Vietnam's food industry is entering an important transition phase, from a production model focused on scale to focusing on quality, standards and added value. In this process, raw materials are no longer just inputs but become the core foundation of products.
On April 9, in Ho Chi Minh City, the Ho Chi Minh City Food and Food Association coordinated with units to organize a press conference to introduce the International Exhibition on Specialized Raw Materials, Fragrances, Food and Beverage Additives in Vietnam. Ms. Ly Kim Chi - Chairwoman of the Ho Chi Minh City Food and Food Association said that for many years, Vietnamese rice has mainly been exported raw with low value. However, this trend is changing as high-quality rice and clean rice gradually affirm their position in the international market, bringing higher added value. Similarly, many processed products such as rice paper, vermicelli, vermicelli or seafood have also met international standards and penetrated demanding markets.
This shows that Vietnamese businesses are integrating more deeply into the global value chain, forced to shift from quantity production thinking to focusing on quality and standards" - Ms. Chi said.
The market picture continues to record positive signals. In the first 2 months of 2026, total retail sales of goods and consumer service revenue increased by 7.9% compared to the same period. The food group still accounts for the largest proportion, affirming the essential role of the industry. In the manufacturing sector, in 2025, the food processing industry increased by about 11%, reaching 13.2% in early 2026, while the beverage industry increased by 20.2%.
Exports are also a bright spot with Q1/2026 turnover reaching about 16.69 billion USD, up 5.9% - the highest level in 6 years. This shows the stable growth momentum and breakthrough potential of the industry.
However, the challenge is not small when raw material costs increase sharply by 50-60% in both domestic and imported sources, while purchasing power has not recovered, making it difficult for businesses to increase selling prices, reducing profit margins. At the same time, strict standards on food safety, environment and governance (ESG) also create great pressure. The transition to green production, technology investment or renewable energy use requires significant capital.
However, the prospects are still positive. Consumer trends are shifting to convenient, healthy, branded and transparent origin products, creating great opportunities for businesses to improve product value. Free trade agreements continue to expand export space, while businesses are also proactively diversifying markets, targeting potential areas such as the Halal market.
In addition, increased FDI capital flows not only supplement financial resources but also support technology transfer and improve competitiveness. Support policies such as reducing value-added tax to 8% by the end of 2026 and procedural reforms also contribute to reducing pressure on businesses.
According to Assoc. Prof. Dr. Hoang Kim Anh - Member of the Standing Committee of the Vietnam Food Science and Technology Association (VAFoST), food ingredients have now become a decisive factor in the value, quality and identity of products in the context of the F&B industry aiming for sustainable development. Two prominent trends are the use of natural ingredients, less processed, and the increase in functional components that bring health benefits such as antioxidants and digestive support.
Ms. Rose Chitanuwat, Director of ASEAN project chain of Informa Markets Group, said that FI Vietnam 2026 exhibition is expected to help businesses access new raw materials and modern technology. In the long term, mastering raw material production technology, optimizing formulas and developing high-value products will be the key for the industry to shift from crude exports to deep processing, enhancing its position in the global market.
