Strategic imprint of Vietnamese market's F&B “giant”
Cooperate with Domestic Enterprises to Enter the Green Era
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First step of a thousand-mile journey
Brenntag officially set foot in Vietnam in 2008 through cooperation with Rhodia Group. Brenntag Vietnam Co., Ltd. was established in November 2010. Brenntag Group has been a giant in the global food and beverage industry, with a history spanning 150 years. However, at that time, Brenntag was not yet widely known nor left a significant imprint in the Vietnamese market.
Brenntag, a leader in the global food and beverage industry, boasts a 150-year history of development and innovation. |
This is largely due to the fact that the Vietnamese food and beverage market is still in its infancy, with local businesses often focusing on cooperating with domestic distribution companies or suppliers from Asia.
Brenntag has had opportunities to collaborate with Vietnamese businesses for several decades, starting with Tan Hiep Phat in 1995. Since then, the two companies have joined hands in providing raw materials for food and beverages, offering technology solutions, and sharing market information.
Despite being early collaborators, both companies have continuously introduced new product trends, developing together and elevating their brands in Asia and the world.
By collaborating with renowned domestic enterprises like Tan Hiep Phat, Brenntag significantly contributes to elevating the position of Vietnamese products in the international market. |
This foundation enables Brenntag to leverage its existing customer network and deep understanding of the domestic market to expand and develop. In return, Brenntag introduces international standards of quality, service, and safety, thereby enhancing the perception of the Vietnamese market as a reputable and professional global distributor.
The strategic decision to foster extensive cooperation with large domestic enterprises, provide advanced raw material solutions, and add value to the food and beverage industry has allowed Brenntag to quickly penetrate the market and establish a solid foundation. A decade later, the 'sweet fruits' of this strategy demonstrate the correctness of the global 'giant's' move.
Brenntag's motto is to pioneer innovation and ensure success by delivering creative, professional, and healthy solutions for consumers. |
Thanks to the successful implementation of business strategies in 'stronghold' countries, Brenntag has become a global leader in distributing raw materials and added value for the food and beverage industry. In 2023, Brenntag achieved a revenue of 16.8 billion EUR, with over 17.7 thousand employees, operating a network of more than 600 locations and over 70 R&D centers across 72 countries.
The cooperation with Tan Hiep Phat, as well as many other domestic enterprises, has provided Brenntag with valuable insights into the Vietnamese business community. Brenntag commends Vietnamese enterprises for being dynamic, creative, and always pioneering in finding new directions. The continuous development of these enterprises and their strengthened cooperation have created a combined strength, contributing to elevating the position of many Vietnamese enterprises.
"Local businesses are incredibly dynamic, creative, and always seeking new directions to enhance the position of Vietnamese products in the international market,” said Tran Thi Ngoc Hiep, Managing Director of Brenntag Vietnam. |
Green Progress for Health
In the context of strong shifts in consumer trends favoring healthy, sustainable, and environmentally friendly products, Brenntag and its network of partners are no exception. According to Nielsen IQ's 2023 survey in Vietnam, up to 80% of Vietnamese consumers are willing to pay more for products that are committed to being 'green' and 'clean,' produced from environmentally friendly materials.
Brenntag's passionate experts apply innovation to rigorous quality assurance processes, delivering customized services and solutions. These include commercial success, technical excellence, and valuable market information for their partners. |
"This trend not only reflects a growing sense of responsibility for personal health but also heightened concerns about environmental issues and sustainable development. With stricter criteria, the younger generation, including Millennials and Gen Z, have become pioneers, as the majority are willing to choose and support brands committed to protecting the planet.
With the vision that green consumption is not just a trend but the future of the market, Brenntag and Vietnamese businesses have focused for many years on providing nutritional solutions for the food and beverage industry, offering technology solutions, and sharing market information. They aim to develop high-quality, healthy products that align with modern and sustainable consumption trends.
Brenntag has highlighted Tan Hiep Phat as a prime example. "We have together developed leading products in the Vietnamese market for many years, such as Number One energy drink and Soya soy milk, which are always unique flavored products voted by consumers as the best and healthiest," said Tran Thi Ngoc Hiep, Managing Director of Brenntag Vietnam.
With the support and partnership of Brenntag, Number 1 Energy Drink has become a beloved and widely consumed brand among millions of Vietnamese people every day. |
We have together developed leading products in the Vietnamese market for many years, such as Number One energy drink and Soya soy milk, which are always unique flavored products voted by consumers as the best and healthiest. Tran Thi Ngoc Hiep – Managing Director of Brenntag Vietnam |
Specifically, with a diverse portfolio of food and nutritional ingredients such as amino acids, inorganic salts, minerals, natural compounds, vitamins, stabilizers, and natural colorants, Brenntag has supported Vietnamese businesses in creating beverages that are not only delicious but also align with modern consumer trends, such as being healthy and environmentally friendly.
In addition to supplying raw materials, Brenntag provides value-added services like developing proprietary formulas and supporting product innovation. The company acts as a 'solution center' for beverage manufacturers, helping to shorten research time and bring products to market faster. With its extensive distribution network and global presence, Brenntag ensures a stable supply of high-quality raw materials and compliance with strict safety standards, including those set by the FDA, EFSA (European Food Safety Authority), and Halal certification.
“If you want to go far, go together”
At the 9th Vietnam National Brand Announcement Ceremony 2024, Prime Minister Pham Minh Chinh emphasized the process of “expanding and diversifying export markets, diversifying supply chains, supporting the connection of domestic and foreign enterprises”, as an important strategy for Vietnam to “strengthen its position in the Green Era”.
Number 1 Soya Calcium is one of the successful new projects between Tan Hiep Phat Company and Brenntag, aimed at better serving consumers by aligning with emerging consumption trends. |
Cooperating with international partners as a bridge of knowledge, technology, and market is a crucial strategy to help Vietnamese enterprises accelerate their journey to success. By 'standing on the shoulders of giants,' domestic enterprises not only bring Vietnamese products to the world but also contribute to affirming the national brand, thereby raising Vietnam's position in the global value chain.
Regarding the development strategy in Vietnam for the upcoming period, Tran Thi Ngoc Hiep, Managing Director of Brenntag Vietnam, stated that the focus will be on developing projects with sugar-free drinks and plant-based products such as beans, cereals, and natural nuts. These products, which are clean, green, and environmentally friendly, align with the strengths of Vietnam's agricultural industry and meet consumer demands. In this plan, Tan Hiep Phat is the first representative named by Brenntag.
'As a 29-year strategic partner of Tan Hiep Phat, Brenntag always believes that the development of the enterprise signifies the development of Brenntag. Therefore, we have specific plans for Tan Hiep Phat to enhance its position in the Vietnamese beverage market. This approach has been fundamental to our growth over the past hundreds of years,' said Tran Thi Ngoc Hiep.
"In the coming time, Brenntag will focus on developing products such as low-sugar and sugar-free drinks, as well as plant-based products made from beans, cereals, and natural nuts. These products will be clean, green, and environmentally friendly, meeting the evolving needs of consumers." Tran Thi Ngoc Hiep - Managing Director of Brenntag Vietnam |
Collaborating with domestic enterprises not only helps Brenntag expand its scale but also creates synergy, promoting the development of Vietnamese products. With these commitments, Brenntag continues to affirm its role as a reliable strategic partner, not only in Southeast Asia but also globally.
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