FDI in the Plant-based Food, Healthy Food and Organic Beverage Sector in Vietnam
Against the backdrop of Vietnamese consumers’ growing concern for health and a green lifestyle, the plant-based food, healthy food and organic beverage sector is emerging as a “new gold mine” attracting foreign direct investment (FDI). However, alongside the opportunities come a series of legal challenges and procedural hurdles that investors must understand before “injecting capital” into this high-potential field. Is the legal environment in Vietnam ready for the wave of FDI into plant-based foods and organic beverages?
The panorama of FDI in the plant-based food, healthy food and organic beverage sector in Vietnam
The strong growth of green consumer demand, combined with global trends toward eco-friendly products, is opening a new door for FDI capital in the food and beverage organic sector.
Development potential and market trends
According to statistics from the Ministry of Planning and Investment, over the past five years, FDI into the food and beverage sector in Vietnam has increased on average by 7–10% per annum. Especially, the segment of plant-based food, organic beverages, and healthy food products is recording exceptional growth due to post-pandemic shifts in consumer habits.
Foreign brands such as Beyond Meat, Oatly or enterprises from Japan and Korea are seeking opportunities to cooperate in production and distribution in Vietnam. This shows that Vietnam is not only a consumption market, but is becoming a manufacturing hub for plant-based and organic food in Southeast Asia.
Legal challenges and investment procedural barriers
Despite the large potential, FDI enterprises still face some challenges such as:
– Regulations on food safety, organic standards, vegan or organic certification that remain inconsistent.
– Investment licensing procedures, especially for industries involving “functional foods,” often require many sub-licenses.
– Tax policies and investment incentives are not yet truly specialized for the green-clean food sector.
Therefore, foreign investment consulting and obtaining the appropriate investment license are essential steps to avoid legal risks from the earliest stage.
Legal framework and conditions for foreign investment in the food and organic beverage sector
Before establishing a business or joint venture, FDI investors need to clearly understand the legal regulations related to conditional investment sectors, licensing authority, and their legal obligations during operations.
Current legal regulations
According to the Investment Law 2020 and its guiding documents, the production and processing of food is not restricted for foreign investors. However, if the enterprise intends to operate products with special nutritional elements, functional foods or internationally certified organic products, they must comply with the regulations of:
– The Food Safety Law 2010;
– Decree 15/2018/NĐ-CP for detailed guidance;
– National technical standard on organic products (TCVN 11041).
In addition, FDI enterprises must carry out the procedures to register investment with the Department of Planning and Investment, apply for an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC).
Notes on capital ownership, taxes and trademarks
Foreign investors can hold 100% of the capital in a plant-based or organic food enterprise. However, several important factors must be noted:
– Must have a production site, warehouse meeting hygiene standards;
– Imported products or organic raw materials must have clear origin certificates;
– Register protection of trademarks and product logos with the Intellectual Property Office to avoid brand infringement.
Especially, building an optimal tax strategy in FDI (import tax, corporate income tax, value-added tax) is an important part that helps enterprises optimize costs and ensure compliance with Vietnamese law.
Solutions and in-depth consulting from DEDICA Law for FDI investors
To turn opportunity into reality, investors need a legal partner who understands the Vietnamese market and the investment regulatory system in the plant-based food and organic beverage sector. That is exactly the strength of DEDICA Law – a firm specialized in legal consulting for domestic and international enterprises.
DEDICA Law accompanies you from strategy to execution
DEDICA Law provides comprehensive legal services for foreign investors, including:
– Consulting on FDI strategy into the food and organic beverage sector;
– Supporting the issuance and adjustment of investment certificates;
– Drafting and reviewing cooperation agreements, distribution contracts;
– Advising on standards, product announcement and labeling according to Vietnamese regulations.
Sustainable development orientation and legal-risk optimisation
DEDICA Law not only helps enterprises register investment and obtain operational licenses, but also supports long-term through ongoing legal services (outsourced legal department).
This helps foreign investors proactively prevent risks, especially in issues such as:
– Compliance with food safety standards;
– Handling commercial disputes, trademarks;
– Advising on M&A contracts when expanding production or distribution chains.
DEDICA always aims at “safe – efficient – sustainable” solutions, helping FDI investors comfortably develop a green brand in Vietnam.
Are you planning to invest in the plant-based food, healthy food or organic beverage sector in Vietnam?
Let DEDICA Law accompany you from legal strategy to efficient execution, ensuring compliance with the law and optimising investment cost.
Contact DEDICA Law Firm for in-depth legal consulting!
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