K-food counts more young Vietnamese consumers as fans

[Photo provided by Kim Geum-yi]

South Korean food brands are quickly becoming household names in Vietnam amid the rising popularity of trendy Korean snacks and fast food among the younger population. Social media platforms such as Instagram and TikTok have played a crucial role in boosting the appeal of various Korean foods, prompting food companies to enter and invest in the Vietnamese market.

Korean confectionery manufacturer Orion Corporation reported that its Vietnamese subsidiary’s sales totaled 118.2 billion won ($86.6 million) in the first quarter of 2024, up 12.3 percent from a year ago. Operating profit rose by 18.9 percent to 19.5 billion won, which was attributed to cost reduction efforts. Orion, which began exporting to Vietnam in 1995, continues to increase its market share with new product categories such as rice snacks alongside its flagship Choco Pie. The company engages in active social media marketing that targets young Vietnamese consumers.

Choco Pie, which holds an almost 70 percent market share in Vietnam, introduced flavors tailored to local tastes such as ‘Dark’ and ‘Watermelon.’ In the potato chip segment, Orion’s brands Poca Chip (marketed locally as O! Star) and Swing Chip dominate the market with flavors including kimchi, steak, and egg yolk.

My Gummy Jelly (known locally as Boom Jelly), which began local production in 2022, surpassed 130 billion won in sales a year later to top the jelly market in Vietnam.

Lotte GRS, which operates the Lotteria fast-food chain, saw its Vietnamese sales nearly double to 109.8 billion won in 2023 from 61.3 billion won in 2021. After tapping the Vietnamese market in 1998, Lotteria now has 253 locations and leads the fast-food franchise sector, becoming the country’s “national burger.” Unlike in Korea, fried chicken sales account for half of Lotteria sales in Vietnam. Lotte GRS highlighted the popularity of its chicken rice menu, which features chicken, rice, vegetables, and seasoned sauces, that currently makes up 30 percent of overall sales. The company is aiming for 160 billion won in sales by 2027 via franchise expansion.

[Photo provided by Kim Geum-yi]

Industry experts view Vietnam’s food market as a promising alternative to the unstable Chinese market, thanks to the country’s robust economic growth and role as a leader in Southeast Asian culture. Lotte GRS exited the Chinese market in 2021 due to poor performance during the Covid-19 pandemic, shutting down Lotteria and Angel-in-us Coffee operations.

Korea’s instant tteokbokki franchise Dookki is also gaining popularity in Vietnam, with long lines at its major mall locations. The franchise’s overseas revenue, including Vietnam, totaled 123 billion won in 2023, up 112 percent from 2020’s 58 billion won. Dookki expanded its international outlets from 80 in 2020 to 164 in 2023, with 95 of these located in Vietnam. The company attributes its success to its localization strategy, such as replacing perilla leaves with cilantro to cater to local tastes.

Comprehensive food company Paldo recently completed construction on its second factory in Vietnam. The new facility will help Paldo increase exports to countries with stringent quality standards, including the United States, Japan, Taiwan, Australia, Malaysia, Germany, and Singapore. The expansion of the company’s ramyeon production lines by 2025 will help boost its total ramyeon output to 700 million units.