Vietnam’s health supplement industry is rapidly growing due to rising health awareness, disposable incomes, and a booming middle class. The market grew from USD 305 million in 2019 to USD 335 million in 2020, reflecting a 10% increase. By 2022, it surged to about USD 600 million, with a projected CAGR of 18% from 2024 to 2030.
Reasons behind the explosive growth in Vietnam
The rising middle class in Vietnam is a key factor driving this growth. As more Vietnamese move into higher income brackets, their spending power increases, fueling demand for health supplements. This demographic change is closely linked to broader economic developments and shifts in the labor market, which have contributed to a more affluent and health-conscious consumer base.
Learn more about our Health Supplement Market 2024.
Vietnam’s Health Supplement regulations and standards
Essential regulations and standard
Vietnam’s health supplement sector is regulated by a robust framework designed to ensure product safety and quality. Key regulations include:
- Circular No. 24/2019/TT-BYT: Regulates food additives.
- Circular No. 18/2019/TT-BYT: Guides Good Manufacturing Practices.
- Circular 43/2014/TT-BYT: Governs the management of functional foods.
- Circular No. 17/2011/TT-BYT: Issuing provisions on radioactive contamination.
- Circular No. 10/2021/TT-BYT: Lists substances banned in health protection foods.
- Food Safety Law 2010 and Decree No. 15/2018/ND-CP: Outline general food safety requirements.
- Decision 46/2007/QD-BYT: Regulation on maximum limit of biological and chemical pollution in food.
- QCVN 8-1:2011/BYT, QCVN 8-2:2011/BYT, and QCVN 8-3:2012/BYT: Set limits for mycotoxins, heavy metals, and microbiological contaminants in food.
These standards ensure that health supplements meet high safety and quality benchmarks, crucial for a market influenced by a rising middle class that demands high-quality products.
Compliance and industry impact
To operate legally, manufacturers must comply with stringent requirements, including obtaining:
- Business Registration Certificate: For business operations.
- License for Functional Foods: Required for selling health supplements.
- Investment Registration Certificate: For establishing a trading company.
Compliance involves product declarations, adherence to labeling requirements, and maintaining health and safety standards. A Certificate on Satisfaction of Standards for food hygiene and safety is also necessary, with continuous adherence to health and safety regulations.
Import and export trends in Vietnam’s health supplement market
Vietnam’s health supplement market is characterized by significant imports from countries such as Singapore, the USA, Malaysia, China, and Korea. Japan’s share, although small, has shown growth, with imports rising from USD 8.4 million in 2013 to USD 33.6 million in 2022.
The market has experienced substantial growth compared to regional peers. In August 2021, it was valued at USD 562.9 billion, reflecting a 13% growth rate. With a forecasted annual growth rate of 20% over the next decade, driven by increased health awareness, the sector is poised for continued expansion.
Investment opportunities for Foreigners
Vietnam offers enticing incentives for foreign investors in the health supplement industry, including:
- Tax incentives: Reduced corporate income tax rates and tax holidays for new investments.
- Customs duty exemptions: Exemptions on import duties for goods used in fixed assets or export processing.
- Land rental incentives: Exemptions for projects in prioritized sectors or economically challenged areas.
These incentives make Vietnam an appealing investment destination, with benefits such as preferential tax rates and import duty exemptions.
Final thoughts
Vietnam’s health supplement industry is on a dynamic growth trajectory, driven by increased health consciousness, a rising middle class, and a favorable regulatory environment. Understanding the regulatory framework and leveraging investment incentives, alongside the broader economic trends influenced by the labor market, are key to thriving in this expanding market.
