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We Are Forecasting Sales Growth in Vietnam's Mass Grocery Retail Sector of a Phenomenal 121.8% to 2012

Posted on: Tuesday, 11 March 2008, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c85577) has announced the addition of "Vietnam Food & Drink Report Q1 2008" to their offering.

The Vietnam Food Drink Report provides independent forecasts and competitive intelligence on Vietnam's food and drink industry.

The last quarter of 2007 saw foreign direct investment continue to flood into Vietnam's food and beverage sectors; notable events from the three-month period including South Korean giant Lotte Confectionery's acquisition of a 30% stake in local snack food producer Bibica and Japanese conglomerate Sojitz Corporation's purchase of a 25% interest in food and drink importer and distributor Huong Thuy Corporation. These investments have been backed up by sustained inflows into the country's organised grocery retail and alcoholic drinks industries.

Much of the motivation for this investment is obvious; the author is forecasting sales growth in Vietnam's mass grocery retail sector of a phenomenal 121.8% to 2012, while value sales in the alcoholic drinks industry are forecast to increase by a healthy 46.9% over our five-year forecast period. However, while certain consumer goods industries are experiencing exceptional growth, this is not being felt across the board. Overall food consumption in Vietnam is set to increase by just 13.5% to 2012 - a very low rate for such a high-growth economy - and annual per capita food consumption is set to stand at just US$61.52 in 2008, a consequence of Vietnam's poorer rural communities which reduce the impact of higher-spending urban groups.

As a result of this still acute poverty in parts of the country - not to mention Vietnam's under-developed infrastructure and a still fairly regulated operating environment in spite of the imminence of WTO accession - Vietnam falls in just 12th place out of 14 Asia Pacific markets analysed in the new Food and Drink Business Environment Ratings. The country's position reflects both the limits and the risks that must be considered when investing in Vietnam's food and beverage market.

However, in spite of these risks investors continue to flock to Vietnam, with many viewing the country as one of the few viable, truly explosive long-term growth opportunities still left in what is a fast-crowding global market. With less risky emerging markets now looking fairly mature, particularly to latecomers, expansionary multinationals are increasingly willing to take greater risks in search of long-term opportunities.

Companies Mentioned:

- Carlsberg

- Metro Cash & Carry

- Saigon Co-op

- San Miguel Purefoods Vietnam Co Ltd

- Unilever

- Vietnam Dairy Products Corporation (Vinamilk)

For more information, visit http://www.researchandmarkets.com/reports/c85577

Source: Business Wire

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