Vietnam Consumer Trends 2021

A presentation from Cimigo market research on Vietnam Consumer Trends 2021.  Cimigo assess the impact of COVID on consumer trends in Vietnam during 2021. Discover the economic, social and consumer impact. You may find the accompanying article; Covid’s impact on Vietnam’s economic progress and consumer dynamism helpful.

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Economic impact

• The dual strategy for public protection and economic progress has proven extremely successful.
• On average household incomes have fallen 12%. This average masks the hardest hit households.
• Business has bounced back beyond tourism and hospitality. Export bound manufacturing has performed strongly.
• Vietnam remains the most interconnected trading nation globally.

Attitudinal impact

• National pride has been propelled further by Covid management.
• Covid has accelerated the emphasis on healthy lifestyles, sports, food and beverages.

Behavioural impact

• CPG largely grew but at a slower pace than in 2019. Income shortfall derailed the premiumisation of CPG.
• Downgrading to value for money alternatives will persist through 2021.
• Delayed high ticket item purchases will recover in Q4 2021.
• Digital transformation accelerates demand for online consumer edutainment and shopping.
• Online shopping will surpass the modern trade share of sales in 2028.

Structural changes

• Rapid urbanisation provides challenges, but high efficiency and convenience.
• The rural population is shrinking fast. Migration and lower birth rates mean households are smaller and slightly wealthier.
• Digital and modern trade expansion makes in-roads into rural households.
• Vietnam enjoys a huge demographic dividend owing to low dependency ratios on earners.
• A staggering drop in birth rates and an aging population will take hold in the 2030s.
• Elderly dependents will become a key challenge in 2040s.

Vietnam’s dynamism

• The speed of change will accelerate through to 2030.
• Sector-wide tech adoption will continue to leapfrog the development paths followed by mature markets.