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VN food consumption to surge 5.1% every year: MoIT forecast

Update: February, 02/2015 - 08:07

The forecast also pegged food consumption per capital growing to VND5.8 million (about $276) by 2016, reflecting an increase of 4.3 per cent. — Photo baodautu

HA NOI (VNS) — Viet Nam's food consumption is expected to grow by 5.1 per cent annually to an estimated US$29.5 billion by 2016, according to a Ministry of Industry and Trade (MoIT) forecast.

The forecast also pegged food consumption per capital growing to VND5.8 million (about $276) by 2016, reflecting an increase of 4.3 per cent.

The expected growth is a result of consumers' increasing incomes and the development of the retail industry.

At present, Vietnamese consumers still focus on the daily essential food demand.

However, the trend will change when the income of urban residents rises, which will allow them to spend more on high-quality food and beverages.

The reasons are many, but a lack of capital, poor machinery and out-of-date technology, are some of the causes that have been identified.

In order to improve the situation, some local companies have invested in building a breeding farm and processing factory to form a closed manufacturing chain.

For example, the Massan Group began construction of the Massan food industry centre in the central province of Nghe An last November.

However, the investment in food processing with standard technology is still modest, according to MoIT. — VNS

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