1. A “Wave of Consolidation” Reshaping the Industry

In just the first half of 2025, more than 50,000 F&B outlets in Vietnam closed, a 7.1% decrease compared to the end of 2024.
The two largest cities, Hanoi and Ho Chi Minh City, recorded declines of over 11%.

Main causes:
· Rising costs: Raw materials, rent, and labor expenses have all increased. The Consumer Price Index (CPI) for food and dining services rose 3.69% in the first half of the year.
· More cautious consumer spending: After the post-pandemic recovery period, consumer behavior has become more conservative.
· Unsustainable operating models: Many small brands followed a “rapid expansion – rapid closure” approach without strong management systems or stable cash flow.

As a result, Vietnam’s F&B market is entering a natural consolidation phase, where only businesses with clear strategies, strong management capabilities, and technological adaptability can remain competitive.

 2. Market Polarization and Emerging F&B Trends

Despite the challenges, 54% of F&B businesses have maintained stability or achieved positive growth, with 20% growing by more than 5%, demonstrating clear market polarization.

Successful strategies among these businesses include:
· Focusing on unique brand identity: Leveraging Vietnamese ingredients and culturally inspired design helps brands create differentiation and emotional connections with consumers.
· Positioning around “value advantage”: Cost-efficient models such as takeaway and cloud kitchens, along with competitively priced chains, remain popular.
· Moving toward health and sustainability: “Clean eating and drinking,” organic foods, and environmentally friendly products are becoming new standards.

This is also the stage when F&B businesses need to leverage technology to optimize operations and enhance customer experience — the key factors for surviving the ongoing market consolidation.

3. Technology – The New “Engine of Competitiveness” in the F&B Industry

In 2025, digital transformation (DX) is no longer optional — it has become a mandatory condition for F&B businesses to survive and grow. As operating costs continue to rise and consumer behavior evolves rapidly, technology is becoming the “engine of competitiveness” that enables businesses to optimize operations, enhance customer experience, and scale sustainably.

Operational optimization – The foundation of efficiency

Many F&B chains in Vietnam have begun implementing smart POS and ERP systems to manage the entire process, from inventory and ingredient management to orders and human resources.
Data digitalization helps businesses reduce errors, control losses, and optimize operating costs — a critical factor as ingredient prices and labor costs continue to increase.

Omnichannel sales – Reaching customers everywhere
Alongside internal optimization, technology is enabling more flexible and effective sales channels. F&B brands are rapidly shifting toward an omnichannel model, combining physical stores, online delivery platforms, and social commerce, where customers can place orders directly through social media.
Some brands have even developed their own mobile applications, allowing customers to order, collect loyalty points, and make payments in just a few steps — expanding customer reach without investing in additional physical locations.

Customer experience – Personalization through data
From a customer experience perspective, Big Data and Artificial Intelligence (AI) are transforming how businesses understand and serve their customers. Consumer data is analyzed to personalize promotions and recommend menu items tailored to individual preferences — especially for Gen Z customers, who have high expectations for convenience and experience.
In addition, cashless payment via QR codes has become a common standard, helping shorten service time and improve customer satisfaction.

Product innovation – Keeping up with trends faster
Technology is not limited to operations or sales; it also enables businesses to develop new products more quickly. By analyzing market data and customer feedback, brands can rapidly capture trends such as non-alcoholic beverages, health-focused products, and convenient foods suited to modern lifestyles.

4. Opportunities for Japanese IT Companies

With rapid yet uneven digital transformation, Vietnam’s F&B market is in strong need of specialized technology solutions, particularly from Japanese software companies, which are known for their system stability and operational optimization capabilities.

Key opportunities include:
· Comprehensive management solutions (ERP, POS, CRM) for F&B chains.
· AI platform development for customer data analytics and experience personalization.
· Cloud kitchen solutions and integrated ordering and payment systems.
· IoT applications and sensor technologies for cold storage and ingredient management.

The combination of local market understanding in Vietnam and Japanese technological expertise can create new F&B business models that are efficient, sustainable, and capable of leading regional trends.

Conclusion: When Technology Becomes the “Decisive Ingredient” of Success

Vietnam’s F&B market in 2025 is at a turning point, where opportunities and challenges coexist. The consolidation wave is eliminating weaker brands while simultaneously opening a golden opportunity for businesses that can adapt and harness the power of technology.

In an era where delicious food and prime locations are no longer the only competitive advantages, success belongs to brands that know how to integrate technology into their strategy — where data, AI, and customer experience blend together to create differentiated value.

Technology is the “silent chef” behind seamless customer experiences, helping businesses optimize costs, improve productivity, and win consumers’ hearts.
Those who master technology today will shape the future taste of Vietnam’s F&B market tomorrow.

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We are at the forefront of Flutter Development and Hybrid App Development, delivering high-performance, cross-platform applications that scale with your business. Backed by deep expertise in SAP Consulting and ERP implementation, ITS Global also leads digital transformation (DX) initiatives for the logistics and F&B sectors, enabling enterprises to accelerate growth, optimize customer experience, and strengthen their market position.

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