VATIS UPDATE Article

According to Tran Dang, chair of the Viet Nam Functional Food Association, export of the products can bring $1 million a year, while the domestic market has been expanding by 9-10 percent per annum. Meanwhile, a market survey by Euromonitor showed that the Vietnamese supplement food market would continue growing up by 20 percent per annum in the upcoming years. In 2010, Viet Namese enterprises made up 66 percent of the domestic functional food market. But now, the market is being controlled by foreign companies, such as Amway and Tiens Viet Nam, Herbalife and Unicity Viet Nam.

Amway, just after five years of operation in Viet Nam, reported revenue of $90 million in 2013. One year later, the company started construction of its second factory in Viet Nam. Herbalife, after setting foot in Viet Nam in 2009, has been expanding its network in Viet Nam with the growth rate of 50 percent per annum. The fact that Viet Nam ranks 16th in the group’s global ranking in business index showed how Viet Nam is attractive in manufacturer’s eyes. Nu Skin, which joined the Vietnamese market in 2013, has also reported a growth of 30-50 percent per annum