The domestic beverage market has seen fierce competition as nearly half the market share last year belonged to foreign firms.
Chairmanof the Tan Hiep Phat Beverage Group Tran Quy Thanh told a recentconference in Hanoi to review the sector's business results and launchtasks for 2015, that the market shares of Vietnamese beverageenterprises have fallen after periods of strong development.
Thanh added that domestic businesses faced challenges in the market mechanism and international integration.
“Thenon-alcohol beverage sector has seen yearly double-digit growth rate of13 percent in the 2011-14 period. The growth is expected to be 20percent in the 2015-19 period," he said.
Statistics from theVietnam Beverage Association showed that last year, the market was worth77.5 trillion VND (3.64 bilion USD), posting a nine percentyear-on-year increase.
Bottled green tea, herbal tea and tonicwater claimed large shares of the market, with expected growth rates of17.8, 27.6 and 24.7 percent respectively in the 2015-19 period.
Othersectors, including carbonated soft drinks, sport drinks and dairy milkwere forecast to have high growth rates of 11.8, 28.2 and 23 percentrespectively.
The association said that Vietnamese consumers usebeverages not only for refreshment, but also for their health, as theconsumption of herbal tea has been increasing over the years.
Vietnamesebusinesses have been competing in terms of product and human resource.Foreign beverage groups have the advantages of being old trademarks andhaving high-quality human resources.
In addition, preferentialpolicies were not clear, giving domestic companies the advantage, whilethe government has not set any penalties for transfer pricing.
Thechairman said that local beverage businesses should have a deepknowledge of consumer habits as well as support from the government.
Beverage firms should give priority to health issues in their business strategy.
Inaddition, Vietnamese firms should be creative, intelligent anddistinctive in their strategy as well as create new and pioneeringproducts.
Businesses should have good infrastructure, closed processes and computerisation to improve their effectiveness.-VNA
Chairmanof the Tan Hiep Phat Beverage Group Tran Quy Thanh told a recentconference in Hanoi to review the sector's business results and launchtasks for 2015, that the market shares of Vietnamese beverageenterprises have fallen after periods of strong development.
Thanh added that domestic businesses faced challenges in the market mechanism and international integration.
“Thenon-alcohol beverage sector has seen yearly double-digit growth rate of13 percent in the 2011-14 period. The growth is expected to be 20percent in the 2015-19 period," he said.
Statistics from theVietnam Beverage Association showed that last year, the market was worth77.5 trillion VND (3.64 bilion USD), posting a nine percentyear-on-year increase.
Bottled green tea, herbal tea and tonicwater claimed large shares of the market, with expected growth rates of17.8, 27.6 and 24.7 percent respectively in the 2015-19 period.
Othersectors, including carbonated soft drinks, sport drinks and dairy milkwere forecast to have high growth rates of 11.8, 28.2 and 23 percentrespectively.
The association said that Vietnamese consumers usebeverages not only for refreshment, but also for their health, as theconsumption of herbal tea has been increasing over the years.
Vietnamesebusinesses have been competing in terms of product and human resource.Foreign beverage groups have the advantages of being old trademarks andhaving high-quality human resources.
In addition, preferentialpolicies were not clear, giving domestic companies the advantage, whilethe government has not set any penalties for transfer pricing.
Thechairman said that local beverage businesses should have a deepknowledge of consumer habits as well as support from the government.
Beverage firms should give priority to health issues in their business strategy.
Inaddition, Vietnamese firms should be creative, intelligent anddistinctive in their strategy as well as create new and pioneeringproducts.
Businesses should have good infrastructure, closed processes and computerisation to improve their effectiveness.-VNA
