The scale of food processing industry slightly decreased in terms of the number of enterprises and labor force. However, the total revenue scale of the entire industry retained an upward trend (Based on data from Data Factory VIRAC, up to the end of 2022).
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The scale of food processing industry: Downward trending
According to statistics from Data Factory VIRAC, the scale of food processing industry slightly decreased. However, the total revenue of the food processing industry continued to grow rapidly and steadily, up to the end of 2022.
The food processing industry in Vietnam is divided into 4 main sectors, including: Processing, preserving meat and meat products; Processing, preserving seafood and seafood products; Processing milk and dairy products; Processing, preserving fruits and vegetables.
Considering the proportion of the food processing industry by the number of enterprises and labor force, the group of seafood processing, preservation, and fruit, vegetable processing industries account for the highest proportion in the entire industry. In terms of net revenue, the industry proportion has slightly changed: The meat processing and preservation industry ranked third in terms of large proportion, ahead of the dairy processing and dairy product industry.
The scale of the food processing industry – Small industry group records many fluctuations in scale and production in 2023.
Fish processing industry in Vietnam – Rapid profit growth but production decline
Processing and preserving seafood is the sector with the highest proportion in the entire food processing industry, accounting for over 50% of the total net revenue of the entire industry.
Although it has the most outstanding growth rate with the total net revenue of the entire industry increasing xx%, the pre-tax profit reached x million dong, up 167% compared to 2021. But the processing, preserving and processing of aquatic products in the country in 2023 recorded a slight decrease compared to the previous year.
According to data from Data Factory VIRAC, most processed aquatic products have seen a decrease in production and consumption. However, the production data for fish sauce in 2023 shows positive growth signals.
Overview of the business situation of seafood processing companies in 2023
According to the financial reports of seafood processing and preservation companies, by the end of 2023, most companies have recorded lackluster business results compared to 2022.
The 4 large seafood processing companies including Minh Phu Seafood Corporation – MPC, Sao Ta Food Joint Stock Company – FMC, Vinh Hoan Joint Stock Company – VHC, Central Vietnam Seafood Import-Export Joint Stock Company – SEADANANG all reported a significant decrease in net revenue in 2023 compared to 2022.
Pre-tax profits of the 4 enterprises also did not show any signs of improvement compared to 2022. In particular, Minh Phu Seafood and Central Vietnam Seafood Import-Export Corporation recorded pre-tax profits decreasing by over 90% compared to the previous year, decreasing by 97% and 91% respectively.
The meat processing industry in 2023 – The cold storage sector shows positive growth in production scale
The scale of the meat processing and preservation industry and its products in 2023 recorded a relatively stable number of enterprises compared to 2022. Specifically:
– The number of manufacturing enterprises decreased slightly by x enterprises compared to 2022, while the workforce continued to decline sharply since 2019 with x people.
– The industry’s total revenue increased by 12% compared to 2021.
Based on the processed meat industry data from Data Factory VIRAC, it can be inferred that the consumption of processed meat products in 2023 is slightly decreasing. Specifically, the consumption of all 3 sub-sectors including fresh pork, frozen chicken, and sausages is decreasing slightly by x – y%.
The frozen food product group has once again recorded a significant increase in production compared to the previous year. In particular, frozen pork production in 2023 saw a strong increase of 117% compared to 2022.
Production and consumption levels in 2023 for the processed meat industry have shown significant fluctuations.
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Forecast growth prospects for the food processing industry in 2024.
Through 2023, most sectors of the economy experienced a “dull” year. In the first quarter of 2024, the overall economic situation in the country and food processing enterprises have all noted signs of recovery:
- According to the Purchasing Managers’ Index (PMI) report by S&P Global, the manufacturing PMI of our country in January and February 2024 both exceeded the 50-point threshold, reaching 50.3 and 50.4 points respectively. This index indicates an improvement in production volume and the number of orders compared to 2023.
- In March 2024, the PMI index reached 49.9 points, a decrease of 0.5 points compared to the 50.4 points in February 2024. Although recording a score below 50 points, manufacturers all assess that production will increase in the next year.
- Over 80% of businesses in the processing and manufacturing industry assess that the business trend and export orders in the second quarter of 2024 are expected to be stable and grow more than the first quarter of 2024.
- By the end of the first quarter of 2024, the overall industrial consumption index in the processing and manufacturing industry increased by 8.2% compared to the first quarter of 2023.
- The export growth potential of the seafood and fruits and vegetables sectors in 2024 is assessed to be very large due to the high number of orders and the continued increase in global import demand.
Data table of processed food products at Data Factory VIRAC
The table below shows some product codes that have been used for analysis in the article at Data Factory VIRAC.
|
Commodity code |
Description of goods |
Unit |
|
1010 |
Processing and preserving meat and meat products |
Tons |
|
1020 |
Processing and preserving seafood and seafood products |
Tons |
|
1050 |
Processing milk and milk products |
Tons |
|
1030 |
Processing and preserving fruits and vegetables |
Tons |
|
10202214 |
Frozen tuna |
Tons |
|
10202220 |
Frozen fillet |
Tons |
|
10204200 |
Fish sauce – excluding concentrated fish sauce products |
1000 liters |
|
10109112 |
Fresh or chilled pork |
Tons |
|
10109212 |
Frozen pork |
Tons |
|
10109221 |
Frozen chicken |
Tons |
|
10109722 |
Sausage |
Tons |
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