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SPN has successfully concluded a series of consulting sessions on investment and business, connecting with potential partners, and conducting preliminary market research for a Japanese high-end restaurant enterprise looking to enter Vietnam. The events saw the participation of senior leaders from SPN, Vietnamese businesses, and the Japanese company.
The demand for high-quality food and professional service in Vietnam is on the rise. The rapidly growing middle class, projected to increase from 13% (around 13 million people) in 2023 to 26% of the population by 2026, is creating significant opportunities for businesses. Consumers are now more willing to spend on dining out (estimated at 500,000 to 1,000,000 VND per meal), with high-end dining experiences like Omakase becoming a popular trend among young, sophisticated Gen Z foodies who love new experiences. Due to this shift in modern consumer behavior and willingness to spend, Vietnam is expected to become one of the top three Asian countries in the F&B sector.
The Vietnamese F&B industry is also attracting foreign investment. According to the Ministry of Industry and Trade, over the past decade, more than 50% of the franchise agreements signed in Vietnam have been in the F&B sector.
The Vietnamese F&B industry achieved an impressive growth rate of 11.47% in 2023, with total revenue exceeding 590 trillion VND. In the first six months of 2024, the F&B sector generated 403.9 trillion VND in revenue, accounting for 68.46% of the total revenue for 2023. Of this, dining out revenue alone reached 438.5 trillion VND. This growth is expected to continue for at least the next five years.
Chart: Vietnam’s F&B Industry Revenue Maintains Positive Growth in H1 2024 (Source: iPOS.vn)
By the end of 2023, Vietnam’s culinary market remained vibrant with nearly 318,000 restaurants, an increase of 1.26% from the previous year. The Southern region continues to be the “capital” for restaurants, with Ho Chi Minh City at its heart.
The latest data shows that the total number of restaurants nationwide was 317,299 at the end of 2023. The Southern region holds a dominant position with a 46.6% market share. Within that, Ho Chi Minh City leads with 28% of the region’s total number of restaurants. The Northern and Central regions follow with 37.1% and 16.3%, respectively.
Japanese Restaurants in Vietnam Triple in 5 Years
The growth of Japanese cuisine in Vietnam has also recorded impressive figures. A 2022 survey by the Japan External Trade Organization (JETRO) Vietnam revealed that there are approximately 2,500 Japanese restaurants nationwide. This number has tripled in just five years since 2015.
Specifically, from 770 restaurants in 2015, the number exploded to nearly 2,500 by 2020. Ho Chi Minh City is home to the most, with 1,180 restaurants. Notably, 50% of the restaurant owners are Japanese, showing their direct and serious investment in this market, while Vietnamese people make up the main customer base, accounting for 90%.
Mr. Matsumoto, Chief Representative of JETRO Vietnam, shared: “Many people go to Japanese restaurants not just to enjoy the food but also to experience the culture and lifestyle. This is reflected in the meticulous investment in the architecture and atmosphere of these restaurants.”
Similarly, Mr. Takashi Miyama, Director of Miyama Project Co., Ltd., noted that Vietnamese and Japanese cuisines share many similarities, such as using rice as a staple food and fermented seasonings. However, he advised Japanese businesses investing in Vietnam to pay attention to regional differences in taste: “The Northern region has a bold flavor, the Central region is sour and spicy, while the Southern region is light and sweet. Restaurant owners need to carefully study the local palate and culinary culture.”
Keys to Successful Restaurant Business in Vietnam: An Expert’s Perspective
Drawing from my years of experience in market research and business strategy consulting for many successful companies in Vietnam, I, Nguyen Diem Trinh – Vice Director of SPN, would like to share some key points for running a successful restaurant business.
1. Choosing the Right Location First and foremost, location is crucial. In Ho Chi Minh City, two popular areas for Japanese restaurants are Pham Viet Chanh Street in Binh Thanh District and the Thai Van Lung – Le Thanh Ton area in District 1, often called the “Little Japan Town.” Recently, Thao Dien in District 2, an area for mid-to-high-end dining that attracts many expatriates and affluent residents, has also become an attractive option.
2. Designing the Space and Enhancing Customer Experience Secondly, proper space design is essential. A suitable atmosphere not only provides comfort but also gives customers the best possible dining experience. Delicious food is not enough; the restaurant’s space must also convey the essence of its culinary culture.
3. Ensuring Fresh Ingredients and Food Quality It may sound obvious, but using fresh ingredients is non-negotiable. This is the core element that ensures food quality, allowing a talented chef to bring out the full flavor and deliver the best dishes to their guests.
4. A Professional Staff Fourth, do not underestimate the role of your staff. Customers in Ho Chi Minh City value professional and attentive service. The reality is that many restaurants with great food and good prices fail because of an unprofessional staff that can’t retain customers.
5. Strategic Communication: The Key to Sustained Success Finally, and most importantly, building a strategic communication plan is vital for a restaurant’s sustained success. Many restaurants today thrive by leveraging the power of social media trends and communication. Vietnamese people are heavy internet users. Statistics show that out of a population of 100 million, over 78 million use the internet, and more than 72 million are active on social media, equivalent to 73.3% of the total population.
This has changed their information-seeking behavior. A significant 77% of customers look for restaurant information on social media, followed by websites and online news. This is why Vietnamese diners are not strictly loyal and are easily influenced by social media. They often check reviews before deciding where to eat. After Facebook, TikTok is quickly becoming the most popular platform for finding dining information, especially among Vietnam’s youth.
It’s also worth noting that Vietnamese people view dining out as an indulgence and are willing to spend on high-end culinary experiences. Therefore, investing in both product quality and professional communication will help your restaurant grow and thrive.
If your business is interested in the F&B industry or seeking investment opportunities in future potential markets, contact SPN for detailed consultation.
