Horeca Distribution Vietnam: Market Outlook 2024–2025

Vietnam’s HoReCa market overview

Vietnam’s HoReCa (Hotel – Restaurant – Catering) industry is entering a stage of rapid growth while undergoing a significant shakeout.

According to iPOS.vn and Nestlé Professional, the F&B market revenue reached VND 688.8 trillion in 2024, up 16.6% year-on-year, with around 323,010 outlets nationwide.

From a macro perspective, Vietnam’s foodservice market was valued at USD 21.92 billion in 2024 and is projected to hit USD 54.27 billion by 2033, with a CAGR of nearly 9.7%. Other research groups such as BlueWeave and VMR provide similar forecasts, reinforcing the strong growth trajectory.

Hotel, restaurant and catering services are the foundation of Horeca Distribution Vietnam, driving the country’s F&B sector.

Horeca Distribution Vietnam – growth but also market shakeout

Despite the impressive numbers, not all businesses benefit. The USDA reported that in the first half of 2024, more than 30,000 foodservice establishments closed, leaving the total at approximately 304,700 outlets.

This highlights a market shakeout: iPOS.vn noted that only 14.7% of F&B businesses experienced growth, while nearly 49.2% expect to increase prices in 2025 due to cost pressures on raw materials, labor, and rental.

Growth drivers: tourism, consumption, and political stability

Several factors continue to drive the HoReCa market forward:

• Tourism recovery: Hotel occupancy in Ho Chi Minh City reached around 66% in Q1/2024, with the average daily rate (ADR) rising by 9% YoY. This stimulates restaurant and catering demand.

• Consumer behavior: Vietnamese diners increasingly prioritize “value for money, taste, and quality ingredients” when eating out. This creates opportunities for FMCG Distribution Vietnam in premium, organic, and sustainable products.

• Political stability: Compared to other Southeast Asian countries experiencing unrest or conflicts, Vietnam stands out as one of the most politically stable markets. This provides confidence for international brands planning long-term Vietnam SME expansion strategies.

• Digitalization & food delivery: Online food delivery gross merchandise value (GMV) reached USD 1.8 billion in 2024, up 26% from 2023, making Vietnam the fastest-growing market in ASEAN.

Vietnam market opportunity – tourism growth, stable political environment and rising consumption- Source: Hanoivoyages

Key challenges for SMEs and foreign brands

Businesses looking to enter the Vietnamese HoReCa channel face several obstacles:

1. Rising costs: Raw materials, labor, and rental costs continue to increase; nearly half of operators expect to raise prices in 2025.

2. Supply chain and food safety: A fragmented distribution system and rising demand for cold chain, certifications, and digital traceability.

3. Tax changes: Vietnam’s revised excise tax law will impose a sugar-sweetened beverage (SSB) tax of 8% from January 2027 and 10% from 2028.

Why SMEs need Vietnam Market Entry Services

For SMEs and international brands, HoReCa is not just a revenue channel but a strategic entry point into Vietnam’s FMCG sector. To succeed, businesses should:

• Partner with reliable Horeca Distribution Vietnam providers with nationwide coverage.

• Leverage Vietnam Market Entry Services to navigate legal compliance, taxation, and labeling requirements.

• Focus on product quality and consumer-driven pull factors (taste, safety, and value).

• Embrace digital platforms such as delivery apps, QR payments, and loyalty programs.

  
  

Strategic Takeaways for SMEs in Vietnam’s HoReCa Market

The Vietnamese HoReCa market is a fast-growing yet highly selective opportunity. With strong macroeconomic fundamentals, political stability, and rising consumer spending, the sector offers significant upside. However, only SMEs and foreign brands that adopt a clear Vietnam market entry strategy—balancing distribution efficiency, regulatory compliance, and consumer trends—will fully capture this growth potential.

To achieve this, international companies can rely on trusted partners like Go2Market (G2M) Vietnam, which provides sales-first and end-to-end solutions for HoReCa distribution and broader market entry.