Workers process tra fish at Godaco Seafood Co Ltd. Viet Nam's food additives market is poised to grow as demand from food and foodstuff producers rises. — VNA/VNS Photo Vu Sinh

HCM CITY (Biz Hub) — With demand from food and foodstuff producers increasing, the market for additives in Viet Nam is promising, according to insiders.

Speaking with Viet Nam News, Dang Thi Phuong Linh, deputy director of the Viet Nam Meat Industries Limited Company (Vissan), said last year her company bought additives for over VND200 billion (US$9.5 million).

"As production keeps increasing, the demand for food additives also climbs."

For her company it increased by 8-10 per cent a year, she said.

Very little of the demand in the country is met by local production, with imports accounting for most of the supply.

Experts said that in modern society, food additives were vital for chefs and food and beverage producers to develop new products with improved taste and looks.

An expert on food additives from the Sai Gon Industrial University said many consumers distrusted food additives, but that was due to misunderstanding them.

At permitted levels, additives were harmless and there was huge demand for them, she told Viet Nam News.

Belgium Puratos Grand-Place Indochina, which supplies materials and additives to many restaurants and bakeries as well as ice cream makers in Viet Nam, said it saw potential in the Vietnamese market since demand kept rising.

Speaking to Viet Nam News, a company spokesperson said his company supplied up to 100 additives, and its partners included giants like Metro, Lotte, Tous Les Jours, and Kido's.

Additives accounted for 3 per cent of its revenues and would increase, he said.

The company hopes sales of bread additives will soon increase by 50 per cent.

Seeing the rising demand, tra fish exporter Vinh Hoang Company has set up a plant to produce gelatine from the skin and bones of the fish it processes.

UBM Asia, which has organised many exhibitions of food ingredients in regional countries including Indonesia, decided to organise an exhibition again in Viet Nam after one last year.

The country had much more potential than any other in the region, it said. It will now organise the second food ingredients exhibition in Viet Nam in May.

The exhibition hopes to welcome 150 local and international ingredient suppliers, up from around 100 last year. — VNS