Vietnam is still in transition towards a market economy, with a considerable
agenda of administrative, financial, and governance-related reforms to be
implemented.
With the spectacular growth in agriculture production during recent years, the
rural-based food processing industry has made remarkable achievements. GDP of
agro-processing industry has a growth rate of 12-14 percent per annum and most
of the major processed products have increased both in quantity and quality. The
proportion of processing industry has increased, while improved technologies
were introduced and underwent modernization, especially in the fields of rice
milling, sugarcane, and confectionery. Product and packaging quality of many
processed goods has improved and captured the domestic market. This constitutes
undoubtedly a favourable surroundings for further engagement. In fact,
additional commitment in the agro-food industry is necessary in order to promote
and guarantee further modernisation considering that most of food processing
industry in Vietnam is currently engaged in general processing and
specialization is yet to be developed. Most units possess old equipment,
outdated technologies compared to the region and the world, resulting in low
efficiency, high cost of production lack of quality standards and hygiene.
However, positive effects are expected from recent liberalisation and structural
reforms - permission to establish private enterprises have opened up
opportunities for local and foreign investors and the agro-food processing
industry has big potential because of its huge domestic market demands (with 80
million population), tourism, and the export potential of tropical foodstuffs.