Vietnam’s Food Service Industry: Consumer Behavior and Opportunities

Vietnam’s food services industry is thriving and expected to grow with a CAGR of 8.5 percent between 2022-2027. The trend of dining-out has been on the rise, especially among the youth who spend a large portion of their income on eating out. Vietnam Briefing examines Vietnam’s food service industry and identifies key opportunities for investors eyeing this dynamic market.

Vietnam’s food service industry is one of the key drivers of the service industry. Thanks to rising disposable income, it is estimated that a third of monthly income goes into eating out, signaling a robust progression of the industry.

The food service industry is projected to see a CAGR of 8.50 percent during the 2022-2027 period. According to the Vietnam Cuisine Culture Association, there are currently 550,000 F&B establishments in the country, 430,000 of which are traditional diners, 82,000 fast food restaurants, and 10,000 others.

Two key performers in the food service industry are full-service restaurants (FSR) and quick-service restaurants (QSR). These two together make up 72 percent of the industry revenue while the remaining 28 percent of revenue is sourced from street food, canteen, convenience stores, and hotel dining. Within the FSR sector, traditional dining restaurants are the dominant revenue generator while surging disposable income will be a key driver in the fine dining sub-sector by 2026.

Dining out is typically seen among the male population, from the ages of 15 to 35, whose…