The Vietnamese functional food market has recently seen an increase in domestic brands, leading to a greater demand for product diversification and enhanced quality standards. However, industry experts note that local production capacity remains fragmented, largely relying on small-scale processing units that struggle to meet requirements for advanced technology and complex new formulas.

Against this backdrop, many businesses are opting to collaborate with reputable international manufacturers. Recently, AFC-HD AMS Life Science Group (AFC Japan) entered Vietnam's functional food processing market through its representative, AFC Vietnam. This move represents a strategic expansion for the Japanese company, while also providing Vietnamese brands with an additional option for high-quality processing.

AFC's factory. Photo: AFC

Established in 1969, AFC is one of the few functional food companies in Japan listed on the Tokyo Stock Exchange (JASDAQ: 2927). The company currently operates four factories that meet Japanese Good Manufacturing Practice (GMP) standards, with its Chiba plant also holding Japan Agricultural Standard (JAS) organic certification, a strict Japanese agricultural standard.

AFC's industrial-scale production capabilities allow it to supply various product lines, ranging from vitamins and minerals to specialized health supplements. These products address diverse health needs, serving not only the domestic Japanese market but also numerous export countries.

According to a representative from AFC Vietnam, AFC's distinct advantage lies in its closed ecosystem model. This model ensures self-sufficiency from research and development (R&D) and production to quality testing. Central to this ecosystem is the Japan Preventive Medical Research Institute, which holds ISO/IEC 17025 certification and has developed more than 3,500 product formulas.

Before leaving the factory, each product undergoes a rigorous quality control process, including checks for heavy metals and radiation. Dao Thanh Tung, a representative of AFC Vietnam, noted that many Vietnamese businesses have innovative product ideas that align with market trends but face difficulties in implementation due to technological limitations. Collaborating with AFC provides these partners access to Japanese-standard formulas and production technology.

Through AFC Vietnam, its official representative, domestic businesses can connect directly with AFC's factories in Japan, rather than relying on smaller, individual processing workshops. This cooperative model enables Vietnamese brands to leverage AFC's extensive production infrastructure, while also receiving support from formula consultation and packaging design to manufacturing.

AFC Vietnam is positioned as a strategic production partner, supporting the sustainable development of Vietnamese brands. Photo: AFC

Industry experts believe that the participation of financially and technologically strong corporations like AFC can contribute to elevating standards in Vietnam's industrial food processing market. Competition based on production capacity and quality control is expected to yield long-term benefits for both businesses and consumers.

The Dan

Businesses interested in product processing cooperation can find more details here.