Many foreign enterprises are gnawing into Vietnam’s lucrative market fordietary supplements. Report by the Vietnam Investment Review .
At a recent international festival of functional foods in Hanoi, manyforeign functional food firms told VIR they had been looking toestablish a niche in Vietnam.
Vietnam Mannyon TradingCo., Ltd, a branch of the Democratic People's Republic of Korea’sMannyon Trading Group, established in 2012, has already provedsuccessful.
“We are operating well in Vietnam. The number ofproducts we are selling, which are all imported from the DPRK, hasdoubled from seven last year due to the market’s huge potential,” saidVietnam Mannyon’s general director Kim Se Un.
“Vietnam Mannyonis DPRK’s first company of the type to invest in Vietnam. We will soonincrease the company’s investment capital and register more products.”
Republic of Korean-backed Pyunkang Medical Corporation and Foundationestablished its company in Hanoi in June 2013 operating under the nameof Pyunkang Pah.
“We will raise our investment capital. Ifbusiness goes well in Hanoi, we will open branches in other localities,”said Bong Kil Choi, vice president of the corporation’s internationalbusiness development division.
One of the main reasons behind’sPyunkang presence in Vietnam is that its products had played a role inhelping treat 50,000 patients suffering from skin diseases, 60,000 withchronic rhinitis and 43,000 with chronic asthma in South Korea.
“So many people in Vietnam are being hit by such diseases. That offers big opportunities for us,” Choi said.
Chinese-invested Tiens Company, the biggest functional food maker inVietnam, reaped a total revenue of 60 million USD in 2012 in Vietnam, up20 percent against 2011.
Tiens’ existing 25 million USDfactory in the northern Hai Duong province’s Dai An Industrial Park isexpected to bring the company an annual average turnover of 150 millionUSD in the future.
“Tiens has begun exporting its products toEurope, Bangladesh and Thailand, while expanding its markets via onlinesales,” said a Tiens source.
Tiens, which operates in 190nations and territories, currently has 30 agents in Vietnam with morethan 40,000 distributors. The firm markets 12 functional food productsin the country.
Chinese-backed Tasly International Vietnam Co.,Ltd under China-based Tasly Group, recently decided to distribute thegroup’s functional food products in Vietnam after 13 years of operatingin Vietnam.
“We are seeking distributors and then will registerabout five to seven products. In 2012, the company’s revenue surged 131percent year-on-year, and this rate was 115 percent last year. However,with the contribution from functional foods, the company’s totalrevenue will be far higher,” said Nguyen Viet Dung, the company’scommercial specialist.
According to the Vietnam Association forDietary Supplements, functional foods appeared in Vietnam about 10years ago. But the country is now home to nearly 1,600 local and foreignfirms producing and importing about 2,000 products. Some 52 percent oftheir products are foreign made.
The association’s chairmanTran Dang said this rate would likely rise to 65-70 percent over thenext few years. The advantage foreign firms have in modern technologyhas provided them with a competitive edge, with products having ashelf-life of up to a decade compared to local products that can be soldfor an average two years.
Vietnam’s functional food market has grown annually by about 25-30 percent, Dang said.-VNA
At a recent international festival of functional foods in Hanoi, manyforeign functional food firms told VIR they had been looking toestablish a niche in Vietnam.
Vietnam Mannyon TradingCo., Ltd, a branch of the Democratic People's Republic of Korea’sMannyon Trading Group, established in 2012, has already provedsuccessful.
“We are operating well in Vietnam. The number ofproducts we are selling, which are all imported from the DPRK, hasdoubled from seven last year due to the market’s huge potential,” saidVietnam Mannyon’s general director Kim Se Un.
“Vietnam Mannyonis DPRK’s first company of the type to invest in Vietnam. We will soonincrease the company’s investment capital and register more products.”
Republic of Korean-backed Pyunkang Medical Corporation and Foundationestablished its company in Hanoi in June 2013 operating under the nameof Pyunkang Pah.
“We will raise our investment capital. Ifbusiness goes well in Hanoi, we will open branches in other localities,”said Bong Kil Choi, vice president of the corporation’s internationalbusiness development division.
One of the main reasons behind’sPyunkang presence in Vietnam is that its products had played a role inhelping treat 50,000 patients suffering from skin diseases, 60,000 withchronic rhinitis and 43,000 with chronic asthma in South Korea.
“So many people in Vietnam are being hit by such diseases. That offers big opportunities for us,” Choi said.
Chinese-invested Tiens Company, the biggest functional food maker inVietnam, reaped a total revenue of 60 million USD in 2012 in Vietnam, up20 percent against 2011.
Tiens’ existing 25 million USDfactory in the northern Hai Duong province’s Dai An Industrial Park isexpected to bring the company an annual average turnover of 150 millionUSD in the future.
“Tiens has begun exporting its products toEurope, Bangladesh and Thailand, while expanding its markets via onlinesales,” said a Tiens source.
Tiens, which operates in 190nations and territories, currently has 30 agents in Vietnam with morethan 40,000 distributors. The firm markets 12 functional food productsin the country.
Chinese-backed Tasly International Vietnam Co.,Ltd under China-based Tasly Group, recently decided to distribute thegroup’s functional food products in Vietnam after 13 years of operatingin Vietnam.
“We are seeking distributors and then will registerabout five to seven products. In 2012, the company’s revenue surged 131percent year-on-year, and this rate was 115 percent last year. However,with the contribution from functional foods, the company’s totalrevenue will be far higher,” said Nguyen Viet Dung, the company’scommercial specialist.
According to the Vietnam Association forDietary Supplements, functional foods appeared in Vietnam about 10years ago. But the country is now home to nearly 1,600 local and foreignfirms producing and importing about 2,000 products. Some 52 percent oftheir products are foreign made.
The association’s chairmanTran Dang said this rate would likely rise to 65-70 percent over thenext few years. The advantage foreign firms have in modern technologyhas provided them with a competitive edge, with products having ashelf-life of up to a decade compared to local products that can be soldfor an average two years.
Vietnam’s functional food market has grown annually by about 25-30 percent, Dang said.-VNA
