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Vietnam’s Food Additives Market: An Untapped Opportunity for Manufacturers

29/11/2021

Demand for food additives in Vietnam is rising with packaged food and beverages, yet most supply is still imported. This article reviews the situation, regulatory challenges and opportunities for businesses

Demand is rising fast – supply is mostly imported – food-grade additives must be clearly separated from industrial chemicals.

Vietnam’s food additives market is growing alongside the food industry, but most additives used in processing, preservation and nutrition are still imported. That creates a supply challenge, but also an opportunity for businesses that choose the right suppliers and the right grade of ingredients.

Based on figures published in 2015; presentation edited and refreshed in October 2026.

Quick summary

  • Demand for additives used in processing, preservation and nutrition rises with the food industry.
  • At the time of the original 2015 report, almost all food-processing additives in Vietnam were imported.
  • Key challenge: clearly separating food additives from industrial chemicals.
  • Opportunity: limited domestic supply means manufacturers need reliable, well-documented partners.

The challenge: food additives vs. industrial chemicals

Industry experts in chemistry and food science have pointed out that the line between food-grade and industrial chemicals was not clearly managed. When both are sold side by side, some producers may use the wrong material to cut costs, which puts consumers at risk and weakens trust in “permitted” additives.

Food manufacturers should therefore:

  • Use only permitted additives of food grade;
  • Ask suppliers for documents: COA, MSDS and proof of origin;
  • Check current Ministry of Health regulations on food additives (for example Circular 24/2019/TT-BYT – please verify the version in force).

Powdered food additives used in food processing

Strong demand, heavy import dependence

Additive production and trading is an essential part of the food industry and was growing very fast. According to a report by a leading Vietnamese food processor (Vissan), the company spent around VND 200 billion a year on imported additives, a figure expected to rise as a new plant in Long An came on stream.

The company said importing was a last resort because it could not find a domestic supplier; local sources were mostly importers and distributors with limited volumes.

Key figures (as of 2015)
IndicatorFigureSource cited in the original report
Food industry growth (previous 5 years)About 52% a yearUBM Asia survey
Beverage sector growthAbout 150%UBM Asia survey
Annual additive import spend of one large food processorAbout VND 200 billionCompany report (Vissan)
International suppliers at a food-ingredients exhibitionAbout 150 companiesOrganiser UBM Asia

Industry specialists noted that additive research and processing require advanced technology but offer attractive returns; at the time, Vietnam lagged behind regional peers such as Singapore, Malaysia, Thailand and the Philippines in this supporting industry.

 Some food-industry associations described this as a large market that had been neglected for a long time; given the level of preparation then, Vietnamese companies might need to partner with foreign firms to enter it.

According to UBM Asia, Vietnam’s food industry grew about 52% a year over the previous five years, with beverages growing fastest at about 150%.

Note: these are 2015 figures and are shown for trend reference only.

Foreign companies moved in early

Foreign companies had already noticed this untapped segment. At the time, the main supplier was Belgium-based Puratos Grand-Place Vietnam, offering around 100 types of additives to major partners such as Metro, Lotte, Tous Les Jours and Kido.

The company said it faced almost no competition when entering additives, supported by research from its parent group and offering solutions for bakeries, ice cream makers and restaurants.

Although it had been in the segment for only about three years and additives made up about 3% of revenue, it planned roughly 50% annual growth there and aimed for about 30% of revenue by 2020.

 

A food-ingredients exhibition organised by UBM Asia also drew around 150 international suppliers, showing the market’s potential. Several foreign companies were even exploring building factories in Vietnam.

Opportunities for Vietnamese businesses

  • Limited domestic supply and steady demand from food and beverage producers.
  • Manufacturers need distributors with stock on hand, clear packaging specifications and technical support.
  • Partnerships with international companies can open access to technology and quality raw materials.

How to choose a food additive supplier

  • Clear origin and labelling, with the correct grade for the intended use;
  • Complete documents (COA, MSDS, invoices);
  • Packaging sizes that suit your production;
  • Guidance on applications and usage levels.

Frequently asked questions

Are food additives different from industrial chemicals?

Yes. Food additives must meet food standards and appear on the permitted list; industrial chemicals must not be used as substitutes in food production.

Why does Vietnam import most of its food additives?

According to the 2015 report, additive production needs advanced technology and research investment, while the domestic industry was still underdeveloped, so manufacturers relied mainly on imports.

What should I prepare when buying food additives?

Request product details, origin, packaging specifications and supporting documents, and confirm the product is suitable for food use.

Need help sourcing ingredients?

Vinh Nam Anh (VNA) supplies raw materials and chemicals to manufacturers. See our product range or call +84 916 348 319 – website vinhnamanh.com.vn for advice and quotations.

Reference: dddn.com.vn (2015)

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