This was heard at a workshop in Ho Chi Minh City on November 16 with the aim of promoting investment in food processing.
Deputy Minister of Industry and Trade Ho Thi Kim Thoa noted that Vietnam is a world leading exporter of agricultural products, which means the food industry holds great development prospects not only in the domestic market but also the foreign ones.
Food consumption accounts for about 15 percent of Vietnam’s annual GDP, and it increased by 18 percent in 2015. Meanwhile, the food processing and beverage production respectively grew by 8.5 percent and 7.4 percent the same year.
Director of the ministry’s Trade Promotion Agency Bui Huy Son said that Vietnam’s signing of economic partnership agreements with other countries opened up a vast market for domestic and foreign- invested companies in this industry.
Claudio Dordi, an expert at the European Trade Policy and Investment Support Project (EU-MUTRAP), was of the opinion that there remain many shortcomings in the local food processing industry, such as small-scale production, slow restructuring in agriculture and the rampant use of chemicals and pesticides. However, Vietnam can make use of an abundant workforce and fresh materials to assist the growth of this industry.
Participants suggested that local authorities develop zones supplying agricultural materials to serve investors, bolster technology transfer, and try to sign more mutual recognition agreements on processed food quality examination in order to promote foreign investment in food processing.