35. Bo bit tet
Vietnam’s equivalent to steak and eggs fills the void when you’re hankering for some greasy pub tucker. The thin flank steak is usually served with eggs, thick potato wedges, and Vietnamese meatballs on a sizzling cast iron plate.

36. Com chay
Com chay refers to two things in Vietnam: vegetarian food, or Vietnam’s homemade rice crispies that are popular with children. Unlike the sweet treats in the United States, Vietnam’s version of a crispy comes with meat instead of marshmallows. Vietnam’s vegetarian restaurants use mock meats to create all the traditional dishes and usually do a pretty good job. Although some places include artificial creations we would rather not try. Fake rubbery snails anyone?

Try Hoa Dang vegetarian restaurant, 38 Huynh Khuong Ninh, District 1, HCMC

37. Che
This dessert can be served in either a bowl or a glass. The latter is the more enticing option with the visible layers of bean jelly, coconut milk, fruit, and ice. Best had when you’re craving something sweet on a scorching day in Saigon.

Nha Hang Ngon, 160 Pasteur, District 1, HCMC

38. My xao bo
Mix noodles with a dollop of oil, then add beef, onions, garlic, morning glory and some tomato for color and you have a platter of my xao bo. The whole dish takes about as long to make as instant noodles – but oh so much more flavor.

Any bia hoi establishment serves this dish, but the eateries on Tang Bat Ho, Hoan Kiem District, Hanoi, have perfected it

39. Dau phu sot ca chua
The English translation of “tofu in tomato sauce” doesn’t really do this dish justice. The slabs of deep-fried soy are doused in a rich fresh tomato and spring onion coating, and seasoned with a speckle of fresh herbs.

Chim Sao at 65 Ngo Hue, Hai Ba Trung district, Hanoi

40. Canh bun
Another hearty soup that’s high on the lunchtime agenda, this is a crab and morning glory noodle soup. Canh bun is similar to the more well-known bun rieu crab soup, but has a small handful of variations – including the type of noodle used.

Look for street food vendors with Canh Bun on handwritten signs surrounded by lunchtime crowds, or visit Bun Saigon at 73 Ly Tu Trong, District 1, HCMC

Editor’s note: This article was previously published in 2011. It was reformatted and republished in 2017.

Vietnam Business News April 20/2024

Fruit and vegetable exports to RoK and Thailand surge

Vietnamese fruit and vegetable exports to the Republic of Korea (RoK) and Thailand increased sharply during the first quarter of this year, reported the Vietnam Fruit and Vegetable Association (Vinafruit).
The RoK purchased US$67.7 million worth of Vietnamese fruit and vegetables in the reviewed period, representing a year on year rise of 59.3%. Meanwhile, Vietnamese fruit and vegetable exports to Thailand shot up by 112% to hit US$47.6 million.

According to Vinafruit, Vietnam earned US$470 million from exporting fruit and vegetables in March, up 44.3% against February, and up 12.4% compared to the same period in 2023.

The March figure raised the country’s three-month export turnover of fruit and vegetables to US$1.3 billion, up 30% year on year. This was the first time that the fruit and vegetable export value has exceeded US$1 billion right in the first quarter, signaling strong growth for the sector in the future.

China was the largest consumer of Vietnamese fruit and vegetables, spending US$759.4 million on imports, up 32.4% year on year.

Strong growth was also seen in many other markets, including the United States with US$67.7 million, up 33.9% year on year.

Government should have policies to make use of remittance inflows

For Vietnam, the remittance inflows have strongly increased in recent years, the state should have policies to exploit this resource for the country’s development and for the benefit of remittance keepers.

Remittances have become increasingly important to the economic development of Vietnam in offsetting trade deficits and contributing to the national foreign exchange reserves. Therefore, in January 2023, the municipal People's Committee assigned the State Committee for Overseas Vietnamese in Ho Chi Minh City to embark on the project ‘Policy to attract and promote effective effectiveness of remittance resources in the city’.

Since then, the State Committee for Overseas Vietnamese has repeatedly sought the opinions of relevant departments, agencies, diplomatic agencies in countries with similar conditions and the Vietnamese community abroad on the project.

Recently, Head Vu Thi Huynh Mai of the Committee for Overseas Vietnamese in Ho Chi Minh City said that this agency is currently coordinating with the State Bank of Ho Chi Minh City to receive direction from the Standing Committee of the city Party Committee. As per schedule, the project will be submitted at the beginning of the second quarter of 2024.

Ms. Mai expected that after the project is approved, along with the implementation of Resolution 98 with many open mechanisms to attract investment, remittance resources will be poured into investment projects, especially social security projects, and infrastructure development, creating a positive impact on the city’s overall development.

It is noteworthy that in the draft project, Ho Chi Minh City is considered to be a remittance transfer hub. Therefore, remittances only contribute to Ho Chi Minh City's economy by promoting consumer demand and use of services. The southern metropolis neither reached specific goals of attracting remittance resources nor had a specialized policy mechanism to attract capital from overseas Vietnamese to put into production and business to boost the economy. Additionally, the city has not had policies for the formation and development of financial products suitable for different income levels.

With this project, Ho Chi Minh City aims to create a corridor of policy mechanisms and infrastructure to help remittances pour into two official channels including commercial banks and remittance companies. In particular, remittance resources should be oriented toward socio-economic development through investment and business development in Ho Chi Minh City. Moreover, city administrations should encourage overseas Vietnamese to contribute to social, cultural, educational, healthcare and environmental development projects in the city.

Having lived and worked for many years in the United States plus more than 20 years of teaching at universities in Vietnam, Professor Ha Ton Vinh said that while working for the World Bank and international organizations in more than 90 countries, wherever he has lived, he met Vietnamese people who always hope to settle in their hometown or invest in their fatherland. Many overseas Vietnamese also hope to invest in Vietnam so that they and their children can later return to live, work or retire in their home country.

The Ho Chi Minh City Committee for Overseas Vietnamese should set up a specialized advisory group which will give consultation to Vietnamese in overseas countries to help overseas Vietnamese understand more about the country’s investment opportunities and resolve problems. Ho Chi Minh City should also organize a tour to help overseas Vietnamese know what projects Ho Chi Minh City wants to attract investment.

Transferring money to Vietnam for investment or savings funds is always their choice. Because they can stay in Vietnam for a short time with little understanding and experience in investment, they have very little information about projects that suit their needs, financial capabilities, or locality; as a result, they don’t pour money on any project, said Professor Ha Ton Vinh. Therefore, the city should establish a consulting organization to help them more.

Meanwhile, experts from the Association of Vietnamese Scientists and Experts Global (AVSE Global) said that migrants are facing high transaction costs, so they tend to remit less. Thus, experts propose that Ho Chi Minh City implement policies to reduce transaction costs; issue remittance bonds; and improve the investment environment.

Many experts proposed the issuance of long-term bonds and bills. For instance, lecturer Vo Hong Duc of Ho Chi Minh City Open University said that to encourage investment from overseas Vietnamese, issuing overseas bonds is very important.

Specifically, Ho Chi Minh City can issue urban bonds (also known as overseas bonds), to provide capital for large construction projects. With a transparent mechanism, the starting point is to encourage overseas Vietnamese to buy bonds to invest in projects, they will enjoy stable interest rates, and tax exemption on interest and are guaranteed to bring back money abroad after projects are complete.

Aqua-product exporters concerned about Japan’s new antibiotic residue rules

The Vietnam Association of Seafood Exporters and Producers (VASEP) has written to the Ministry of Agriculture and Rural Development expressing concerns over a new limit on doxycycline antibiotics in aqua-product exports to Japan.

According to shrimp exporters, they are having a hard time exporting shrimp to Japan due to the recently-issued regulations on the limitation of doxycycline antibiotics.

VASEP said that many countries neither ban using doxycycline in fishery farming nor inspect residues of these antibiotics in imported aqua-products.

Some markets, including the European Union (EU), China and New Zealand allow a maximum residue limit of 100 ppb on aqua-product imports. This limit is appropriate for aqua-products under the current tight control over fishery farming, said VASEP.

According to Japan’s current regulations, the maximum acceptable threshold for chemical residues and antibiotics without established maximum residue limit (MRL) levels in imported seafood is more than 10 times more stringent than those adopted by other countries, just equal to one tenth of the maximum acceptable threshold of many other markets.

To remove challenges for aqua-product exporters, VASEP would like the Ministry of Agriculture and Rural Development to forward their concerns to Japanese authorities, requesting to adjust the MRL for doxycycline to match those limits regulated by the EU, China and New Zealand.

Real estate businesses concerned about bond maturity

Real estate companies are coming under pressure as an estimated VND213,521 billion worth of bonds, 37% of them belonging to the real estate sector, will fall due in the rest of this year, according to the Vietnam Bond Market Association (VBMA).

Most of the real estate bonds will fall due in the second and third quarters of this year.

In the year to date, businesses have issued VND10,715 billion worth of bonds, a year-on-year decrease of 61.5%. Some VND6,400 billion of this amount comes from the real estate sector.

Given weak cash flows, big debt and limited resources for repaying maturing debt, pressures are mounting on bond issuing real estate businesses. However, the amount of bonds falling due this year is still much lower than the VND147 trillion of bonds with delayed payments of principal and interest last year.

Currently, many real estate firms have proactively bought back bonds before maturity. However, the total value of bond buybacks has reached only VND18,278 billion, down by 38.4% versus the previous year.

The real estate sector still leads the way, with 45.1% of the total value of bonds repurchased before maturity, making up VND8,250 billion.

Experts said the corporate bond market in the first quarter of this year remains subdued due to the continuation of the trend from 2023 and incidents caused by large corporations greatly eroding investor confidence in the market.

VND32 trillion of public investment unallocated in Q1

Some VND32 trillion of public investment capital had not been allocated for projects in the year to end-March, according to the Ministry of Planning and Investment.

This year, the Government plans to disburse a total of VND657.35 trillion for publicly funded projects.

Delays in public investment capital allocation primarily stem from time-consuming procedures.

Projects requiring approval from the prime minister for a funding extension, or those within the scope of national target programs, face implementation challenges.

The allocation of funds from foreign sources has also been stagnant due to incomplete procedures, pending approvals, and complications in equipment valuation and procurement processes.

Infrastructure projects, particularly in regions such as the Mekong Delta and the south of the country, lagged behind schedules due to a sand shortage for road foundation filling, leading to construction delays.

Minister of Planning and Investment Nguyen Chi Dung said accelerating capital disbursement would be the key to driving economic growth this year.

Despite a positive trend in disbursement in the first quarter, substantial disparities persist among agencies and localities in meeting disbursement targets, warranting immediate attention, he added.

In the first quarter of this year, public investment disbursement reached nearly VND89.9 trillion, representing 13.67% of the Government’s full-year plan.

While four central agencies and 23 localities achieved high disbursement rates of over 20%, there are still 38 central agencies and 26 localities with disbursement rates below the national average, with 15 of them having yet to disburse any funds.

F&B expo to be held in HCMC next month

A large food and beverage exposition will be held in HCMC in the middle of May this year, with the expected participation of some 40 domestic and international enterprises and organizations.

The Investment and Trade Promotion Center of HCMC (ITPC) said at a news briefing yesterday, April 16, that it will organize the HCMC International Exhibition of Food and Beverages (HCMC FOODEX 2024) to boost the city’s food industry and revitalize production activities.

The expo, themed “Connecting values for mutual development”, is scheduled to continue from May 15 to 18 at the Saigon Exhibition and Convention Center, District 7.

With some 500 booths, the expo is expected to contribute to showcasing the overall development of the city’s food processing industry, promoting high-quality products and reputable businesses, fostering business cooperation opportunities, and attracting effective investment resources.

HCMC FOODEX will have a broad range of trade promotion activities, including seminars discussing sustainable growth strategies and maintaining product quality, among others.

A cooking competition, with the theme “Vietnamese Soul in Contemporary Cuisine,” is the highlight of the event. The competition will be co-organized by the HCMC FOODEX 2024 organizing committee and the HCMC Professional Chefs Association.

HCMC FOODEX 2024 anticipates drawing 18,000 participants and solidifying its position as a world-class international trade expo within Vietnam’s food processing sector.

Vietjet adds more flights to Dien Bien

To meet the rising demands to visit Dien Bien of people and tourists during the celebration of the 70th anniversary of the Dien Bien Phu victory, Vietjet increased the frequencies of flights between Hanoi, Ho Chi Minh City and the northwestern province to 28 per week.

Accordingly, there will be 14 flights on the Hanoi - Dien Bien route during the week from May 3 to May 11. Besides, the airline also operates 14 flights between Ho Chi Minh City and Dien Bien on the occasion of the anniversary of the globe-shaking victory which “resounded throughout the five continents".

Vietjet also focuses its resources to increase flights, reduce turnaround times, ensure good services at airports and bring passengers promotions with the best price.

During the week of the holiday of April 30 and May 1, Vietjet will also add 86,000 seats, equivalent to over 450 flights on tourist routes and increase the frequency of flights to and from Ho Chi Minh City, Hanoi, Da Nang, and Nha Trang, among others./.

VN's exports $25.77 billion to the US in Q1

Việt Nam exported US$25.77 billion to the US during the first three months, accounting for 27.7 per cent of the Southeast Asian economy's total export turnover and an increase of 24.1 per cent compared to the same period last year.

Of the big-ticket items, six exceeded $1 billion, eight exceeded $500 million and 19 exceeded $100 million. The $1 billion club included computers and electronic products, machinery, textiles, wood products and footwear.

Compared to the same period in 2023, 31 out of 36 export items to the US increased in turnover, including nine items with significant increases of over $100 million and one item with a very high increase (computers, electronic products and components) increased by over $1 billion.

Việt Nam's trade surplus with the US in the first quarter of 2024 reached $22.38 billion.

While Việt Nam ranks among the largest exporters to the US, the Southeast Asian economy accounts for about 3 per cent of the imports to the world's largest economy, leaving a lot of untapped growth potential especially after the two countries elevated their ties to a Comprehensive Strategic Partnership last year.

The Vietnamese community living in the US, with over 2.5 million people, has served as a bridge between Việt Nam and the US in various fields such as investment, trade, tourism, and remittances, according to economists.

In addition, Việt Nam's exports to the US have benefited from the weaker Vietnamese đồng. 

Based on the data collected in the first quarter of this year, Việt Nam's exports, imports, and trade surplus activities with the US are forecasted to reach as high as $103 billion, with a trade surplus of over $90 billion in 2024.

Japan's Takashimaya eyes new shopping hub in Vietnam by 2026

Takashimaya, the Japanese operator of upscale department stores, plans to open a shopping centre in Hanoi as soon as 2026, according to Japanese media outlet Nikkei Asia.

This will be the company's first new location abroad in eight years, reported the newswire.

Nikkey Asia quoted Yoshio Murata, president of Takashimaya, saying subsidiary Toshin Development has started work on a mixed-use complex in Hanoi, that along with a department store will include space for housing, offices, and commercial lease.

Takashimaya is expected to invest an estimated US$12.9 million in opening the department store, with project set to be the first Japanese department store chain to establish a physical presence in Hanoi.

The new complex will feature a department store boasting about 10,000 square metres of sales space, along with a range of specialty stores. Takashimaya is also considering bringing in Japanese tenants to sell items such as food, cosmetics, and children's clothing.

Hanoi will be the second Vietnamese city to host a Takashimaya retail centre. The complex that opened in Ho Chi Minh City in 2016 has roughly 150 specialty shops along with a department store.

It is also Takashimaya's first overseas location since its Bangkok store opened in 2018, and its fifth department store in Southeast Asia and China combined. The firm also intends to expand the Ho Chi Minh City location in the future.

At present, Vietnam is viewed as Takashimaya's biggest growth market due to the country’s rapidly expanding middle and upper classes, although it faces heavy competition there.

In addition to local players, Lotte Group of the Republic of Korea has opened a mall and a department store in Hanoi, whilst Japan's Aeon Mall also has a presence in the Vietnamese capital.

At present, Takashimaya has invested in the construction and operation of a school in co-operation with a Vietnamese partner, whilst it is looking to invest more capital in joint real estate development projects in the country.

The Japanese company aims for Vietnamese operations to double the sum of operating profit and dividend income to US$28.5 million by the fiscal year ending February, 2027.

Southern tourism on right track

Impressive results in the tourist number and revenue in many southern localities in the first quarter of this year showed that the growth of sector of the region has remained stable, signaling a good summer season in the second quarter.

The Ho Chi Minh City Department of Tourism reported that the southern hub welcomed 1.38 million international tourists and 8 million domestic ones in the period, representing year-on-year increases of 32% and 6.6%, respectively. Total revenue from tourism activities reached 44.7 trillion VND (nearly 1.79 billion USD), surging by nearly 24% from the same period last year.

In the Mekong Delta province of Kien Giang, travel firms have offered many tours to ecological areas, beaches, and islands, which are popular choices for many tourists. The locality served over 2.7 million holiday-makers in the period, up over 22% year-on-year.

Its neighbour Dong Thap province, known for tourism products associated with agricultural production experience, craft village, ecotourism, and culture, attracted 1.15 million tourists in the last quarter, earning 480 billion VND in revenue.

According to Vice Director of the HCM City Department of Tourism Le Truong Hien Hoa, the 20th Tourism Festival of HCM City from April 4 – 7 was eagerly awaited by many tourists looking to purchase packages with many incentives.

At the event, accommodation, travel agencies, and culinary businesses introduced 400 tour programmes, accommodation and culinary services, and health care services combined with tourism.

The Saigontourist Travel Service Company said it offered many domestic and international tour packages with well-connected itineraries and diverse experiences, including those to domestic attractive destinations such as Phan Thiet, Da Lat, Nha Trang, Phu Yen, Con Dao, Vung Tau, and the Mekong Delta region, with flexible transportation options.

Similarly, the Vietnam Travel and Marketing Transports Joint Stock Company (Vietravel) offered various experiential tour packages with discounts, aiming to stimulate the demand in the summer tourism season.

To attract more visitors, Kien Giang’s tourism industry will continue to develop new products and focus on promoting and connecting more international flight routes to make it more convenient for the visitors, and providing products associated with environmental protection and community-based tourism towards ensuring a sustainable development for the sector./.

Central bank begins currency intervention to address market volatility

The State Bank of Vietnam (SBV) has begun selling US dollars to intervene in the currency market for banks that have a negative foreign currency balance and those that want to buy, said Pham Chi Quang, an official of the central bank, at a press briefing held on April 19.

The currency intervention move comes as the spot exchange rate between the local currency VND and the US$ has moved close to the 5% mark since the beginning of the year.

This strong intervention measure is expected to relieve market psychology, clear supply, and ensure smooth foreign currency liquidity, said Quang, who is director of the Monetary Policy Department of the central bank.

The State Bank is currently selling US$1 for VND25,450, equal to the selling exchange rate listed at the State Bank Exchange in Hanoi.

The US$/VND exchange rate has been on an upward trajectory over recent days. Indeed, Vietcombank on April 19 bought US$1 for VND25,133 and sold US$1 for VND25,473, equal to the prescribed ceiling rate. The latest exchange rate has increased by more than 5% compared to the beginning of the year.

Quang attributed the heating up of the local foreign currency market to both external factors and local rising demand. According to information given by the official, the US Federal Reserve is likely to cut interest rates due to high inflation, a move that is contrary to investors’ expectations. Meanwhile, local businesses are in dire need of foreign currencies as they seek to import materials for production.

At the press briefing, Dao Minh Tu, deputy governor of the SBV, pointed out that throughout the first three months of the year the central bank had closely monitored market fluctuations and managed the central exchange rate flexibly, thereby creating conditions for import and export activities.

However, he stated that sharp market fluctuations occurring globally had caused the domestic currencies of many countries to depreciate strongly, ranging from over 3% to nearly 9%. Vietnam is no exception, with its exchange rate devalued by 4.9% compared to the beginning of the year.

The central bank stands ready to intervene in the market in the event that the exchange rate continues to have adverse impacts, affirmed Tu, adding that foreign exchange reserves over the years have still been guaranteed when the operator has decided to intervene in the market.

Basically, currency intervention is needed to ensure market liquidity is smooth, and legal foreign currency needs are fully met, he stressed.

Quang Ninh attracts additional 115 million USD from Japan investors

The Quang Ninh Economic Zone Authority (QEZA) presented investment certificates to two Japanese projects worth 115 million USD in total at a conference held at Song Khoai Industrial Park (IP) on April 19.

One of the two projects is a plastics molding plant invested by Tenma Vietnam Co., Ltd. at a total cost of 56 million USD. It will become operational in the second quarter of 2025.

The other is an electro-mechanical system project invested by Yaskawa Electric Vietnam Co. Ltd., which has total registered capital of nearly 59 million USD, and will be put into operation in April 2026.

Quang Ninh province wants to lure at least 3 billion USD in FDI capital into local IPs and 55 trillion VND (2.16 billion USD) in domestic capital, while targeting wastewater treatment and monitoring systems installed at all of the IPs.

The province urged FDI firms to work towards the target of 3 billion USD in revenue and 850 billion VND in state budget contribution, and job generation for more than 3,000 workers.

The conference also helped the QEZA to gain a better insight into their difficulties, and better grasp the opportunity to ride the FDI capital wave.

At the event, participants discussed and responded to inquiries from investors, including the value added tax refund, support mechanism for enterprises to install solar panels, job demands of local people, and fire prevention and control procedures./.

Vietnam emerges as Singapore’s largest rice export partner

Vietnam was Singapore’s largest rice export partner during the first quarter of the year, accounting for 32.03% of the island state’s overall market share, according to the Vietnamese Trade Office in Singapore.

Elsewhere, India and Thailand ranked second and third with their market shares in Singapore standing at 6.96% and 8.28% respectively.

Statistics compiled by Singaporean agencies also indicate that Vietnamese rice exports to the this market throughout the reviewed period grew well, with turnover reaching over US$26.5 million, up 80.46% compared to the same period last year.

Most notably, apart from advantageous Vietnamese products such as white rice, other product categories such as sticky rice and milled fragrant rice have also risen to dominate the majority of the market share of 80.08% and 73.33% in the Singaporean market, respectively.

As a result, Vietnam outperformed other exporters such as Thailand and India to become Singapore’s largest rice supplier.

India recently prohibited export of non-basmati white rice starting from July 20, which has further opened up opportunities for Vietnamese businesses to increase its export to Singapore.

Industry insiders point out that Vietnamese businesses are required to continue to improve their competitiveness whilst ensuring the quality of rice products to make further inroads into the market.

The signing a Memorandum of Understanding (MoU) for rice cooperation between Vietnam and Singapore is anticipated to become an effective tool for maintaining the leading position of Vietnamese rice products in the Singapore market, they say.

Proposal to abolish quotas on Vietnamese shrimp imported into South Korea

The Việt Nam Association of Seafood Exporters and Producers (Vasep) has just sent Official Dispatch 47/CV-VASEP to the Prime Minister, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and the Ministry of Foreign Affairs requesting the abolition of quotas for Vietnamese shrimp imported into South Korea.

This year is the 10th year of implementing the Việt Nam-Korea Free Trade Agreement (VKFTA). According to the roadmap, most seafood products have a tax rate of 0 per cent.

However, according to quota commitments, there are still a group of seven seafood product lines from Việt Nam to South Korea that only enjoy preferential tariffs based on a quota, currently at 15,000 tonnes per year.

Specifically, for this group, South Korea only exempts Việt Nam from import tax under VKFTA for 15,000 tonnes per year.

The volume of imported products exceeding the quota will be subject to a base tax rate of 20 per cent.

Thus, for key shrimp products alone, 34-48 per cent of Vietnamese shrimp output imported into South Korea is subject to an out-of-quota tax of 20 per cent in the 2016-2023 period.

This disincentivises importers to increase purchases of Vietnamese shrimp to serve the growing demand in South Korea, according to Vasep.

They are considering buying more shrimp from other countries such as Peru that also have free trade agreements with them, but the import tax rate has returned to 0 per cent with a five-to-seven-year roadmap under the FTA with South Korea.

This eliminated all tariff advantages from VKFTA for Vietnamese frozen shrimp products in the South Korean market, said Vasep.

Facing this situation, requesting South Korea to remove the tariff mechanism for Vietnamese frozen shrimp under VKFTA was very urgent to protect the market share and long-term benefits of Vietnamese shrimp in the market, it said.

Listed firms see positive signals in Q1

Following a year of hardships in 2023, the transition to 2024 has witnessed a remarkable surge in the activities of businesses. With a strong start in the first quarter, numerous enterprises expect to experience a more prosperous year ahead.

A recent report from the General Statistics Office showed that Việt Nam’s exports reached an estimated US$93.06 billion in the first quarter of 2024, a 17% increase year-on-year, while imports amounted to $84.96 billion. 

During the period, the country posted a trade surplus of over $8 billion. Key contributors were businesses involved in exporting mobile phones and components, textiles and garments, aquaculture, wood and wooden products, footwear and leather goods.

Thành Công Textile Garment Investment Trading reported a 6 per cent revenue increase in the first quarter, reaching an estimated $39 million. Its projected profit for the same period is $2.5 million, up 9 per cent from last year. 

The company expects to fulfil its annual targets for 2024, with 85 per cent of the second quarter orders confirmed and 80 per cent for the third quarter, said Trần Như Tùng, Chairman of the Board of Directors of Thành Công Textile. 

At its recent annual general meeting, shareholders approved the 2024 business plan, targeting a revenue of over VNĐ3.7 trillion ($145.8 million) and a profit after tax of over VNĐ161.2 billion. 

These ambitious goals represent growth rates of 12 per cent and 21 per cent respectively, over last year. The company has already attained 26 per cent of its revenue target and 38.4 per cent of its profit target in the first three months.

Garment 10 Corporation, another textile company, also witnessed positive financial results for the first quarter. Its total revenue reached over VNĐ1.1 trillion, a 24.2 per cent increase from the same period last year. Particularly, export revenue saw significant growth to VNĐ1.02 trillion, up nearly 29 per cent. 

PetroVietnam Oil Corporation (PVOIL) experienced improved business performance last quarter, thanks to a more favourable economic outlook and positive developments in the petroleum industry. 

PVOIL's petroleum trading volume reached nearly 1.4 million cubic metres/tonne, a 22 per cent increase. The company’s consolidated revenue rose 41 per cent to VNĐ29.4 trillion, while consolidated profit before tax reached VNĐ300 billion, up 5 per cent. 

It expanded with 33 new gas stations during the quarter, bringing the total to 789.

PVOIL has set ambitious targets for 2024, aiming for a revenue of VNĐ83 trillion and a profit before tax of VNĐ740 billion. They have already achieved 41 per cent of their annual profit target in just three months.

Some banks have reported optimistic financial results for Q1. SeABank recorded a profit before tax of over VNĐ1.5 trillion, up 41 per cent year-on-year. Vietnam International Commercial Joint Stock Bank (VIB) announced a profit before tax of VNĐ2.6 trillion, matching the previous year.

Mobile World Investment Corporation showed positive performance in the early months of 2024, with a gain of 14 per cent on-year in revenue to VNĐ21.6 trillion.

The enterprise continued to review and improve the profitability of their Mobile World and Điện Máy Xanh retail chains. After five months of restructuring, positive changes in operational efficiency are seen.

Saigon General Service Corporation (Savico) has set ambitious business targets for 2024. It aims to achieve a sales volume of 36,595 vehicles, revenue of VNĐ24.23 trillion, a 16 per cent growth from 2023, and a profit after tax of VNĐ124.9 billion, a significant 181 per cent increase from 2023. 

The company also plans to distribute 5 per cent dividends.

Savico's leadership predicts 5-7 per cent growth in the automotive market for 2024, focusing on improving pricing, reducing inventory and optimising operations to enhance profitability.

Positive factors for the automotive market include the continued 2 per cent VAT reduction, low interest rates and the development of the North-South expressway infrastructure project. 

Moreover, Việt Nam’s low vehicle ownership rate compared to neighbouring countries presents a significant long-term opportunity.

In the short term, Savico needs a stringent policy to ensure business effectiveness and drive value-added growth. For a long-term prospect, it aims to capitalise on market opportunities and continue collaborating with partners to expand their showroom presence, with a target of 120 showrooms nationwide by 2026.

In the textile and garment sector, businesses acknowledge the challenging landscape of high competition, tight deadlines and a potential decrease in prices for orders in the second half of 2024.

Despite the challenging business conditions, Thành Công Textile has devised plans for strong growth in the current and future years. They have invested in the SY Vina dyeing plant, which offers a cost-effective solution for obtaining dyeing permits and exporting products to the US market. 

It is also actively seeking project transfer partners in Vĩnh Long Province and Trảng Bàng Town, with potential profit recognition this year.

Meanwhile, Garment 10 Corporation highlights the proactive measures undertaken by enterprises to foster growth this year. 

These measures include market exploration and expansion, both domestically and internationally, as well as diversifying products and customer bases. The company is investing resources in production, research, product innovation and exploring new designs, determining to seize every opportunity to expand its market presence. 

Takashimaya Group to open first shopping center in Hà Nội by 2026

Takashimaya Group, renowned for operating high-end Japanese shopping centres, has announced its intention to open a shopping center in Hà Nội by 2026, as reported by Nikkei.

Yoshio Murata, Chairman of the Takashimaya Group, stated that their subsidiary, Toshin Development, has commenced construction of a complex in Việt Nam's capital city, Hà Nội. In addition to a sizable supermarket, the facility will feature residential, office and commercial rental spaces.

Takashimaya is projected to invest approximately two billion yen (equivalent to US$12.9 million) into this shopping center. The new complex will house a shopping centre spanning around 10,000 square metres, hosting a range of signature stores. Takashimaya is considering employing Japanese staff to sell products like food, cosmetics and children's clothing.

Commercial banks raise deposit rates

VPBank, Bắc Á Bank and GPBank raised deposit interest rates this morning for deposits with terms within 1-5 months, marking the commercial banks' first deposit rates increase since the end of March.

VPBank raised the rates by 0.3 percentage points whileBắc Á Bank raised the rates by 0.15-0.40 percentage points across the board. Of note, deposits for 24-36 month terms enjoyed the most significant increase of 0.4 percentage points to 5.5 per cent per year, the highest rate offered by commercial banks for saving accounts under VNĐ1 billion (US$40,000).

Meanwhile, GPBank offers depositors an increase of 0.2 percentage points across the board.

GPBank's rates were posted this morning at 2.5 per cent per year for 1-month, 3 per cent for 2-month, 3.02 per cent for 3-month, 3.04 per cent for 4-month and 3.05 per cent for 5-month deposits.

The deposit interest rates for the 6-month term were posted as 4.15 per cent per year, 7-month term at 4.25 per cent, 8-month term at 4.3 per cent, 9-month term at 4.4 per cent, and 4.85 per cent for 12-month.

The deposit interest rates for the 13-36 month terms have been listed at 4.95 per cent after the increase, the highest rates offered by GPBank at this time.

Since the beginning of April, deposit rates have been picking up after a period of funds being channelled from saving accounts into other assets, seeking higher returns.

As of this morning, ABBank offered the highest savings deposit interest rate at 9.65 per year for the 13-month term, applicable to savings deposits of VNĐ1.5 trillion or more. The runner-up was PVComBank with an interest rate of 9.5 per cent for the 12-13 month term, with a minimum deposit of VNĐ2 trillion.

HDBank offered 8.1 per cent for the 13-month term and 7.7 per cent for the 12-month term, with a minimum balance requirement of VNĐ500 billion.

According to the latest data released by the General Statistics Office, as of March 25, the capital mobilisation of credit institutions decreased by 0.76 per cent compared to the end of 2023, while at the same time last year, it increased by nearly 1.2 per cent. Meanwhile, credit into the economy has increased again by the end of the first quarter after two months of negative growth. 

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes

Vietnamese goods come to the United States

A series of "strictly demanding products" entered the United States one after another

One day near the end of 2023, Mr. Nguyen Manh Quyen - Head of the Vietnam Trade Office (CNTV) Branch in Houston, USA informed PLVN Newspaper reporter, after many efforts of Vietnamese businesses and CNTV in Houston, beer Habeco has officially been exported officially to the United States, with MIB Morris International Beverage Company - a US enterprise (enterprise) acting as the import (import) focal point. This is considered an outstanding event in the journey of bringing Vietnamese goods into the United States in 2023 of the Vietnamese trade system abroad.

Mr. Brad Morris - President of MIB Morris International Beverage Company said that importing alcoholic beverages into the United States requires a special license; Storage, wholesale, retail, and use processes are also very closely managed and monitored by US state agencies.

However, after many connections of Vietnam CNTV in Houston and an official visit to the headquarters of Habeco Factory in September 9 (on the occasion of attending the Vietnam Sourcing 2023 event), MIB decided to sign the contract. Dong imported the first shipment to the United States (exported in November 2023). To date, MIB Company has successfully imported shipments by sea (from November 11) and air (from December 2023) into the United States to distribute to dozens of partners in the market.

TNI Corporation's King Coffee Vietnamese Coffee brand was launched and conquered the US market many years ago, but it will be 2023 that this product will officially enter the Costco Wholesale system - the largest wholesale chain in the United States. Ky. Previously, this brand sold directly to major supply chains in the United States such as Food Town, Fiesta, Asian Super Markets... and is aiming at Walmart and HEB sales chains in the near future.

Mr. Do Ngoc Hung - Commercial Counselor, Head of the Vietnam Trade Office in the US shared that exporting lychees to the US market still faces many difficulties, most notably the lack of irradiation facilities. The United States recognized the North. The lack of irradiation facilities according to US standards to ensure export conditions for fresh fruits, especially lychees due to their short storage time, to this market is a big challenge because they have to be transported to the city. Ho Chi Minh for irradiation. This increases transportation costs, loss in quantity and quality of exported fruits and reduces the consumption time of lychees in the distribution system.

Despite such difficulties and strict conditions, in 2023, there will be two companies officially importing lychees into the United States. Of which, nearly 2 tons of fresh lychees were transported by sea and officially distributed and sold at Safeway and Albertsons supermarkets in US West Coast states such as Washington, Oregon and California...

Of particular note is the shipment of lychees that LNS International Corporation (importer) and L&V Food Supply Company (distributor) based in Houston (Texas) have coordinated to bring fresh lychees at the beginning of the season. 2023 of Bac Giang via air to Houston. Fresh Vietnamese lychees have been sold simultaneously at many of the largest supermarkets and Asian markets in Houston such as Hong Kong, Tan Binh, Viet Hoa, Linda's Tropical Fruits, Ca Mau...

Efforts to mobilize and connect from halfway around the world

Mr. Nguyen Manh Quyen said that since the end of 2020, CNTV Vietnam in Houston has grasped market demand and learned about opportunities to bring fresh lychees to the United States. After that, the Trade Office directly instructed many Vietnamese businesses to contact the Trade Department and the APHIS Animal and Plant Quarantine department of the US Embassy in Hanoi. Along with that, coordinate with the Vietnamese Consulate General in Houston and US partners to promote activities to guide linked businesses and promote trade for fresh lychees; Support businesses to bring shipments of agricultural products in general and fresh lychees in particular to the most demanding markets in the world via air.

Mr. Do Ngoc Hung also said that bringing 20 tons of fresh lychees to the West Coast of the United States is the result of the campaign since the end of 2022 by CNTV Vietnam in San Francisco together with the Vietnam Trade Office in Washington DC. Along with that is coordination with domestic agencies, businesses and US businesses to import fresh Vietnamese lychees for consumption in the US market, especially in the West Coast states of this country. According to CNTV representative in San Francisco, the efforts of Dragonberry Produce Company - a US enterprise headquartered in Canby city (Oregon state) must be mentioned.

Those working in trade in the United States affirmed that the contributions of the US Embassy in Vietnam and trade partners and services related to transportation and irradiation, inspection and testing of batches products have also made an important contribution to successfully bringing Vietnamese agricultural products to the US market.

CNTV representative in San Francisco assessed that the introduction of lychees for consumption in supermarket systems is a great success in promoting the consumption of Vietnamese fruits in general and lychees in particular in the US market. . The reason is that most of Vietnam's fruit exported to the United States can only reach small market and supermarket systems serving Asian consumers. Not to mention the price of 200.000 VND/kg is a very competitive price compared to fresh lychees imported from China and Mexico (being sold at the Asian market in San Francisco for the equivalent of 259.000 VND/kg) - two sources of supply. are also the two biggest competitors of Vietnamese fresh lychees.

To contribute to bringing Vietnamese lychees closer to US consumers, CNTV in San Francisco has coordinated with the Vietnamese Businessmen Association in the US, organizations and businesses to deploy promotional activities. , communication on information channels, especially on social networks; Organizing booths to display and sell lychees in some Vietnamese and Asian market areas; Organize tasting activities to help people get acquainted and love lychees, thereby promoting the consumption of this fruit...

Extending the journeys of Vietnamese goods to the United States...

It can be affirmed that the United States will continue to be an important import market for Vietnam. Therefore, maintaining, maintaining and further developing Vietnamese products into the United States is the desire not only of Vietnamese businesses but also of all those doing commercial work in the United States and Vietnam. Among them, we must mention the support of businesses that have brought official export goods to the United States.

Mr. Nguyen Manh Quyen (second from right) along with a team of entrepreneurs and businesses want to bring more Vietnamese brands into the United States. (Photo: DVCC).
Mr. Nguyen Manh Quyen (second from right) along with a team of entrepreneurs and businesses want to bring more Vietnamese brands into the United States. (Photo: DVCC).

At the official launch ceremony of Habeco beer in the United States, Mr. Tran Dinh Thanh - Chairman of Habeco and Mr. Nguyen Manh Quyen said that the two units have been and will continue to accompany Vietnamese and American businesses, supporting importers, distributors, wholesale and retail businesses, in order to enhance their position, give Vietnamese goods wings to fly farther, and bring more Vietnamese goods into the United States - the most demanding market in the world right away. from early 2.

Mr. Kelvin Nguyen - King Coffee business manager in the United States also affirmed that he and the King Coffee brand will participate in supporting Vietnamese businesses to have good coordination between exporters - importers - distributors for foreign countries. large shipments in the United States; Contribute to consulting investors, manufacturers and cooperate in research and share market information with partners; Together, we create a healthy competitive environment to help Vietnamese businesses have many successful export shipments to major markets such as the United States in the near future.

A representative of LNS Company added that, to continue the initial success of bringing fresh lychee shipments at the beginning of the 2023 season from Bac Giang by air to the United States, LNS will continue to coordinate with import partners. , distribution, transportation... to bring Vietnamese agricultural products (in addition to fresh lychees) to many US states to encourage US consumers and enhance the reputation of Vietnamese businesses worldwide.

IN 2023, SOME OUTSTANDING SUCCESS FACTORS THAT HELP VIETNAMESE GOODS PENETRATE INTO AREAS IN THE UNITED STATES ARE THE DYNAMIC COMBINATION BETWEEN SMART IMPORTERS - KNOWLEDGEABLE/CREATIVE BUSINESSES. AND EXPERIENCE PLACING PRODUCTS INTO TIMELY DISTRIBUTION CHAINS AND WHOLESALER/RETAILER MIXES IN THE UNITED STATES.

MR. NGUYEN MANH QUYEN AFFIRMED THAT IT IS THANKS TO THE DYNAMISM AND SUPPORT OF US BUSINESSES THAT HAS EXTENDED THE JOURNEY OF VIETNAMESE GOODS TO THE UNITED STATES. IN ADDITION, THE COORDINATION OF VIETNAMESE-ORIGIN BUSINESSES IN THE MARKET ALSO PLAYS A VERY ACTIVE ROLE IN PRODUCT DISTRIBUTION STAGES IN THE NETWORK OF SUPERMARKETS AND ASIAN MARKETS. THESE ARE POSITIVE FACTORS, CONTRIBUTING TO THE OVERALL SUCCESS OF BILATERAL IMPORT AND EXPORT ACTIVITIES, BRINGING MORE AND MORE VIETNAMESE GOODS TO THE UNITED STATES...

Nguon

Vietnam’s Agricultural Sector: Rising Star in Food Production

Vietnam’s plant-based agriculture is experiencing rapid growth and Vietnam is becoming a key player in global agriculture. Here’s what potential foreign investors should think about when considering entering Vietnam’s agricultural sector.

Vietnam has been selected by the United Nations to host the 4th Global Conference of the One Planet Network’s Sustainable Food Systems Programme in April this year. This will bring together experts from around the world to discuss how best to develop ‘sustainable, resilient, healthy, and inclusive food systems’.

At the same time, the World Economic Forum (WEF) has selected Vietnam as one of the first three countries to pilot the Food Innovation Hub, a flagship initiative of the Food Action Alliance designed to improve sustainability in food production.

As Vietnam becomes more visible on the global agricultural stage, we take a look at sector exports, opportunities for foreign investors, and some of the growth challenges moving forward.

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Vietnam agricultural exports
In 2022, Vietnam’s agricultural sector experienced its highest growth in recent years reaching 3.36 percent. Of this figure, farming increased by 2.88 percent, fisheries increased by 4.43 percent, and forestry increased by 6.13 percent. The export turnover of the whole industry was over US$53.22 billion.

Vietnam currently exports a broad range of agricultural products all over the world. Its main exports are walnuts, coffee, and rice – accounting for just over US$5.7 billion worth of agricultural exports in 2021.

Top 10 Vietnamese agricultural exports in 2021

# Description Value (US$1,000)
1 Walnuts, shelled 
3,439,931

2 Coffee, green 
2,327,922

3 Rice, milled 
2,069,836

4 Pepper (Piper spp.), raw 
1,818,418

5 Natural rubber in other forms 
1,036,537

6 Other fruits, n.e.c. 
777,974

7 Fruit prepared n.e.c. 
606,425

8 Coffee extracts 
409,362

9 Other vegetables, fresh n.e.c. 
246,598

10 Pastry 
223,451

*n.e.c. = Not Elsewhere Classified

Source: Food and Agricultural Organisation of the United Nations

See also: Halal Food Market in Vietnam Small, but Huge Export Opportunity

Funding development in agriculture in Vietnam
Overseas direct assistance (ODA) has played a key role in Vietnam’s agricultural growth coupled with the support of the Ministry of Agriculture and Rural Development (MARD).

By the end of 2022, MARD had approved four ODA projects or had investment policies with a total loan value of US$840 million. The ministry also coordinated with businesses to prepare 14 new project proposals requiring total capital of US$3.2 billion.

Last year, the agricultural sector also mobilized US$300 million in grant aid and approved 15 projects worth US$25 million for non-governmental organizations. It also attracted a large amount of FDI with 12 new projects and US$68 million in newly registered capital.

But more capital is needed and, with few restrictions on foreign investment in Vietnam’s agricultural sector (see below), foreign producers of agricultural products and their private finance may be necessary in order to facilitate the sector’s continued development.

Drivers of agricultural sector development
Government incentives and support
Decree No.57/2018/ND-CP on the mechanisms required to attract investment into agricultural and rural development forms the backbone of government policy aimed at increasing investment in the agriculture sector.

Decree 57 covers many types of new incentives for agricultural enterprises. These include:

being exempted from payment of some fees;
being exempted from payment of land rental and/or water surface in some instances;
interest rate subsidies on commercial loans; and
government funding for some facilities. For example, waste treatment, electricity, water infrastructure, as well as workshops and equipment required for some projects.
Furthermore, currently circulating is the Draft Strategy for International Cooperation in Agriculture and Rural Development to 2030.

The strategy is divided into three main groups of tasks and solutions:

Proactive international integration;
Strengthen partnerships; and
Mobilizing external resources (read: FDI).
Free trade agreements
Vietnam is a part of 15 Free Trade Agreements (FTAs). This is opening markets like South Korea where, more than seven years after implementing the VKFTA, Vietnam has become the third largest mango supply market for S. Korea, reaching 1.7 thousand tons. This is equal to US$7.4 million.

As a result of the EVFTA that is now in place, Vietnam has also become the largest source of cashew nuts for the EU. In the first 10 months of 2022, Vietnam exported 98.97 thousand tons of cashews to European markets, worth US$699 million. This represents an increase of 9.8 percent over the same period in 2021.

Agricultural development barriers in Vietnam
Increased competition
Despite the benefits FTAs can present, they may be a double-edged sword.

With the quality standards system for Vietnam’s agricultural products still incomplete, Vietnamese goods can sometimes fail to meet the quality requirements of foreign markets.

Vietnam’s commitment to remove tariffs or reduce import taxes for a number of agricultural products also opens the domestic market to other key agricultural producers. Take the CPTPP, for example, which includes Australia, New Zealand, and Canada – all three huge primary producers.

This can create competitive pressure on the domestic agricultural industry with cheap produce and farmed goods arriving from countries with better farming technology and higher quality standards. Domestic producers therefore may be at a disadvantage if they cannot find financing to compete with bigger international players.

But this is a win for consumers with lower prices and a broader variety of products leading to better diets and a better quality of life. It would be unlikely then that protectionist policies would return to support domestic producers.

In this light, farmers may need to look outside of Vietnam for financing.

Climate change
One of the key challenges the agricultural sector faces is climate change. Vietnam is very vulnerable to the increasing consequences of climate change. This includes: droughts, floods, and saltwater intrusion. Adapting to these changes can be costly and will require modified farming techniques and new technologies, which come at a cost.

Local firms are already forking out millions of dollars for more advanced farming technology. TH Milk, one of Vietnam’s biggest dairy producers, is installing Israel computer technology on a number of farms around Vietnam to increase efficiency.

Similarly, Germany’s Bayer has a crop sciences branch operating in Vietnam developing sustainable, eco-friendly plant protection and hybrid seeds to increase productivity and decrease Vietnamese agricultures environmental footprint.

See also: Why the Agtech Industry Will Aid Vietnam’s Hi-Tech Growth

A lack of skilled labor
The Vietnamese agricultural sector may also face a shortage of high-skilled labor. As more workers move to secondary and tertiary sectors like manufacturing and services (tourism, finance, IT), the labor pool for agricultural workers is shrinking. This is in turn increasing the cost of Vietnam’s agricultural products.

Workers that remain in the sector are also usually older and/or without technical skills beyond traditional farming methods. They also often lack technological literacy, which can make it more difficult for modern farming techniques to be instituted and applied.

But this challenge, may be an opportunity for foreign collaboration and education investment. Institutions and startups from emerging and developed countries that offer advanced and niche agricultural education programs, training, and technology know-how may be tapped for upgrading Vietnam’s sector capability and human capital. This, coupled with Vietnam’s drive to further open and expand its education sector could see positive outcomes for both Vietnam and foreign investors.

Foreign investment in Vietnamese farms
As far as investment goes, plant-based agriculture does not carry any conditions for foreign investors. The establishment and registration of a foreign company wishing to invest in agriculture simply needs to comply with the standard investment, enterprise, and company laws.

That said, the 2013 Land Law, does not permit foreign investors to acquire land to build farms in Vietnam. Therefore, in order to establish a farm in the country, foreign investors can only rent the land. To do this they must establish a foreign invested enterprise, either alone or with a local partner.

Foreign investors and local partners may enter into an investment cooperation agreement in either the form of a joint-stock company or a limited liability company. They can also enter into a Business Cooperation Contract without having to establish a legal entity in Vietnam.

See also: Setting Up a Business in Vietnam

Foreign investors in Vietnam’s agricultural sector
A number of foreign investors are already making headway in Vietnam’s agricultural sector and many of them have been operating in the country for quite some time.

With the aforementioned limits on land ownership for foreign investors, international firms tend to be concentrated in either ancillary services or high-value goods, such as nuts, coffee, or fresh cut flowers.

Three firms that have been relatively successful in the Vietnamese market are Cargill, Olam, and the Louis Dreyfus Company.

Cargill
Since February 1995, American company Cargill has operated in Vietnam through Representative Offices in Hanoi and Ho Chi Minh City. It provides animal nutrition services and products as well as grain processing services. More than 1,500 people are employed by Cargill Vietnam, which has various locations around the country.

Olam
Olam is a global organization headquartered in Singapore. The company employs more than 6,500 employees in Vietnam’s central and southern provinces. Olam Vietnam has quickly established itself as one of the biggest exporters of cashew nuts, pepper, and coffee.

Louis Dreyfus Company
The France-based Louis Dreyfus Company has had a presence in Vietnam since 1998. It currently operates five facilities in Vietnam. These are:

Lam Dong Robusta Coffee Buying Station,
Lam Dong Arabica Coffee Mill,
Daklak Robusta Coffee Buying Station,
Pleiku Robusta Coffee Mill in Pleiku, and
Orico Rice Mill in Dong Thap.
Vietnam’s agricultural products moving forward
Agriculture still plays a significant role in the Vietnamese economy, although it faces challenges including: climate change, a shortage of highly-skilled labor, and increased competition.

There are, however, a number of government incentives supporting the agricultural sector, as well as FTAs, that, though a challenge in many ways, are also opening up foreign markets to Vietnamese agricultural products.

With a strong commitment from the government to promote agriculture and the growing involvement of the private sector in this field, the prospects for the agricultural sector in Vietnam are promising.

Understanding exactly how to exploit this opportunity most effectively, however, will take solid market intelligence and boots-on-the-ground experience which Dezan Shira and Associates has in abundance.

About Us

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Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Vietnam and the Asian region. We maintain offices in Hanoi and Ho Chi Minh City, as well as throughout China, South-East Asia, India, and Russia. For assistance with investments into Vietnam please contact us at vietnam@dezshira.com or visit us at www.dezshira.com

Vietnamese Cuisine is Exploding, Flavorfully, in America

If the U.S. is truly a melting pot, sandwiches like the banh mi could be considered quintessential American fare. It also makes sense that another menu item of Vietnamese origin – pho (soup featuring rice noodles, which draws inspiration from French, Chinese, and American cuisine) – is gaining popularity stateside.

If the U.S. is truly a melting pot, sandwiches like the banh mi could be considered quintessential American fare. It also makes sense that another menu item of Vietnamese origin – pho (soup featuring rice noodles, which draws inspiration from French, Chinese, and American cuisine) – is gaining popularity stateside.

Vietnamese menu items, in general, are gaining traction across America’s culinary landscape.

“Considering Vietnamese cuisine is a vessel that can hold many different influences, it makes the cuisine easy to identify with,” Tu David Phu, a former Top Chef contestant, told The Food Institute.



“There are many cultural intersections – French, East Asian, African, Portuguese, etcetera – in Vietnamese culture, because of imperialism and diaspora,” the chef added. “Vietnamese dishes have evolved to fold in many facets of other identities.”

Restaurants Seizing Opportunity
The U.S. has become a hotbed for Vietnamese food, evidenced by the fact there are now nearly 8,000 Vietnamese restaurants stateside, according to The Tanner Food Group and SIAL America. 

In its 2023 What’s Hot Culinary Forecast, the National Restaurant Association identified Southeast Asian cuisine (including Vietnamese, Singaporean, and Filipino dishes) as its top global trend.

The rise in popularity of Vietnamese dishes in particular is tied to “the wide range of flavors and textures associated,” said Michael Murdy, a food scientist and founder of robustkitchen.com. “The combination of sour, sweet, savory, and spicy flavors, as well as the use of fresh herbs and vegetables, makes Vietnamese food particularly attractive to people.”

“I’ve seen Vietnamese food making inroads in the U.S. for the last few years,” said Amy Marks-McGee of Trendincite. 

The pandemic created an opportunity for restaurants offering bold international cuisine (like Vietnamese dishes) as many customers grew desperate for unique flavors not found in their pantry. Thus, fledgling Vietnamese restaurants that feature drive-thrus gained momentum, like Saigon Hustle in Houston, as reported by The Takeout.



Saigon Hustle opened along Texas’ Gulf Coast in February 2022 and was soon awarded $1 million from the private equity firm Savory Fund, The Takeout noted. The restaurant’s owners said they feel having a drive-thru tends to make eating unfamiliar, foreign food less intimidating for Americans.

Explaining Banh Mi’s Popularity
Banh mi sandwiches are often an understated delight, featuring supremely fresh ingredients like cilantro, lemongrass, carrots, and jalapenos, along with fish sauce, tender pork, and fresh baguettes – sometimes for as little as $6, as noted in a recent Seattle Times article.

One reason the banh mi sandwich has gained acceptance in the U.S.: “It tastes familiar and slightly different, all at the same time,” Phu said.

“Pho and banh mi are the classics,” the chef added of Vietnamese cuisine, “but it’s my conviction that [soups like] bún riêu, bún mắm and bánh canh are growing in popularity – exponentially.”

Vietnamese baguette the best sandwich in the world: Taste Atlas

The Vietnamese baguette (Bánh mì) has been ranked first on the list of the top 100 sandwiches in the world, revealed international food website Taste Atlas.

Bánh mì is a popular Vietnamese variety of sandwiches which shares the same core ingredient, a baguette. The baguette was originally brought over to Vietnam during the colonial period and nowadays it is one of the few happy legacies from that period, the article wrote.

Indeed, the crusty bread, condiments, and meats are all a legacy of French and Chinese colonialism, while cilantro, chili, and pickles reflect the Vietnamese yearning for fresh vegetables with bright flavours.

Most Bánh mì sandwiches originally consisted of bread, meat, and seasoning, and they now have some added vegetables. 

TasteAtlas also suggested several famous Bánh mì outlets domestically in Ho Chi Minh City, Hoi An, and Hanoi; and even further afield in the United States and Australia.

The other delicacies to feature in the top five sandwiches in the world include Tombik döner of Turkey, Shawarmas of Lebanon, Tortas of Mexico, and Lobster roll of the US.

The list is based on a vote conducted by experts and readers worldwide on criteria such as popularity, flavour, and love from local people and tourists.

TasteAtlas is an encyclopedia of flavours, a world atlas of traditional dishes, local ingredients, and authentic restaurants.

The website was founded in 2015 and it has cataloged more than 10,000 foods and drinks worldwide. It highlights popular cuisines, as well as the forgotten tastes and aromas of every city, region, and village around the world.

VOV

Go to a Vietnamese market in America

There are about 24.000 Vietnamese Americans who call Colorado their second home, many of whom are concentrated in Denver.

Although the state's Asian Americans celebrate their diverse heritage through events such as the Colorado Dragon Boat Festival and the Asian American Festival, the The Denver Post believes that it is the markets that are the unique cultural foundation. Just the smell of herbs and spices is a tangible connection to the source.

Denver's Little Saigon commercial district was established in 2014, running along South Federal Street, from West Alameda Street to West Mississippi Street. Those who visit can find Vietnamese dishes such as pho, banh mi... at countless restaurants along this route.

Pacific Ocean Marketplace at 2200 West Alameda – once called “Denver's biggest and best Asian supermarket” – is also a favorite shopping destination for the Vietnamese community.

Going to a Vietnamese market in the US - Photo 1.
Food stall outside New Saigon market in Denver city. Photo: DENVERITE

The point worth mentioning is that even though they do not know English, older Vietnamese people can still easily exchange in these markets. Introducing frequent shops with "home-cooked" dishes, Peter Vo (21 years old, student at the University of Denver) told The Denver Post that his family still lives a "very Vietnamese" life.

Mimi Luong, owner of a gift shop at the Far East shopping center in Denver, exclaimed: "The thing you miss the most is always the food, isn't it?" When asked about the Little Saigon commercial area with the "heart" of the future Far East Center, Mimi Luong shared: "I don't want it to disappear. I don't want it to fade. I don't want people to forget the roots of their grandparents and parents."

In May 5, in Boston, Massachusetts, a section of Dorchester Street was recognized by the Massachusetts Cultural Council as Boston's "Little Saigon".

This area is considered a testament to outstanding development and growth and more and more Vietnamese shops and businesses are opening. The management board of "Little Saigon" is also promoting the opening of a night market on Dorchester Street to attract many people from all over.

Meanwhile, the sheet Houston Chronicle Evaluate that one of the greatest strengths of Houston, Texas is its ethnic and cultural diversity. The Vietnamese market is a prime example of the city's rich cultural tapestry.

Vietnamese people in Houston can freely buy agricultural products, goods, and spices with rich national flavors at Viet Hoa market. People can find familiar items such as herbs, balut, salted duck eggs, pork sausage... Viet Hoa Market is also a place that provides more than 300 types of tea.

Going to a Vietnamese market in the US - Photo 2.
Viet Hoa Market in Houston City. Photo: houstonhistoricretail.com

Come to Viet Hoa market and radio station ABC13 mentioning a very familiar Vietnamese fruit, dragon fruit, loved by many people for its aroma and sweetness. ABC13 I think that once you come to this market, you will be regretful if you don't try a loaf of Vietnamese bread along with the famous snack here, crispy fried pork skin.

And it would be remiss not to mention sweet soup - a sweet dish that is still new to many diners. Hot or cold sweet soup dishes, often with coconut milk, beans, potatoes, semolina, jelly and even tropical fruits. There are fragrant coconut sweet soup with coconut water, three-color sweet soup with a layer of yellow green beans on top of a layer of fresh pandan leaf jelly, sweet fatty sweet soup with taro, sweet potatoes and coconut milk...

Speak like a newspaper Houston Chronicle, Houston - one of the cities with the largest Vietnamese population in the US - is considered a great place to enjoy Vietnamese sweet soup. Houston Chronicle commented: "Even thousands of miles away, sweet soup in Houston still tastes very similar to the sweet soup you can find on the streets of Vietnam." 

Cooking Vietnamese food in America used to require a trip to an Asian market. No more.

Soon after I posted a photo of Vietnamese grilled chicken legs on Instagram, this comment arrived: “Can you recommend an Asian market in the Bay Area?” I’d described the recipe as deliciously simple, but the person nevertheless assumed that special, hard-to-find ingredients were involved.

Whenever I’ve had conversations about the feasibility of making good Asian food from regular grocery store ingredients, people react with raised eyebrows (skepticism) or a smile (pleasant surprise). But the chicken legs are proof that you don’t have to shop at an Asian market to make great Vietnamese dishes. In fact, I developed all the recipes in my new book using ingredients purchased at mainstream grocers and American supermarkets.

When we fled Saigon, my mother brought a recipe notebook. It inspires my career every day.

Despite the food cognoscenti thinking that supermarkets are plebeian, I’ve always loved them. In May 1975, when my family and I visited our first supermarket in America, I was practically giddy. Piles of polished apples and oranges, tidy aisles, well-labeled products, meat neatly wrapped in plastic: The situation was far from the chaos of the open-air “wet market” that I regularly visited with our housekeeper in Saigon. I learned to appreciate grocery shopping, super-fresh food and haggling in Vietnam but welcomed the sparkling calm of America’s mega-food palaces.

Our family had just fled Vietnam’s communist takeover, and one of my mom’s concerns was how to nourish our family with familiar savors. At the Albertsons in San Clemente, Calif., she found cheap chicken backs, ginger and onion, which she fashioned into a fragrant stock and then harvested the fat and flesh to prepare comforting pots of chicken and celery rice that we gobbled up.

Unlike the unreliable sugar back home, American granulated white cane sugar is consistently fabulous for making bittersweet caramel sauce, a staple deployed for traditional Vietnamese braises of meat and seafood. Perky lettuce, cilantro and mint were readily available for wrapping up fried and grilled morsels. Swans Down cake flour proved to be a decent substitute for rice flour to make banh cuon (steamed rice rolls).

We relied on soy sauce until we could obtain fish sauce on excursions to Chinatown in Los Angeles. (Little Saigon in Westminster didn’t develop until later.) Making do during those first years was a fun adventure. Like many other refugees, we realized that culinarily, we could indeed be Vietnamese in America.

Because mainstream grocers helped my family resettle here, I remain fond of and fascinated by them. I regularly roam the aisles to look for ingredients to use for Vietnamese dishes, much like my mom did when we first arrived.

In the past few years, I’ve noticed that supermarkets have become much friendlier to Asian cuisines. Better and more authentic ingredients are available, as inventories have grown to an average of 40,000 items per store from about 9,000 in 1975. Checking out the Asian food sections wherever I travel in the United States, I’ve found excellent fish sauce, soy sauce, hoisin sauce, coconut milk and rice at such markets as Giant Eagle, Kroger and Publix. Lemongrass, daikon and hot chilies are often found in the produce departments. Rice paper is easy to find, too.

How did those changes happen? I called Phil Lempert, founder and editor of SupermarketGuru.com and a food industry analyst for more than 25 years. The trend started with the Silent Generation, many of whom served in the Pacific during World War II, he explained. After coming home, they wanted to continue eating foods that they had tried while abroad. Their children, the baby boomers, wanted more Chinese and Japanese foods. These days, with globalization and the Internet, there’s broader knowledge, and people are more educated and curious.

“Supermarkets were losing market share to Asian markets. The distributors were doing volume at little stores,” he said. “With demographic changes and more acculturation in food, retailers understood that they ought to carry more Asian products. The supers want to be one-stop shops.”

Young people have affected inventories, too. “Millennials and Generation Z go to Instagram and look at a food photo and they re-create it. They’re willing to experiment,” Lempert said. “They don’t care to be introduced to the chef in the backroom and would rather just have great food no matter where it comes from. They’re value-conscious, do not want to be overcharged and want great quality.”

Decades ago, the initial growth of food television resulted in many hip foods being sold at gourmet stores and associated with expensive restaurants and celebrity chefs. “That has changed a lot. Look at the rise of Aldi and Lidl,” he said, referring to two popular discount grocers that have helped democratize food.

Increased interest in global flavors combined with a strong natural food movement has also pushed such ingredients as fresh turmeric, coconut water and virgin coconut oil to mainstream stores. Those items may be wonderful health boosters to some people, but to me, they’re game changers for creating flavors that beautifully capture what I’ve enjoyed in Vietnam. For example, I’ve long chased the alluring flavors of a golden-hued coconut rice that my parents adore. Now, I can easily render the vibrant rice whenever I want.

Make the recipe: Vibrant Turmeric Coconut Rice

When the rice noodle selection is poor or I want to enjoy noodles in whole-grain form, gluten-free pastas come to the rescue. Brown rice capellini is excellent for refreshing bun noodle salad bowls and rice paper rolls; its heftier spaghetti sibling is perfect for spicy bun bo hue noodle soup.
Late last year, Whole Foods issued a trend report for 2019, putting strong bets on Pacific Rim flavors and citing dried shrimp and fruits such as guava, jackfruit and dragon fruit as ways for people to better experience “the world through their palates.” More of the exotic and unfamiliar is moving from the margins into the mainstream.

American supermarkets welcomed my family more than 40 years ago. We mined those grocers as well as Asian markets to replicate the flavors we feared had been lost. It was an issue of cultural survival.

Nowadays, I shop less frequently at Asian markets and see the future of Vietnamese food being buoyed by accessible ingredients, which allow more people to easily experience the cuisine’s brilliance. The story has shifted from surviving to thriving, from being Vietnamese in America to shaping Vietnamese America.

Nguyen is the author of “Vietnamese Food Any Day” (Ten Speed Press, 2019).

Vietnam sets ambitious USD 9.5 billion seafood export target for 2024

Vietnam has high expectations for growing its global seafood exports in 2024, despite huge potential obstacles.

The Southeast Asian country expects to earn USD 9.5 billion (EUR 8.7 billion) from seafood exports in 2024, including USD 4 billion (EUR 3.7 billion) from shrimp exports, USD 1.9 billion (EUR 1.7 billion) from pangasius sales, and USD 3.6 billion (EUR 3.3 billion) from other seafood products.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the 2024 target is above the country's total seafood export value in 2023. The organization said the target was set with the expectation there will be surge in global demand during the latter half of 2024.

Despite these aspirations, achieving this higher target will require Vietnamese seafood exporters to hurdle numerous challenges, according to VASEP.

Globally, inflation has eased, but geopolitical disruptions, such as the Russia-Ukraine war, conflicts in the Middle East, and attacks on transportation vessels in the Red Sea, are impacting international trade, with a knock-on effect for the seafood industry. These have led to escalated transportation costs, as well as elevated prices for aquaculture and seafood-processing equipment. VASEP warned these factors may contribute to a potential new wave of inflation, possibly influencing seafood supply and demand in 2024.

Additionally, a glut in global shrimp supply is likely to continue through at least the first half of 2024, driving down prices and, therefore, export value.

After achieving record seafood export growth in 2022, Vietnam encountered numerous challenges in 2023 due to elevated inflation and diminished demand in key global markets.

In 2023, the country exported seafood worth USD 8.97 billion (EUR 8.24 billion) – down 17.8 percent from 2022 – which undershot its previously established target for the year of USD 10 billion (EUR 9.2 billion). Its seafood products were mainly sent to the U.S., which bought USD 1.56 billion (EUR 1.43 billion) worth of Vietnamese seafood – a decline of 26.9 percent. Japan bought USD 1.52 billion (EUR 1.4 billion), 11.2 percent lower year over year; China purchased USD 1.34 billion (EUR 1.23 billion), down 14.9 percent; South Korea bought USD 790.8 million (EUR 727 million), dropping 16.7 percent; and Australia purchased USD 313.9 million (EUR 288.6 million), which was down 13.8 percent, Vietnamese customs data showed.

One factor making analysts more bullish about Vietnamese seafood exports in 2024 is that shrimp demand in the U.S. market is gradually rebounding. But Vietnamese shrimp exporters are also expecting heightened barriers to entering the U.S. market due to an ongoing investigation by the U.S. Department of Commerce (DOC) and the likely implementation of antidumping duties, a move backed by the U.S. shrimp industry.

On 15 January, Vietnamese shrimp exporter Fimex (Sao Ta) expressed readiness to reorganize its market strategy in the event of the U.S. imposing countervailing duties on shrimp products from Vietnam. The company plans to shift its focus to ...

Photo courtesy of Son Truong/Shutterstock

EU-Vietnam Food Processing M&As: The Time is Ripe

Vietnam’s food processing industry is currently struggling, and firms are looking to sell assets or even part of their companies to survive. Here’s what EU firms looking for opportunities in Asia should know about the current state of Vietnam’s food processing sector.

Companies in multiple sectors around Vietnam, including food processing, have struggled to remain at full capacity in recent months due to a credit and resource crunch. Responses to inflationary pressure have led to a lack of access to credit, leading to a spate of business suspensions, asset sell-offs, and even bankruptcies.

The food processing industry is therefore ripe for investment by foreign companies and industry insiders are predicting an uptick in mergers and acquisitions (M&A) over the next two years. This provides a unique opportunity for foreign companies to enter the market by partnering with local food processing companies or purchasing assets outright.

EU companies also find themselves in an especially advantageous position to enter the market, due to the close trade ties between Vietnam and the bloc, as well as a favorable image of European products among Vietnamese consumers.

In this article, we look at the growth prospects of Vietnam’s different food processing sectors and discuss how EU companies can capitalize on the current opportunities in the market.

Vietnam’s food processing industry

Food processing is one of Vietnam’s most important industries. In 2022, the industry grew by 8.8 percent year-on-year, according to research by the US Department of Agriculture (USDA), with over 8,500 companies registered in the sector.

Benefiting from its fertile land and favorable climate, Vietnam has historically been a net exporter of food. In 2022, the agricultural sector reached a record US$53.22 billion in exports, including a trade surplus of US$8.5 billion.

However, growing domestic demand is now also contributing to the country’s own food manufacturing and processing industry. As income levels across the country rise, so does domestic consumption, which is reflected in the growing demand for food services, and high-quality agricultural products.

Vietnam’s growing middle class, which is expected to account for around 40 percent of the population by 2030, is becoming a major driver of the food industry’s growth.

In 2021, the food and beverage (F&B) manufacturing industry contributed US$17 billion to the country’s GDP and employed three million people, according to Statista. Meanwhile, the food service industry is expected to record a CAGR of 8.5 percent between 2022 and 2027, with a growing trend toward dining out.

The industry has experienced a healthy recovery since the pandemic, with the end of lockdowns triggering a return to the high levels of consumption that have been typical for the country in recent years. Vietnamese people are estimated to spend between 20 to 48 percent of their household income on food and beverages.

Advantages for EU companies investing in Vietnam’s food processing industry
The EU-Vietnam Free Trade Agreement
EU companies are at a relative advantage compared to many other developed nations. This is a result of the EU-Vietnam free trade agreement (EVFTA), which will, over the course of the next 10 years, see the elimination of almost all import duties between Vietnam and the bloc.

The EVFTA significantly improves the prospects for bilateral agri-food trade, which would see an increase in the availability of both specialty Vietnamese products in the EU and European products in Vietnam.

A notable aspect of the EVFTA is the inclusion of geographical indication (GI) for certain food products. GI is a type of intellectual property that protects a product produced in a certain geographical location. The EVFTA automatically recognizes the GI of 39 Vietnamese food products and 169 European products. This will help consumers in both markets recognize the authenticity of the products and provide a leg-up for companies when it comes to marketing their products in the respective markets.

Demand for high-quality food products
In the same vein, EU investors may also be able to capitalize on the growing taste for high-end, high-quality, and organic products in Vietnam. In the food service industry, consumers are keen to explore new cuisines and ingredients, while niche high-end segments present opportunities for the introduction of specialty products, such as European wines, cheeses, and processed meats.

European products can benefit from a reputation of being safe and healthy, and in specific segments, being high-quality with a premium price tag. European food products are therefore well-situated to market themselves as desirable commodities in Vietnam.

Robust food processing infrastructure
Due to its legacy as a food processing center, Vietnam already has a well-developed supporting infrastructure and supply chains. The country’s thriving agricultural sector, in particular plant-based agriculture, means that raw materials for the production of certain types of foods are easily accessible.

The country is also home to hundreds of industrial parks, many of which offer incentives or support for companies to establish themselves.

In addition, the relatively low labor cost in Vietnam makes it a competitive option for the location or relocation of manufacturing and processing facilities.

Key market segments in Vietnam’s food processing market

Dairy products

Consumption of dairy products in Vietnam has spurred the development of the domestic milk production industry. According to a Research & Markets report, Vietnam had over 200 dairy producers and produced 1.2 billion liters of fresh milk in 2021.

However, the country remains reliant on dairy imports, as domestic production is currently only able to meet around 40 to 50 percent of demand. Geographical limitations, such as few areas of suitable grasslands, means that the country has a shortage of dairy cows (as well as meat cattle). Imported dairy products reportedly reached US$11.8 billion in 2021, up 12.4 percent year-on-year. Meanwhile, retail sales of dairy products are expected to reach almost US$5 billion in 2023.

Powdered milk is one of the fastest-growing segments, with domestic production reaching around 152,000 tons, a year-on-year increase of around 13 percent. Other promising sectors include the production of yogurt, ice cream, baby formula, and condensed milk, among others.

Among the largest domestic players in the dairy market are Vinamilk, which had a market capitalization of around US$7 billion in 2022, TH Group, and Nutifood. Several large multinationals have already gained a foothold in the market, chief among them being Nestle, FrieslandCampina, and Abbott.

See also: Vietnam’s Dairy Market: Udder-ly Plump with Opportunity

Meat processing
As with the dairy industry, Vietnam’s geography places limitations on the number of cattle and other large livestock that the country can raise, meaning it remains dependent on imports to meet its domestic meat consumption. For this reason, Vietnam is a net importer of meat products, despite a healthy domestic meat production industry.

Pork is both the most consumed meat and the product with the highest volume of domestic production in the country. In 2021, Vietnam produced over four million metric tons of pork. This was followed by poultry, at almost two million metric tons, beef with around 466,500 metric tons, and buffalo meat, at 123,000 metric tons.

Vietnam’s domestic pork market was impacted by the swine flu epidemic, which has led to a shortage of hogs, higher pork prices, and a higher reliance on imports.

The processed meat market has significant potential for growth, as demand continues to grow. Some analysts estimate that around half of the daily intake of meat in Vietnam by 2025 will be processed. The processed meat market is expected to grow at a CAGR of 6.77 percent between 2023 and 2028 to reach US$1.59 billion. The bulk of the processed meat industry is composed of cold and roast meat products, followed by ham and bacon, and finally sausages.

Traditional agriculture companies have begun to move into the processed meat market in order to capitalize on the growing demand. For instance, egg producer Ba Huan has shifted into producing various processed egg and poultry products, while Masan MEATLife, a subsidiary of Masan Group, commissioned a US$77.6 million MEATDeli Saigon Meat Processing Complex in Long An Province in 2020. In March 2023, Vinamilk entered into a joint venture with the Japanese Sojitz Corporation to establish a beef cattle farming and processing complex in Vinh Phuc Province, northern Vietnam, with an estimated investment of US$127 million.

Seafood processing
With a 3000-plus kilometer coastline, Vietnam is one of the largest aquaculture producers in the world. In 2022, the country produced around 4.9 million tons of aquaculture products and is expected to maintain a CAGR of 1.8 percent between 2023 and 2028.

As with other food market segments, demand for seafood is increasing along with the country’s wealth. In addition to domestic consumption, exports are a major driver of the industry’s growth. The value of shrimp exports is estimated to have risen by 10 percent year-on-year in 2022 to reach US$4.3 billion, and fish exports increased by 7 percent year-on-year to reach US$1.65 billion.

A new government-backed development strategy is seeking to further develop the country’s seafood processing industry, which is projected to grow the industry by 6 percent annually until 2030. Under the strategy, Vietnam’s domestic seafood processing market is expected to reach between US$1.75 and US$1.97 billion by 2030 and contribute around US$14 to US$16 billion in seafood exports annually.

Major seafood processors in Vietnam include Minh Phu Seafood Corporation, Cargill Vietnam, Sao Ta Foods, and Soc Trang Seafood.

See also: Investing in Aquaculture in Vietnam

Confectionery
The confectionery market is another segment with high growth potential. This is as a result of the country’s growing sweet tooth and the proliferation of supermarkets and convenience stores. Revenue in the confectionery market is expected to reach US$8.5 billion in 2023, and the market is poised to grow at a CAGR of 10.17 percent between 2023 and 2028.

In terms of products, confectionery in Vietnam is relatively localized, with consumers having a penchant for traditional flavors and ingredients, such as coconut, pandan, coffee, and tropical fruits. Many of these ingredients are also locally sourced. At the same time, an increase in health awareness among the country’s middle class is also driving demand for healthy alternatives, such as low-sugar and organic alternatives.

However, foreign confectionery is becoming increasingly popular. The chocolate confectionery segment, for instance, is expected to reach US$168.32 million in retail sales by 2025 and grow at a CAGR of 3.9 percent from 2020 to 2024.

Major confectionery companies in Vietnam include Bien Hoa Confectionery, Mars Incorporated, Nestle, and Perfetti Van Melle.

Seizing the investment opportunity
Vietnam’s food processing industry is increasingly becoming a magnet for foreign investment. The fast pace of development and strong growth prospects have already pulled in giants like Coca-Cola, Nestle, Carlsberg, and FrieslandCampina, and fostered the growth of a range of domestic producers. Vietnamese-foreign joint ventures and M&As have also increased in number in recent years.

The current combination of government-backed plans to grow the food processing industry, growing domestic demand for processed food, and a sector struggling for credit have created an ideal environment for foreign companies to invest. This could be through the establishment of new entities, joint ventures, or M&As. For advice on which is best for you, contact the team at Dezan Shira and Associates.