Restaurant Business in Vietnam

Manchinro Co., Ltd.2014/6/7

1. DemographicsPopulation: 93.4 million (July 2014, est.)Median Age: 29.2 years

- Male:28.1 years / Female: 30.2 years

Population Growth Rate: 1% (2014, est.)- Estimated to reach one hundred million in 2030

Ethnic groups: Most are Viet- Kinh (Viet) 85.7%, Tay 1.9%, Thai 1.8%, Muong 1.5%, Khmer 1.5%, Mong 1.2%, Nung

1.1%, others 5.3% (1999 census)

Source: Central Intelligence Agency “The World Factbook”

2. Population: Major Urban Areas (2009)

Ho Chi Minh City- 7.165 million

HANOI (Capital)- 6.472 million

Haiphong- 1.842 million

Da Nang- 891,000

Source: JETRO “HO CHI MINH STYLE”

3. GDP per capitaVietnam GDP per Capita at current prices in US dollars

Source: TRADING ECONOMICS

4. Income per Household

China Thailand India Vietnam0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

3,783

6,919

3,444

2,242

4,406

7,827

3,806

2,518

5,458

9,142

4,656

2,951

7,134

10,036

5,220

3,854

7,897

9,510

5,221

4,006

9,000

11,160

6,328

4,316

10,811

11,978

7,072

4,788

12,059 12,524

6,835

5,311

Gross Income per Household 2005-2012US$ per household at current prices/% change

2005 2006 2007 2008 2009 2010 2011 2012

Growth Rate137% ↑

Growth Rate98% ↑

Growth Rate81% ↑

Growth Rate219% ↑

Vietnam: Higher growth rate of 137% of the income per household

Source: Euromonitor International “World Consumer Income and Expenditure Patterns 2014”

5. Disposable Income

China

Thailand

India

Vietnam

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13.1%

9.3%

17.1%

33.0%

22.3%

20.3%

32.4%

32.2%

18.3%

19.4%

22.0%

15.5%

12.7%

14.5%

11.7%

7.0%

32.7%

36.1%

16.1%

8.6%

Households by Disposable Income Bracket (%): 2012

USD - $500USD $500 - $2,500USD $2,501 - $5,000USD $5,001 - $7,500USD $7,501- $10,00USD $10,000 +

Vietnam: Relatively a smaller portion of the mid/high-income group

Source: Euromonitor International “World Consumer Income and Expenditure Patterns 2014”

6. Market & Dining HabitFood Service Industry in Vietnam

“Eating-Out” Habits

2005 2010 2014 (Estimated)

(USD) 5,682.8 million 7,512.3 million 8,966.9 million

Source: Datemonitor (Jan, 2012)

50% of Vietnam people go out for breakfast/lunch more than once a weeki.e. JAPAN: 23% of Japanese people dine out more than once a week

*TOKYO METROPOLITAN GOVERNMENT: Report 2010

Source: JETRO “HANOI STYLE 2013”

7. Local Japanese Restaurant Chains

Price range on average:- Lunch >> VDN 200,000～ 500,000 ( USD 9.4 ≒ ～ 23.6)- Dinner >> VDN 400,000～ 600,000 ( 18.9≒ ～ 28.3)

Source: JETRO 2011

Profile of major local Japanese restaurant chains in VietnamRestaurant Name

# of

outletsPopular menu

Average spending per customer

*Excluding spending on beverages

*1 USD = 21195.00 VND

Customer base

Lunch USD 9 15/Combo： ～ Vetnamese 80： ％

Dinner USD 25 40： ～ Foreigner 20： ％

Ashima Vetnamese 70： ％

Ho Chi Minh/Hanoi（ ） Foreigner 30： ％

All-You-Can-Eat Vetnamese 95： ％

VND 129,ooo

(≒USD 6.1）Foreigner 5： ％

Teishoku VND 30,ooo 100,ooo/Combo： ～

(≒USD 1.4 4.7～ ）Vetnamese 95： ％

Hot Pot VND 120,ooo 400,ooo： ～

(≒USD 5.7 18.9)～Foreigner 5： ％

Sy Phu（仕富） Vetnamese 95： ％

Ho Chi Minh/Hanoi（ ） Foreigner 5： ％

Lunch VND 90,ooo 180,ooo/Combo： ～

(≒USD 4.2 8.5～ ）Vetnamese 50： ％

Dinner VND 150,ooo 400,ooo： ～

(≒USD 7.1 18.9～ ）Foreigner 50： ％

The Sushi Bar

Ho Chi Minh（ ）

Kitchen J apan

Ho Chi Minh/Hanoi/（

Haiphong/Hue)

Kichi Kichi

Ho Chi Minh/Hanoi（ ）

Asahi Sushi/Hotpot

Hanoi（ ）

5Hot pot

鍋

VND 200,ooo 400,ooo～

(≒USD 9.4 18.9～ ）

5Sushi, Sashimi

すし、刺身

6

21

(2 in

Singapore)

2Sashimi, Teppan(meat/fish), Hot pot

刺身、鉄板焼き（肉・魚）、鍋

Hot pot (Mashroom) Sashimi Salmon、 （ ）

きのこ鍋、刺身（サーモン）

VND 300,ooo 600,ooo～

(≒USD 14.2 28.3～ ）

Hot pot

鍋

11Teishiku, Sushi, Hot pot

定食、すし、鍋

8. Opening Rush of Japanese Restaurants

Key Indicators- # of Japanese living in Vietnam 2014: 1,1194 (+20.2% YoY)- Estimated 150 or more JP food restaurants in Ho Chin Minh and Hanoi - JAPAN is chosen as the most favored country by Vietnamese *”JAPAN Brand Survey 2014”- Vietnamese became more health-conscious, seeing that Japanese foods are nutritious, safer,

better in quality and healthy

　 Opening date Locaton CategoryBaby Spoon 2009, August Ho Chi Minh Italian

YANCHA 2010, March Hanoi Japanese BarBeared Papa 2010, December Ho Chi Minh Cream Puff

EBISU 2011, April Ho Chi Minh UdonSUMIBIYAKI (Char-grilled foods)

Capricciosa 2011, July Ho Chi Minh ItalianAjisen Ramen 2011, August Ho Chi Minh RamenWAKADAISHO 2012, May Ho Chi Minh Japanese Bar

IMO TARO 2012, August Ho Chi Minh Japanese Bar

NIJYU-MARU(Colowide) 2012, September Hanoi Japanese Bar

SHOKI 2012, September Ho Chi Minh Japanese BarPepper Lunch 2012, October Hanoi Steak

Examples of Japanese chains’ new entries

Source: JETRO 2012

9. Food Procurement: Case Study

Appendix: List of wholesaler/importer -- http://www.jetro.go.jp/world/asia/vn/foods/trends/1003001.pdf

• Most of the ingredient are available from wholesalers/importers• Use imported-food because:

- Quality is better than local one- Unavailable in Vietnam (i.e. Fish cannot be found in Vietnam)

Food Local Imported Import/Purchase from:

Pork ✓ 　 　

Chicken ✓ 　 　

Beef 　 ✓ U.S./Austrailia/New Zealand

Vegitable ✓ 　 　

Fish ✓ ✓Japan/Norway

(Frozen mackerel, salmon, brevoort, octopus)

Seasoner(Soy source/Mirin/Oil/

etc.)　 ✓ 　

SAKE/SHOCHU 　 ✓ JAPANSource: Huong Thuy

Procurement case for a Japanese restaurant

10. Liquor License

10. Labor Cost• http://www.bk.mufg.jp/report/aseantopics/ARS20130510.pdf

12. Regulation for Restaurant Business

http://www.slideshare.net/cbsolutionsJP/vol1-8753270

11. Risks & Gains