Two years ago, many forecasts suggested that the sausage market would be saturated, but with a steady growth of 15-20% / year, the average Vietnamese used only about 208 grams / person / year. Therefore, the sausage market is still “hot” competitive “arena”.

There were less than 10 sausage producers 5 years ago, now, this number has exceeded 50. Many deals of buying and selling of processed food businesses, including hot dogs, are popular. This is like Masan buying shares of Vissan. Daesang Corp. (South Korea) spent 32 million USD (about 770 billion VND) to buy 99.99% stake of Duc Viet Food Joint Stock Company (Duc Viet) to consolidate potential sausage market share in Vietnam. CJ Group (CheilJedang Corp) acquired 64.9% shares of Minh Dat Food Company with a deal value of about 13.4 million USD, equivalent to 305 billion VND …

The above developments show that the sausage market is extremely attractive. Vissan accounts for 65% of the sausage market share and sausage products contribute more than half of Vissan’s total profit with a steady growth of 15-20% / year. It is easy to understand when this unit is sought after by many “big men”. Similarly, revenue growth of Nipponham also increased steadily from 15-20% / year and this unit is aiming to increase the sales rate overseas to 15%.


Viet Foods is also recovering 90% growth compared to 2015 revenue and is continuing to expand investment, maintaining its strength of supplying large amounts of sausages to the Northern market. Mavin Foods also invested in building a modern manufacturing plant, with a chain system based on German technology, with a total investment of nearly 10 million USD …

Competition between businesses is increasing heat so businesses have to race to “withdraw their money” to continue investing, gaining market position and sales.

Representatives of Nipponham said: “Although the southern factory in Long Hau Industrial Park has a capacity of 2,500 tons / month, it is now overloaded, so the company has just invested in building a new factory with equivalent capacity in Hung Yen. In particular, Nipponham focuses on product diversification “.

With a total area of ​​6,000 square meters, the factory of Viet Foods is also invested in modern machinery systems. Ms. Huynh Vu Thi Minh Loan – founding member, senior advisor of Viet Foods confirmed: “Viet Foods has invested up to tens of billions of VND in the system, including: smokestacks, shaping machines of Maurc, Fassman, Handman, Inotex, K + G, Sealpack, Variovac. All machinery systems are automated, increasing productivity and saving labor. “


Joining the market later, Ba Huan Company has also shown its strength by both expanding the market to the North and building the Northern Ba Huan High-Tech Poultry Egg Processing and Processing Plant in Phuc Tho town industrial cluster, Phuc Tho district, Hanoi.

Next, Ba Huan will invest in building poultry farms, food processing factories from poultry materials to provide a variety of products to the Hanoi market as well as the northern provinces. Ba Huan Company has just introduced to the market a processed item of fresh sausage with raw chicken and pork. Before that, Ba Huan also launched Oliba sterilized sausages.

Following the trend of sustainable development with safe and quality products, the race of sausage businesses is not only about the size of the factory but also the race of quality and product diversification. Mr. Pham Thanh Hung – Deputy Director of Ba Huan Company, said that in the near future, the company will bring to the market a variety of unique processed foods with main ingredients of chicken and eggs “.

Vissan accounts for 65% of the sausage market share and sausage products contribute more than half of Vissan’s total profit with a steady growth of 15-20% / year.

Mr. Hung added: “The difference of Ba Huan processed products is that they do not coincide with the same products already on the market. Sausage products on the market are usually made from pork and meat. Beef, but Ba Huan sausage is used with beef, chicken or pork in combination with fresh chicken eggs. Another difference is that Ba Huan sausage also contains soy protein, which helps the product taste fatty from beans. Soybeans combine fat from fresh eggs to create a special flavor “.

Ms. Loan also affirmed: “All raw materials and spices of Viet Foods are imported from developed countries in Europe and Asia. The company also signs contracts with the giants of seasoning companies such as Brentag’s. Germany, Connell Bros (USA), Benmeyer (Germany), and Ajinomoto (Japan) …


In particular, in order for the product to have delicious and safe quality, Viet Foods also imports some typical meat ingredients such as Australian beef, German pork, French pork, and chicken fillet at large, prestigious farms. credit in Vietnam with a closed production system and undergo a thorough sterilization process in each production process. From testing raw ingredients, spices, to raw materials quantification, grinding bone-splitting meat, shaping output, through cooking, smoking, cooling and quantifying, then vacuum to reduce spoilage, oxidize the product “.

If the strength of foreign businesses is a closed supply chain from farm to table, fully active in input materials such as CP, Mavin Foods, the strong point of domestic businesses is their flexibility. operation, low operating costs.

“However, the biggest pressure that sausage businesses are facing is unfair competition,” said Ms. Loan. Competition in the food market in general and the sausage market in particular is extremely fierce. Some businesses have encountered unfair competition tactics from their competitors with the aim of lowering their reputation.

The sausage market once witnessed an inaccurate warning, coming from a mistake in the inspection process of the authorities, causing heavy damage to the manufacturing business that then the authorities themselves. The function has corrected and apologized to the enterprise, but then still had competitors sharing information on social networks, causing confusion for users.

Lu Y Nhi
* Source: Saigon Businessman


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