Urgent need to improve competitiveness of fast-moving consumer goods and food industry

In the context of the digital economy and the trend of omnichannel commerce that is reshaping the global value chain, improving the competitiveness of businesses in the field of fast-moving consumer goods and food is an urgent requirement.

Consumer goods and food groups are always of interest to consumers. Photo: Lam Giang

The mainstay of the economy

According to Mr. Nguyen Tien Cuong, Deputy Editor-in-Chief of Industry and Trade Newspaper, the fast-moving consumer goods and food industry directly reflects people's quality of life.

Major trends dominating the consumer market include a strong shift to “green - clean - healthy” consumption, high demands on product origin and quality, and especially the explosion of e-commerce.

By 2024, the size of Vietnam's e-commerce market will reach over 25 billion USD, an increase of 20% over the previous year, accounting for about 9% of total retail sales of goods and consumer service revenue nationwide.

Sharing about the policy of developing domestic trade in the food and fast-moving consumer goods industry in the context of digital transformation and multi-channel trade, Ms. Tran Dieu Huong - Department of Domestic Market Management and Development ( Ministry of Industry and Trade ) said that the fast-moving consumer goods (FMCG) industry plays a key role in economic and social life, when providing essential products, food, and beverages, with high turnover rate, quickly reflecting consumer trends.

In the period 2021-2024, total retail sales of the FMCG industry will increase by an average of 10% per year, in the context of GDP increasing by 7.09% in 2024. The market is shifting strongly towards green, clean, healthy consumption, focusing on origin and production process.

In parallel, the modern distribution system and e-commerce are growing strongly, expected to account for 10% of total retail sales by 2025.

Affirming that e-commerce is the driving force for strategic development of the modern retail industry, Mr. Dao Thanh Tung - Head of E-commerce Department - Lotte Mart Vietnam said that e-commerce has become a core component in the development strategy of the modern retail industry, no longer simply a new sales channel. Vietnam is currently the country with the second fastest retail e-commerce growth rate in Southeast Asia, with a digital user penetration rate exceeding 60%.

At Lotte Mart, e-commerce is positioned as a new operating platform - instead of just a sales support tool. ERP, warehouse, CRM, delivery systems... are connected and automated in real time, allowing fast delivery within 1-2 hours or within a 300km inter-provincial range.

“During the storm in May 2025 in Hanoi , Lotte Mart still maintained 70% of orders thanks to its flexible operating capacity. Modern retail is shifting from a mass strategy to deep segmentation, personalizing each customer group,” Mr. Tung informed.

Mr. Tung affirmed that e-commerce not only changes consumer behavior, but also redefines the entire retail ecosystem - becoming a strategic driving force for sustainable development and competition in the digital age.

Digitalization enhances market access

Mr. Nguyen Tien Cuong, Deputy Editor-in-Chief of Industry and Trade Newspaper, said that besides opportunities, there are also many challenges. Many businesses, especially small and medium-sized enterprises, are still confused about accessing new technology, managing innovation, investing in digital transformation or building a modern distribution system.

Ms. Doan Trang Ha Thanh - Director of Operations of Lazada Vietnam emphasized that digital transformation in operations and distribution is becoming a key factor helping food and FMCG businesses optimize business efficiency.

Lazada supports businesses to open stores quickly, integrating smart AI tools such as virtual assistants, automatic translation, product suggestions and content optimization. In particular, the seller center system helps synchronize orders, inventory, shipping, and automatically allocate orders to the nearest warehouse to shorten delivery time.

Lazada also cooperates with LEX Vietnam, Grab, Ahamove to deliver food products to consumers within 2 hours in major cities. Businesses are recommended to invest in sustainable operations on digital platforms, promote digital logistics and enhance livestream sales activities.

“Digitizing distribution not only shortens processing time and reduces operating costs, but also improves market access, especially for products that require preservation such as fresh food, thereby expanding scale and enhancing competitiveness on digital commerce channels,” said Ms. Ha Thanh.

Ms. Tran Dieu Huong, Department of Domestic Market Management and Development, said that small and medium enterprises still face difficulties in capital, infrastructure, technology, and digital human resources. In addition, there are high requirements for traceability, food safety, and data management.

Ms. Huong recommends the need to synchronously deploy institutions, infrastructure, technology and support FMCG businesses to create a favorable business environment and promote industry development. At the same time, promote the application of AI, big data, IoT in the FMCG supply chain, helping businesses manage production, forecast the market, and optimize the supply chain.

Source: https://hanoimoi.vn/cap-thiet-nang-cao-nang-luc-canh-tranh-nganh-hang-tieu-dung-nhanh-va-thuc-pham-706715.html