Technology addresses solutions to cost challenges in food industry

The Gulfood Manufacturing 2026 exhibition in Dubai, which opened on November 3, showcased the increasing role of technology in the global food manufacturing industry. Vietnamese businesses are facing the pressure to improve productivity, maintain quality, and lower costs, leading to a growing demand for technological innovations.

Assoc. Prof. Dr. Nguyen Duy Lam, president of the Vietnam Association of Food Science and Technology, emphasized that transforming through technology requires not only market demand but also financial resources, workforce skills, and access to technology.

Vietnam's food processing sector grew by 11% in 2025, reaching $88 billion, while the Vietnam’s food processing and handling equipment market was estimated at $1.2 billion in 2025. Smart manufacturing projects, like Orion Vina Food's, have shown significant benefits, such as a 30% increase in production capacity, 68% reduction in machine downtime, and a 50% drop in inspection costs, resulting in an estimated economic benefit of $19 million.

Energy optimization is another way for food processing companies to cut costs. CPV Food, a C.P. Vietnam subsidiary, invested in equipment upgrades, resulting in a 27.9% decrease in energy consumption per tonne of product compared to 2021. The company also adopted AI for improved product inspection and automated warehousing.

Vietnam has considerable potential in utilizing agricultural and aquatic by-products, which currently amount to only 40% of their estimated potential value. A proposed four-layer digital model, comprising data digitization, predictive modeling, digital twins, and digital passports, could help track information, support forecasting, and optimize performance across the entire processing chain.

However, the transition from technological proposals to commercial-scale implementation depends on securing funding and achieving viable returns on investment.