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Ho Chi Minh City
Sunday, November 2, 2025

Good food is not enough

By Nguyen Ngoc Tram (*)

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A recent report by iPOS.vn and Nestlé Professional reveals that Vietnam’s food and beverage (F&B) sector faced significant challenges in the first half of 2025. Over 50,000 establishments closed, nearly 30,000 new ones opened, and the total number of outlets dropped to 299,900 — a 7.1% decline compared to the end of 2024. Yet behind these numbers lies a market economy undergoing a rigorous process of self-restructuring and strategic consolidation. Local F&B businesses are grappling with a “storm of costs” in an increasingly challenging economic environment. Rental expenses alone consume 25–55% of revenue — two to three times higher than global norms. Meanwhile, the consumer price index rose by 3.27%, and pork prices surged by 12.75%, further straining margins. In the first half of 2025, 45.3% of businesses were forced to raise prices, though most increases remained under 5%. Despite these adjustments, total sector revenue edged up only slightly, from VND403.9 trillion to VND406.1 trillion. This imbalance has left many businesses caught in a cycle of slow revenue growth and rapidly rising costs. Survival in tough market Vietnam’s F&B sector serves as a vivid reflection of the urban economy in the post-recovery era — marked by rapid openings and swift […]
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