Vietnam’s F&B industry has shown strong and sustained growth in the last several years. In 2024, the total market reached VND 688.8 trillion (US$27.3 billion), marking a 16.6 percent increase from the previous year. The food service segment alone accounted for US$21.9 billion as dining and retail consumption took a central role in everyday life.

By the end of 2024, the country had 323,010 registered F&B establishments, representing modest year-on-year growth of 1.8 percent. Yet, overall growth is only improving in the F&B sector. Looking further ahead, forecasts estimate that the industry could reach between US$36.86 billion by early 2027, translating to a compound annual growth rate (CAGR) of 9.7 percent.

Regionally, Vietnam is now the fourth-largest F&B market in Southeast Asia, behind the Philippines, Indonesia, and Thailand. Vietnam’s competitive edge in the region lies in its balance between the potential to achieve the right scale and openness to foreign participation.

Foreign food chains on the rise

Foreign brands have built strong positions in Vietnam. Some brands have reported outstanding results in the first half of 2025, including:

• Jollibee Vietnam recorded a 35 percent increase in sales in Q2 2025, making it the brand’s top-performing market globally;
• Haidilao, the Chinese hotpot chain, generated US$43.6 million in Vietnam in the first half of 2025, more than 10 percent of its global revenue; and
• Mixue, a Chinese beverage and dessert chain, operates over 1,300 stores, earning VND 1.26 trillion (US$47.7 million) in 2023, triple its profit from a year earlier.

Additionally, other well-known foreign chains like KFC, Pizza Hut, Lotteria, The Pizza Company, Domino’s Pizza, and Popeyes are also prominent, with about 50 to 200 stores nationwide. Upgraded infrastructure, including highways that connect provinces and the expansion of shopping malls in towns, has allowed fast food chains to branch out beyond their traditional locations in malls.

Consumer spending patterns

Vietnamese consumers dedicate a substantial portion of household income to food and beverages, ranging from 20 to 48 percent monthly, one of the highest shares in the region. The spending covers not just essentials, but also leisure, entertainment, and out-of-home experiences. According to the ASEAN Consumer Sentiment Study in 2024, 42 percent of consumers reported spending more on such experiences, compared to an ASEAN average of 35 percent.

The growing role of food delivery also follows this shift. According to Momentum Works, Vietnamese households spent US$1.4 billion on food delivery in 2023, a 30 percent increase over the previous year, and it is the fastest pace of growth in Southeast Asia. Over half (53 percent) of internet users are now active on food delivery platforms, who share widespread digital comfort with app-based services.

The largest share of dining activity is coming from consumers aged 15 to 35. This group earns between US$340 and US$1,300 per month, and their behavior depicts the tectonic shift in generational preferences in the choice of products and the format of ordering those products. Even in this group, men tend to eat out several times per week, and women do so a few times per month.

Market structure and distribution

Vietnam’s F&B landscape is diverse in both consumers and format. As per Mordor Intelligence, full-service restaurants held 68 percent of the market share of the F&B sector, and standalone outlets generated over 90 percent of total sales. Other segments, including retail food outlets (4 percent), travel (2.2 percent), lodging (2 percent), and leisure venues (1 percent), made up the rest of the market structure.

Quick service restaurants and cloud kitchens are emerging as the fastest-growing format of experiencing food. Both formats appeal to young, urban, and price-sensitive consumers in rapidly developing metro cities like HCMC and Hanoi.

Cloud kitchens, in particular, are expected to grow at a CAGR of 19 percent between 2024 and 2029. On the other hand, online food delivery is scaling at a consistent 30 percent annual rate with digital channels and delivery becoming one of the core pillars of the F&B ecosystem.

Changing consumer preferences

Three major changes in taste define Vietnamese consumer choices today. One of the most visible is the growing emphasis on health and wellness. Consumers now want more than just better-tasting products packaged in good brands. They also want the product to be low-sugar, organic produce, and nutrient-rich food options.

At the same time, higher-income groups are driving demand for premium experiences. They are ready to explore options ranging from international cuisines to elevated service standards. To cater to this premium taste, Vietnam is looking at the rapid expansion of upscale coffee shops, tea houses, and branded restaurant chains.

Among the Gen-Z and Millennial generations, sustainability is as important as price and packaging. They want the brands to use eco-friendly packaging and transparent sourcing, even if it means paying a small sustainability premium. The brands have taken the cue and changed their branding, procurement, and operational strategies across the industry.

Policy and taxation trends

Vietnam’s rules and regulations are also becoming more demanding as public health and environmental priorities are coming to the forefront of policy-making. The Special Consumption Tax Law, effective January 1, 2026, will introduce new duties on sugary drinks, tobacco, and alcohol. It will tax beverages that contain more than five grams of sugar per 100 ml. The tax can put an extra burden on F&B manufacturers and change how businesses advertise and set prices of “unhealthy” products.

Vietnam has also extended its environmental protection tax cut on petrol, oil, and lubricants until the end of 2025. A plastic bag tax of VND 50,000 per kilogram (US$1.89) is still in place, and there are discussions underway to further increase the rate. These measures and other incentives for clean industry investments are necessary if Vietnam aims to achieve its net-zero ambitions, but they can increase input costs and uncertainty in the supply chain for F&B firms.

For F&B businesses, it is imperative that they remain agile with the evolving demands from several quarters, like government and environmental groups, to continue innovating and rethinking their supply chain design.

Food safety and supply chain pressure

Vietnam’s F&B sector also grapples with persistent food safety challenges. A report on food safety by World Bank has raised concerns about bacterial contamination, pesticide overuse, and lax oversight of imported ingredients. Compounding the issue is a fragmented supply chain that is heavily reliant on informal trading channels, which could hamper consistent quality control of ingredients.

Small and medium-sized enterprises (SMEs) can find residue testing costs too cumbersome, as the cost can range from US$50 to US$70 per analysis. The financial constraints are also rising as distribution expenses put additional pressure on margins and retail pricing of SMEs. In response, businesses are actively investing in safe distribution infrastructure and integrating online and offline delivery with adequate health standards. This will go a long way in making Vietnam’s F&B sector domestically sound and also competitive in export markets.

Cultural and heritage preferences

Vietnam’s culinary heritage presents both opportunities and challenges for new entrants in the F&B sector. Western food now represents 35 percent of out-of-home dining, a sign of growing urbanization and global influence, due to which traditional dishes risk being overshadowed. Still, the connection between food, family, and cultural identity has remained strong.

A new wave of culinary innovation is blending tradition with modernity. Chefs are reimagining classic recipes, and restaurants are placing greater emphasis on presentation and ambience. Consumers are also responding to these changes. Both traditionalists and younger consumers are favoring dining experiences that honor heritage and combine multiple food groups and flavors.

Market outlook

Vietnam’s F&B industry’s growth will be driven by young consumers who with access to internet and rising household incomes are eager to experiment with their tastes. Due to appetite for quick delivery, digital-first formats like cloud kitchens, delivery platforms, and quick service restaurants are expected to outpace traditional models.

Foreign players are also likely to deepen their market presence, and domestic firms could be focusing on modernization and scaling their products. At the same time, tightening regulations on sugar content and environmental rules will change how firms operate and appeal to new consumers.

Vietnam continues to be one of Asia’s most dynamic consumer markets. F&B firms that can harness Vietnam’s deep cultural roots in food and bring a modern mix of ingredients to the taste palette could establish itself as a leading force within Southeast Asia’s evolving consumer economy.

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(US$1 = VND 26374.99)