Vietnam FMCG compaines investing big in uncertain times
Summary:
Vietnam's fast-moving consumer goods (FMCG) market is experiencing a strong wave of investment from both domestic and foreign companies, despite current economic uncertainties.
Major Investments:
- Unilever Vietnam: Injecting additional $109 million to expand its Cu Chi Industrial Park factory, developing a sorbitol production line with 14,000 tonnes/year capacity for toothpaste manufacturing
- Nestlé: Additional $75 million investment to upgrade Tri An factory, bringing total 2024-2025 investment to over $175 million
- Highlands Coffee: Preparing for IPO within 18-24 months, expanding robusta coffee production capabilities
- Other projects: HiteJinro ($100 million), Trung Nguyen Legend ($78.3 million)
Investment Drivers:
- Reduced costs for labor, land, and construction
- Growing middle class and demand for premiumization
- Vietnam as a competitive global export hub with lower manufacturing costs
- Supply chain localization to reduce global risks
2025 Growth Forecast:
- Overall FMCG growth below 4% (after inflation adjustment)
- Food & beverage sector could reach up to 10% by year-end
Key Insight: The investment surge reflects Vietnam's robust economic growth and increasingly attractive investment landscape, with companies eyeing both domestic market expansion and global export opportunities.
Source: Vietnam Investment Review