Vietnam is one of the countries where many believe the big growth in mid-term. With over 90 million population and the average age of 28 years old, Vietnam has the energy and resources to grow. The business opportunity is open for you.
Consumer wealth – smallest in Asean but steady 10 million high-income classes in 2020
Vietnam GDP per capita is relatively small, compared with other Asean emerging countries. The latest GDP per capita in 2014 has just surpassed $2000 USD. Even the two biggest cities – Ho Chi Minh and Hanoi has just over $5000 and $3000 GDP per capita respectively. It is estimated, however, that the high-income segment (house income of $1500 USD / monthly and above) will become 4 times as many in 2020. In 2020, the number of households that has $750/month and above will be one third of the population.
Graph 1: GDP of Asean
Graph 2: GDP growth of Vietnam
Graph 3: Growth of middle-income household
Is Vietnam market small?
Vietnam is still in the middle of emerging and thus most of the market is not big. The salary that Vietnamese university-graduate receives is $300-$400, and thus their free money is not a lot.
Vietnamese market shows the high growth ratio, though. Online shopping market, for instance, shows the growth ratio of 36% despite the low penetration ratio of credit cards. Also, there are a certain area that Vietnamese are willing to spend money. The typical example is smart phone.
In Vietnam, those who has no more than $200 / month salary takes every effort, including side jobs and borrowing money, to buy iPhone. Over 11 million smart phones are sold in 2014 in Vietnam, which are 57% increase vs 2013.
It is nothing but important to see the potentiality and the purchase motivation among Vietnamese.
Graph 1: Vietnam / Japan comparison
Graph 2: Online shopping market in Vietnam
Graph 3: Smartphone share in Vietnam
Vietnam – the country of connectivity
Vietnamese are connected. They spend 5.2 hours daily for the internet, and 2.7 hours for mobile internet. WIFI is free everywhere and the connection speed is not bad compared with the other Asean emerging countries such as Indonesia and Philippines.
Vietnamese also love Social Media. In Vietnam, social media nearly equals Facebook. Vietnamese not only use Facebook for information sharing but also other creative activities including e-commerce and finding their partners. They are very very open in social and holds several hundreds of Facebook friends in average. From the corporate standpoint, Facebook is a must tool.
Graph 1: internet connection hours
Graph 2: Facebook friends numbers
Graph 3: Popular social media
How to reach to Vietnamese
What is the best way to reach Vietnamese? Now that they spend hours on internet and Facebook, online is one of the most important information sources. The other influential source is people. They rely on what they hear from their friends and families, to share them via word of mouth. The tie of family is strong in Vietnam and the youth still make it a custom to what they are told from their parents.
If you take a look at advertisement market, on the other hand, over 80% of the ad spending goes to television, as the major advertisers in Vietnam are food companies and FMCGs, who need to reach to the relatively elderly people nation-wide.
So you need to think about who your target is and think about the best effective approach.
Graph 1: Vietnamese information source
Graph 2: Vietnam advertisement composition
Graph 3: Vietnam top information website
Why do you need market research?
The key to win the consumer business in Vietnam is to understand Vietnamese. Vietnamese are versatile and their lifestyle is different by many factors including age, married status, income and regions. Most likely, Vietnamese are different from you. You need to understand who could be your target customers, their lifestyle, opinions and how they perceive your products.
Our service is for you to understand Vietnamese market. Q&Me aims to provide the market research quick with affordable pricing, so that you could understand Vietnam market handy. Let us help you understand the market through our superb research services.
Asia Plus Inc. is based in Tokyo, Japan with its first Asian office located in Ho Chi Minh, Vietnam. Our dedicated company is made up of creative and energetic Japanese and Vietnamese individuals working together on one team, providing innovative business communications and markerting solutions online. At Asia Plus Inc. we believe that our services help build successful business in Asia.