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한국어 Hanoi’s F&B market is transitioning from traditional city-center clustering to a more distributed model shaped by multiple factors.
25Nov2025
Latest News & Report / Vietnam Briefing
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Vietnam’s food and beverage market has expanded rapidly over the past decade and continues to be one of Southeast Asia’s most promising consumer sectors. Among all local markets, Hanoi stands out due to its dense urban population, strong middle-class growth, and vibrant dining culture. Yet, the same qualities that make Hanoi attractive also make it highly competitive, particularly for new entrants with limited room for error. Choosing the right F&B location has become one of the most strategic decisions a restaurant, café, fast-casual brand, or dessert chain must make.
Vietnam F&B Market Overview
Vietnam’s F&B services industry is large and still growing. Statista estimates that the sector was valued at more than USD 24.77 billion in 2025 and is projected to reach US$36.86 billion by early 2027[1], translating to a compound annual growth rate (CAGR) of 9.7 percent. By the end of 2024, Vietnam had approximately 323,010 establishments in operation, marking a 1.8% year-on-year rise. Total sector revenue in 2024 was estimated at VND 688.8 trillion (US$26.96 billion), reflecting a growth of 16.6% compared to 2023[2].
In the first half of 2025, a survey of about 3,000 eateries and cafes reports that 54.0% maintained stable revenue or achieved growth, showing a more positive outlook compared with the same period last year, which is 40.2%. However, the market is still undergoing strong filtering, with 17.9% of businesses suffering severe declines and an additional segment continuing to face operational challenges[3]. These figures suggest that while overall demand is recovering, many operators remain vulnerable to rising costs and competitive pressure.
Business Performance of F&B Enterprises (first half of 2025)
100% = 3,000 eateries and cafes
(Source: iPOS.vn and Nestlé)
Additionally, before 2020, most brands expanded aggressively, targeting any available retail space with high foot traffic. That era has ended. According to the Ministry of Planning and Investment, more than 51,000 restaurants, cafés, street-food shops, and F&B kiosks closed across Vietnam in just the first nine months of 2024[4]. This wave of closures reflects rising rent, inflation pressure, intense competition, and an increasingly selective consumer base.
In major cities, sit-down dining continues to dominate expenditure, but food delivery now accounts for 10-12% of total F&B transaction value, according to Decision Lab’s 2024 Online Food Delivery Report, up from only 3% in 2018. High delivery adoption also implies operators should avoid overpaying for premium central locations if a significant share of revenue can be captured through delivery within a 3-5 km radius.
The Critical Role of Location Strategy in Hanoi’s F&B Market
Hanoi is not only the political and administrative capital of Vietnam; it is also one of its most consumption-driven cities. The General Statistics Office estimates that in 2024, Hanoi accounts for over 22% of Vietnam’s total food service spending, despite representing a much smaller share of the national population. More than 67% of residents are under age 40, creating a favorable demographic profile for cafés, dessert chains, casual dining restaurants and delivery-friendly food formats. At the same time, household income is rising quickly. To be specific, according to B&Company, between 2020 and 2024, Hanoi’s average household income rose from 15.2 million VND to 22.8 million VND per month, an increase of 45%. Key urban districts such as Ba Dinh, Tay Ho, Cau Giay, and Thanh Xuan now report monthly incomes above 24-28 million VND, reflecting a rapidly expanding middle-class consumer base with a stronger willingness to spend on dining-out and premium F&B formats.
Rental pressure and rising operational costs
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