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ECONOMYTRADE - SERVICE

Digitalization to transform Vietnam Food & Beverage Industry

Updated at Thursday, 09 Nov 2017, 16:32
The Hanoitimes - Not only Food & Beverage Industry, the digitalization process will play a key role in the development of other industries in new era.
With population of 93 million at the golden age, Vietnam is considered a large market with high potential for the Food & Beverage Industry. The population growth rate of 1% per year means that a potential of 1 million customers are born every year, which is a high attraction to enterprises in field of Food & Beverage.
 
The Business Monitor International (BMI) forecasted, the growth rate of Food & Beverage industry will be at 10.9% annually for period 2017 – 2019.
The Business Monitor International (BMI) forecasted, the growth rate of Food & Beverage industry will be at 10.9% annually for period 2017 – 2019.
According to the Light Industry Department of the Ministry of Industry & Trade, the growth rate through years of the Food & Beverage Industry is expected to be from the moderate level to high level (7 – 17.7% per year). A forecast of the Trade Promotion Agency of the Ministry of Industry & Trade showed that in period 2015 – 2020, customers will be in favor of processed foods, while concern over the safety and quality of products will lead to a willingness of paying a higher price for better products. As such, it will be more challenges and requirements for enterprises in Food & Beverage Industry to digitalize and transform, with an aim to invest in modern equipment and technologies. 

In practice, representative of the Ministry of Industry & Trade said, the level of technologies and equipment of enterprises in Food & Beverage industry in Vietnam is at moderate level in region. Some leading enterprises in the industry have technologies and equipment comparable to enterprises in advanced countries, for which their products are welcomed at international markets. However, there remains enterprises with obsolete technologies and facilities, posing the risks of losing ground in the context of industrial revolution 4.0.

Especially, the safety issue in Food & Beverage industry is the most concern and priority of customers and producers. According to statistics of the Ministry of Health, every year, there are 150 – 200 cases of food poisoning in average, with the victims ranging from 5,000 – 7,000 people. The inefficient production chain and the lack of safety are reasons for unsafe Food & Beverage. In this context, administrative agencies are calling out for enterprises transforming in the digitalization direction from equipment to production chain, with a view to increase competitiveness. In order to define the efficient level of product, it is necessary to connect information on machinery, production chain and factories through computing cloud for information analysis. The digitalization process will help saving time, cost and personnel, thus, creating competitive edge not only in domestic market, but also in international playground. 

Particularly, for the Food & Beverage industry, it is vital to transform in digitalization direction, as the safety and quality of products are decisive factors. Under the control of digitalized procedures, enterprises can easily manage ingredients, recipe and personnel in processing, thus ensuring the consistency in product quality and improving food safety, as well as reducing risks in the processing. 

The Business Monitor International (BMI) forecasted, the growth rate of Food & Beverage industry will be at 10.9% annually for period 2017 – 2019, thanks to high income level of customers and the growing trend of purchasing high value products. Meanwhile, recent statistics from the General Statistics Office showed, in the first 9 months, food production and processing grew 6.6%, beverage production up 5% compared to the same period of last year. 
Ngoc Thuy
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