TABLE OF CONTENT

A. INTRODUCTION
B. IMPOSSIBLE FOOD INDUSTRY
C. THE ATTRACTIVENESS OF VIETNAMESE MARKET
1. Market
2. Culture
3. Competition
4. Risk
5. Incentives
6. Resources
D. THE PROPOSED ENTRY MODES
1. Entry objectives ( Market development, Resources, Learning, Coordination)
2. Timing (2 options)
3. Entry Mode (Choose 1 out of 6 entry modes)
4. Building actions plan

A. Introduction
The vegetarian food industry focuses on producing plant-based or non-animal products as
alternatives to traditional meats. In the landscape of globalization today, consumers are
increasingly prioritizing personal health, embracing sustainable lifestyles, and seeking to
reduce negative impacts on the environment. This shift has fueled an explosive growth in
the vegetarian food sector, with an estimated value of up to billions of USD. In many
developed countries, choosing vegetarian food is not just a temporary trend but has
become an indispensable part of consumer's lifestyle. According to the report in 2024 of
Straits Research - one of the highly rated global market research and market intelligence
organization, with the title “Vegan Food Market Size to Expand USD 57.6 billion by
2032”, “the global vegan food market size was valued at USD 22.3 billion in 2023. It is
projected to reach USD 57.6 billion by 2032, growing at a CAGR of 11.2% during the
forecast period (2024-2032)”. According to The Business Research Company, the report
was published in 2024, titled “Vegan food global market report 2024”, said “The vegan
food market size has grown rapidly in recent years. It will grow from $24.58 billion in
2023 to $27.8 billion in 2024 at a compound annual growth rate (CAGR) of 13.1%.”

With the rapid growth of the vegan food market, using technology to produce meat
from plants - often referred to as "fake meat" - has become a new trend, attracting many
startups. Impossible Foods, one of the first companies to pioneer the production of
plant-based meat with a taste and texture similar to real animal meat, was founded in the
United States. With the mission of minimizing the environmental impact of the livestock
industry and providing a sustainable food source, Impossible Foods has quickly made a
name for itself, asserting its position in the domestic market and attracting attention in
many international markets such as Europe, and developed Asian countries such as
Singapore and Hong Kong,...

In Vietnam, the vegetarian food industry is also starting to record significant

growth, although the market is still relatively new compared to many other countries. As
a country famous for its rich and diverse cuisine, Vietnam has a tradition of high meat
consumption in daily meals. According to The OECD-FAO Agricultural Outlook
2021-2030, indicated that in terms of consumption volume, in 2022, Vietnam will be the
leader in Southeast Asia with a total pork consumption volume of 3.45 million tons.
Another study from the National Institute of Nutrition of Vietnam, published in 2023, the
average meat consumption is 134 g/person/day, while the recommended requirement is
70g/person/day.

However, today, with a rapidly growing middle class, rising incomes and
increasing awareness of health and environmental issues among Vietnamese consumers,
Vietnam has become a potential market for plant-based products. According to
Euromonitor International, the vegetarian food market in Vietnam is estimated to reach
about 1 billion USD by 2023 and is expected to grow by 10-15% per year. In addition,
many vegetarian food festivals have been and are about to be organized and take place in
different localities across the country, such as the Vegetarian Food Festival 2024 held in
Ho Chi Minh City, attracting many participants. Many Vietnamese people after the
pandemic are more interested in healthy foods, especially plant-based meat or fake meat.
This is even more true when meat plays an important role in every Vietnamese family
meal, but eating too much meat is the cause of diseases such as obesity, cancer, etc.

This is the reason why many Vietnamese consumers are switching to using
plant-based meat instead of animal meat. This opens up a great opportunity for
Impossible Foods. At the same time, government policies in promoting sustainable
agriculture and ensuring food safety are in line with the core values ​of companies like
Impossible Foods.

Despite these opportunities, Impossible Foods faces certain challenges when

entering the Vietnamese market, such as fierce competition in both domestic and global
markets. In addition, the high price of plant-based products compared to conventional
meat may limit their appeal, especially in a price-sensitive market. To succeed,
Impossible Foods must not only address cultural preferences but also consider localizing
its products and pricing strategies to suit the unique needs of Vietnamese consumers.
 With the topic “...”, this essay aims to analyze the potential and factors affecting
Impossible Foods' expansion into the Vietnamese market, from which to conclude
whether the company should expand the market to Vietnam. If so, proposing strategies
feasible to maximize opportunities and overcome existing challenges, helping Impossible
Foods enter the Vietnamese market.

Even though I put a lot of effort into this essay, I still cannot avoid making
mistakes due to my limited knowledge and experience. I hope to receive your help and
suggestions to complete this essay better.
Sincere thanks to you.
- Độ hấp dẫn của thị trường (đánh giá điểm từ 1 đến 5 và kết luận)
1) Market
1.1. Market size
1.1.1. Economic
According to the General Statistics Office (GSO) report published in June 2024, titled
"Press Release on the Socio-Economic Situation in the Second Quarter and the First Six Months
of 2024," during the first half of 2024, the world economy continued to face complex
developments, negatively affecting sustainable growth. However, Vietnam remains an economy
that international organizations predict will achieve high growth rates in 2024. The World Bank
(WB) forecasts Vietnam's growth at 5.5%, an increase of 0.5%, while the International Monetary
Fund (IMF) predicts 5.8%, an increase of 0.8%.

- Gross Domestic Product (GDP) size:

Socio-economic statistics for the second quarter of 2024 and the first six months show
that the economy continues to exhibit positive trends, with each quarter's growth surpassing the
previous one. Accordingly, GDP in the second quarter of 2024 increased quite well, clearly
showing the recovery trend of the economy with an estimated growth rate of 6.93% over the
same period last year, only lower than the growth rate of 7.99% in the second quarter of 2022 in
the period 2020-2024. In general, GDP in the first six months of 2024 increased by 6.42%, only
lower than the growth rate of 6.58% in the first six months of 2022 in the period 2020-2024. Of
which, the agriculture, forestry and fishery sector increased by 3.34%, contributing 5.36% to the
total value added of the whole economy; the industry and construction sector increased by
8.29%, contributing 45.73%; the service sector increased by 7.06%, contributing 48.91%.

- Gross Domestic Product (GDP) size (PPP)

According to data from the International Monetary Fund (IMF), in 2023, Vietnam's GDP
(PPP) will reach about 1,438 billion USD, ranking 3rd in Southeast Asia and 25th in the world.
In 2024, Vietnam's GDP (PPP) is forecast by the IMF to reach about 1,559 billion USD, ranking
3rd in Southeast Asia. By 2026, Vietnam's GDP (PPP) is forecast by the IMF to reach about
1,833 billion USD, surpassing Thailand and ranking 2nd in Southeast Asia. In the period 2026 -
2029, Vietnam's GDP (PPP) scale is forecasted to continuously rank 2nd in Southeast Asia. In
2029, Vietnam's GDP (PPP) scale is forecasted to reach about 2,343 billion USD.

- Disposable income:

According to the General Statistics Office (GSO) published in July 2024, titled "Positive
and negative points of Vietnam's labor market in the second quarter and the first 6 months of
2024", the average monthly income of workers was 7.5 million VND, an increase of 7.4%,
equivalent to an increase of 519 thousand VND compared to the same period in 2023. Of which,
the average income of male workers is 8.5 million VND/month, female workers is 6.3 million
VND/month; the average income of workers in urban areas is 9,1 million VND/month, in rural
areas is 6.5 million VND/month.

- Export and import:

Companies such as Samsung, Google, Microsoft, and Apple have shifted portions of their
supply chains to Vietnam in recent years as part of their “China plus one” strategies. Notably,
Vietnam’s market share of US imports has gained 2% between 2017 to 2022.

Picture 1: US import market share change for top 15 importing countries (2017 – 2022)

Source: UNComtrade. Data as of April 2023

According to the General Statistics Office (GSO) report published in September 2024,
titled " Impressive acceleration of import and export, expected to break through 800 billion USD
in 2024”, in the first 8 months of 2024, the preliminary export turnover of goods reached 265.09
billion USD, an increase of 15.8% over the same period in 2023. In recent months, the export
turnover of goods has continuously reached high levels, reaching 33.7 billion USD in June, 36.24
billion USD in July, and 37.59 billion USD in August.

Picture 2: Structure of export goods in the first 8 months of 2024 (image translated from
Vietnamese to English). Source: General Statistics Office, September 2024.

Strong increase in goods imports boosts continued recovery in production. Preliminary

goods import turnover in the first eight months of 2024 reached 246.02 billion USD, up 17.7%
over the same period last year, according to the General Statistics Office.
Picture 3: Structure of imported goods groups in 8 months of 2024. (image translated from
Vietnamese to English). Source: General Statistics Office, September 2024.

With steadily growing export and import values, especially the export potential of over
800 billion USD in 2024, Vietnam is becoming an ideal destination for businesses looking to
expand in the region, when it can take advantage of both the vibrant trade environment and the
development of the supply chain in the Southeast Asian region.

- Investment rate: Foreign direct investment (FDI) in Vietnam increases:

According to the Banking magazine, "Attracting foreign direct investment to Vietnam in

the first 6 months of 2024 and prospects" published in July 2024, FDI attraction to Vietnam
increased in terms of new investment capital and adjusted capital. Foreign investors continue to
consider Vietnam an important investment destination in the medium and long term. FDI
attraction in the first 6 months of 2024 still grew positively, reaching 15.19 billion USD. This is
the highest realized FDI capital in the first 6 months of the year in the 5-year period (2020 -
2024). Besides, the presence of many large foreign investors (Samsung, Intel, LG, etc.) has also
proven that Vietnam has a favorable business environment

Vietnam continues to be an attractive destination for foreign direct investment (FDI),

with an increase in both new and adjusted investment capital in the first half of 2024. This shows
the confidence of international investors in the long-term growth potential of the Vietnamese
market.

Conclusion:
 With a strong economy and forecasted stable growth in the coming years, GDP and per
capita income are growing, the increase in imports and exports, along with increasingly strong
foreign direct investment (FDI) flows, Vietnam - a potential market for Impossible Foods

1.1.2. Sociological

- Urbanization:

According to Statista, in 2023, titled “Share of the urban population in Vietnam

2018-2023”, the urbanization rate in Vietnam continues to be strong due to population migration
from rural to urban areas and the expansion of administrative boundaries of urban areas. The
urban population ratio in 2023 of Vietnam is about 38.1%, an increase of 0.6 percentage points
compared to 2022, and an increase of 1 percentage point compared to 2021.

Picture 4: Share of the urban population in Vietnam 2018-2023. Source: Statista

According to the Ministry of Planning and Investment, by the end of 2023, the national
urbanization rate reached 42%, with 902 urban areas. According to Statista 2023, the top 10 most
urbanized provinces and cities in Vietnam are: Da Nang (87.45%), Binh Duong (84.32%), Ho
Chi Minh City (77.77%), Can Tho (70.5%), Quang Ninh (67.5%), Ba Ria - Vung Tau (66.96%),
Thua Thien Hue (52.81%), Bac Ninh (51.32%), Hanoi (49.05%), Hai Phong (45.58%), two
special-category cities: Hanoi and Ho Chi Minh City.
- Socio-economic distribution

The gap between rich and poor in Vietnam is widening despite its rapidly growing
economy. According to data from the World Bank (WB), the richest 20% of people now earn 10
times more than the poorest 20%.

According to Statista, the title “Urban versus rural monthly average income per capita in
Vietnam 2010-2023”, was posted on August 2024, on average, in 2023, an urban inhabitant
earned approximately 6.26 million Vietnamese dong per month, whereas a rural inhabitant
earned around 4.17 million Vietnamese dong monthly. The monthly income of a rural inhabitant
was two million Vietnamese dong lower than that of the urban monthly average per capita. By
2024, the average monthly income of urban workers will be 9.1 million VND/month, and in rural
areas it will be 6.5 million VND/month, according to the General Statistics Office in 2024. This
creates a large gap in living standards and consumption between the two areas.

Picture 5: Monthly average income per capita in rural area versus urban area in Vietnam
from 2010 to 2023(in 1,000 Vietnamese dong). Source: Statista

Conclusion:

Although there is a clear income gap between classes and regions in Vietnam, the
high-income group, especially in large cities such as Hanoi, Ho Chi Minh City, and Da Nang, is
growing rapidly and has a high demand for healthy and sustainable products. These are key
markets with high consumption levels and developed infrastructure, which facilitate foreign
companies that want to expand their market to Vietnam, including Impossible Foods. The
income gap is not a barrier, but an opportunity for Impossible Foods to build a flexible and
suitable pricing strategy for each customer group, thereby promoting sales and growth in
Vietnam.

1.1.3. Demographical

- Population:

According to the General Statistics Office, the title "Press release on population, labor
and employment situation in the fourth quarter and 2023", published in December 2023,
Vietnam's average population in 2023 reached 100.3 million people, in which the proportion of
male and female population is quite balanced (males account for 49.9%, females 50.1%).
Vietnam is the 15th most populous country in the world and the 3rd in Southeast Asia, after
Indonesia and the Philippines. Vietnam is a large and potential consumer market for domestic
and foreign consumer goods.

- Population growth:

The average population growth rate in 2022 is 0.98%, in 2023 is 0.84% ​and is forecast to
continue to decrease in the following years, according to the Vietnam population forecast 2019 -
2069 of the General Statistics Office. Accordingly, the total fertility rate (TFR) in 2023 of
Vietnam is estimated at 1.96 children/women. The fertility rate has tended to decrease slightly in
recent years and is forecast to continue to decrease in the following years. The mortality rate in
Vietnam continues to remain low, demonstrating the successes of the maternal and child health
care program in particular and the work of protecting health and improving living standards for
the people in general in recent years of the Party and State. The average life expectancy at birth
of Vietnamese people in 2023 is 73.7 years; In which, the average life expectancy of men is 71.1
years old, of women is 76.5 years old.

- Age distribution:

Vietnam's population structure is shifting towards an increase in the proportion of the

elderly and a decrease in the proportion of the young population. Vietnam is currently in the
period of golden population structure, the proportion of the working-age population (15-64 years
old) is higher than the dependent population ratio (under 15 years old and over 64 years old).
According to the forecast of the General Statistics Office, Vietnam's golden population structure
will last until 2041 with the median age being 32,9 years old.
Picture 6: Median age in Vietnam in 2024, according to Worldometer - a reference website
that provides counters and real-time statistics for diverse topics

- The Rapid Rise of the Middle Class:

+ The middle class in Vietnam overview:

The middle class in Vietnam has been expanding geographically and becoming more
varied over the last few years. Strong economic growth and rising job opportunities have created
a rapidly growing middle class.

According to the General Statistics Office (GSO) published in July 2024, titled "Positive
and negative points of Vietnam's labor market in the second quarter and the first 6 months of
2024", the number of employed people in the second quarter of 2024 increased by 0.42%
compared to the same period last year. The unemployment rate among working age people
decreased compared to the same period last year. In addition, the average monthly income of
workers was 7.5 million VND, an increase of 7.4%, equivalent to an increase of 519 thousand
VND compared to the same period in 2023. A report by the Ministry of Labor, War Invalids and
Social Affairs published earlier this year also noted that the middle class (with an average
spending level per capita of 11-110 USD/day) is forming rapidly in large cities, currently
accounting for about 13% of the population and will increase to 26% by 2026. It is forecasted
that in the next 25 years, half of our country's population will join the middle class. According to
a report in March 2021 by Statista, it is expected that by 2030, the middle class population in
Vietnam will reach more than 50 million people. Of which, the annual growth rate of the middle
class in Vietnam is 10.1% in the period 2016 - 2021, the highest in Southeast Asia. This is a solid
foundation to promote the development of consumer industries, especially premium and
health-friendly products.

+ Consumer Trends

The Vietnamese middle class is expanding and has a profound impact on the Vietnamese
economy and consumer market. With increasing incomes, people's consumption habits are
gradually changing in a positive direction.

Vietnamese consumers are more interested in quality and experience rather than just
looking for cheap products. They focus on a healthy diet, consuming clean, organic food and
vegetarian products. At the same time, they pay special attention to education, invest in
high-quality educational services and are willing to spend on private training programs and study
abroad.

Another trend is the trend of sustainable consumption. Vietnamese consumers prioritize

environmentally friendly products with clear origins. This is in line with the development of the
green living trend, Vietnamese consumers choose products with recycled packaging, limit the use
of plastic and support brands with commitments to environmental protection. This consumer
behavior extends beyond food to other areas such as fashion, cosmetics, and consumer goods.

Vietnamese consumers are embracing digital transformation, with many relying on online
platforms for shopping, banking, and entertainment. On average, Vietnamese internet users
spend 7 hours a day online, highlighting the importance of digital channels for businesses.

In addition, they also spend significantly on entertainment and travel, especially high-end
and international experiences.

Conclusion:

From a demographic perspective, Impossible Foods’s main customers in Vietnam will be

the young, urban, health-conscious population. This group includes Millennials and Generation
Z, which make up the majority of the population. They are concentrated in urban areas such as
Hanoi, Ho Chi Minh City and Da Nang.

The rapid growth of the middle class, driving demand for high-quality products. For
Impossible Foods, this creates a great opportunity to expand the market, as Vietnamese
consumers are increasingly interested in sustainable and healthy products, which is in line with
the company's mission.

The change in consumption trends of the Vietnamese middle class, especially the trend of
prioritizing quality, clean, organic, and vegetarian products, creates favorable conditions for
Impossible Foods to expand its market in Vietnam. Consumers are not only concerned about
health but also value sustainable consumption, preferring environmentally friendly products with
clear origins, in line with Impossible Foods' environmental protection commitments. In addition,
the trend of consumption through digital platforms and the increase in spending on entertainment
and travel also open up great opportunities for the company to access and promote products
through online channels, contributing to enhancing brand awareness in Vietnam.

1.1.4. Institutional

- Government spending:

In recent years, the Vietnamese government has focused on investing in initiatives for
sustainable development, environmental protection and climate change mitigation. Many policies
have been put forward to encourage the development of clean agriculture, reduce greenhouse gas
emissions and build green cities.

The Ministry of Agriculture and Rural Development has issued Decision No.
1693/KH-BNN-KHCN approving the Greenhouse Gas Emission Reduction Plan (including the
methane emission reduction plan) for the agriculture and rural development sector to 2030, with
a vision to 2050. By 2030, the total greenhouse gas emission reduction is expected to be 121.9
million tons of CO2e (excluding greenhouse gas emission reduction from energy use in
production). Specifically, in the field of cultivation: expanding the application of alternate wet
and dry irrigation technology (AWD) and improved rice cultivation (SRI), 3 reductions 3
increases (3G3T), 1 must 5 reductions (1P5G) and mid-season water withdrawal in wet rice
cultivation suitable for each agro-ecological zone; converting inefficient rice land to
rice-aquaculture (rice-fish, rice-shrimp,) and to upland crops to improve economic efficiency,
suitable for the specific conditions of each locality,... Localities encourage the implementation
and application of organic farming techniques, water-saving irrigation and drainage processes in
farming and the use of agricultural waste through models such as hydroponic vegetable growing,
safe waxy corn growing, fruit vegetable growing using drip irrigation systems, etc.

- Infrastructure:

Vietnam leads Southeast Asia in infrastructure spending, at 5.7% of GDP. Infrastructure

is being upgraded synchronously, especially the road and telecommunications systems.

+ Power:

Electricity supply in Vietnam has generally improved a lot, especially in large cities. The
efforts of the electricity industry and the power grid infrastructure in the province are
increasingly complete, ensuring the smooth operation of electricity, serving the socio-economic
development needs of the province. The goal set by Vietnam Electricity Group (EVN) at the
Conference: "Summary of 2023, implementation of tasks for 2024," organized by EVN on
January 2, 2024, in Hanoi "Focus all efforts to ensure electricity supply for the socio-economic
development of the country and people's lives; ensure the investment progress of power source
projects and power grid projects according to the approved schedule". This is very important for
food production, preservation, and distribution.

+ Telecommunications:

According to the plan to improve the quality of Vietnam's mobile telecommunications

network, the specific goal set by 2025 is to have an average download speed of at least 40 Mbit/s
with 4G Internet access service, based on the measurement results using the i-Speed ​application
to the district, ward, and commune levels. In particular, the plan also sets a goal of covering
100% of railways, national highways, expressways, and 3 urban railways by 2025; ensuring that
no signal loss exceeds 1 km continuously. This creates favorable conditions for online business
activities, product promotion and customer access through e-commerce channels. This is a big
advantage if Impossible Foods wants to promote its products through online platforms such as
Shopee, Lazada, or social media channels.

+ Roads:

Vietnam's transportation system, especially in large cities such as Hanoi and Ho Chi
Minh City, is increasingly developing, including roads, expressways, and logistics systems.
Building intelligent transportation (ITS) is one of the top priorities of the Ministry of Transport
today. Currently, many provinces and cities have been urgently building ITS quickly and
synchronously. In Ho Chi Minh City, in the period of 2021 - 2025, 7 traffic projects under the
city's smart urban program will be prioritized for investment to apply technology to traffic
management and operation in the area. This helps to transport and distribute products faster and
more effectively.

Conclusion:

Impossible Foods can benefit from the Vietnamese government’s policies on sustainable
development and environmental protection. In addition, the increasingly improved
telecommunications and transportation infrastructure also facilitates market expansion. However,
some challenges such as uneven development between regions, infrastructure issues and import
regulations need to be carefully addressed to ensure success when entering the Vietnamese
market.

1.2. Quality of demand

The Vietnamese vegetarian food market is considered one of the promising markets with
high growth potential in Southeast Asia, thanks to economic growth, average income of people,
and the development of the middle class, thereby changing consumer habits, concerns about
health and sustainable lifestyle. According to data from market research company Kantar
presented at the international scientific conference on “Plant Nutrition and Health Solutions for
the 21st Century”, the vegetarian food industry will skyrocket in the Asia Pacific (APAC)
market, with Vietnam in the top 4 leading markets. In particular, Vietnam has high growth
potential to become the leading country in plant-based foods in APAC. According to a report by
Research and Markets, the vegetarian food market in Asia Pacific, including Vietnam, is
estimated to reach around US$27.6 billion in revenue by 2027, with a compound annual growth
rate (CAGR) of around 9.8% during the period 2020-2027. According to a report by market
research firm Euromonitor, the number of vegetarians in Vietnam has doubled in the past 10
years, from about 7% in 2013 to 14% in 2023. A special feature of the vegetarian market in
Vietnam is the rapid growth of the vegetarian food processing industry. According to data from
Euromonitor, the annual growth rate of this industry in the period 2010-2015 reached 12%,
higher than the global growth rate of 8%. This shows the shift of consumers to the use of
vegetarian products and foods.

Currently, the Vietnamese vegetarian food market is also divided into many different
segments to meet the diverse needs of consumers. The two common segments in the Vietnamese
market are the low-end segment and the high-end segment

1.2.1. Low-end segment

This segment is mainly low-income or middle-income consumers, often living in

suburban or rural areas. This group of customers is less concerned with product quality or
sustainability certification, but focuses on low-cost vegetarian products that serve basic needs,
such as tofu, mushrooms, and vegetables. This segment has an average price sensitivity, but they
are still willing to pay for quality products that meet their needs.

1.2.2. High-end segment

The high-end segment includes high-income consumers, often living in large cities such
as Hanoi and Ho Chi Minh City. They are willing to pay more for vegetarian food for health,
environmental, and green consumption reasons. This group of customers not only looks for
high-quality products but also focuses on origin, organic certification, and contribution to
sustainable development.

Conclusion:

With factors such as green consumption trends, competitiveness based on technology and
sustainable values, as well as affordability, Impossible Foods should focus on the high-end
segment when expanding the market in Vietnam. This will not only help the company reach the
right customers with demand for premium vegetarian products, but also maximize profits and
build a strong brand in this new potential market.
2) culture distance :
GSM Mục 1 + 4
- Silent language : time, space, materials goods, friendships, agreements and
context.
- Culture Dimension : Hofstede, Trompenaars
- country cluster
- Economic culture and business system
3) competition ( phân tích 5 forces model ( mỗi forces 4 criterias)
5 Forces ( analyze 5 stages => O/T)
4) Risk
1. POLITICAL RISK (Threats to shareholders value, employees, operation)
1.1 Threats to shareholders value:

- Capital lost: One of the biggest risks for Impossible Foods is capital loss
due to fluctuations in exchange rates and foreign exchange regulations.
Meanwhile, Vietnam tightly controls currency conversion issues and
applies policies that restrict the outflow of capital, making it difficult for
Impossible to recover profits or transfer investment capital.
- Asset lock and inability to transfer: In the event of a political or
economic crisis, the government may implement measures to freeze assets
or restrict the transfer of assets of foreign investors. This can pose
significant challenges for companies like Impossible in preserving their
assets and shareholder interests.
- Threats to employees: Vietnam is considered a safe country compared to
others in the region; however, risks related to gangsterism, crime, and
kidnapping still exist. Criminals often operate on a small scale and
primarily engage in areas such as protection rackets, loan sharking, and
prostitution. However, in recent years, cybercrime and Internet fraud have
increased, especially targeting foreign companies. These threats do not
directly affect personal security but can have negative impacts on business
operations or the personal data of employees. In 2022, there were over
11,000 cyberattacks targeting information systems in Vietnam, an increase
of more than 44% compared to the previous year. According to a report
 from Kaspersky Lab in 2023, over 30% of businesses in Southeast Asia,
including Vietnam, experienced at least one cyberattack in the year.

1.3 Threats to operation: Vietnam's Ministry of Finance periodically adjusts tariffs

on food imports, which could increase the cost of bringing Impossible products into the
country. When entering the Vietnamese market, The Impossible Foods has to undergo
many strict inspection stages, especially for vegan foods. This process may require more
time because these products are not popular in Vietnam. Long and prolonged inspection
times will generate many legal costs and delay the time for the products to penetrate into
this market. Requirements on labeling, ingredients and food safety will increase the
company's operating costs, leading to an increase in the final price of the product,
reduction of the product’s competitive pricing, compared to domestic products with
suitable prices. In particular, Impossible Foods has to consider the risk of products being
rejected in the Vietnamese market when they do not meet market requirements. The
policies of the Vietnamese market in encouraging and supporting the development
of domestic enterprises such as the policy of developing supply chains as well as
protecting domestic production indirectly cause challenges for Impossible Foods' market
penetration. Currently, the government focuses on the connection and stability in the
domestic supply chain by investing in infrastructure, transportation systems and
building a chain from production to consumption. This helps producers approach
potential intermediary partners and domestic products are introduced early to domestic
consumers. Moreover, the campaign "Vietnamese people use Vietnamese products" is
a link in the government's policy to strengthen customer support and trust in domestic
products, while enhancing the recognition and familiarity of Vietnamese brands.
2. ECONOMIC RISK ( low economic growth, economic unstable, inflation, input
cost, exchange rate => push profitability at risk)

2.1 Low economic growth: After the COVID-19 pandemic, Vietnam's economy showed
positive signs of recovery, with a growth rate rising from 2.9% in 2020 to 8.0% in 2022.
However, according to the World Bank, the forecast for Vietnam's economic growth in
2024 is only around 5.5%. This low economic growth will reduce consumer purchasing
power, leading to lower demand for plant-based meat, which is generally more expensive
than traditional protein sources.

2.2 Economic instability: Economic instability in Vietnam arises from various factors,
including dependence on global markets and changes in policies and regulations.
According to data from the World Bank, the value of Vietnam's goods and services
exports reached approximately 92% of GDP in 2023. Foreign Direct Investment (FDI)
enterprises account for up to 74% of Vietnam's total export turnover. This data indicates
that the Vietnamese economy is significantly reliant on international trade. Therefore,
factors such as geopolitical tensions or changes in trade policies (e.g., U.S.-China
relations) can impact exports and supply chains. Additionally, sudden changes in foreign
investment, trade, or environmental conditions present certain legal and operational
challenges for Impossible Foods.

2.3 Inflation: There is a risk associated with economic instability, such as inflation or
currency volatility. Vietnam is currently facing a challenging economic situation, with
inflation forecast to reach around 3.5-4% in 2024. This includes an increase in money
supply, gold prices, and essential living expenses such as healthcare and education. This
inflation could have a negative impact on consumer purchasing power, making it difficult
for foreign businesses to maintain competitive prices when importing into Vietnam.
Rising inflation and the cost of living could cause consumers to tighten their spending,
especially in the premium segment such as imported vegetarian products.

2.4 Rising input costs: In recent years, the economy has witnessed a rapid increase in
factors such as raw material prices, energy costs, logistics and transportation expenses,
and labor costs. According to recorded data, from 2022 to 2023, the import prices of raw
materials in Vietnam rose by 10-15%, particularly in the food and agriculture sectors.
This increase is attributed to the lingering effects of the COVID-19 pandemic and global
supply chain disruptions caused by political conflicts (Ukraine and Russia). The
significant fluctuations in global oil prices have also led to increased energy costs and
logistics and transportation expenses. Statistical data shows that the cost of international
container shipping rose by 5-10% in 2023 compared to the previous year. Furthermore, to
ensure the livelihoods of workers and balance inflation, the minimum wage in Vietnam
has been adjusted upwards accordingly. Since July 2022, the regional minimum wage has
increased by an average of 6%, adding cost pressure to manufacturing businesses,
especially those looking to enter the Vietnamese market, such as Impossible Foods. All of
the aforementioned cost increases affect production cost calculations and lead to higher
selling prices in the Vietnamese market, thereby reducing the competitiveness of the
products.

2.5 Exchange Rate Volatility: The Vietnamese dong (VND) is projected to weaken
slightly in 2024, with exchange rates reaching VND 24,050 per USD. This devaluation
could increase the cost of imports for businesses reliant on foreign raw materials, such as
Impossible Foods. It could also impact pricing strategies, especially for a premium
product in a price-sensitive market like Vietnam​.
3. OPERATIONAL RISK

3.1 Infrastructure Supply chain disruptions: Impossible Foods relies heavily on

global supply chains for key raw materials like plant proteins and vegetable oils.
Disruptions caused by the Russia-Ukraine war have resulted in significant price increases
for these inputs. In particular, global vegetable oil prices have spiked, which has raised
production costs. Furthermore, international logistics issues, including congestion at
major Vietnamese ports such as Cat Lai and Hai Phong, have led to increased
transportation costs and longer shipping times. Freight charges from industrial hubs like
the US and Europe to Southeast Asia have risen by 200–300% during the pandemic and
remain high. These factors collectively make it challenging for Impossible Foods to
maintain competitive pricing in Vietnam’s price-sensitive market, potentially limiting
their market growth.

3.2 Regulations: Raw material sourcing and GMO regulations: Impossible Foods faces
additional risks related to the regulatory environment in Vietnam, particularly concerning
the use of genetically modified organisms (GMOs). Vietnamese laws surrounding GMOs
could complicate the importation of certain plant-based raw materials, potentially leading
to longer product development timelines and increased costs. As the company relies on
unique ingredients, such as plant proteins and heme (which may fall under GMO
scrutiny), compliance with local regulations could slow the process of bringing new
products to market. This could also increase production costs, affecting product
affordability and viability in the Vietnamese market where price competitiveness is
critical.

4. COMPETITIVE RISKS
4.1 Robust culture of meat consumption: Pork in particular is a staple of
Vietnamese cuisine and culture. The United States Department of Agriculture
(USDA) and the Vietnamese Ministry of Agriculture and Rural Development both
claim that Vietnam has one of the highest per capita rates of pork consumption in
the world, with pork making up around 70% of the nation's overall meat
consumption. According to statistics, pork consumption per capita in 2023 is
estimated at 33.8 kg. This shows that Vietnam is still one of the leading pork
consuming countries in the world, and the trend is expected to continue to increase
in the coming years. Plant-based meat substitutes face significant obstacles since
meat is still seen by customers as a sign of riches and a staple of family dinners,
particularly during the Tet festival.
4.2 Domestic competitors and low-cost substitutes
- Domestic competitors: Vietnamese businesses operating domestically
have either already begun producing plant-based food items or are capable
of doing so. This benefits domestic businesses in the following ways:
❖ Understanding the market: Local food producers are well-aware
of Vietnamese eating customs, preferences, and affordability. This
makes it simple for them to modify their products to meet consumer
demands. For instance, companies that specialize in pig products,
such as Vissan, have dabbled in creating plant-based food items and
are prepared to enter this market if demand rises.
❖ Robust distribution network: Local businesses already enjoy
favorable connections with supermarkets and retail outlets, as well
as a broad distribution network. This enables them to reach
customers faster than Impossible Foods, which must establish
rapport gradually.
❖ Familiar Brands: Domestic brands have built up a reputation and
trust with consumers over many years. Once consumers are familiar
with a brand, switching to a new product, especially from a foreign
company, can be difficult.
- Cheap Alternatives
❖ Impossible Foods’ plant-based products, despite their health and
environmental benefits, are still more expensive than conventional
meat and other alternatives. This is especially important in Vietnam,
where most consumers are still price-sensitive.
❖ Cheap Meat Products: Meat from domestic sources such as pork,
chicken, and beef is often cheaper than imported plant-based food
products such as Impossible Foods. This may make consumers less
willing to pay more for plant-based alternatives.
❖ Cheap plant-based food products: In addition to Impossible Foods,
the Vietnamese market has cheaper plant-based food products from
brands such as Vecom Vegetal or similar products imported from
China and Thailand. These products may not be as good as
Impossible Foods, but they still meet the needs of price-sensitive
consumers.
 4.3 Unfair competition from established brands: Veggie World is one of the
brands that are close to consumers in the vegetarian food segment with a variety of
products such as ham, sausage, vegetarian meat with an impressive market share of
30-35%. In addition, with a market share of 15-20%, Vissan also causes many obstacles
for Impossible Foods when they have built a strong distribution system and prestigious
brand. Other multinational companies such as Beyond Meat and The Vegetarian Butcher
with global experience, regressive distribution and optimized strategies help create
significant competitive advantages for new companies or companies preparing to enter
the market. This makes it difficult for Impossible Foods to compete on price and market
access.

5) incentives
- Chính sách, regulation, rule => có thu hút được investment ko? ( đề cập tới
opportunities and threats to foreign investors)
6) Resources (tận dụng nguồn lực nào -> value chain)
- Natural
- Human
- Infrastructure

Giới thiệu công ty Impossible Foods, cơ hội và thách thức khi gia nhập thị trường
Việt Nam

- có nên đầu tư vào việt nam không ( mình nghĩ nên search data để prove)
- 1 Lý do vì sao doanh nghiệp nên đầu tư ở Việt Nam(thị trường tại Việt Nam phát
triển như thế nào; doanh nghiệp nhận được lợi ích gì khi đầu tư vào Việt Nam)
- Cơ hội và thách thức của thị trường Việt Nam
-
-
- đề xuất entry mode ( sẽ làm sau thứ 6 này vì chưa học)
1. Trc khi de xuat entry mode, tra loi cau hoi Gia nhap VN doanh nghiep se
nhan dc entry objectives naof (market development, resources, learning,
coordination

note: mỗi factor trong 5 forces đề cập 4 criterias

 - Đề cập CPI
- Thị trường có sản phẩm đó chưa? Market size thế nào
- Người ta có cần sản phẩm đó trong tương lai không

3. Competition:
3.1 New Entrants:
● Supply-Side Economies of Scale (High)
-> Threat level: Low (2)
+ Impossible Foods has demonstrated significant economies of scale,
particularly through rapid expansion in production and distribution. The
company’s production capacity has increased substantially, with a sixfold
increase since 2019, allowing it to supply its products to over 17,000
grocery stores nationwide. This expansion enables the company to reduce
production costs and pass savings to consumers. For instance, Impossible
Foods implemented several price cuts, with reductions of over 20% in some
markets, reflecting its ability to operate more efficiently at scale. These cost
reductions are part of the company's strategy to undercut traditional meat
prices and make plant-based alternatives more accessible
+ Smaller or new entrants in the plant-based food industry face challenges in
competing at the same price level. They lack the production efficiency and
scale that Impossible Foods has achieved, making it harder to match its
lower price points. This advantage allows Impossible Foods to remain
competitive while continuing to grow its market share​
+ Impossible Foods' CEO stated that the company's "hypergrowth has
profound implications for the environment and enables Impossible Foods to
achieve economies of scale -- cost savings that Impossible Foods plans to
keep passing along to business owners and consumers" [1]. This directly
acknowledges the company's ability to achieve supply-side economies of
scale.
+ Impossible Foods has raised over $1.2 billion in investment from major
firms like Khosla Ventures and Temasek, providing the capital necessary
 to scale production quickly. Access to large amounts of capital allows the
company to expand its production capabilities rapidly and drive down costs.
New entrants typically lack the same level of financial backing, which
constrains their ability to invest in large-scale production facilities, R&D,
and marketing efforts, keeping their production costs high.
● Capital Requirements (High)
-> Threat level: Low (2)
+ Research and Development (R&D): The research and development of
unique components to create plant-based meat products that mimic the
flavor and texture of beef requires significant investment. For example,
Impossible Foods had to research and develop a plant-based protein called
heme to achieve the distinctive flavor of beef. [2]
+ Marketing: Building the brand and marketing new products like the
Impossible Burger demands substantial capital to capture consumer
attention. Impossible Foods has collaborated with well-known restaurants
to promote its products. [3]
+ Distribution: Establishing a distribution and supply chain system to
provide products to restaurants and retail stores nationwide also requires
significant funding. Impossible Foods had to build large manufacturing
facilities to meet the growing demand.
● Switching Cost (Low)
-> Threat level: High (5)
+ In 2024, the switching costs for consumers between Impossible Foods and its
competitors—both plant-based alternatives and traditional meat—are minimal,
primarily because consumers face few financial or practical barriers when trying
new products. The market is filled with a variety of plant-based and meat products,
all available at similar price points, making it easy for consumers to switch based
on personal preferences such as taste, texture, or health considerations​
+ Additionally, improvements in the taste and texture of plant-based alternatives,
including those from Impossible Foods, have helped make these products more
accessible and appealing to a broader audience. Even though some consumers may
prefer the taste of traditional meat, the availability of similar plant-based options
allows them to switch easily without incurring any significant cost. Brands like
Impossible Foods are also continuously innovating to compete with both
 traditional meat and other plant-based alternatives, offering consumers more
choices
+ Moreover, the competitive pricing of plant-based products, as Impossible Foods
lowers its costs through economies of scale, makes it easier for consumers to try
plant-based options without a significant financial commitment. As a result, the
plant-based market’s growth encourages more consumers to experiment with
different products, reinforcing the idea that switching costs remain low​.
● Distribution Channels (Medium)
-> Threat level: Medium (3)
+ Vietnam: In 2024, Vietnam's distribution channels present moderate
challenges for new entrants like Impossible Foods, particularly those
targeting specialty products. Traditional retail outlets such as wet markets
still dominate rural areas, but modern retail channels are growing,
especially in urban regions. The increasing popularity of e-commerce
platforms like Shopee and TikTok Shop, which have expanded significantly,
offers flexible entry points for companies specializing in plant-based or
innovative food products. E-commerce penetration has surged, accounting
for nearly 10% of total retail sales and projected to grow further by 2025.
This trend lowers barriers to entry by offering alternatives to conventional
distribution channels.
Moreover, the rise of specialty stores and minimarkets in urban areas
creates additional opportunities for brands to distribute niche products like
plant-based foods. While these channels offer some flexibility, competition
remains high, with both local and foreign brands vying for market share in
an increasingly digital and diverse retail landscape​
Average: 3
3.2 Threats of Supplier :
● Supplier Concentration : Many organizations -> Low level of threat : ( 2 )
+ Impossible Foods has developed its own proprietary heme ingredients rather than
sourcing heme from an external supplier, that is central to the taste and
functionality of its plant-based meat products.
+ The market for food ingredients and agricultural products (such as soybeans,
coconut oil) is quite large and has many organizations and suppliers worldwide
involved in the production and distribution process.
+ Soybeans : Cargill, Archer Daniels Midland (ADM), Roquette, Louis Dreyfus
Company (LDC),.... In VietNam : Nafoods Group, Lavina Food, IFood Vietnam,...
 + Coconut oil and sunflower oil : Bunge, Archer Daniels Midland (ADM), Wilmar
International, Franklin Baker,.... In VietNam : Dinh Phu My Coconut Company
Limited, Dat Thuan Import Export Trading Manufacture Company Limited,
Pertamina Group,....
+ Flavors and fragrances: Givaudan, Kerry Group, Firmenich, Symrise,.....In
VietNam : Viet Huong Flavor & Fragrance JSC, Hoang Anh Flavors and Food
Ingredients Co., Ltd,....
● Supplier Products : Standardized -> Low level of threat : ( 2 )
+ Beyond Meat and Impossible Foods have partnered with different suppliers, such
as Roquette for pea protein, and ADM or Cargill for soy protein, without having to
change product formulations significantly. This shows that the differences between
products from different suppliers are very small.
+ Coconut oil and sunflower oil are also popular ingredients and are supplied by
many companies such as Bunge, Wilmar International, Vita Coco and Franklin
Baker, Nafoods Group, Lavina Food, IFood Vietnam . This shows that these
ingredients are relatively easy to substitute, and they are not highly differentiated.
+ Most soy and pea protein manufacturers comply with international quality
standards, such as FSSC 22000, ISO 9001, and GMP (Good Manufacturing
Practices). These standards ensure that the output from different suppliers is of
equivalent quality and meets the requirements of the food industry.
● Supplier Substitutes : Moderate -> Level of threats : ( 3 )
+ While soy and pea proteins are popular today, other options include wheat protein,
rice protein, hemp protein, and algae protein provided by Axiom Foods, RiceBran
Technologie, Manitoba Harvest, Corbion …. . However, these proteins do not have
the same texture and flavor as soy and peas. While soy and pea proteins tend to
have a smoother, creamier texture, wheat proteins, especially gluten, provide a
chewier, more fibrous texture, and rice proteins tend to have a grittier, more
powdery texture.
+ Other vegetable oils such as canola oil, palm kernel oil, and avocado oil provided
by Wilmar International, IOI Group, CalPure Foods,... can be substituted for
coconut oil and sunflower oil in some cases. However, coconut oil has the unique
ability to mimic the fattiness and flavor of meat, which other vegetable oils have
difficulty replicating accurately.
=> AVERAGE :( 2 + 2 + 3 ) / 3 = 2.333

3.3 Threats of Substitutes :

 ● Price : Less expensive -> High Threat level ( 4 )

+ Ground beef (80/20 beef, 80% lean 20% fat): + Impossible Savory Sausage Made From
Grocery store: $5 - $7 per pound. Plants :$6.99
+ Regular beef hamburger (McDonald’s, Burger + Impossible Burger Made From Plants :
King): $2 - $3 for a regular hamburger, $4 - $11.09
$5 for a Big Mac or Whopper. + Impossible Burger Patties Made From
+ Veggie Burger (grocery store): About $4 - $5 Plants : $9.99
for 4 plant-based burgers. + Impossible Chicken Nuggets Made From
+ Tofurky Plant-Based Deli Slices: About $3 - Plants : $6.99
$5 for 5.5 oz (156g). + The price cuts bring the company’s
+ Tofurky Roast (for the holidays): $12 - $15 suggested retail prices for Impossible
for a 26 oz (737g) package Burger to $5.49 for patties and $6.99 for a
+ Cultured meat is still very expensive and not 12-oz. package.
widely available, but some companies like Eat
Just have started selling cultured chicken for
$23 - $50 per dish at high-end restaurants
(mainly in Singapore and the US).

● Buyer Price Sensitivity : High -> Threat of level : ( 4 )

- Impossible Foods strategically targets mainstream consumers who care about
health, the environment, and animal welfare :
+ Plant-based (vegan and vegetarian) consumers.
+ Consumers seeking sustainable and socially responsible products.
+ Younger consumers, especially Millennials and Gen Z.
+ Prioritizes making their products delicious and appealing to meat-eaters as
the key to driving widespread adoption and impact.
- Shoppers are price-sensitive, and when prices go up, they’re less likely to buy
plant-based foods. That’s evidenced by research from The Good Food Institute:
The plant-based food industry is already facing challenges in 2023, with U.S.
plant-based food sales down 2% in dollars and 9% in units compared to 2022. A
major factor contributing to this decline is the impact of price increases and
inflation. In 2023, the average price of plant-based foods is up 8% compared to
2023.
- Younger consumers, especially Millennials and Gen Z : Based on a McKinsey
company report we can see that Gen Z and Millennials have significantly lower
disposable incomes than older generations. Gen Z has around $360 billion in
disposable income, while Millennials also have lower incomes compared to Gen X
and Boomers. Due to their lower incomes, Gen Z and Millennials are more likely
to trade down to find better value and pricing. The results show that 86% of Gen Z
and Millennials report trading down, compared to 76% of Gen X. These
consumers are more likely to compare prices between products, including
plant-based alternatives and traditional meat products. If substitutes (such as
cheaper plant-based alternatives or real meat products) offer similar benefits at a
lower price, these groups may switch more easily.
● Buyer Switching Cost : Very Low -> Threat of level : ( 5 )
- Cost :
+ The prices of impossible food products and those of alternative companies are not
much different, in fact impossible food's prices are even higher. Therefore,
customers can easily switch to alternative products.
+ For example : Some consumers switched to products from MorningStar Farms or
Gardein due to lower prices and greater availability. MorningStar Farms products
range in price from $6.89 to $7.39 for a pack of 4 burgers, which is significantly
cheaper than Impossible Foods (around $7 to $10).
- Convenience to buy products :
+ There are many e-commerce platforms, websites and stores that sell impossible
food and also sell its substitutes. Consumers can easily find alternative products
without any difficulty in purchasing.
+ For example : Instacart , Bareburger :Bareburger even serves Vegan Options from
different brands, Umami Burger, The Counter : Other products like plant-based
chicken from brands like Gardein., Qdoba : offers traditional vegetarian and
animal meat options, making it easy for customers to make substitutions if desired.
● Buyer Profile : Risk avoidance -> Level of threats : ( 2 )
- Impossible Foods caters to a market that includes consumers who are concerned
with sustainability, environmental impact, and ethical standards. Many consumers
who prioritize these values also tend to prefer regulated industries where there are
clear standards for food safety, environmental laws, and transparency.
- Consumers who prefer stability are more likely to choose products from
companies that adhere to strict food safety standards, have certifications (like
Non-GMO, USDA Organic), and follow sustainability regulations. Impossible
 Foods has built trust with such consumers through its commitment to
environmental sustainability and transparency in ingredient sourcing such as :
+ The key ingredient that gives Impossible Foods its "meat-like" properties is
heme (derived from soybeans), which received GRAS recognition from the
FDA in 2018, after being evaluated for safety.
+ Impossible Foods has received Kosher certification from the Orthodox
Union.
+ Impossible Foods has received Vegan certification, ensuring that the
company's products contain no animal ingredients, meeting the needs of
vegetarian and vegan consumers.

=> AVERAGE :( 4 + 4 + 5 + 2 ) /4 = 3.75

3.4 Threats of Competition :

Competition rivalry average 17/3 =3.4

1. Existing competitors
Direct competitors Indirect competitors

global market Vietnamese market food stalls, restaurants, restaurants both selling
take-away restaurants plant-based food and
meat-based food

Limited liability Au Lac, Vissan, Vegan Bánh mì, Hanoi, Au Lac Chay – Nha Trang, Ans
company Beyond Cau Tre, Ngoc Vegan Family Restaurant, Vegetarian Cuisine – Da
meat Lien. Song Huong, Ho Chi Minh City, Veggie Nang,Veggie Saigon – Ho Chi
Dai Binh Duong Saigon, Ho Chi Minh City, Minh City
Food LLC, Sai Gon The Fisherman, Hoi
 Food JSC, An,Filthy Vegan, Ho Chi
Nutrigreen, Bong Minh City, Banh My Chay,
Mai Da Nang, Chickpea Eatery,
Da Nang

https://worldvegantravel.co
m/blog/the-top-7-vegan-rest
aurants-in-vietnam/

- With such that medium number, the level of existing competitors threat to the
company is relatively high (point 4)
2. The industry growth

Number of current buyers - A survey by Rakuten Insight in February 2024 found that about 86% of
respondents in Vietnam have consumed plant-based alternatives to
animal-based food products. The same survey also found that 86% of
respondents have tried plant-based milk alternatives such as soy, rice,
almond, or oat milk. [1]
- The Vietnam vegan food market is projected to grow at a CAGR of 10.10%
from 2024 to 2032, driven by growing concerns about animal welfare,
environmental sustainability, and health and wellness among Vietnamese
consumers. [2]
- The Vietnam meat substitutes market was valued at $34.73 million in 2023
and is expected to reach $59.03 million by 2029, growing at a CAGR of
9.30%. This growth is fueled by the increasing adoption of plant-based
diets and health consciousness among Vietnamese consumers. [3]
https://www.statista.com/statistics/1072890/vietnam-plant-based-food-consumers/
https://www.imarcgroup.com/vietnam-vegan-food-market
https://www.techsciresearch.com/report/vietnam-meat-substitutes-market/2139.ht
ml

The awareness and future -The growing concerns among Vietnamese consumers about animal welfare,
trend environmental sustainability, and health and wellness are driving the demand for
plant-based foods. [1]
-There is a surge in health-conscious consumers in Vietnam, who are increasingly
 prioritizing their well-being and seeking sustainable and nutritious food options.
This shift is backed by scientific research highlighting the benefits of reduced
meat consumption. [2]
https://www.imarcgroup.com/vietnam-vegan-food-market
https://www.blueweaveconsulting.com/report/vietnam-plant-based-protein-market

Market room for new There appears to be significant market opportunity for new entrants into the
entrants plant-based food market in Vietnam:

- The Vietnam meat substitutes market is projected to grow at a CAGR of

9.30% from 2024-2029, reaching a market size of USD 59.03 million by
2029. This indicates strong demand and growth potential for plant-based
meat alternatives. [1]
- The broader Vietnam vegan food market is also expected to grow at a
CAGR of 10.10% from 2024-2032, driven by increasing consumer
awareness and concerns around animal welfare, environmental
sustainability, and health benefits of plant-based diets. This creates
opportunities for new vegan and plant-based product offerings. [2]
https://www.techsciresearch.com/report/vietnam-meat-substitutes-market/2139.ht
ml
https://www.imarcgroup.com/vietnam-vegan-food-market
https://www.giiresearch.com/report/ksi1390015-vietnam-plant-protein-market-for
ecasts-from.html

=> with such that potential in the industry growth, the threat level of competitive rivalry
is slow (point 1)
3. Product differentiation

Company Ingredients and technology Taste and texture Product offerings

Limited Beyond Meat is a plant-based meat Beyond Meat's products Beyond Meat offers a range of
liability alternative company that uses a are designed to mimic plant-based meat alternatives,
company unique process to create its the taste and texture of including:
Beyond meat products. The company sources its traditional animal-based
key components - protein, fat, meat. According to the - Beyond Burger - A beef
 minerals, carbohydrates, and water company, the heating, burger patty made from
- from plant-based sources like cooling, and pressure pea, rice, and mung bean
pea, mung bean, faba bean, and process allows them to proteins
brown rice. Through a process of layer in plant-based fats, - Beyond Sausage - Vegan
heating, cooling, and pressure, carbohydrates, flavors, sausage alternatives in
Beyond Meat is able to create the and colors to replicate bratwurst, hot Italian, and
fibrous, meat-like texture of its the appearance, sweet Italian flavors
products. The company does not juiciness, and flavor of - Beyond Meatballs -
use any genetically modified real meat. Reviews of Plant-based meatballs
ingredients, hormones, or Beyond Meat's products Beyond Chicken Strips - An
cholesterol in its formulations. have generally been early product that was later
positive, with many discontinued
noting the convincing
meat-like qualities, The company has also partnered
though some have said with major food chains like
the likeness to real Dunkin', McDonald's, and Taco
chicken is "tolerable, at Bell to develop plant-based
best". menu items using its products.
Beyond Meat continues to
expand its product lineup and
distribution to make its meat
alternatives more widely
available.

https://www.beyondmeat.com/en
-US/about/our-ingredients/
https://www.beyondmeat.com/en
-US/faqs
https://en.wikipedia.org/wiki/Be
yond_Meat

Au Lac Au Lac uses a variety of The reviews of Au Lac's Au Lac offers a full menu of
plant-based ingredients to create food indicate that they Vietnamese-inspired plant-based
their dishes, focusing on are able to achieve cuisine at their two locations.
Vietnamese and fusion flavors. delicious and satisfying This includes dishes like rice,
 Based on the information plant-based dishes with noodles, curries, and fried
provided, they do not seem to rely appealing textures. "seafood" items. They seem to
on highly processed meat or dairy Customers have have a focus on recreating
alternatives. Instead, they likely described the food as classic Vietnamese flavors and
utilize whole food plant-based having "playful dishes using only plant-based
ingredients and techniques like symphonies of textures, ingredients [1]. Their wide range
fermentation to achieve their tastes, and visuals" [1]. of offerings allows them to cater
desired flavors and textures [1]. Specific items like the to a variety of tastes and dietary
"raw curried rice" and preferences.
"salt and pepper yam
'shrimp'" suggest they Overall, the reviews and
are able to create unique information available indicate
and craveable that Au Lac is able to create
plant-based textures that high-quality, flavorful, and
mimic traditional dishes. texturally appealing plant-based
Vietnamese cuisine using
thoughtful ingredient selection
and preparation methods. Their
ability to satisfy customers
across taste, texture, and variety
of offerings is impressive.
https://www.aulac.com/
https://www.ncbi.nlm.nih.gov/p
mc/articles/PMC10137571/

Vmeat Vmeat likely uses a variety of Vmeat likely aims to Based on the market trends,
plant-based protein sources to closely mimic the taste Vmeat likely offers a range of
create their meat alternatives, such and texture of traditional plant-based meat alternatives,
as soy, pea, wheat, and potentially meat products, in order including:
newer sources like seaweed, algae, to appeal to meat-eating Minced products like burger
and fermentation-derived proteins consumers [1][2]. patties and nuggets [1]
[1][2][3]. The use of advanced Muscle-type products
The company likely employs processing techniques resembling chicken or steak [1]
common processing techniques and blending of different Emulsion-type products like
like extrusion, shearing, and plant proteins likely sausages and deli meats [1]
 mixing to texturize and structure allows Vmeat to achieve The company may also produce
the plant proteins into meat-like meat-like textures, with other plant-based dairy
products [1][3]. fibrous, juicy, and firm alternatives, such as cheese,
Vmeat may also use various characteristics [1][3]. desserts, and snacks, to expand
binders, emulsifiers, and other Flavor development is their product portfolio [2].
functional ingredients to improve also important, with the Vmeat likely distributes their
the texture, juiciness, and stability company likely using a products through various
of their products [1][3]. combination of natural channels, including
The company seems to be focused seasonings, smoke supermarkets, convenience
on using less refined, more whole flavors, and other stores, specialty stores, and
food ingredients in their products, techniques to replicate online platforms, to reach a wide
rather than highly processed the savory umami taste consumer base [2].
ingredients, to appeal to of meat [1][2]. https://www.techsciresearch.com
consumers looking for more /report/vietnam-meat-substitutes
natural meat alternatives [2]. -market/2139.html
https://www.ncbi.nlm.nih.gov/p
mc/articles/PMC7999387/

=> the threat level is medium (point 3)

4. Switching costs
- Price parity: The search results indicate that plant-based products are often more
expensive than their animal-based counterparts, but this price gap is starting to
narrow. As plant-based companies scale up and become more efficient, they are
able to offer their products at similar or even lower prices than meat and dairy [2].
This reduces the switching cost for consumers, as the price difference is no longer
a major barrier.
- Taste and texture improvements: The plant-based industry has made significant
strides in improving the taste and texture of their products to better mimic
animal-based foods [1]. As these sensory qualities continue to improve, consumers
have less incentive to stick with a particular brand and are more willing to try
alternatives.
- Variety of options: The search results note that the plant-based market has grown
substantially, with a wide range of companies and product options available to
consumers [1]. This abundance of choice makes it easier for consumers to switch
between brands without feeling locked into a single option.
 - Lower food expenditures: Interestingly, the research indicates that plant-based
consumers, particularly vegans, actually tend to spend less on food overall
compared to omnivorous consumers [3]. This suggests the switching cost is low, as
plant-based consumers are not necessarily paying a premium for their dietary
choices.
In summary, the evidence points to relatively low switching costs for plant-based
consumers. Factors like price parity, improved product quality, market competition, and
lower overall food expenditures make it easier for consumers to try different plant-based
brands without significant barriers. The plant-based industry appears to be maturing in a
way that empowers consumer choice and flexibility. (point 5)
https://www.foodnavigator.com/Article/2024/03/15/Plant-based-Why-some-consume
rs-make-the-switch-and-others-steer-clear
https://proveg.org/press-release/consumers-call-for-plant-based-foods-to-be-same-pr
ice-as-meat/
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9321292/

5. Strategic stakes (point 4)

Company Market penetration Investment Marketing campaign

Âu Lạc - Running over 80 stores, 11 - Weak

restaurants advertising to
- Introducing diverse reach customers
products, stable quality, leading to weak
wide distribution recognition

Veggie - Emphasizing the fresh of - Progressively

Vietnam their products positioning their
- Selling delicious products brand in the
without preservatives market

Vmeat - Offering lower price - Operating

- Being active to manage mainly in Ho
operating cost and the Chi Minh city
product quality - Having not
- Working directly with planned for their
 distributions channels to expansion into
optimize the supply chains new market
and cost -
-

Beyond Meat Beyond Meat's net revenues Beyond Meat's market -"There's Goodness Here"
LLC decreased 8.8% year-over-year in capitalization has Campaign: This multi-phase
Q2 2024, driven by a 14.0% declined significantly, campaign focuses on educating
decrease in volume of products from a peak of over $14 consumers about the
sold. This indicates declining billion to under $400 wholesome, plant-based
market penetration for the million currently [3]. ingredients and sustainable
company's products [1]. The company's stock production process behind
The company's U.S. retail channel price has lost about a Beyond Meat's products. It
net revenues decreased 7.5% in Q2 third of its value in features videos showcasing the
2024, primarily due to a 23.2% 2024 as investors have company's work with farmers
decrease in volume of products grown concerned about and the nutritional certifications
sold, reflecting weak category the health of the their products have earned.
demand [1]. business and the "There's Goodness Here"
Beyond Meat's international retail struggling sales in the Campaign: This multi-phase
channel net revenues also plant-based meat campaign focuses on educating
decreased 12.1% in Q2 2024, industry [3]. consumers about the
mainly due to reduced sales of Beyond Meat has no wholesome, plant-based
chicken products in the EU and plans to sell itself, ingredients and sustainable
demand softness in certain according to CEO production process behind
geographic regions [1]. Ethan Brown, despite Beyond Meat's products. It
The plant-based foods category as the challenges the features videos showcasing the
a whole saw just 1% sales growth company is facing [3]. company's work with farmers
in 2023, indicating slowing The company is and the nutritional certifications
consumer demand for these focusing on their products have earned.
products [3]. reformulating its "Literally The Least You Can
https://www.globenewswire.com/e products to have shorter Do" Campaign: Launched in
n/news-release/2024/08/07/292639 ingredient lists and January 2024, this campaign
0/0/en/Beyond-Meat-Reports-Seco emphasizing the health again features Rizwan Manji and
nd-Quarter-2024-Financial-Results benefits of plant-based focuses on how Beyond Steak
.html meat in its marketing, makes it easy for consumers to
 https://finance.yahoo.com/quote/B in an effort to revive eat healthier in the new year, as
YND/?guccounter=1&guce_referr slumping sales [3]. it is certified heart-healthy and
er=aHR0cHM6Ly9wb2UuY29tLw meets American Diabetes
&guce_referrer_sig=AQAAAALY Association guidelines.
NUYZd1hDAxbo4YD4D-JARy2h
98otRpN3ELuVmrnkjyvSaSws5n
VTyLeGYT-mvILrB8iU6Fjn0K-T
KNX1VC5D8RrE6iKwVuQ3wno
CRufwEIT_ZbbtofNRcOvcTJPSg
xsCkn2nBjI9MrPq_xgIJBUjenvIv
6K0NubEZTtAZLn1
https://www.cnbc.com/2024/09/04/
beyond-meat-to-launch-new-steak-
alternative-as-it-focuses-on-health.
html

3. 5 Threats of Buyer :

The bargaining power of buyers average 8/3 =2.67

1. Buyer orders
The survey also found that the frequency of consuming plant-based food varied by age
group. Among respondents aged 25-34 years, 49% said they consumed plant-based food
several times a week [1].
According to a survey by Rakuten Insight, as of February 2024:

45% of respondents in Vietnam stated that they consumed plant-based food several times
a week. [1]
Around 86% of Vietnamese respondents had consumed plant-based alternatives to
animal-based food products. [1][2]
The survey also found differences in plant-based food consumption by age group:
49% of respondents aged 25-34 years consumed plant-based food several times a week.
[2]
Younger age groups (16-24 and 25-34 years) reported higher frequencies of plant-based
food consumption compared to older age groups. [2]

=> The threat level of buyer order is relatively low due to the small volume of plant-based
food purchasing (point 2)

2. Buyer information
Vietnamese consumers are becoming more aware and understanding of plant-based
products, but there are still some challenges:

- Price: The search results indicate that plant-based products are often more
expensive than traditional dairy or meat products in Vietnam. This can be a
deterrent for cost-conscious consumers, as they may not fully understand the
reasons behind the higher prices.
- Producers and competitors: The market is dominated by both domestic and
international brands, with companies like Vinamilk, TH Milk, Vinasoy, Oatly,
Alpro, and Almond Breeze competing for market share. However, the search
results suggest that consumer awareness of these different producers and their
competitive positioning may still be limited.
- Ingredients: The search results highlight that Vietnamese consumers are becoming
more health-conscious and are paying closer attention to the ingredients in the
products they buy. They are increasingly seeking out plant-based products with
natural, organic, and environmentally-friendly ingredients. However, there is still a
need for more consumer education on the specific ingredients used in plant-based
products and their benefits.
Overall, the search results indicate that while Vietnamese consumers are becoming more
aware and understanding of plant-based products, there is still room for improvement in
terms of their knowledge about the pricing, producers, competitors, and ingredients of
these products. Continued consumer education and awareness campaigns by both
manufacturers and retailers could help address these gaps and further drive the growth of
the plant-based products market in Vietnam.
=> the understanding about the plant-based products of Vietnamese consumers is
increasingly, so the threat level is high (point 5)
https://www.linkedin.com/pulse/vietnams-plant-based-drinks-market-poised-explosive-gr
owth-tujwc
https://www.vietnam-briefing.com/news/vietnams-emerging-cosmetics-industry-strong-p
otential-growing-market.html/
https://www.techsciresearch.com/report/vietnam-meat-substitutes-market/2139.html

3. Buyer profitability
Vietnamese consumers' understanding of the information and benefits/losses of
plant-based products is still limited:

- The first result indicates that there is a lack of research on consumer acceptance of
plant-based and clean meat products in developing countries like Vietnam,
compared to more research in Western countries. This suggests that Vietnamese
consumers' awareness and understanding of these products may not be as
developed [1].
- The second result focuses on green products in general in Vietnam, not specifically
plant-based products. It suggests that while factors like environmental awareness,
government policy, and economic considerations influence Vietnamese consumers'
decisions to buy green products, their knowledge and information about these
products may still be lacking [2].
- The third result is about willingness to pay for food labeling schemes in Vietnam,
which indicates that Vietnamese consumers are generally willing to pay more for
certified, branded, and traceable food products. However, their trust and familiarity
with these labeling schemes can impact their valuation [3].
In summary, the search results suggest that while Vietnamese consumers are becoming
more interested in environmentally-friendly and healthier products like plant-based foods,
their overall understanding of the specific benefits and trade-offs of these products may
still be limited compared to more developed markets. More education and information
sharing about plant-based products seems needed to improve Vietnamese consumers'
knowledge and decision-making.

=> the profits that plant-based food consumers are significantly more than the losses so
the threat level is low (point 1)
https://www.mdpi.com/2071-1050/15/9/7612
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8909422

OPPORTUNITIES/THREATS

1. Supplier Power
● Opportunities:
○ Supplier flexibility: Impossible Foods can switch suppliers easily, thanks to
a wide range of available suppliers for key ingredients (e.g., soy, coconut
oil), reducing dependence on any one supplier.
○ Standardized ingredients: Ingredients like soy protein and coconut oil are
standardized, making it easier for Impossible Foods to maintain consistent
quality across different suppliers.
○ Innovation potential: The ability to explore alternative proteins (e.g., hemp,
algae) provides opportunities for new product development and innovation.
● Threats:
○ Quality concerns with substitutes: Some alternative ingredients may not
replicate the desired texture and flavor of soy and coconut oil, potentially
affecting the quality of Impossible Foods' products if substitutions are
necessary.
○ Low differentiation among suppliers: Since many suppliers provide similar
ingredients, Impossible Foods doesn’t have a cost advantage, and
competitors can access the same raw materials.

2. Competitive Rivalry
● Opportunities:
○ Market growth: The plant-based food market is growing, especially among
younger, health-conscious consumers, providing more room for Impossible
Foods to expand.
○ Room for differentiation: Through unique ingredients (e.g., heme) and a
focus on sustainability, Impossible Foods can further differentiate itself
from competitors like Beyond Meat and Au Lac.
● Threats:
 ○ High competition: Impossible Foods faces increasing competition from
both local and global players like Beyond Meat and other plant-based
brands, which could limit market share.
○ Product variety: As competitors expand their product ranges, maintaining
competitive differentiation through taste, texture, and price becomes more
difficult.

3. Threat of Substitutes
● Opportunities:
○ Price competitiveness: With reduced prices for products like the Impossible
Burger, the brand becomes more attractive to cost-conscious consumers.
○ Health and sustainability focus: Impossible Foods appeals to consumers
who prioritize health, environmental impact, and animal welfare, providing
an opportunity to build a loyal customer base.
● Threats:
○ Cheaper real meat: Traditional animal meat remains significantly cheaper
than Impossible Foods products, making it a strong substitute.
○ Lower-priced plant-based options: Brands like MorningStar Farms offer
cheaper alternatives, increasing competition on price.

4. Buyer Power
● Opportunities:
○ Targeting health-conscious consumers: Impossible Foods can capitalize on
its appeal to Gen Z and Millennials who prioritize sustainability and health
when making food choices.
○ Loyalty to sustainable brands: Consumers who value ethical production and
environmental sustainability are likely to remain loyal to Impossible Foods
due to its strong environmental commitments.
● Threats:
○ Price-sensitive buyers: As plant-based food prices rise, consumers may
reduce their purchases or switch to cheaper alternatives, posing a threat to
Impossible Foods.
○ Low switching cost: With many plant-based alternatives available,
consumers can easily switch to other brands, especially if they offer similar
products at a lower price.
5. Threat of New Entrants
● Opportunities:
○ Economies of scale: Impossible Foods' ability to scale production and
reduce costs provides a strong competitive edge, making it difficult for new
entrants to match its price and efficiency.
○ Strategic partnerships: Existing collaborations with high-profile restaurants
and retailers increase brand visibility and provide an opportunity to capture
market share.
○ High capital requirements: Impossible Foods’ significant investments in
R&D, production, and branding create high barriers for new entrants,
making it hard for them to compete effectively.
○ Innovation lead: Impossible Foods has developed proprietary technology,
such as its heme ingredient, which enhances flavor and texture. This
innovation is difficult for newcomers to replicate, providing a competitive
edge.

● Threats: New market entrants: Despite the barriers, new companies may still enter
the market with innovative, differentiated products or aggressive pricing strategies,
which could challenge Impossible Foods’ market share.