Cloud Kitchen Model in Vietnam and F&B Opportunities for Foreign Investors (FDI)

As Vietnam’s F&B market rapidly evolves, the cloud kitchen model — delivery-only kitchens — is creating major opportunities for foreign investors (FDI) in business and legal consulting. But what makes cloud kitchen a growing trend, and what should FDI investors consider before entering the market? Let’s explore.

Understanding the Cloud Kitchen Model and the Vietnamese Market

Before investing, investors must understand the model’s fundamentals and the current market landscape.

Nature and Characteristics of the Cloud Kitchen Model
A cloud kitchen (also known as a ghost or virtual kitchen) serves only delivery or takeaway orders without dine-in space. This reduces rental, design, and staff costs compared to traditional restaurants, allowing businesses to test multiple brands and menus more efficiently.

Vietnam’s Market: Trends, Figures, and Growth Drivers
Vietnam’s cloud kitchen market is booming — valued at around USD 390.5 million in 2024, expected to reach USD 912.65 million by 2033, with a CAGR of 8.86% during 2025–2033.
Key growth drivers include urban consumers’ preference for delivery food, the rapid development of delivery apps, and a more flexible business model than traditional dining.
However, the market still faces challenges: high competition, logistics costs, food safety control, and operational management.

Opportunities and Key Considerations for FDI Investors in the F&B Sector

Opportunities for FDI Investors

• Fast market expansion: Cloud kitchens allow foreign investors to leverage delivery trends, launch multiple brands in one kitchen, or partner with delivery platforms.

• Lower investment costs: Reduced rental and service costs lead to higher capital efficiency.

• Open and FDI-friendly market: Under the WTO Commitments and Vietnam’s Investment Law 2020, the food & beverage service industry has no foreign ownership limit — FDI investors can own 100% of their business.

• Tech-driven advantage: Cloud kitchens use online ordering, data analytics, and logistics optimization for competitive edge.

Legal and Operational Considerations

• Licensing and registration: FDI in food service requires an Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC). The industry is conditional, requiring compliance with food safety and fire prevention standards.

• Accurate business classification: Cloud kitchens are still categorized under F&B services; registering the correct industry code is essential.

• Food safety & delivery compliance: As operations are delivery-only, food preparation and packaging must strictly follow hygiene standards.

• Brand strategy: Vietnamese consumers value quality, hygiene, and reputation — brands must localize menus and maintain consistency.

• Cost management: Although overheads are lower, logistics, delivery, and ingredient costs can erode profit margins if unmanaged.

Considering investing in a cloud kitchen or expanding your F&B business in Vietnam with foreign capital?
Let DEDICA Law guide you — our experienced corporate lawyers in Ho Chi Minh City provide full FDI support, from legal setup and licensing to compliance and cost optimization.

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Contact us now for a free initial consultation with our legal experts.