HoReCa Channel Drive SME Growth in FMCG Distribution Vietnam

FMCG Distribution Vietnam – why HoReCa is becoming a strategic channel

Vietnam’s HoReCa (Hotel – Restaurant – Catering) sector is not only a service industry but also a critical distribution gateway for FMCG brands.

Unlike General Trade (GT) or Modern Trade (MT), the HoReCa channel offers:

• Direct consumer product experiences.

• Faster brand exposure through dining, hotel, and tourism services.

• Stronger “brand pull” effect from real customer demand.

  
  

According to Decision Lab (2024), the top three factors shaping Vietnamese dining behavior are value for money, taste, and quality ingredients. This makes HoReCa the perfect testbed for FMCG Distribution Vietnam.

Hotel – Restaurant – Catering form the backbone of Horeca Distribution Vietnam and the FMCG sector.

B2B decision-making in HoReCa

Based on World Bank research (2024) and industry insights, restaurants and hotels typically evaluate suppliers using five key criteria:

1. Pricing and stability – volume discounts and quarterly price control.

2. Commercial terms – flexible MOQ, payment credit, and POSM support.

3. Supply reliability – delivery frequency, quick return/exchange SLA, last-mile coverage.

4. Food safety and quality – certifications, COA/CO documentation, QR traceability.

5. Consumer-driven demand – products with strong brand pull and frequent customer orders.

Winning in Horeca Distribution Vietnam requires more than good products—it demands a flexible and professional distribution partner.

Comparing GT, MT, and HoReCa

• GT (General Trade): wide coverage but fragmented, limited display control.

• MT (Modern Trade): supermarkets and malls, high costs, strict terms.

• HoReCa: both a direct revenue source and an indirect marketing channel, as customer experiences influence future purchasing decisions.

That is why many SMEs entering the country see HoReCa Distribution Vietnam as the first step in their Go-to-Market Vietnam strategy.

Challenges for SMEs in HoReCa distribution

• Operating costs: cold chain, warehouses, and logistics demand high investment.

• Compliance pressure: new excise tax on sugary drinks (8% in 2027; 10% in 2028), plus Vietnamese labeling and product registration.

• Intense competition: established domestic and international players already have strong hotel/restaurant relationships.

High consumer traffic in restaurants and cafes demonstrates the potential of HoReCa, making it a strategic channel for FMCG Distribution Vietnam.

How SMEs can leverage Vietnam Market Entry Services

To maximize HoReCa as a distribution gateway, SMEs and international brands should:

• Partner with local experts in FMCG Distribution Vietnam who have reliable logistics networks.

• Use Vietnam Market Entry Services to handle compliance, contracts, and trade terms.

• Invest in product experience within HoReCa, as every customer tasting is an opportunity to build brand reputation.

• Adopt digital tools for ordering, inventory management, and customer engagement via QR codes and loyalty apps.

  
  

Strategic implications for SMEs in Vietnam’s HoReCa market

HoReCa is not just a distribution channel but a strategic gateway for SMEs and international brands to test products, gain trust, and scale operations. In a fast-growing, politically stable market with rising consumer expectations, HoReCa will remain at the center of every successful Vietnam SME expansion strategy.

Working with an experienced local partner such as Go2Market (G2M) Vietnam helps SMEs accelerate FMCG Distribution Vietnam with tailored sales outsourcing, compliance support, and long-term growth solutions.