Vietnam’s F&B market sees foreign players thrive amid domestic chains’ challenges

Recent reports show that Vietnam is a top-performing market for many international chains, making it one of the most attractive destinations in the region for F&B investment.

According to a report by iPOS.vn, the number of F&B establishments in Vietnam reached over 323,000 in 2024, inching up 1.8 percent from the previous year.

Despite a slowdown in consumer spending, the sector still recorded revenue of more than VND688 trillion (US$26.1 billion) in 2024, up 16.6 percent year on year.

Projections indicate that the industry will generate about VND755 trillion ($28.6 billion) in 2025, a growth rate of 9.6 percent.

This influx of international chains has created both challenges and opportunities for local brands.

Many Vietnamese consumers now prefer branded chains out of consistency in quality, service, and ambiance.

Hong Nguyen, an office worker from Ho Chi Minh City, shared that she often chooses well-known chains when dining with family or friends because they offer a familiar taste and professional service.

Similarly, 24-year-old Hoang My prefers local eateries but still opts for foreign chains when it comes to fried chicken on account of their unique recipes and consistent quality.

“When eating at a chain, I feel more confident about the taste and food quality, no matter the branch,” she said.

High-end coffee shops, restaurants, hotpot chains, and specialty tea stores have seen strong turnover growth in Vietnam.

Among them, Chinese hotpot chain Haidilao has reported impressive sales figures.

According to operator Super Hi International, the brand recorded global revenue of $396.7 million from January to June, a seven-percent increase compared to the same period last year.

Vietnam represented more than 10 percent of that total, placing it among the company's top four overseas markets alongside Singapore, the United States, and Malaysia.

In Vietnam alone, Haidilao earned $43.6 million in January-June, up 1.6 percent year on year.

Meanwhile, Jollibee Foods Corporation (JFC), the Philippines' largest fast-food company, named Vietnam as its top-performing market.

Its fried chicken chain Jollibee and beverage brand Highlands Coffee both recorded strong growth in Q2 2025.

Jollibee Vietnam saw an astonishing 35-percent increase in system-wide sales, far surpassing the group’s global growth rate of 15.4 percent. 

Vietnam now ranks first in revenue and profit for the fried chicken brand, despite being third in store count.

JFC currently operates 896 Highlands Coffee outlets, mainly in major Vietnamese cities. 

The brand, acquired by JFC in 2012, posted a pre-tax profit of nearly $21 million in Q2 2025, up 5.8 percent from the same period last year.

Another standout is Chinese tea chain Mixue, which now boasts more stores globally than McDonald's and Starbucks.

Entering Vietnam in 2018, Mixue quickly became the largest F&B chain in the country, with over 1,300 stores. 

Its signature offerings — lemon drinks, ice cream, milk tea, and fruit tea — are priced affordably at VND20,000–30,000 ($0.8-1.1) per cup.

In 2023, Mixue’s revenue in Vietnam hit VND1.26 trillion ($47.7 million), 2.6 times higher than the previous year. 

Its after-tax profit reached VND204 billion ($7.7 million), triple the amount from a year earlier.

According to Le Vu, managing partner at F&B Academy, foreign chains are successful in Vietnam because they emphasize customer experience and adapt their services to local culture, securing long-term customer loyalty.

Gen Z consumers, in particular, seek personalized and visually appealing food experiences, something foreign brands have done well.

Domestic brands face steep competition

In contrast to the success of foreign chains, Vietnam's F&B market is entering a phase of consolidation, favoring investors with strong financial and operational capabilities.

Hoang Tung, chairman of F&B Investment and an expert in F&B consulting, noted that it is no surprise Vietnam is driving strong revenue for foreign F&B brands, given its fast-paced development in Southeast Asia.

Many Chinese brands, such as Mixue, choose Vietnam as a priority market in their overseas expansion.

Tung attributed the success of foreign chains in Ho Chi Minh City to sound business fundamentals — strong financial backing, solid management systems, and deep understanding of local consumer needs.

These brands also leverage advanced technology, from customer data management to product development and digitalization, giving them a significant edge over most local players.

However, Tung pointed out that not all foreign brands thrive in Vietnam, often owing to differences in local taste preferences.

He believed local businesses still have potential if they can carve out a unique identity.

He outlined three strategic directions for Vietnamese F&B brands:

- Preserving Vietnamese culinary identity: Foreign brands succeed while maintaining their cultural essence. Vietnamese cuisine is diverse and rich in flavor, and maintaining that authenticity is a competitive advantage.

- Focusing on presentation and character: In addition to taste, appearance matters. Food choices increasingly reflect consumers’ lifestyles and values.

- Building a brand, not just selling a product: Creating a compelling story around the product to elevate it from a mere physical item to a recognized brand.

Nguyen Ky Trung, vice-chairman of the Ho Chi Minh City Culinary Association, emphasized the need for scalable business models, strong marketing, and financial resources.

He cited poor branding as a weakness among local businesses. 

“Some restaurants are named after the owners, which shows a lack of long-term branding strategy,” he said.

Hoang Tung added that for Vietnamese F&B firms to truly compete with foreign chains, every food product must eventually be tied to national culture and identity — an area foreign brands cannot replicate.

Nguyen Van Thu, director of GC Food, the operating process of foreign F&B chains typically includes strategic location selection, brand logo and design development, ingredient sourcing, and the tailoring of products to market preferences.

They also have clear customer care strategies, well-defined business plans, operate in chain models, have long-term vision, and possess strong financial resources.

Meanwhile, Vietnamese F&B businesses face challenges with pricing and brand positioning.

“If they sell at low prices, it’s unsustainable; if prices are high, they struggle to attract customers,” he noted.

He emphasized the need to encourage Vietnamese consumers to prioritize domestic products, giving local businesses a better chance to compete.

With strong public support, Vietnam will see the emergence of many successful local F&B chains in the coming years, he added.

Vietnamese companies also need to embrace digital transformation in the F&B sector, adopt flexible delivery methods, apply technology to reduce input costs, and enhance service quality and customer experience.

In particular, they must innovate sales methods by leveraging online food and beverage delivery platforms to boost revenue, reach a broader customer base, and quickly expand market share.

“At GC Food, our strategy to build a strong Vietnamese F&B brand concentrates on product quality and brand development,” Thu shared.

To achieve this, he said businesses must invest in the research and development of new products that meet food safety standards while also being innovative and attractive to consumers, helping to strengthen brand identity.

Additionally, they must establish robust distribution and sales networks, integrating multiple distribution channels and service chains via online platforms. 

These distribution systems must also include effective management and quality control to ensure consistency and product integrity.

Luu Thi Thu Huong, founder of Grandma Lu bakery in Ho Chi Minh City, said that foreign F&B chains succeed by tailoring their offerings to local tastes and creating compelling brand narratives.

“Vietnamese consumers now prefer branded chains over street food out of health concerns,” she said.

She noted that large F&B operations tend to follow a chain model, while smaller businesses with only one or two outlets face higher risks, especially in a tough economic climate.

Even though her brand is ready for franchise expansion, she cautioned that moving too fast could be risky.

“To go far, local F&B brands must go slow and steady,” she said.

Vietnam ranks 4th in SE Asia's F&B market

According to the 2024–25 Southeast Asia F&B industry report by Source of Asia, the region is undergoing dynamic growth fueled by changing consumer behavior, foreign investment, and innovation.

The total F&B market size in Southeast Asia reached $667 billion in 2023 and is projected to hit $900 billion by 2028.

The food service segment alone is expected to grow to $349.05 billion by 2029 from $192.43 billion in 2024.

Six countries, including Indonesia, Thailand, Vietnam, Malaysia, Singapore, and the Philippines, account for 96 percent of the region’s F&B market.

The report highlights the positive impact of ASEAN’s extensive trade agreements and investment-friendly environment. 

In 2023, the region attracted $230 billion in FDI, with F&B drawing strong attention, especially in processed and premium segments.

Urbanization and a growing middle class are fueling demand for convenient and high-quality food products, making Southeast Asia increasingly attractive to global F&B corporations.

Among the six leading F&B markets in the region, Vietnam ranks fourth with a market size of $23.6 billion, driven by a vibrant food culture and growing international culinary trends.

The Philippines leads the region, with a market size of approximately $112 billion.