Vietnam is one of the fastest-growing markets in Southeast Asia, mostly driven by manufacturing, exports, and an expanding middle class. As a result, Vietnamese consumer trends and business opportunities are changing rapidly with many positive signals. The World Bank mentioned Vietnam as a “development success story”, having made great strides in improving living conditions and infrastructure. This article will specifically summarize new trends in F&B, E-commerce & the Digital Economy.
In Business-to-Business (B2B), as well as in Business-to-Consumer (B2C), many opportunities have been identified in both of the business firms, making 2022 a prime time for setting up business in Vietnam. This is largely due to Vietnamese consumers’ interest in the modern lifestyle and demand for more quality and safer products.
This article gives you an understanding of the current trend and landscape of Vietnam’s consumer market. Besides, it presents how market research can become your key success factor to start a business in Vietnam.
Market Research is Key
One of the necessary prerequisites for enterprises to reap the benefits of this booming economy is to do market research. It can help tenacious investors to grasp the ever-changing market in Vietnam and adjust their business strategies in a timely manner.
The purpose of identifying market trends is to make your business more competitive and of course to make more profits. Therefore, before doing so, you need to find a reliable consultancy, and you should know what information you want to discover.
This article discusses some of the latest trends in Vietnam and shows the importance of conducting proper research to understand the market in the country.
We made the most detailed step-by-step guide to setting up a business in Vietnam for investors, now available as an interactive checklist:
Current Market Trends (2022 update)
According to financial projections done by Standard Chartered bank, the Vietnamese economy will grow to 6.7% by the end of 2022 and up to 7% in 2023. This is a clear demonstration of the resistance of the Vietnamese economy and its full recovery from the Covid pandemic.
Health consciousness and the quicker pace of most Vietnamese have also now been transformed into action and the growth of these industries. As a result, companies keep changing their strategy in relation to products and services that consumers consider essential in their everyday life.
RELATED: In-Depth View of Vietnam’s Economy During COVID – Q1 2020 to Q2 2021
Our Analysis of Key Markets & Their Trends:
1. Food and Beverage
According to statistics from the Ministry of Industry and Trade of Vietnam, the average annual consumption of food and beverage in Vietnam accounts for GDP of 15% with continuous growth. Currently, Vietnam’s domestic food and drink sector accounts for the largest proportion of the consumer market.
According to Statista, the revenue of the Vietnamese Food & Beverages segment was set to reach USD 559 million in 2021. Vietnam has a huge market of 93 million people, with more than half of the population under the age of 35.
This is a prerequisite for Vietnam to become one of the most promising markets for food and beverage in Asia. It is predicted that in 2021, the growth rate of food and beverage consumption in Vietnam will rank third among all Asian countries.
2. E-Commerce Trends
Vietnam’s e-commerce is developing at a rapid pace, and relevant laws and regulations have been improved accordingly. A report from Statista shows revenue in the Vietnamese eCommerce market is projected to reach USD 7,010 million in 2021.
From the same report, it is also estimated that the Vietnamese eCommerce market’s largest segment is Electronics & Media with a projected market volume of US $ 1,843 million in 2021.
3. An Emerging Digital Economy
The size of Vietnam’s digital economy stands at a staggering 21 Billion USD according to the latest report by research firm, Cimigo. Furthermore, by the year 2025, the digital economy will rise to an impressive USD 49 Billion by 2025, as projected by Google. This represents a two-fold increase from the current digital economy, in a mere 3 years’ time. Vietnam will likely see impressive growth in all sectors connected to the digital economy, for example:
- Software & IT Consulting
- Digital Services
- Industry 4.0
- Information Services
- Tech-based Agriculture
Market Research with InCorp Vietnam
Market research has become an indispensable means for enterprises to analyze and track trends in the market to guarantee success and profits. InCorp Vietnam can become an essential partner to entrepreneurs and investors for market analysis in this exciting and modern market economy.
Contact us to get a free inquiry with more information about our services and how our market research service can help your business to succeed in this market.