The Rise of Foreign Food Chains: Opportunities in Vietnam's Booming F&B Market

Established in 2023, BDP+Partners continues to drive innovative strategies and sustainable growth in Vietnam's vibrant F&B sector. As we witness the influx of international brands, this post explores how foreign food chains are capitalizing on market expansion, offering actionable insights for businesses aiming to thrive amid evolving consumer preferences.

Market Overview: A Thriving Landscape for F&B Growth

Vietnam's food and beverage (F&B) market is experiencing unprecedented growth, projected to reach approximately VND755 trillion (US$28.6 billion) in 2025, reflecting a 9.6% year-over-year increase. This surge is fueled by a youthful demographic, rising disposable incomes, and a shift toward modern dining experiences. With a population exceeding 100 million, where over 60% are under 35 years old, Vietnam presents a fertile ground for foreign chains to introduce diverse cuisines and innovative concepts. The market's dynamism is further evidenced by its projected expansion to US$60.4 billion by 2029, driven by health trends, digital transformation, and urbanization.

Foreign food chains have been particularly successful in navigating this landscape. Brands like Jollibee, Haidilao, and others have not only adapted to local tastes but have also leveraged Vietnam's economic growth, which positions the country on track to rank among the world's 30 largest economies. The packaged food segment alone is expected to reach US$26.9 billion by 2028, incentivizing domestic and foreign firms to invest in sustainable practices and product innovation. However, this growth comes amid challenges, such as the mass closure of over 50,000 F&B outlets in the first half of 2025, highlighting the need for resilience and strategic adaptation.

The foodservice market, valued at USD 22.23 billion in 2024, is anticipated to reach USD 26.89 billion by 2030, growing at a CAGR of 12.34%. This includes quick-service restaurants (QSRs), full-service eateries, and street food vendors, all benefiting from increased tourism and urban migration. Foreign players thrive by blending global standards with local flavors, such as incorporating pho-inspired elements into burgers or hotpots. The overall F&B sector is set to expand from US$24.77 billion in 2025 to US$41.22 billion by 2030, underscoring the immense potential for international expansion.

Key Players and Success Stories

In Q2 2025, Jollibee Vietnam reported a remarkable 35% sales increase, positioning it as the brand's top global market. This success stems from aggressive expansion, with over 200 outlets nationwide, and menu adaptations like the Chickenjoy with Vietnamese spices. Similarly, Haidilao has thrived, contributing to the sector's maturation with a 7.6% CAGR from 2021 to 2024. The Chinese hotpot chain's focus on interactive dining experiences resonates with Vietnam's social culture, leading to high customer loyalty.

Other notable entrants include Starbucks, which has expanded to over 100 stores by mid-2025, capitalizing on the coffee culture boom, and KFC, which continues to dominate the fried chicken segment. These brands benefit from Vietnam's F&B market projected to grow from US$21.92 billion in 2024 to US$54.27 billion by 2033 at a 9.7% CAGR. Case in point: The organic food subsector is booming, expected to reach US$2.68 billion by 2033 from US$1.04 billion in 2024, with an 11.16% CAGR, as consumers shift toward healthier options.

Domestic chains face stiff competition, with revenue in H1 2025 at VND406.1 trillion (58.9% of 2024's total), yet many struggle due to rising costs and shifting preferences. Foreign brands mitigate this through efficient supply chains and digital marketing, such as app-based loyalty programs that drive repeat visits.

Challenges in the F&B Sector

Despite the optimism, the sector grapples with significant hurdles. The trend of mass closures in early 2025 reflects economic pressures, including inflation, supply chain disruptions, and cautious consumer spending. Foreign chains must navigate regulatory landscapes, such as food safety standards and import tariffs, while adapting to local tastes to avoid cultural mismatches.

Sustainability is another critical challenge. With increasing awareness of environmental impacts, brands are pressured to adopt eco-friendly practices, like reducing plastic use and sourcing local ingredients. The cold-chain and agritech sectors offer opportunities here, helping to cut losses and boost export margins for foreign investors. Additionally, competition from e-commerce and delivery platforms like GrabFood intensifies, requiring chains to integrate online ordering seamlessly.

Opportunities for Expansion and Innovation

For businesses eyeing entry, key strategies include partnering with local suppliers for cost optimization and focusing on urban centers like Ho Chi Minh City and Hanoi, where demand for QSRs is booming. Health trends open doors for organic and plant-based offerings, aligning with the projected 9.7% CAGR through 2033.

BDP+Partners has facilitated successful launches, such as the EVEBOT Coffee Printer, generating over 5 billion VND since 2023. We recommend bold moves like digital integration—using AI for personalized menus—and sustainability initiatives to capture market share. Emerging trends include fusion cuisines and experiential dining, which can differentiate brands in a crowded market.

Future Projections and Strategic Recommendations

Looking to 2030, the foodservice market's growth to US$41.22 billion signals sustained opportunities. Foreign chains should invest in data analytics to understand consumer behaviors, such as the preference for value-driven options amid economic uncertainties. Collaborations with local influencers and participation in events like food festivals can enhance visibility.

In conclusion, Vietnam's F&B market offers a gateway for foreign chains to achieve global-scale success through adaptation and innovation. BDP+Partners stands ready to guide your expansion with tailored strategies. Contact us to explore opportunities in this booming sector.