European firms to enter Vietnam’s food and beverage market

by PV/VTV18 March 2016 Last updated at 13:35 PM

(Photo illustrated: Zing)
(Photo illustrated: Zing)

VTV.vn - ietnam’s food and beverage market is expected to reach 29.5 billion USD in value by the end of 2016, an increase of 5.1% annually. Demand for higher quality products has also increased thanks to higher average incomes.

Rachid Gacem from an European non-alcoholic drinks company is seeking to distribute the company’s products in Vietnam. Realising the potential of the market, the company sold a container to Ho Chi Minh City and plans to exports more in the next 4 months.

According to some firms, the tax level imposed on imported food and beverage products is still high. For example, tariffs of drinks and spirits range from 20% to 40%. In addition, special consumption taxes on spirits of 20% proof or more are set to increase to 65% in 2018.

However, once the EU-Vietnam free trade agreement in implemented in 2018, 90% of tax lines are expected to be eliminated and the remainder are expected to be reduced. This is an opportunity for European food and beverage companies wanting to export their products to Vietnam.

Experts say that in order to enter Vietnam’s market, besides concerns over the taxes, firms will also need to comply with regulations which are different from  those normally found in Europe.

Tags:

Top VND Exchange Rates

Auto-refesh 15m

USD

EUR

AUD
1 VND
Inverse:
0.00004
22,510.0
0.00004
25,226.0
0.00006
15,674.0

Mid-market rates: 2024-03-29 14:44 UTC

WEATHER FORECAST