South Korean noodles companies in Vietnam see sales boom

South Korean companies are becoming prominent players in the market thanks to the cultural affinity and efficient local production. Many also import noodles from Korea.

Paldo Vietnam saw revenues double to VND913 billion ($38.9 million) last year from VND474 billion in 2017.

Established in 2006, it offers both imported South Korean noodles and Koreno produced at its plant in the northern Phu Tho Province.

Another producer, Ottogi, also came to Vietnam in 2006 initially only selling dipping sauce before entering the instant noodles market by building a plant in Bac Ninh Province in 2016-2018.

Its revenues too virtually doubled from VND472 billion in 2018 to VND905 billion last year.

Nongshim, S. Korea’s top producer, came to Vietnam in 2018 but only stepped up marketing activities in 2020 after re-evaluating potential of the market.

It installs Korean-style automatic noodles cooking machines at convenience stores, targeting mainly young customers, and has launched food trucks in HCMC.

It recently launched new products to take advantage of the popularity of K-Drama in Vietnam.

Nongshim Vietnam reported sales of VND100 billion in the first operating year of 2018.

A Nongshim official told The Korea Herald: “Vietnam has high purchasing power with its increasing economic growth. Also, people tend to eat at home rather than dine out due to Covid-19.”

Vietnamese eat 87 packs of instant noodles annually on average, higher than S. Korea’s 73, The Korea Herald reported recently.

They consumed 8.56 billion packs last year, the third highest globally behind China and Indonesia, according to the World Instant Noodles Association.

But the country tops in terms of growth.

There are around 50 noodles producers in Vietnam, with Vina Acecook, Masan and Asia Food accounting for a 70% share.

Market research firms expect sustained growth for South Korean noodles makers in Vietnam thanks to the continued popularity of Korean pop culture.

The market, currently dominated by Vietnamese players, will become extremely competitive as a result.