Before we discuss the industry that I'm going to present, I'll

introduce the current state of the Vietnamese industry over the

past time.

Industry is an important economic sector that has made the

largest contribution to the state budget in recent years. It has
become the leading export sector with a high growth rate. The
industrial structure has undergone positive changes, with some
industries such as electricity, electronics, information
technology, food processing and telecommunications, energy
equipment manufacturing, textiles, footwear, and construction
making significant progress. So many industries have
contributed positively to job creation, labor structure
transformation, productivity improvement, and improved living
standards of the people.

The food processing industry is a major and rapidly growing

sector of the Vietnamese economy. It is the second-largest
manufacturing sector in Vietnam, after textiles and apparel, and
it accounts for a significant portion of the country's GDP and
exports.

It is also one of the sectors least affected by socio-economic

changes since it is an essential daily need of every consumer as
seen by the growth rate of 4.5% in 2020, despite the severe
impacts of COVID-19 pandemic. The sector began to recover in
early 2021 and recorded a growth rate of over 7%.

Industry Size
In terms of size, the food processing industry in Vietnam is
substantial. It encompasses various sub-sectors such as meat
processing, dairy products, seafood processing, fruit and
vegetable processing. These sub-sectors collectively contribute
to a thriving industry that caters to both domestic and
international markets.
In 2021, the food processing industry contributed approximately
US$17 billion to the Vietnamese economy. It employed over 3
million people. In 2023, the food processing industry
contributed an estimated US$19 billion to the Vietnamese
economy. It employed approximately 3.5 million people. This is
making it one of the largest employers in the country.

The industry is expected to continue to grow rapidly in the

coming years, driven by factors such as rising disposable
incomes, urbanization, and changing consumer preferences.

Employees
Speaking of employees, Employment opportunities within the
food processing industry are vast. This sector provides jobs for a
significant number of individuals across different skill levels.
From factory workers involved in production lines to quality
control specialists ensuring safety standards are met, Many of
the workers are women, who are attracted to the industry's
relatively low barriers to entry and good job opportunities. The
industry offers diverse employment opportunities that contribute
to the country's workforce.
Economic Impact
The economic impact of the food processing industry on
Vietnam cannot be understated. It contributes substantially to
the country's GDP growth and plays a vital role in export
earnings. By adding value to agricultural produce through
processing and packaging, it enhances market competitiveness
while boosting income generation for farmers.
In 2022, the country exported approximately US$36.7 billion
worth of food products, making it the world's sixth-largest
exporter of food products, and foreign investors invested
approximately US$2 billion in the food processing industry in
Vietnam.
Moreover, this industry plays an essential role in promoting
rural development by creating job opportunities outside major
urban centers. It helps alleviate poverty levels by providing
stable employment options and stimulating local economies.
In conclusion, the food processing industry in Vietnam is a key
player in driving economic growth and providing employment
opportunities. Its size, number of employees, and economic
impact highlight its significance within the country's overall
industrial landscape.