Sep. 5, 2016
Vietnam consumer market trends in 2016
- The first of the Vietnam consumer market trends 2016 is the rise in purchase power. Over the past 10 years Vietnam has experienced rapid economic development. The number of high income households earning over US$500 per month per household, has risen from 1.8 million to over 4 million.
- The Vietnam economy tripled in size over 10 years. Over the same period the size of the Vietnam economy has nearly tripled to USD175 billion. With population growth at just under 10%, Vietnam’s population is now just over 91 million. Gross domestic product (GDP) per capita is now at US$1,923 per person.
- Vietnam advertising expenditure grew nearly 600% in 10 years. Advertising expenditure in Vietnam grew 579% from US$280 million in 2005 to a US$1.93 billion in 2015. TV is still king dominating trend at over 75% of the total expenditure. Digital advertising expenditure whilst the fastest growing is only at estimated US$62 million. Advertising has grown far faster then the economy; there is a consistent increasing numbers of brands in need to be noticed and a rise of domestic companies (especially in foods, beverages and healthcare) embracing the consumer economy in Vietnam.
- Kids are less influential in determining purchase priorities.
- Consistent rise in modern and convenient retail facilities as well as in e-commerce.
- Beer clubs, cafes and casual fast service restaurant chains are growing fast in Vietnam as well as branded fast service restaurants and casual dining chains.
- Consumers in Vietnam are shifting from brand ownership to new experiences.