Hanoi (VNS/VNA) - With its annual stable growthrate of about 10 percent, the country’s young population with increasing incomeand a trend to consume ready-to-eat food, especially organic, the foodprocessing industry offers many opportunities for investors.

Vietnam’s food processing industry has developed strongly and supplied productswith high competitiveness for both domestic and export markets, according tothe Trade Promotion Agency under the Ministry of Industry and Trade.

Last year alone, food and beverage consumption increased by 18 percent, theagency said, adding that the food and beverage consumption value accounted for15 per cent of the country’s gross domestic product and would go up in thecoming time.

Business Monitor International (BMI) projected earlier this year that Vietnam’sfood industry would grow by 10.9 percent each year between 2015 and 2020.

Vo Thanh Do, deputy head of the Department of Agricultural Products Processingand Market Development under the Ministry of Agricultural and RuralDevelopment, said having a diverse source of raw materials for processing foodand beverages was an opportunity for firms in the food and beverage sector todiversify their products and satisfy demands from customers, especially youngones.

An abundant source of raw materials, the country’s stable and high economicgrowth, favourable investment environment, abundant human resources, and goodinfrastructure at industrial parks are also factors that help attract investorsin the sector.

In addition, free trade agreements have opened up opportunities for domesticfood firms to enhance exports and attract more foreign investors in the sector.

But to capitalise on the opportunity, local firms need to invest more in deepprocessing to add more value for the products.

They also need to further improve their production technologies, apply goodmanufacturing practices and develop close linkages with multinational foodprocessing groups in Vietnam to shorten the roadmap for them to participate inthe global food supply chain, according to experts.

To attract investment and develop the food processing sector in a sustainablemanner, Vietnam needs to create a zoning plan for high-quality material areasto meet quality and hygiene, and food safety standards of the global foodsupply chain, experts said.

According to the Ministry of Industry and Trade, Vietnam is among the world’slargest exporters of rice, coffee, pepper and cashew nuts.

Exports of farm produce, especially fruits and vegetables, have seen goodgrowth over the past years, with the products exported to more than 100countries and territories.-VNS/VNA