Rice Noodle Suppliers Vietnam Or Vermicelli Noodle Supply Giants In Vietnam
The Vietnamese instant noodle market is considered extremely attractive by instant noodle manufacturers, with a market value of VND27 trillion ($1.19 billion) as well as continuously increasing consumption volumes.
Vietnam saw recovery in the consuming of instant noodle with a total 4.9 billion packages consumed in 2016, up 2.5 per cent on-year, making Vietnam the fourth largest consumer country in the world, following China, Indonesia, and Japan.
These statistics were published by the World Instant Noodle Association (WINA). Accordingly, each Vietnamese people tuck in an average of 52 packages of rice noodles per year.
There are 50 enterprises engaged in producing instant noodles in Vietnam. Seventy per cent of the revenue has come from Vina Acecook, Masan Consumer, and Asia Foods, the three largest instant noodle producers with a combined 70 per cent market share.
Vina Acecook – One of leading rice noodle suppliers
Since its establishment in December 1993 and official inauguration in 1995, Acecook Vietnam JSC has been constantly developing and became a leading foodstuffs manufacturer in Vietnam. Vina Acecook has attained a strong position in the market by providing instant processed products, especially instant noodle with more than 20 brands, including Hao Hao, SiuKay, Quang Noodle Quen of Danang, Udon Suki Suki, Yummi, Da Nhat, and non-fried noodle blocks. This is one of the best rice noodle suppliers in Vietnam.
At present, Vina Acecook ranks first in Vietnam in sales, with 43 per cent of the market share. However, the figure was lower than that 10 years ago, when Vina Acecook occupied 51 per cent of the market share with brands Hao Hao and Good Noodle.
In recent years, it saw a decrease in market share due to the continuous emergence of foreign instant noodle brands as well as the strict competition with other instant noodle manufacturers.
Despite the decrease in market share, Vina Acecook still reported positive business results. Notably, it earned VND9 trillion ($396.1 million) in revenue in 2014, and VND9.3 trillion ($409.2 million) in 2015.
According to Kajiwara Junichi, general director of Vina Acecook, in the first six months of 2016, the company sold 1.3 billion packages of instant noodle and expected that the figure of the whole year would be 2.9 billion, with an expected revenue from instant noodle sales in 2016 reaching VND9 trillion ($396.1 million). The revenue from the Vietnamese market contributed 50 per cent of the group’s total revenue.
Along with domestic consumption, Vina Acecook set a target to expand export operations with the expectation that exports would make up 20 per cent of its instant noodle sales. In reality, in 2015, it exported 200 million packages, or 8 per cent of its total capacity of instant noodle, while the figure of the first six months of 2016 was 100 million of packages.
Masan Consumer – a boss of retails
Masan Consumer is considered a heavyweight competitor of Vina Acecook in the instant noodle segment. Its entering the sector in 2007 contributed to Vina Acecook’s decreasing market share. Dipping in the instant noodle market in 2012, it reported impressive growth with 24 per cent of the instant noodle market share, which was 25 per cent in 2015 and 24 per cent in 2016.
It is well-known by brands like Omachi, which holds a dominant position in the high-end instant noodle market, Kokomi, and Sagami at the medium segment.
According to Masan’s business strategy, it does not try to compete in prices, but focuses on upgrading products to make them more convenient and have higher quality. One of the products with ‘higher quality’ is the ‘instant noodle with real meat,’ which has just been launched. It costs VND1,000 higher per package.
Masan Consumer earns an average VND5 trillion ($220 million) from instant noodle per year. This company also has ambitions to increase instant noodle exports.
Asian Food
Asian Food is the third largest instant noodle manufacturer in Vietnam, with 10 per cent market share and famous brands like Gau Do, Trung Vang, and Shang-ha cup, among others.
Established in 1990, the company currently has factories in Ho Chi Minh City, Binh Duong province, and Bac Ninh province. In 1997, it started exporting its instant noodle products to Russia, Ukraine, Germany, New Zealand, Hungary, and Poland. Besides, it became one of the top instant noodle suppliers in Cambodia with more than 50 per cent market share.
Read more: Rice Noodle and Vermicelli Noodle Supply For Export