The restaurant industry in Vietnam is continuing to grow in leaps and bounds. The foodservice market in Vietnam is valued at $22.32 billion in 2024 and is likely to reach $51.43 billion by 2032, growing at 11%.
In addition, fine dining will be less fancy, casual dining will be less casual, people will be better informed about natural wines, chefs will take risks, and cooking will be less borrowed and more rooted. Indeed, the dining scene in Vietnam is evolving in fresh confidence.
The Shakeout Reality
The first half of 2025 has been challenging. This is because more than 50,000 outlets closed during this period, driven by an increase in ingredient costs, labor costs, and rental costs, as well as a decrease in demand.
However, it is a sign that the market is entering a shakeout phase because “open fast – close fast” is a reality. Besides, brands with strong fundamentals and value propositions continue to perform well, while weak models continue to close.
Moreover, minimum wage increases by 6.92% in 2025. Therefore, it is only well-managed F&B business operations that perform well.
Chains Lead Growth
Local brands like Trung Nguyen E-Coffee have set high ambitions of reaching 3,000 outlets, and international brands like Minor Food Group have plans to double their outlets and reach more than 200 outlets by 2026.
Moreover, the expansion of restaurants takes place through the franchise concept. This concept allows for the expansion of restaurants, along with the advantages of local ownership.
Furthermore, Golden Gate Group acquired The Coffee House in February 2025 and plans to revitalize this premium coffee chain.
Indeed, consolidation plays a key role in defining the competitive scenario.
What Diners Actually Want
Diners prefer eating out for office lunches, but spend cautiously, while on weekends, there are more instances of eating out, and the amount spent is higher, especially on mid-range and experiential dining.
Furthermore, this change from budget to value-based formats changes the overall restaurant landscape. Significantly, consumers are now looking for experiences that are worth the spent amount rather than merely eating at a lower price.
Also, both traditionalists and younger generations prefer dining experiences that are rooted in heritage, incorporating multiple food groups and flavors.
Digital Changes Everything
Also, the growth rate of cashless payment systems is 26 times higher than the growth rate of the Gross Domestic Product of countries. In addition, QR code payment systems become standard features in all establishments in cities.
Also, the amount spent by Vietnamese households on food delivery service reached 1.4 billion US dollars in 2023, which is 30% higher than the previous year. Also, 60% of the total internet users actively use these services.
Therefore, it has been observed that there has been a notable trend change in the service sector, with digital-based food service gaining prominence over other forms of service like “dine-in,” especially among younger generations of consumers.
Casual Luxury Emerges
Vietnam is at the forefront of the “luxury casual cuisine” movement, where dishes such as “pho,” “banh mi,” or “soy sauce” can attain the level of world-class cuisine.
The new form of dining experiences that the modern consumer seeks is not one of ritual and formality but “casual luxury.” Indeed, it is the new face of fine dining as well as street food.
In addition, the look of the food has become much more important. “Rethinking the classics” is the new trend, as well as the ambience of the restaurants. And the stamp of approval for the evolution of food lies.
Regional Differences
By the end of 2026, Saigon aims to not only be a city with good and affordable food but also a creative culinary capital in Asia where tradition and modernity go hand in hand.
At the same time, Hanoi’s food culture develops in a different manner. In addition to this, people’s mentalities also change, where fine dining loses its appeal and casual dining becomes finer, people become more knowledgeable about natural wines.
Moreover, in Danang, the casual dining world experiences a huge increase. Not only are there more interesting concepts available, but people also have a lot of options and have fun.
Looking Forward
The restaurant industry’s trend seems to be on the right track, especially after facing difficulties in recent times. This is because, according to forecasts, the industry will reach $36.86 billion in early 2027, still on a high trajectory of strong compound annual growth.
Furthermore, there seems to be less concern about keeping up with what’s going on out there and more confidence in its own identity, Vnba. The Vietnamese restaurateurs make their own, rather than copying.
Additionally, the talents who have returned to Vietnam after living in other countries for many years have new ideas. Meanwhile, young chefs have the courage to go back to using local ingredients rather than westernizing Vietnamese food.
In the end, success depends on authenticity, execution, and understanding what people really want, rather than just following the trend and creating experiences to justify the spend in increasingly discerning markets.
Check out RiseAsia Vietnam for stories about dining experiences in Vietnam.
FAQs
How big is Vietnam's restaurant industry?
Vietnam’s foodservice market stands at $22.32 billion in 2024, projected to reach $51.43 billion by 2032 with 11% annual growth.
Why did so many restaurants close in 2025?
Rising costs for ingredients, labor, and premises combined with cautious consumer spending forced over 50,000 outlets to close in first half of 2025.
What restaurant formats are growing fastest?
Chains, cloud kitchens, and delivery-focused formats grow fastest, with casual dining outpacing traditional fine dining models.
