According to the Vietnam F&B Market Report for the first half of 2025, released on October 10 by iPOS.vn in collaboration with Nestlé Vietnam, more than 50,000 food and beverage outlets shuttered, marking the second major shakeout since early 2024. The report highlights the challenging and unpredictable conditions facing the industry.

The report estimates total industry revenue at around $16.2 billion in the first six months of this year, only slightly higher than the $16.1 billion recorded in the same period of 2024. This performance is well below expectations, as surveys at the end of last year projected a growth rate of around 10 per cent for 2025.

Once again, the industry failed to deliver, with rising input costs continuing to erode margins. Rental, raw materials, and labour costs all climbed, with pork prices up 12.75 per cent, food up 4.15 per cent, and housing, electricity, water, and fuel up 5.7 per cent. Under these pressures, many outlets limited promotional activities and discounts, stalling overall revenue growth.

At the business level, performance was uneven. While almost 35 per cent of enterprises reported stable revenue and close to one fifth achieved growth above 5 per cent, 18 per cent saw serious declines, up from 14.3 per cent a year earlier. A positive signal, however, is that Vietnamese consumers have not drastically cut back on dining. A mid-year survey found that more than 54 per cent intend to maintain their food and beverage budgets, while 38 per cent plan to reduce spending. This has supported operator confidence, with just under 68 per cent planning expansion in the second half of the year, compared to 32 per cent taking a cautious approach. Still, given current consumption inertia, researchers forecast that growth in the latter half of 2025 will likely peak at around 9.6 per cent compared to the first half.

One of the most striking findings is the scale of closures. By June 30, the country counted just under 300,000 active F&B outlets, down 7.1 per cent from 2024, meaning more than 50,000 outlets had disappeared. The steepest contractions occurred in Hanoi and Ho Chi Minh City, both recording declines of more than 11 per cent. This wave far exceeds that of mid-2024, when about 30,000 outlets closed, equivalent to a 4 per cent reduction.

By the end of that year, however, new openings offset the loss, lifting the total to over 323,000 outlets. The latest contraction underscores the ‘open fast – close fast – learn fast’ phenomenon that has swept through small businesses, with many experimental models lasting only two or three months before shutting down due to limited financial capacity or insufficient market potential.

According to Nguyen Do Anh Quan, brand director of iPOS.vn, “The first half of the year is often a period of natural filtering for the sector, before a new wave of openings and restructuring emerges later on. While smaller outlets have borne the brunt, larger chains have focused on restructuring their portfolios, closing underperforming sites while repositioning in iconic locations and upgrading customer experience.”

Another notable trend has been widespread price hikes. Some 45 per cent of businesses increased prices in the first half of 2025, particularly in the mass and mid-tier segments, where adjustments risk customer loss. Among them, almost a third raised prices by less than 5 per cent, just over a tenth by 5–10 per cent, and just over 1 per cent by more than 10 per cent.

Rising input costs were cited as the main driver, with more than 35 per cent pointing to more expensive raw materials, 21 per cent to regulatory changes such as e-invoices and taxation, and 20 per cent to higher labour costs. Rent was also a factor, with almost 14 per cent attributing price increases to rental pressures, while only 3.6 per cent followed pre-set adjustment schedules.

Industry experts stressed that nearly half of operators raising prices in just six months signals a sector-wide trend, not isolated cases. “The F&B sector is entering a stage where pricing power is becoming a measure of adaptability. Companies with strong brands, differentiated products, and loyal customers will find room to increase prices, while those relying heavily on price-sensitive consumers risk losing revenue if they fail to align pricing with strategy,” added Quan.

Following the administrative merger of Thai Nguyen and Bac Kan provinces on July 1, the population size, geographical scope, economic structure, spatial planning, and enterprise development needs have undergone significant changes. It is essential to enhance activities and policy mechanisms to support the private economy’s growth while implementing simplified, transparent, and efficient administrative procedures for business registration and startup activities. This aims to foster both the quantity and quality of the private economy in the new era.

At the first Thai Nguyen Party Congress for the 2025–2030 term on September 22, the Department of Finance outlined the province’s private sector development strategy to 2030, with a vision to 2045. The plan positions the private economy as a key growth driver, taking the lead in science, technology, innovation, and digital transformation, while contributing to the implementation of Resolution No.57-NQ/TW and other Party guidelines and policies.

Looking towards 2045, the private economy in the province is expected to grow rapidly, robustly, and sustainably, proactively participating in global production and supply chains with high competitiveness in the region. The goal is to have approximately 35,000 enterprises operating in the economy by 2045, contributing over 60 per cent to the province’s regional GDP.

To achieve these objectives, one proposed solution is to continue pushing administrative reforms, streamlining the apparatus, and simplifying administrative procedures to make them accessible and easy for businesses and citizens to navigate.

Additionally, the province needs to accelerate digital transformation, applying technology to streamline administrative procedures, state management, and support businesses in handling procedures and documents electronically.

A key solution proposed by the Department of Finance is to establish a platform to support startups, expand the one-stop-shop model, synchronise information systems for handling specialised administrative procedures, and ensure inter-agency connectivity. Simultaneously, policies to support startups for disadvantaged groups and specific regions should be developed.

The Department of Finance outlined a roadmap to 2030 with specific tasks. In the 2025–2026 phase, the province will focus on developing and issuing a standardised set of administrative procedures province-wide and piloting the “One-Stop Startup Support” model in 10 wards and communes, while providing training for all staff handling applications at the ward and commune levels.

In the 2026–2028 phase, the ‘One-Stop Startup Support’ model will be expanded across the province. This is also the appropriate time to launch the Thai Nguyen Startup Support Portal. From 2028 to 2030, the province will maintain and upgrade the digitalised administrative support system while conducting evaluations based on key indicators namely the number of new enterprises, business satisfaction levels, and average processing times for applications.

A new era of growth

The merger with Bac Kan has expanded Thai Nguyen’s development space and scale, opening diverse opportunities for robust growth. For the 2025–2030 term, the province targets becoming a modern industrial centre with high average income by 2030, aiming for annual economic growth of 10.5 per cent and contributing to the national goal of double-digit growth in 2026–2030.

Trinh Viet Hung, alternate member of the 13th Party Central Committee, Deputy Secretary of Thai Nguyen Party Committee and Chairman of Thai Nguyen People’s Committee

In his opening speech at the Congress, Trinh Viet Hung, alternate member of the 13^th Party Central Committee, Deputy Secretary of Thai Nguyen Party Committee and Chairman of Thai Nguyen People’s Committee declared, “The Party Committee has outlined seven key tasks and three important development areas, focusing on developing synchronised and modern infrastructure, advancing science, technology, innovation, digital transformation, improving human resource quality, making the private economy a key economic driver, and promoting green and circular economies.”

Speaking at the Thai Nguyen Party Congress, General Phan Van Giang, Politburo Member and Minister of Defence, said “The province must prioritise building synchronised, modern infrastructure; advancing science, technology, innovation, digital transformation, and workforce quality; and positioning the private sector as a key economic driver alongside green and circular growth. Immediately after the Congress, the Thai Nguyen Party Executive Committee should issue an action plan and mobilise resources for implementation.”

General Phan Van Giang, Politburo Member and Minister of Defence

General Phan Van Giang urged the province to strengthen planning and planning management, clearly defining its role within the northern key economic region and the capital region, with a focus on regional connectivity to drive growth and affirm its position as a hub for the northern midland and mountainous area.

“Prioritise the development of high-tech industries with strong competitive advantages, environmental sustainability, and efficient use of land and labour,” he stressed. “Give particular attention to attracting key sectors such as supporting industries, electronics, IT, and deep mineral processing.”

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From September 23-25, the UK ’s Agriculture and Horticulture Development Board (AHDB) led the mission, supported by the Department for Business and Trade, to provide more market insight into Vietnam and help export businesses identify opportunities for trade.

The three-day mission included coordinated meetings for British exporters with key contacts in Hanoi and Ho Chi Minh.

The mission followed the recent publication of figures for the first half of 2025: the value of total UK red meat exports, including offal, were up nearly 10 per cent on-year at £966 million ($1.3 billion).

Susan Stewart, AHDB head of international trade development, said, “Pork export work adds £56 ($75.32) per head to the sector and maintaining a wide portfolio of markets is key to ensure the industry optimises the opportunities available. While the value of pig meat exports, including offal, to Vietnam in the first half of this year was worth £68,324 ($91,904), we have identified it as a market with growth potential.”

Stewart further noted, “The focus of the mission to Vietnam has been very much on offal products, which are in high demand, demonstrating the value of balancing the carcass and developing markets for products that don’t command major demand domestically in the UK. We have plants listed to export to Vietnam, and we are looking to grow that trade and diversify our offering across different markets in Southeast Asia.”

“Gaining further insight into consumer trends and making connections with key contacts in-market is critical in helping our pig meat exports thrive, and we were delighted to support our levy payers on this mission,” he added.

The mission forms part of AHDB’s wider activity to encourage international trade development for the red meat and dairy sectors, which also includes participation in major international trade shows, inward trade missions to the UK and support for market access work.

Stewart added, “AHDB’s export work is highly valued by our levy payers and our aim is to build on the successes of recent years to help ensure our red meat exports continue to thrive globally. Collaboration is key, and we will continue to work with the industry and government to help deliver tangible outcomes for the sector.”

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On the afternoon of September 25, the National Innovation Centre (NIC), in collaboration with the State Agency for Technology Innovation (SATI) under the Ministry of Science and Technology (MoST), held a press conference to announce details of the upcoming events.

As an annual celebration in response to National Innovation Day (October 1), the events serve as a powerful statement affirming the central role of innovation in promoting rapid and sustainable growth.

This year’s event carries the message “Innovation for all – Driving force for national development”, reflecting a vision of innovation that extends beyond laboratories or scientific experts. It emphasises the importance of engaging every citizen and enterprise to create a collective force for national progress.

The event is expected to attract over 800 delegates, including leaders of the Party, state, ministries, local authorities, the business community, research institutions, universities, international organisations, and the media.

At the ceremony, the MoST will announce the Provincial Innovation Index (PII 2025), a vital tool for assessing and comparing the innovation capacities of provinces and cities. This index is intended to foster healthy competition among localities and encourage government authorities to invest in and implement policies that promote innovation.

Numerous initiatives led by enterprises, international organisations, and experts will also contribute to a vibrant, innovation-driven atmosphere throughout society.

At the press conference, Vu Quoc Huy, director of NIC, emphasised, “The National Innovation Day and the VIIE are concrete actions to realise Resolution No.57/NQ-TW of the Politburo on breakthroughs in science, technology, innovation, and digital transformation. These events offer a platform for stakeholders in the innovation ecosystem to meet, share, connect, and build meaningful partnerships.”

He added that Vietnam is entering a new development phase, where innovation is no longer optional but a necessary condition for enhancing productivity and competitiveness. The 2025 event thus holds significant importance as both a forum to honour outstanding scientific and technological achievements and a key networking opportunity for policymakers, businesses, research institutions, investors, and international organisations.

This multidimensional interaction will help shape a more complete innovation ecosystem, creating a strong ripple effect across society and laying the groundwork for a prosperous and thriving Vietnam.

Echoing this view, Nguyen Mai Duong, director general of SATI, reaffirmed that science, technology, and innovation are central drivers of national development. He emphasised the importance of synchronised coordination between the state, businesses, academic institutions, international organisations, and experienced professionals to ensure the effective implementation of innovation policies.

“As part of the event, the MoST will host the Innovation Policy Forum to assess the effectiveness of current policies and propose solutions to institutionalise major strategies through decrees and circulars. This is an opportunity to share practical experiences and successful approaches to policy implementation, thereby fostering support for businesses, students, and the public,” Duong added.

VIIE 2025 will be held over three days, and is expected to attract around 40,000 visitors. The exhibition will showcase hundreds of leading tech enterprises and thousands of innovative products and services from domestic and international companies, startups, research institutes, and universities.

Technologies on display will span 11 key sectors as outlined in Decision 1131/QĐ-TTg dated June 12, 2025, by the Prime Minister, including digital technology, renewable energy, advanced materials, biomedical technology, smart agriculture, high-quality human resource education and training. They are considered crucial for Vietnam’s transition towards a knowledge-based and green economy.

In addition to exhibitions, a wide range of side activities will be held, such as forums and thematic seminars on innovation policy; strategic technology discussions; human resource development and STEM education workshops; the kick-off of the 2026 National VEX Robotics Championship; Award ceremonies honouring individuals and groups who have received international STEM awards; E-vehicle test drives; The Better Choice Awards, celebrating standout innovative products.

Notably, this year’s exhibition will feature pavilions from global tech powerhouses such as the US, Germany, France, and Japan, creating a dynamic international space for interaction and cooperation. This fosters opportunities for investment promotion, strategic partnerships, and the advancement of frontier technologies, contributing to Vietnam’s goal of becoming a high-income nation by 2045.

With its large scale, diverse content, and broad participation from all elements of the innovation ecosystem, National Innovation Day 2025 and the VIIE 2025 and resources, sending a powerful message about a resilient, creative Vietnam with aspirations for global leadership.

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Exhibition celebrates 80 years of Vietnam’s financial sector The Ministry of Finance is running an exhibition booth themed “80 years of Vietnam’s financial sector – creation and development”. This is part of the “National Achievements Exhibition” commemorating the 80th anniversary of National Day, which will run until September 5.

The Vietnam Association of Foreign-Invested Enterprises (VAFIE) held a seminar on September 26 to provide members with timely updates and systematic analysis of key legal and policy changes. Among the highlights was Decree No.70/2025/ND-CP on invoices and documents, a significant step in modernising tax management but one that raises challenges for smaller household businesses.

Nguyen Anh Tuan, chairman of VAFIE

In his opening remarks, Nguyen Anh Tuan, chairman of VAFIE, highlighted how Vietnam’s legal and investment policy systems have been continuously improved to meet the needs of economic growth and international integration, especially since 2024, with many key legal documents revised and supplemented.

“Institutional reform is being vigorously advanced to clear the ‘bottleneck of bottlenecks’ and transform the framework from a hindrance into a national competitive advantage, as directed by Party General Secretary To Lam,” he said.

Tuan stressed that businesses must quickly grasp new legal regulations on investment and business to ensure compliance and seize the opportunities created by institutional reform for their development.

However, practical implementation of investment business laws shows that several obstacles and difficulties have also arisen. These need timely resolution to encourage investment and production-business development, contributing to fast and sustainable national growth, with this year’s GDP growth target above 8 per cent, and aiming for double-digit growth in the coming years.

One of the greatest concerns at the seminar was the impact of Decree No.70/2025/ND-CP, which amends Decree No.123/2020/ND-CP on invoices and documents.

While participants recognised the decree’s aim of bringing household businesses into a stricter, more transparent tax framework to enhance oversight, prevent fraud, and ensure fairness, several experts and enterprises voiced concerns over challenges in its implementation.

“This domestic tax policy have such a wide-ranging impact on foreign-invested enterprises. Many companies, especially in consumption goods, saw revenues decline immediately after Decree 70 took effect, as their distribution systems heavily depend on small household businesses,” said Nguyen Viet Ha, vice chair of the American Chamber of Commerce in Hanoi.

According to a survey of the Vietnam Chamber of Commerce and Industry in July, nearly 90 per cent of household businesses are unaware of their obligations regarding e-invoices from POS systems. Only 11.4 per cent fully understand the regulations; 68 per cent have basic knowledge or are unclear on how to comply; 20.7 per cent completely lack understanding or knowledge of how to implement the changes.

Moreover, tax authority support is limited. More than half of all household businesses have never received guidance, and only 14.2 per cent received specific instructions.

“As a result, the new regulation unintentionally creates administrative burdens for small household businesses,” said Ha before proposing to allow for at least a one-year transition period with no penalties during the initial phase to help households adapt.

She suggested raising the revenue threshold for applying POS-based e-invoices connected to the tax authority from VND1 billion ($40,000) to VND2-3 billion ($80,000-120,000) per year, in line with market realities.

Ha also proposed to allow small retailers like groceries, food stalls to use simple invoices without immediate connection to the tax system; as well as implement tax exemption/reduction for the first 6–12 months, and support with affordable POS systems/software, especially for vulnerable groups.

While commenting on the draft Law on Tax Administration, some experts highlighted an issue that household businesses are now required to fulfill two obligations simultaneously, including issuing e-invoices, and maintaining input accounting records

Observers argued this places a heavy burden on small household businesses, which typically lack dedicated accounting departments. They reported rising costs for accounting services, complicated procedures, and a higher risk of non-compliance or incorrect filings, leading to potential fines.

According to international best practices, in Japan, small household businesses only need to issue simplified invoices and are not required to maintain detailed accounting systems. Singapore applies a simplified accounting regime, requiring only the retention of basic documents for inspection when needed.

Huong Vu, VAFIE’s vice chairwoman and CEO of EY Vietnam, proposed allowing e-invoices to replace accounting books and introducing a simplified accounting regime for small household businesses with annual revenue under $120,000. Under this mechanism, such businesses would only need to store input and output invoices and record revenue using simple tax authority forms, without preparing detailed financial statements.

“Amending the Law on Tax Administration should reflect the spirit of reform – cutting down forms, eliminating duplication between e-invoices and accounting books, and making compliance easier for small businesses, while still giving tax authorities sufficient information for oversight,” she said.

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Tax procedures for household businesses to be simplified The Ministry of Finance is finalising the revised Law on Tax Administration, aiming to simplify procedures and increase voluntary compliance.