Rice, Pasta and Noodles in Vietnam

PROSPECTS

Exploiting distribution networks and pricing strategies are the most effective ways to grow sales of rice, pasta and noodles

Exploiting the current distribution network is one of the effective ways that producers have been able to grow sales of rice, pasta and noodles in Vietnam. In 2019, Uniben achieved impressive results by pursuing focused strategies for retailers and competitive consumer prices in rural areas.

Government is exercising more control over rice production to ensure food security and improve the quality of packaged rice

Rice is a must-have staple in Vietnamese cuisine; locals consume it every day. A majority of the rice consumed domestically is sold unpackaged in stores and rice that is grown and harvested for consumption in rural areas.

Premiumisation is driving category value growth

Premiumisation is driving growth of rice, pasta and noodles in Vietnam, as improved income has buttressed the demand. Indeed, premiumisation has helped instant noodles recover after a period of some stagnancy.

COMPETITIVE LANDSCAPE

Loc Troi wins the top prize in a global competition, then agrees to help rice producers build strong national rice brands domestically and internationally

Loc Troi Group maintained its position as the leading rice player in Vietnam in 2019 on the strength of its Hat Ngoc Troi brand, which is widely distributed within the country, especially in modern grocery retailers. Among Loc Troi Group’s many other advantages are its strong relationships with farmers that maintain the rice supply and the high quality of the rice itself.

Domestic players hold leading positions in all categories, benefiting from advantages that make it difficult for international players to penetrate

Local players hold leading value shares in all categories: Loc Troi Group and Safoco rank first in rice and pasta, respectively, and Masan Consumer and Uniben hold the second and third positions in noodles. These domestic producers not only understand the Vietnamese consumers’ tastes and habits but also have strong marketing activities, develop new products and keep building their distribution networks to compete with rivals.

Acecook maintains its lead but loses value share as competition within instant noodles intensifies

Although the Japanese company Acecook Vietnam, the leading player within instant noodles, regularly develops new products and runs aggressive marketing activities to promote them, it continued to lose value share to other players in 2019. Competition has intensified in this maturing category, as more products have become available from existing and new players, including imported brands from Nongshim and Indomie.

Files are delivered directly into your account within a few minutes of purchase.