Reality of Supply and Demand of Branded Packaged Bread Market in Ho Chi Minh City.

8.40%

8.20%

8.50%

6.23%

6.78%

5.32%

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

2005 2006 2007 2008 2009 2010 Year

The chart shows that Vietnam has a fairly high and stable economic growth rate:

 2005 reached 8.4%

 2006 was 8.2%

 2007 was 8.5%

 In 2008 and 2009, it was 6.23% and 5.32% respectively due to the impact of the global economic crisis.

 2010 was 6.78%, a year that is considered a difficult year for the world economy in particular and the Vietnamese economy in general. However, according to the assessment, in the coming time, the world economy and Vietnam will soon recover and have stable growth in the following years.

On the other hand, compared to other countries in the region, the disposable income of Vietnamese people is still low. Although the increase is not much, it is still a very favorable factor for food processing enterprises in general and enterprises producing and trading branded packaged bread in particular.

Economic growth rate and per capita income have an impact on the consumption of confectionery products. When the economy grows strongly, people's income is high, material life is guaranteed, the demand for improved nutrition, the demand for giving away high-class foods, including confectionery, also increases. The economy is in a state of crisis, people's income

If the price of confectionery declines and cannot meet daily minimum living needs, the confectionery industry will certainly be affected.

Natural environment

Nowadays, we are facing increasing environmental pollution, depletion and scarcity of natural resources and energy…

Faced with the above situation, business strategies need to be conscious of saving and effectively using natural resources. Managers must be conscious of gradually shifting from using non-renewable resources to using artificial materials.

In addition, businesses need to promote research and development of technology, contribute to environmental protection, and minimize the environmental pollution caused by business activities.

Technology environment.

Technology in the packaged bread industry is increasingly modern and advanced. Businesses need to have abundant financial resources and quick market information to catch up with advanced technology and will certainly be eliminated from the game if they do not adapt in time.

Political environment

It can be said that confectionery is one of the necessary products in people's daily life, ensuring the nutritional needs of all social classes.

On the other hand, confectionery manufacturing enterprises generally employ a lot of labor and domestically produced agricultural products such as sugar, eggs, milk, etc. Therefore, the confectionery manufacturing industry is given certain preferential policies by the State, specifically incentives in the Law on Encouragement of Domestic Investment regarding land rent, corporate income tax, import tax on machinery and equipment, etc. Legal constraints on the confectionery industry are mainly related to safety.

Food and consumer rights protection. These are also issues that businesses that produce and trade in branded packaged bread need to pay close attention to.

Therefore, considering the overall legal environment and the actual situation of the company, legal risks have little impact on the operations of the companies.

Sociocultural environment

Bread is a popular and traditional food in Western countries. However, bread in Vietnam is not a traditional product. But in today's market economy, people have gradually become accustomed to fast food. This is due to many reasons such as speed, convenience and Western style. However, the mentality that fast food is not good for health is still an obstacle that Vietnamese businesses are still trying to change.

2.2 Current situation of supply and demand of branded packaged bread market in Ho Chi Minh City.

2.2.1 Overview of Vietnam's confectionery market.

In recent years, along with the development of the economy and the increase in population size with a young structure, confectionery is one of the industries with high and stable growth rates in Vietnam. While small-scale production facilities

are gradually shrinking due to low capital, the production process is still manual leading to not ensuring hygiene requirements. Meanwhile, large domestic confectionery companies are increasingly affirming their important position in the market with many diverse products, quite good quality, suitable for Vietnamese taste, competing very well with imported goods.

According to the International Market Survey Company (BMI), Vietnam's confectionery market has the leading development potential in Southeast Asia and the world. Confectionery production in Vietnam from 2005 to 2010 has increased every year, from 85,300 tons in 2005 to 100,400 tons in 2010.

However, in recent years, the growth rate of confectionery production has decreased, specifically in 2007 with a growth rate of 4.15% down to 3.19% in 2008; 2.16% in 2009 and continued to decrease to 1.3% in 2010. The reason is that our country was affected by the impact of the global financial crisis in 2008 and lasted for a long time.

The impact lasted for two years, people tightened their spending and the confectionery industry was also affected.

Table 2.3: Output and growth rate of confectionery industry in recent times.

Year

Output	(ton)	Growth rate	(%)
2005	85,300	4.4
2006	89,000	4.3
2007	94,000	4.5
2008	97,000	3.19
2009	99,100	2.16
2010	100,400	1.3

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(Source: International Market Research Company)

Figure 2.2: Output and output growth in the confectionery industry

105

100

2005 2006 2007 2008 2009 2010

4.5

3.5

2.5

1.5

0.5

Output (Thousand tons) Growth rate (%)

Vietnam's current population of over 86 million people is becoming a very potential confectionery market for domestic and foreign enterprises. Currently, there are about 30 domestic enterprises, hundreds of small production facilities and a number of foreign confectionery import companies participating in the market. Domestic enterprises such as Kinh Do, Bibica, Hai Ha, Huu Nghi, Orion Vietnam... account for about 75 - 80% of the market share while imported confectionery accounts for only 20 - 25%. Domestic enterprises are increasingly asserting

has gained its important position in the market with product diversity, good quality, suitable for Vietnamese taste. Meanwhile, small-scale production facilities are gradually shrinking in production scale due to low capital, outdated technology, and lack of assurance of food hygiene and safety.

Table 2.4: Market share of Vietnamese confectionery companies over the years.

Company name

Capital

Year 2008 29.5%	Year 2009 28.0%	2010 30.0%
Orion	7.3%	10%	9.6%
Bibica	7.2%	7.4%	8.0%
Hai Ha	6.1%	5.4%	6.5%
Friendship	9.1%	12.1%	12.4%
Import	25%	22.8%	20.0%
Other companies	15.8%	14.3%	13.5%
Total	100%	100%	100%

(Source: International Market Research Company.)

Figure 2.3: Market share chart of Vietnamese confectionery companies.

Year 2008

Year 2009

15.8 %

25.0%

9.1%

29.5%

7.3%

6.1%

7.2%

14.3%

28.0%

22.8%

10.0%

12.1%

7.4%

5.4%

2010

13.5%

30.0%

20.0%

12.4%

9.6%

6.5%

8.0 %

Kinh Do Orion Hai Ha Friendship Import and Export Other companies

2.2.2 Branded packaged bread market.

 Demand for branded packaged bread of HCM City people.

Industrial packaged bread is fresh bread produced and packaged on a modern production line with a shelf life of 07-09 days. Meeting the increasing demand for convenient breakfast and snacks of consumers.

Produced with advanced technology, from fresh, nutritious ingredients, fresh packaged bread brings you a delicious, convenient meal that still ensures nutrients, helping you to be full of energy to work and study anywhere, anytime.

Urban life is increasingly busy, especially in big cities, problems such as traffic jams, extra classes, overtime work... make the time fund seem to be shortened. Therefore, people are increasingly interested in the need for speed, convenience and fast food plays an increasingly important role in the life of urban people, especially in the big city of Ho Chi Minh.

However, as people's quality of life improves, they are always aware that meals not only need to be nutritious, fast, and convenient, meeting the energy needs of the new day, but also need to be nutritious and good for the stomach; the foods they choose must not only be delicious, economical, and convenient, but also have enough nutrients for them to continue their work and study.

Currently, there are many types of food on the market for breakfast, snacks, and mid-morning snacks such as sticky rice, bread rolls, etc., but most of them are not hygienic, too expensive, and take a long time to eat. Therefore, packaged bread with a brand name was born to serve the needs of consumers for delicious, nutritious, and convenient products at a price that is not too high, only about 3,000 VND - 8,000 VND.

 Branded packaged bread in Ho Chi Minh City

Based on the idea of traditional bread and the habit of using bread as a fast, convenient, cheap food while still ensuring adequate nutrition, the branded packaged bread line was born to meet the maximum demand.

modern life. As soon as it was born, it was suitable for consumer trends and quickly became a favorite dish, replacing traditional bread that was too complicated to prepare and preserve.

Appearing on the market with the outstanding advantages of the traditional butter bread line. Beautiful design, perfect quality, branded packaged bread can be eaten with the most difficult foods. Immediately it is present everywhere, from the common neighborhood, in the classroom, to the offices, workplaces and even luxurious buffet parties in hotels. One of the important factors that bring success to this type of bread is convenience. Just peel off the crust and you can eat it right away without processing - this is very different from the usual type of bread.

In fact, the group of people with fixed schedules such as students and office workers are the ones who access this type of bread the most because of the limited time and cost for eating needs. Most people agree that when fast food becomes an essential need, the birth of packaged branded bread is inevitable.

Currently on the market there are many types of fresh bread packaged in high quality, affordable, convenient, diverse and suitable for Vietnamese taste with fresh bread with sweet fillings such as butter , chocolate, taro, pandan leaves, durian, coconut milk ; salty fillings such as pork floss, roasted chicken, Chinese sausage, dried shrimp .

Figure 2.4: Some types of branded packaged bread on the market.