Vietnam’s confectionery market—worth nearly USD 1.8 billion and growing at over 6.8% annually—is heating up as global players double down on expansion while local brands scramble to stay in the game.

Foreign Corporations Accelerate Market Entry

The recent acquisition of Bibica by Indonesia's Sari Murni Abadi (SMA) has drawn attention across Southeast Asia. More than just a business deal, it signals an intensifying race for dominance in Vietnam’s high-growth snack and confectionery market.

According to SMA CFO Mr. Servin, the acquisition aligns with the company’s global expansion roadmap, aiming to strengthen its role as a key FMCG producer and distributor. SMA’s move also allows for product line diversification—from snacks to biscuits and sweets—while integrating supply chains and accelerating innovation.

Already known for the Momogi brand in Indonesia, SMA has been expanding rapidly into markets like South Korea, the Middle East, and now Vietnam. Through Bibica’s 100,000+ distribution points, strong local presence, and export capabilities, SMA is positioning itself to scale across Southeast Asia.

Meanwhile, Korean food giant Orion recently broke ground on its third factory in Vietnam—Yen Phong 2C Industrial Park, Bac Ninh. The plant is set to boost Orion’s production capacity and solidify Vietnam as its strategic manufacturing base in Southeast Asia.

Mondelez Kinh Do Vietnam has also appointed a new General Director to usher in its next growth phase. Mondelez’s acquisition of Kinh Do’s confectionery business for USD 570 million in 2014 enabled it to develop dozens of popular brands for Vietnamese consumers.

Philippines-based Liwayway Holdings, owner of the Oishi brand, has steadily grown its market share since 1997, leveraging school canteens and retail networks to reach even rural areas.

Market Potential Spurs Foreign Investment

According to Statista, Vietnam’s confectionery market is expected to grow at a CAGR of 6.81% from 2025–2030. Economic growth, rising incomes, and evolving consumer tastes—especially for premium snacks—are fueling the demand.

Cốc Cốc’s 2025 industry report echoes these findings, noting that foreign companies dominate the market with brands like Oshi (Liwayway), Lay’s (Pepsico), Nestlé, and Lotte. These firms are investing aggressively, indicating confidence in long-term opportunities.

Local Brands Face Pressure—but Are Adapting

As foreign players scale up, Vietnamese brands are under pressure to differentiate. Many are upgrading packaging, diversifying offerings, and adapting to new consumer demands—especially health-conscious choices.

A Cốc Cốc survey reveals that 4 out of 5 Vietnamese consumers now look for snacks that are low-sugar, preservative-free, or made with natural ingredients—up 3% from 2024.

Young consumers (13–24) prioritize taste and price, while those 25+ focus more on nutrition and origin. Brands must respond to both groups with tailored products and messaging.

Seasonal launches—especially around Tet and Mid-Autumn—offer ideal windows to test limited editions and premium offerings.

Market Performance Highlights the Divide

The gap between agile and stagnant companies is becoming clear:

• Bibica: Q3 2025 revenue reached VND 506 billion (+5.4% YoY); net profit hit VND 44.6 billion (+30.8%).
• Kinh Do (KDC): Q3 revenue reached VND 2,429 billion (+8% YoY); profit tripled to VND 67 billion. 9-month revenue rose 14% YoY.
• Huu Nghi: Q3 revenue dropped 1% YoY; profit down 12% due to increased sales expenses.
• Hai Ha: Q3 revenue and profit fell 23% YoY, partly due to investments in factory upgrades.

In short, those investing in production tech, branding, and innovation are gaining ground. Those lagging behind risk being left out of the high-stakes battle for Vietnam’s snack shelves.