Viet Nam's ice cream market about to change

VIET NAM has many of the world’s popular ice cream brands: Baskin-Robbins, Orana Vietnam, Snowee, Swensens, Hagen-Dazs,  Monte Rosa, Fanny Ice Cream, and Dairy Queen (DQ). These and several others see potential to grow locally, and ultimately transform the market.  But should local brands be cautious?

Orana Vietnam, a joint venture between Orana Denmark and Phu Cong Minh Company, recently completed the construction of a factory for ice cream, jam and fruit juice products under the Osterberg brand. According to VietnamNet Bridge, the company is likely to open a distribution chain and franchise with local vendors if this first shop shows promise. The new factory will have a total production output of 6,000 tonnes annually, with ice cream accounting for up to 70 tonnes.

In Viet Nam, BUDS Ice Cream of San Francisco is a franchise between BUDS and Bac My JSC. It opened in 2007, and now has eight branches and six shop franchises. Meanwhile, Baskin Robbins grew 23 shops since it opened in 2012.

Other international brands, including those from New Zealand and Korea are likely to follow, said Vietnamnet. However, despite the growth of foreign brands in Viet Nam, local producers still have the upper hand, and do compete in terms of flavours and quality. A report of VPB Securities Company affirms this.